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PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4328
Experience:  35 years tax experience, including four years at a Big 4 firm.
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I just sold a large amount of stock and was thinking in ivesting.

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I just sold a large amount of stock and was thinking in ivesting. I've heard different thoughts on whether tax-exempt vs. taxable bonds would be more appropriate. Estimating that I will want to pull around $135K from my investments each year and receive another $15K from social security once I file.

PDtax :

Welcome to the site. I will be helping you today.


 

Customer:

Hello


 

PDtax :

The best way to answer this question for you is to determine your marginal tax rate. If your income is all taxable at standard rates, let's assume your marginal rate is 33%.


 

PDtax :

hello.


 

Customer:

The draw form my investments will be my only income


 

PDtax :

Right. If capital gains, lower rate. If from retirement accounts, ordinary income. The rate estimate is not unreasonable.


 

PDtax :

If your taxable yield is 3%, and your taxfree is more than 2.0%, choose taxfree.


 

Customer:

O.k. that sounds reasonable. Thanks.

PDtax :

If I have answered your question, please leave positive feedback. Thanks for asking Pearl/Just Answer.


 

PDtax and 2 other Tax Specialists are ready to help you