I'm still a few years away from hitting my goals to retire. I've ended up with a decent amount of gains in my taxable accounts, I could sell off a chunk and pay off my mortgage. I know that on average it's a better strategy to leave the money in the market, but I'm considering the mental benefits of not having to worry about it, and also having more flexibility to manage withdrawals in retirement.
The gains are long term, and the amount left on the mortgage, plus current income, is within the 15% capital gains tax bracket. So I could do it in a single year without having to pay anything at 20% capital gains.
Two questions:
- Is there any tax benefit to spreading it out over several years?
- Is there any benefit to doing it before I retire, or is there a reason to wait until after retirement (when my regular income would drop off)?
It seems like I'm probably going to pay 15% capital gains on all the gains in the taxable accounts no matter what? So the timing doesn't really matter, but I might be missing something?
Submitted October 09, 2021 at 09:23AM by Assume_Utopia https://ift.tt/2YCGnXa
