How to make the most of your retirement?
(ABC4 Utah) Janeen is joined by Brian Decker, owner and founder of Decker Retirement Planning, to talk about how donor-advised funds work, as well as collecting tax losses and how to get the most out of your retirement.
A Donor Advised Fund or DAF is where Brian and his team create a tax credit for their clients over the course of a year when you have a very large taxable event. Let’s say you sold a business, stock, real estate, or have a very large bonus that creates a taxable event.
In another section, Brian has helped clients avoid paying capital gains on business sales, stock sales or real estate. If you have a taxable event this year and you want and need tax credits and are inclined towards charity, such as paying tithe to your church each year at the rate of $30,000 per year. With the donor-advised fund, you pay 5 years of tithing at $150,000 and get a significant tax credit to offset your taxable event.
Every year at the end of the year, a savvy investor should review their portfolio for losses. For example, a friend of yours says DocuSign’s stock is going to the moon! You choose to buy it for $300 and now it’s $150.
This is where you should take advantage of this loss!
Sell DocuSign for $150 and make up for that loss with a huge gain on Amazon. Wait 32 days and repurchase Amazon along with DocuSign to avoid a Wash Sale transaction. During the 32 days you are out of your DocuSign and Amazon positions, you can put those funds into the Nasdaq QQQ in order to participate if the market goes up during those 32 days.
In the spring of 2020 oil stocks have been beaten, now is the time to sell those stocks, buy the OIL ETF and offset those losses with the huge gains you have on other stocks. Harvesting tax losses should be an important part of any portfolio management strategy.
If you want to learn more, visit the Decker Retirement and Planning website to get your free Safer Retirement Toolkit. The free toolkit includes 2 books and a sample income plan to help you learn more about what your retirement could look like.
Brian and the Decker Retirement Planning team are here to help.