How do you decrease your taxable income to stay on certain bracket? 401k, What’s else?
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My wife and I (both 32 years of age) together make $860k annually gross. She’s an ophthalmologist who bought into her practice and does super well. I work at Big 4. Currently, we auto invest $2500 a month into VOO and max out our own 401ks but not much else. I feel like we are falling behind even though we make in the top 1%. We have a low interest mortgage in a LCOL area close to a MCOL city (think 40 min outside Midtown ATL but not Atlanta). We have no kids yet but plan to. Cont…
6 years doing market-neutral arbitrage as a female trader, and the biggest lesson I’ve learned is that the people who say 'it doesn't work' are usually the ones trying to scale too fast without testing the mechanics. Question for the room: For those actually executing, what's your average net yield per spread on a standard market inefficiency right now? Let's see who is actually in the market versus just talking about it. 👇
HSA and IRA are options.
IRA traditional or Roth?
Traditional, if you want to reduce taxable income. Roth IRA and 401k don’t reduce income now but are tax free later
529, but only on state level and selected states. funnel some money to your business, even a small one and tag as biz expense. charitable contributions.
HSA, Limited FSA
Capital losses can deduct up to $3k from income I believe
@QT1 does RH send those capital loss information?
Im afraid i dont use RH!
Besides all the pre-tax accounts, everything on a Schedule A will reduce taxable income. But why do you care what bracket you're in? Tax brackets are marginal, so you pay the higher tax rate only on income within that bracket.