We will soon be inundated with offers to invest in Gift City (Gujarat International Financial-Tec City) for affluent Indian residents and NRIs. I have been spending a little time reading up on the feature, and these are my initial impressions. I will share my other learnings over time. Caveat lector: I am not an expert… The post Investing via Gift City: basic considerations appeared first on freefincal.

The 1987 Black Monday crash was so swift and severe that some were questioning whether it was the signal of an oncoming depression: Most people didn’t actually think 1987 equaled 1929 but the crash was painful enough to cause pundits to at least consider the possibility that an economic calamity was on the horizon. The stock market fell more than 20% in a single day and nearly 35% over the course of a week but the …

Before the article, check out the latest on my podcast, Personal Finance for Long-Term Investors: On Apple Podcasts On Spotify On YouTube Now, here’s today’s article: Niki wrote in and asked: For the last several years, I’ve been able to save $80,000 pretax dollars (401k) per year as a business owner. But now I’m worried my pre-tax bucket is getting too large. I might have opportunities for Roth conversions later, but I’m wondering if it would be worthwhile to pay some tax now and save some of that money in a brokerage account. Because brokerage accounts are taxed at capital gains rates, doesn’t it make more sense? There’s some complicated math here that I may not be seeing, so any insight into this would be helpful!  This is an interesting and common question. 401(k) accounts are ubiquitous. Between their large annual maximums, employer-matches, and the past ~15 years of bull market stock growth, it’s common to see large 401k balances. But is there such a thing as “too big” a pre-tax bucket? Definitely. Let’s dig into the details. Fixing the Premise First, I want to clarify part of Niki’s question. She wrote: “Because brokerage accounts are taxed at capital gains rates, doesn’t it make more sense?” The money going into a brokerage account is first taxed as income. Then, any growth in the account will then be taxed at capital gains rates. And any dividends and interest along the way are also taxed on an annual basis (some as income, some at capital gains rates). There are three possible layers of tax. All else equal, you will pay more tax on the dollars in a taxable brokerage account than on the dollars in qualified accounts (401k, IRA, etc). The article below shares some similar comparisons. It’s difficult to conceive a scenario where a taxable brokerage has better tax outcomes than a qualified account: Should I Use My 401(k) Without a Match? But It Still Might Be Worth It Sure, it’s unlikely the taxable brokerage will ever provide better tax advantages. That’s ok.  Taxable brokerage accounts offer the critical, hard-to-quantify benefits of flexibility and liquidity.  I think it’s fine to sacrifice some tax advantage as a trade-off for more flexibility. One reasonable example:  Niki is currently contributing $80K per year into her Solo 401k. Perhaps she could dial that down, choosing to “only” contribute $50K per year into the Solo 401k. The other $30K goes to Niki as income. Of that, ~$8K will be paid as income tax. Niki could take the remaining $22K and invest it in a taxable brokerage.  She’s still saving a lot of money, though not quite as much as before. But now, approximately 1/3 of her savings are flexible and liquid. One problem, though? I’ve been totally subjective so far. Why’d we split $80K into 50K + 30K (minus taxes)? Can we be a bit more rigorous and objective here?

How is everyone’s summer going? It’s too quick for me. For example, this article covers July, which is Really, the first month of summer, but I’m writing it while stressing that the last week of summer is almost here. Personal Update July was a BUSY month for us – in a good way. We were always doing something. That’s just what our tourist town of Newport, Rhode Island, is like in the summer. Here are […]

Listen to the pod Here’s how to turn your money into a family fortress of wealth Get The FREE 10 Step Checklist That Grew My Portfolio To Over £140,000+  https://upthegains.co.uk/investing-checklist ——— In this episode we welcome wealth manager Alan Smith to the show.  Alan reveals the uncomfortable truth about government debt spiralling out of control and why traditional financial advice is failing ordinary people. He exposes how the trillion-pound spending spree is secretly destroying your […]

Welcome To Bankeronwheels.com This article is FREE — but only for humans. We don’t train future AI overlords 🤖🚫 👉 Log in or register (it’s fast & free): Continue with FacebookContinue with GoogleContinue with X .mh-wrapper{ padding;0px; } .nsl-button{ display: none !important; } .custom-social-buttons { display: flex; justify-content: center; gap: 15px; } .custom-button { padding: 6px 20px; border-radius: 10px; font-size: 16px; font-weight: bold; text-align: center; cursor: pointer; width: 40px; border: 1px solid #ddd; } .custom-google-button { display:flex; background-color: #ffffff; color: #db4437; align-items: center; justify-content: center; } .custom-social-buttons .custom-button { border-radius: 8px; transition: background-color 0.3s ease, transform 0.3s ease; transition-delay: 0.1s; /* Adds a slight delay before the hover effect starts */ } .custom-facebook-button { display:flex; color: #ffffff; align-items: center; justify-content: center; } .custom-twitter-button { display:flex; color: #ffffff; align-items: center; justify-content: center; } .custom-google-button:hover { background-color: #D93F2B; transform: scale(1.05); /* Adds a subtle zoom effect */ } .custom-facebook-button:hover { background-color: #365899; transform: scale(1.05); } .custom-twitter-button:hover { background-color: black; transform: scale(1.05); } .custom-button:hover svg path { fill: #FFFFFF; transition: fill 0.3s ease; transition-delay: 0.15s; /* Icon color change happens slightly after the background */ } .mepr-share-button:hover{ background-color: #bd3d59!important; } jQuery(document).ready(function($) { $(“.custom-google-button”).on(“click”, function() { var $googleButton = $(“.nsl-button.nsl-button-default.nsl-button-google”); if ($googleButton.length) { $googleButton.trigger(“click”); } else { console.error(“Google login button not found.”); } }); $(“.custom-facebook-button”).on(“click”, function() { var $facebookButton = $(“.nsl-button.nsl-button-default.nsl-button-facebook”); if ($facebookButton.length) { $facebookButton.trigger(“click”); } else { console.error(“Facebook login button not found.”); } }); $(“.custom-twitter-button”).on(“click”, function() { var $twitterButton = $(“.nsl-button.nsl-button-default.nsl-button-twitter”); if ($twitterButton.length) { $twitterButton.trigger(“click”); } else { console.error(“Twitter login button not found.”); } }); }); OR

Since writing about FIRE in 2009, I’ve favored investing in growth stocks over value stocks. As someone who wanted to retire early from finance, my goal was to build as large a capital base as quickly as possible. Once I retired, I could convert these gains into dividend-paying stocks or other income-generating assets to cover […] The post Stop Investing In Value Stocks Over Growth If You Want To FIRE appeared first on Financial Samurai.

🎙️Episode #436 – How much cash flow should your rentals make in 2025? Coach breaks down four simple formulas and shows how location, financing, and… The post How Much Cash Flow Should Your Rental Properties REALLY Be Making? appeared first on Coach Carson.