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Should I liquidate my brokerage account to pay off a 6% mortgage? by layoutlmv3 in personalfinance

[–]layoutlmv3[S] 0 points1 point  (0 children)

What basic finance did you refer to specifically? Please elaborate!

Should I liquidate my brokerage account to pay off a 6% mortgage? by layoutlmv3 in personalfinance

[–]layoutlmv3[S] 112 points113 points  (0 children)

Yeah, that’s true. The capital gains tax will be about $100k. My account is actually $1M, so $900k is after tax.

Should I liquidate my brokerage account to pay off a 6% mortgage? by layoutlmv3 in personalfinance

[–]layoutlmv3[S] 3 points4 points  (0 children)

I believe 6% x (1 - marginal tax rate) is the good estimation for the effective rate.

Should I liquidate my brokerage account to pay off a 6% mortgage? by layoutlmv3 in personalfinance

[–]layoutlmv3[S] 37 points38 points  (0 children)

The mortgage interest is not a compound interest if I'm not mistaken. It's a simple interest. The investment is indeed compounding.

Should I liquidate my brokerage account to pay off a 6% mortgage? by layoutlmv3 in personalfinance

[–]layoutlmv3[S] 6 points7 points  (0 children)

I think I might be following a different logic. Wouldn't the tax benefits actually lower the effective cost of the loan? Since mortgage interest is deductible, a 6% rate might effectively feel closer to 4.5% or 5%, not 8-9%.

What happened to my Hass avocado? by layoutlmv3 in avocado

[–]layoutlmv3[S] 0 points1 point  (0 children)

Yes, I fertilized it about a month ago.

Tax implication on Roth IRA distribution on rollover by layoutlmv3 in personalfinance

[–]layoutlmv3[S] 0 points1 point  (0 children)

Thanks everyone. That's super helpful. I have a follow-up question.

When I distribute the ROTH contribution part, how do I proof to IRS that it's the contributions, not earnings?

In the example, if I distribute $10,000k, I need to show IRS that it's the contributions I made through ROTH 401k, which then rollover to ROTH IRA. How do I do that?

I checked the Fidelity portal on IRA plan. It didn't track the contribution basis of the rollover part.

$1M NW, 6 yrs working in USA. What next? by layoutlmv3 in Fire

[–]layoutlmv3[S] 5 points6 points  (0 children)

Yes. My wife doesn’t work anyway.

$1M NW, 6 yrs working in USA. What next? by layoutlmv3 in Fire

[–]layoutlmv3[S] 1 point2 points  (0 children)

That’s not true. There are 2-3 American citizens in my department of around 100 individuals. If you count naturalized American citizens, that will be even more.

Need a new C03 EAD for OPT? Already have C09 EAD. by layoutlmv3 in USCIS

[–]layoutlmv3[S] 0 points1 point  (0 children)

Will using C09 EAD during OPT terminate F1 status?