Real Estate, Europe, Capital Gains discussed on The Drew Show


Index fund go to somebody like vanguard it's a no load fund and just europe it in there because then what you're getting as its after tax dollars going in but you're getting tax deferred growth like you would in a regular fora one k r regular ira you're gonna pay taxes when you take it out but uh us tax defer growth on everything but the amount to turns over so ninety five ninety six percent of it whatever it is of the growth is going to be taxed deferred because it worse like the white regionally as it works like this let's say you bought a a a stock for seventy dollars a share and it goes from seventy dollars a share to ninety dollars or i share you don't pay taxes on that twenty dollar gain until you sell it got what sort of fact of lay because as a capital gains growth is effectively tax deferred growth and so that's what's happening here and the other goes about the low turnover is mutual fund is that when you do pull the money out someday employ without any time you want uh it's gonna be taxed not extraordinary income rate which is forty eight million percent right now but it's can be taxed at a regular capitalgains rate which for you today would be fifteen percent and start your gangs are gonna be taxed lower than they would be even all mike for one k money or something when you're pointed out so as has really you a good investment vehicles on the uh on the dividend on those yes if there is dividends but there's not a lot of dividends on them most everything to roll back in that's why users something simple like an s p five five hundred and here's the other thing i did and you can do whatever you wanna do but you're you're a high income earners so here's what idea addis let that build up a while and when i look up and there's no to three hundred thousand bucks and there are just go poppies rosta with it and then i've got tax defer growth again capital gone growth on that and that enables me to save up and pay cash for some real estate but now in our am diversify ma portfolio it's not all and stocks.

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