I don’t understand that tax problem with dividends?
If one reinvests ALL dividends then yes you will have a bill of 15-20% of the total amount.
But knowing this why wouldn’t you receive 15-20% of the total amount and reinvest the rest or let all dividends pay to your account and earmarke 15-20% for taxes.
Everything can be known and planned for.
Dividends in a Roth are great but again have to wait to 59.5 to avoid 10% penalty (unless implementing IRS rule 72t) so there are +\- to both worlds…
Personally BOTH should be implemented BUT single stock investing is very risky so like we preach here ETF/Index/Fund total return and dividend payments with low fees should be the focus…
If you are active on this board reading posting and researching
You can also spend the time to figure out what 15% of your dividend income is set it aside in a MM account until tax time…its marginal extra work
If one reinvests ALL dividends then yes you will have a bill of 15-20% of the total amount.
But knowing this why wouldn’t you receive 15-20% of the total amount and reinvest the rest or let all dividends pay to your account and earmarke 15-20% for taxes.
Everything can be known and planned for.
Dividends in a Roth are great but again have to wait to 59.5 to avoid 10% penalty (unless implementing IRS rule 72t) so there are +\- to both worlds…
Personally BOTH should be implemented BUT single stock investing is very risky so like we preach here ETF/Index/Fund total return and dividend payments with low fees should be the focus…
If you are active on this board reading posting and researching
You can also spend the time to figure out what 15% of your dividend income is set it aside in a MM account until tax time…its marginal extra work
Statistics: Posted by Dpmbball — Sat Jul 27, 2024 9:21 am