Tax efficiency of zero dividend stocks

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why not BRK.B?

POF talking about BRK!
https://www.whitecoatinvestor.com/wh...dividual-stock...

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Do you work for Cosco or something? Were you in my checkout line? I think you might be the dude I upset? Sorry about being rude in the store. Next time...

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Yeah, reading about TIPS. It is something I am considering but I need to understand them better. I think I will include them, but I want to finish Harry's...

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I see a few things in what you are saying.

Point 1: "The problem is , if you a good accumulator you will end up with a large taxable...

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The book: The Overtaxed Investor, slash your tax bill and become a tax alpha dog is a good and easy read. I highly recommend it.
I will not be adding...

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I guess the part that seems most convincing is if you did this as part of taxable and had value in IRAs to make a well rounded diversified plan.
...

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Tax Alpha doggie!...

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I am not pursuing it, but for high income high tax estate planning I see the appeal.

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Reading about taxes.

Finishing TheTax Alpha Dog, by Phil DeMuth.

Zero dividend single stocks in taxable.

Growth...

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I did the math. I tried it once (for a year) and it did not pay for itself, so I switched to the basic card.

Perhaps you spend more at costo...

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You said it well.
Over the long run it goes up.
If your time horizon is long, relax.
Focus elsewhere....

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Yep. Save more. Diversify into international. Turn off news....

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Update: HY savings account at Sofi + short term bonds + short term CDs + reading.

Will keep saving and reading.

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Boring is ok. Save & enjoy life outside the hospital.

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Yeah, it was a little weird. I would bet he was “incentivized” in some way, otherwise why would he care?...

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yikes....

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Well, I went to costco today. In the check out line there is a guy. I hear him give the person in front of my in like the "pitch"
...

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It is a good question.

Short answer: 70 is when I plan on needing funds from stock index funds.

72ish.

Drawdown...

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I would do a few things:
1. Invest this lump sum immediately. I think I would just invest it all in VTI / VXUS

2. Rent. Do not rationalized...

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This. I need $ when i am 70 . That is 21 years away. That $ needs to be invested in stocks.
I cannot time it .
I will just plant it like an...

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Guy is not being very nice. Sounds like he is out to get you. I would tell him no.
Regardless, sounds like he is unhappy and does not like you....

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I am just trying to learn about all different kinds of bonds. I will make a bond ladder or CD ladder + cash to fight SORR when i fully retire. what do...

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I am buying, but I am always buying. Seems like a good time to buy....

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https://www.whitecoatinvestor.com/ho...nal-statement/...

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Your IPS = investment policy statement = written financial plan needs to have a plan for bear markets and downturns.

If you aim at nothing,...

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What does your IPS say? No one knows the answer to what will happen next. I think it is a good time to buy and in 12 years will be higher but i could...

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Thank you!...

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wow. This is why most docs now work for "the man"

My brothers are general surgeons. They had their own PP group. It was not sustainable....

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I also experienced same. 2008 was not something that affected docs (Anesthesia, that I saw) except for their investments (stock, RE).

Job...

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Cool calculator! Useful!

So the book I am reading says: YTM = yield to maturity = interest rate that will make the sum of the present values...

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That is what i thought but it is a little confusing....

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I was a new attending and was paying down debt. Did not take a salary hit. Did not hurt docs IMO (other than loss of investment value)

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Awesomeness! thank you! That makes sense!...

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Looking at buying some short term treasury bonds. Trying to understand bonds better.

The Question: in the attached screen shot:
...

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A CD ladder as part of your IPS is reasonable. Is that what this CD is for?


If the 2 year CD is part of a CD ladder that will help...

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I have zero issue with someone asking for a review. Just say, hey, can you leave us a review if you have time? Also, ask them what you could do better....

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Started reading Harry’s book.

Explore TIPS.

Really like it!

Anyone considering making their own bond or CD tent...

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what is going on with our supply system? Yikes!!!...

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I am considering also. Might do shorter duration...

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If you are 6’ 5 270, and constantly lift, we will most certainly go easy. Monsta! Awesomeness! Get after it!...

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Yes. What is the point. It is "down", so what. If you can TLH great. If not, ignore and keep buying.

20 years from now I will...

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I suppose many will over save and work a little too long.

To under save would completely suck. That is not a situation I want to plan for....

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Ok,
Using ADP for my S-corp payroll. Payroll was set up wrong with state. State hounded me with dozens of notices that were very difficult to interpret....

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sounds pretty good but I want a little shorter duration. 3mo-1 year. Might make a tent that goes longer but want some to be available in 3-6 mo....

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I ordered Harry's Book:
https://www.amazon.com/Explore-TIPS-...dp/B08HN9PYGC/

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Thank you! This is great info.

Yes, I have no clue what the best AA for the next 20-30 years will be but I plan on having 90-95% stocks (70:30...

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Not a good financial decision. Not everything worth doing in life is a good financial decision.

Is this right for you? Only you can say....

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yes, i certainly intend to hold until end of term = maturity.

I might try to buy on monday.

Sounds dumb, to be uncertain but...

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OK, I will check it out. I thought it would be easier at VG but perhaps I am just foolish.

Here is another ignorant question: They are bought...

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good point....

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Looked this morning at the VG brokerage and it looks like you can buy CDs and Treasuries. I need to read more. The VG site is a little cumbersome and...

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Sorry to keep beating a dead horse but does anyone here use Sofi?

Sofi HY savings for liquidity?

I am strongly considering using...

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Worry less. Spend less than you earn. Avoid debt.
Save, invest, and enjoy the little things.
There is a house on every corner, literally.

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I will read more about it. I know several of the WCI forum members use this, but I have little understanding of exactly how this works. Do you have a...

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Roger that....

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Outstanding. Legend.

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I paid off my loans. Around 300k at 6%.

I pay a lot of taxes and I suppose that means a lot of people (including you) think it is a very...

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Longview is excellent podcast.

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Interest rates 5, 10, 20 years from now could be anything.

Make a plan that works unless the world ends.

If the world ends,...

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Considering using SoFi as a HY savings account for liquidity tor around 100-200, anyone see any red flags with this?
https://www.sofi.com/banki...

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Yes, and the first thing i did prior to buying was double check with my CPA.

Like TLH and BDR and withdrawal strategies in retirement there...

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https://youtu.be/_x5SeXNabd8

Here is another left leaning fellow that agrees with me.

It is a scam.

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https://youtu.be/Z0GFRcFm-aY...

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I did a little TLH yesterday, but nothing crazy. 2k or so worth.

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Update on what I did and/or will do:

1. I-bonds. last fall I purchased 20k (10k for me 10k for wife), Then in Jan I purchased another 20k,...

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Fantastic! from the man himself! Thank you sir! will check it out!...

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I knew you would say that! Very cool! Yeah..................I don't know.........I am a little bit of a chicken. Will read more.......sorry for being...

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Wow, love it. Will check this out. VG is where most of our money is and this might simplify things for me. Might make a ladder there and that would be...

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Yes! Ally seems to be advertising a lot and that annoys me. I want them to spend money on giving me a good rate, not on advertising during the NFL dr...

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Awesomeness! I will nerd out on this later this afternoon. Thank you!...

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Awesome! Yes! My CPA just confirmed (I double check stuff with him because I am a paranoid person regarding the KGB (I mean IRS). I will buy today!...

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I basically have a very large allocation to stock index funds (most of my $), plus a small amount in bonds, and a cash bucket.

Cash bucket...

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If you retire in > 5 years (longish time horizon), do two very simple things:

1. keep buying (probably the best thing to buy is a combination...

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ETFs for taxable are growing on me.

I own both ETFs and MF.

If was starting out and had to pick, I would go with VTI & VXUS...

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I would just do VTI & VXUS and keep it simple but what you described seems fine

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Looks good. Thanks for the hard work! I will get it!

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The last thing i personally need is less motivation and more appetite.

America?

Does the typical American need more appetite?...

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I understand your lack of love for CC, (i might be one of the few).

Those companies are snakes.

I used only debit cards for...

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Depends on age.

If you have > 5 years before you need to spend the $ then it is irrelevant what the market does in the short run....

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https://www.washingtonpost.com/us-po...student-loans/...

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Bingo. Root cause = ridiculous tuition.

Schools are actually incentivized to raise costs by forgiveness.

Gov guarantees they...

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It is expensive. Also, if you go cheap you can end up with all kinds of broken stuff or missing stuff. 10-15k for 3 bedroom in 2019.

Moving...

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I think we probably are but I do not think it is the end of the world and I think things will get better.

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That is fair. Poor choice of words on my part. Not my best post. I will try to do better next time. Sorry....

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I never agree (OK almost never agree) with this guy and I do here. He is right.

The world is not going to end. In fact it will get better...

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Terrible advice IMO.

You don't buy or sell based on the market unless it is an investment property.

These people need a place...

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Here is the deal. No one knows exactly what the RE market or the Stock market will do in the short run.

In the short run we guess or better...

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Also, you are correct. RE agents love to buy and sell. That is how they get paid. Asking a RE agent if you should buy or sell is like asking a dog if...

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Yes.

Do NOT sell. Your husband is being foolish.

Tell him it is a really dumb idea.

You need a place to live where...

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Awesome! I have a 2013 civic I bought used in 2016. Tell her she is in good company. Love Honda! Great cars!

As for what you said earlier...

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seriously boss, What are you talking about?

These people sound like 20 year olds undergoing a "gap year" not a 30-50 year old doc...

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Sounds like you have a knack for it.

Seems like a lot of snake (CC) handling and churning (changing credit cards frequently etc.)
...

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5 good reasons. Good writing.

Think the key is gaining flexibility and the ability to say no and negotiate terms from a position of strength....

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I cannot get a flight alone for less than 300-500, I don’t think this is realistic for the average vacation.

Flight 400, (after bags /fees...

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Glad everyone is ok!

EF is important, family essential!

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yes, I would say about 2-10k per year.

Will probably increase to 10-20k per year.

You cannot take it with you.

...

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Add vxus...

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They do provide a valuable service but that does not mean they were good investments.

In the long run they could be Kodak or kmart,
...

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yes, i should have mentioned this. best to work for a while and ensure job is stable prior to buying.
Not something you want to do more than ne...

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You sir know how to do it. You are also a lot smarter than the average young doc and certainly a lot smarter than I.

I will not do long distance...