What is a taxable account?
To properly view this site, javascript must be enabled and Flash version 9 or higher must be installed.
Get the latest Flash player
Get the latest Flash player
-
In addition to finances, what issues are important for retirement planning?
-
Can I deduct retirement plan contributions?
Basic information to prepare an individual income tax return, Form 1040 and the basic schedules.
-
What if a child is reluctant to spend or to save?
In this video, parenting educator Dr.
-
How can I keep the expenses of investing as low as possible?
Stumbleupon
Reddit
Digg
Mixx
Delicious
Facebook
Twitter
David John Marotta
President, Marotta Wealth Management, Inc., Marotta Wealth Management, Inc.
http://www.emarotta.com
434-244-0000
questions@emarotta.com
David John Marotta is the President of Marotta Wealth Management, a fee-only financial planning and asset management firm in Charlottesville, Virginia. He is an oft-quoted writer and speaker on financial matters and his weekly financial column can be found at www.eMarotta.com
What is a taxable account?
This expert: 182,763 views
This series: 7,418 views
Transcripts
Host:What is a taxable account?
David John Marotta: A taxable account is an investment account, where you put the money in after you pay taxes on it. The investments will grow and when you take them out, you do not need to pay taxes. It acts more like a bank account. Any capital gains in the account, is taxed at capital gains tax rates, which are now currently 15%.
Taxable accounts are an important investment vehicle because when you retire, you may retire at age 65, you may not start collecting social security until age 72 and you may need to fund those years between when you retire and when you start collecting social security. You need a taxable account to do that. Taxable accounts can also be used to buy a home, buy a car and lot of other things that you might need to do. They will be your emergency fund, if you lose your job.
Additionally between 65 and 72, when you have no income, it is a great time to take your traditional IRA accounts and convert them to Roth IRA accounts and what is called the Roth IRA conversion. As you do that you take the money out of your IRA and you put it into your Roth IRA, but you have to pay income tax on it. So, you want to is in as lower tax bracket as possible. Well between 65 and 72, you may have no income, that is a perfect time to make income by converting all of your IRA accounts to Roth IRA accounts maybe at a little betty chair $50,000 so. That keeps you in a lower tax bracket. Then at age 72, you have all of your money or as much as possible, converted to Roth IRAs, you will never have to pay tax on that again.
When social security starts to come and you start having to pay tax on that. So, taxable savings is an important vehicle to be able to manage among the other two.
Other Videos
-
In this video, Vikki Frank, Kandance Beamon, and Linda Stroman, financial education providers describe several key areas to address regarding debt reduction and elimination. This video is designed to deliver basic financial information to assist individuals and families to be able to identify goals and process strategies for their specific financial needs. The topics included in this video cover are: self-evaluation of debt load, budgeting strategies, understanding the effects on your credit and scores, why savings is important, how to develop a debt elimination plan, and the importance of financial education and how financial counseling may be useful.
-
This video provides tips from experienced realtors and mortgage brokers on how to sell a home, buy a home, price a home and select an agent. Get the best deal you possibly can when either buying or selling your home!
-
In this video, Linda Sherry details the best ways to prevent identity theft and what you can do if you think your identity has been stolen.
-
In this video, financial planning professional and member of the Financial Planning Association®, Tracey Baker, CFP® describes the four important steps to saving money. This video is designed for individuals who are looking for tips to save money. This video series includes an overview of cutting out avoidable expenses, reducing variable spending, planning for lower fixed costs and making hard decisions.
-
In this video David John Marotta explains the importance of financial planning and budgeting.
-
In this video, Vikki Frank, Kandance Beamon, and Linda Stroman, financial education providers describe several key areas to address regarding debt reduction and elimination. This video is designed to deliver basic financial information to assist individuals and families to be able to identify goals and process strategies for their specific financial needs. The topics included in this video cover are: self-evaluation of debt load, budgeting strategies, understanding the effects on your credit and scores, why savings is important, how to develop a debt elimination plan, and the importance of financial education and how financial counseling may be useful.
Home | Terms and Conditions | Privacy Statement | FAQ | About Us | Contact Us | RSS | Link to Us | Filmmakers | Blog
© Copyright 2009 Knowlera Media LLC. All rights reserved.
View Comments (Add Comment)