This is mainly aimed at guys and gals getting hit by the 3.8% medicare tax.
I have been looking and looking at strategies to maximize "yield/income" and pay the tax man as little as possible with a long term outlook.
To say they're more investment strategies under the sun all claiming to be the right way is an understatement.
My initial thought was to have a well diversified portfolio by, bond/equity, size and most sectors using ETF's with a few individual stocks that maximized dividends with some growth funds too. I would then reinvest around 25-30% of the dividend yield and capture limited capitals gains off the growth funds as warranted.
I keep 2nd guessing myself and thinking I should be much more aggressive with growth funds with limited dividend payout. But, when you look at even limited dividend reinvestment versus pure stock appreciation, dividend reinvestment usually kicks stock appreciation in the butt. Also, the dividend stocks also appreciate, just not as fast as a pure appreciation stock.
I am also trying to peer into my crystal ball and figure out what happens if a D becomes president and worst case would be D's take control of everything.
I feel myself leaning toward just paying whatever tax is due with the income that develops and go with my initial thought.
Thoughts and comments welcome.
I have been looking and looking at strategies to maximize "yield/income" and pay the tax man as little as possible with a long term outlook.
To say they're more investment strategies under the sun all claiming to be the right way is an understatement.
My initial thought was to have a well diversified portfolio by, bond/equity, size and most sectors using ETF's with a few individual stocks that maximized dividends with some growth funds too. I would then reinvest around 25-30% of the dividend yield and capture limited capitals gains off the growth funds as warranted.
I keep 2nd guessing myself and thinking I should be much more aggressive with growth funds with limited dividend payout. But, when you look at even limited dividend reinvestment versus pure stock appreciation, dividend reinvestment usually kicks stock appreciation in the butt. Also, the dividend stocks also appreciate, just not as fast as a pure appreciation stock.
I am also trying to peer into my crystal ball and figure out what happens if a D becomes president and worst case would be D's take control of everything.
I feel myself leaning toward just paying whatever tax is due with the income that develops and go with my initial thought.
Thoughts and comments welcome.