This video covers my top 20 holdings in my taxable brokerage account as of 10/31/2019.
You might have heard of the F.I.R.E. movement. The standard F.I.R.E. methodology typically assumes a person is saving as much as possible and living frugally (a bare-bones kind of frugality), then retiring extremely young. If you want to retire at 30, this is necessary... but... why not live your life a bit less frugally and still retire young, but maybe at 45 instead of 30? This is a very attainable goal for almost anyone, especially if you’re able to start saving young. F.I.R.E.D. Up is designed for a young person looking for a strategy to retire in their 40s comfortably. How? Through a hybrid dividend growth and aggressive growth strategy. That’s right! Welcome to The Financial Independence Retire Early Dividend (F.I.R.E.D.) strategy!
Here are the buckets used in the methodology:
1. Aggressive Growth (high flyers)
2. DGI (Dividend Growth Stocks)
3. Core ETFs
4. Marijuana (also aggressive growth, but I keep my bucket separate)
You will need to assign a percentage of your portfolio to each bucket. Your age and risk tolerance will impact these percentages.
Young investors in their 20s have much more time, and these people can typically afford to carry much more risk. The goal for this age would be to save as much as possible and grow capital. Any dividends would be reinvested into each stock they are received from. This will continue until the end game.
30s...in this decade, you will start to convert some of your growth into your Core ETF and DGI buckets. This is where you will start focusing more on your dividend yields.
40s...you are now preparing for the end game. The end game is where you have enough dividends to live off of without selling any of your assets. You hold onto your stocks...these continue to grow and increase over time. Once you decide to retire, you will no longer reinvest your dividends. Instead, you will collect this money to pay your bills and live on. Your assets will still grow, but at a lower rate. In theory, your children will inherit all of this and you will never need to spend a dime of capital. You could also choose to sell some assets in case of an emergency, etc.
The information provided is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs. FIRED Up Wealth and Eric Cuka do not make any guarantee or other promise as to any results that may be obtained from using our content. No one should make any investment decision without first consulting his or her own financial advisor and conducting his or her own research and due diligence. To the maximum extent permitted by law, we disclaim any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses. Content contained or made available is not intended to and does not constitute legal advice or investment advice and no attorney-client relationship is formed. Your use of the information on the website or materials linked from the Web is at your own risk.
#StockMarket #Investing #FinancialFreedom #FinancialIndependence #RetireEarly #DividendGrowthInvesting #FIRE
This video covers 5 things to consider when tax-loss harvesting. Tax-loss harvesting is especially helpful in taxable brokerage accounts.
1. Investment losses can help you reduce taxes by offsetting gains or income.
2. Even if you don't currently have any gains, there are benefits to harvesting losses now, since they can be used to offset income or future gains.
3. If you have more capital losses than gains, you can use up to $3,000 a year to offset ordinary income, and carry over the rest to future years.
Losing money is not anyone's idea of a long-term investment plan, but a well-diversified portfolio will usually contain some investments that have indeed lost value, at least over the short-term. Sometimes an investment that has lost value can still do some good—or at least, not be quite so bad. You can sell stocks, bonds, mutual funds, or other investments that have lost value, to reduce federal taxes on capital gains from winning investments—or you could get a federal tax deduction. It's called tax-loss harvesting.
The key to an effective tax-loss harvesting strategy is to evaluate what you own and why you own it, identify investments that have lost value, and then consider the sale of some portion of those holdings to offset realized gains, expected future gains, or even income. And do this while being careful not to stray from your target investment mix and diversification strategy. Because evaluating and managing the tax consequences of your investment decisions can be tricky, it's always a good idea to consult a tax professional.
Here are 5 things to keep in mind as you see how tax-loss harvesting might help you lower your tax bill.
The information provided is for informational purposes only. It should not be considered legal or financial advice. You should consult with an attorney or other professional to determine what may be best for your individual needs. The ideas and strategies provided should not be used without first assessing your own personal/financial situation, or without consulting a financial and/or tax professional. The topics discussed are solely my thoughts and opinions. Your continued reading/use of my YouTube Channel, blog, website, newsletters, Facebook group, Facebook page, and other materials constitutes your agreement with and acceptance of this disclaimer.
#PersonalFinance #StockMarketInvesting #Taxes #TaxHarvesting #FinancialFreedom #StockMarket101