Ep. 81 Tax Efficient Funding of a Major Purchase (House, Car, etc.)
In this episode I share how I helped a client with funding a home downpayment, but this process can work with any amount and any major purchase. The key here is to avoid penalties and keep our taxes to a minimum. Here is the spreadsheet used to walk through this.
When you have an annuity, they often come with surrender charges if you cash them in early. In this case it was over $20k on one of them and the other we didn't have the information available, but it was going to be some number, likely around 8-10% as well. This is a hefty fee to pay and made us decide not to use them. With the inherited IRAs, while they are taxable, to most people they will not have early withdrawal penalties. An individual brokerage generally will have capital gains but if there are capital losses to offset them it could be a good place to draw from ad there isn't an income tax. Consolidating accoutns was another factor we took into account.
Disclaimer: This is not tax, legal or investment advice. Each person's circumstance is different and your situation may be different. Feel free to reach out for a consultation. Contact smoran@redbarnfinancial.com visit www.redbarnfinancial.com or call 615-619-6919
Popular Podcasts
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
24/7 News: The Latest
The latest news in 4 minutes updated every hour, every day.
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.