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Motley Fool Answers

Court is in Session: Judge Bro Residing

Motley Fool Answers

The Motley Fool

Taxes, Saving, Money, Investing, Planning, Retirement, Personalfinance, Finance, Education, Business

4.4823 Ratings

🗓️ 25 April 2017

⏱️ 16 minutes

🧾️ Download transcript

Summary

We’re going to bring forth a judge’s ruling on some controversial cases in personal finance. Should you try to beat the market? Should you use your Roth IRA as an emergency fund? Should partners have separate financial accounts? Judge Bro brings the gavel down once and for all.

Transcript

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0:00.0

This week's episode of Motley Full Answers is brought to you by Rocket Mortgage by Quicken Loans.

0:04.1

When it comes to the big decision of choosing a mortgage lender, work with one that has your best interest in mind.

0:09.2

Use Rocket Mortgage for a transparent, trustworthy home loan process that's completely online at Quickenloans.com slash fool.

0:19.5

This is Motleyful Answers. I'm Allison Southwickwick and I'm joined as always by Robert Brokamp,

0:23.7

personal finance expert here at the Motley Fool. Hi, bro.

0:27.4

Well, hello, Alison.

0:28.4

I hope you're excited for today's episode.

0:29.9

I am so excited.

0:31.4

Here comes the judge. Judge Bro is going to lay down the law and put to rest a few controversial

0:37.0

ideas in personal

0:38.0

finance. Should you try to beat the market? Should you use your Roth IRA as an emergency

0:42.6

fund? Judge Bro is bringing down the gavel of financial justice. We're also going to answer

0:48.1

your question about avoiding capital gains taxes by juggling with your Roth. All that

0:52.1

and more on this week's episode of Motleyful Answers.

0:54.8

It's time for Answers Answers. And today's question comes from Tom. Tom writes,

1:00.3

Hey, fools, I have a big winner in my brokerage account to go along with two big losers.

1:06.3

Let's say I don't see any near-term upside for holding on to the two losers.

1:11.3

Can I make the following move to avoid paying taxes on my winner?

1:15.3

Sell all three positions in the same year, then buy the winner in a Roth IRA.

1:20.6

The two losers would offset capital gains tax while essentially transferring the position

1:24.5

to a Roth IRA that won't get taxed when sold.

1:27.4

I assume there's a holding period where one cannot buy the winner in this scenario to avoid

...

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