Q&A: The Hidden Tax Drain in Your Investment Strategy

Afford Anything | Make Smart Money Choices

Paula Pant | Cumulus Podcast Network

Entrepreneurship, Business, Investing

4.7 • 3.6K Ratings

🗓️ 25 February 2025

⏱️ 54 minutes

🔗️ Recording | iTunes | RSS

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Summary

#585: Michael rebalances his portfolio every year. But he’s worried that triggering capital gains taxes on his brokerage account will cancel out the benefits of reallocation. Is there a better approach? Sam has an opportunity to switch jobs, but she’s confused about how an Employee Stock Ownership Plan stacks against her current employer’s 401(k). Is she getting a good offer? Carlos is excited about early retirement in Brazil, but he’s worried about the tax implications for his U.S.-based retirement accounts. How should he prepare for this move? Former financial planner Joe Saul-Sehy and I tackle these questions in today’s episode. Enjoy! P.S. Got a question? Leave it https://affordanything.com/voicemail For more information, visit the show notes at https://affordanything.com/episode585 Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	Joe, have you ever thought about living in another country?
0:03.0	Not for an extended period of time.
0:05.2	Our goal is, though, when Cheryl, who loves what she does right now, decides that she doesn't want to do it anymore,
0:11.1	pick up and move from the heater that is northeast Texas during the summer, and maybe just live in Portugal for a few months or every year live someplace different, just for two or three
0:21.7	months at a time, though.
0:22.8	Ah, well, you'd probably still keep your residency in Texas then, which means there
0:26.7	wouldn't be tax implications to deal with.
0:30.1	Thank goodness.
0:31.9	Well, you're not going to dodge that complexity just yet because we're going to answer a
0:37.3	question from a caller who is moving to
0:40.5	Brazil and is wondering what some of the tax considerations are. We're also going to hear from a caller
0:45.6	who rebalances his portfolio every year on his birthday and is wondering what the tax considerations
0:52.7	are when rebalancing that taxable brokerage portion,
0:56.2	as well as just kind of what the strategy around it is. And we're going to answer a question
1:02.6	about 401k's versus employee stock plans. Wow. All that today. All of that. It's a big day, Joe. Buckle up. Welcome to the Afford Anything podcast, the show that understands you can afford anything, but not everything. Every choice carries a tradeoff. And that applies not just to your money, but to your time, focus, energy, and attention. This show covers five fillers. Financial increasing your income investing real estate and
1:28.3	entrepreneurship it's double eye fire i'm your host paula pant i trained in economic reporting at
1:33.3	columbia every other episode i answer questions from you and i do so with my buddy the former
1:39.7	financial planner joe saw see high what's up? Wow. Sounds like we're giving people a Brazilian
1:45.0	reasons to listen today. Oh, Steve, can we get a want-want? Come on. Oh, that was not want-want.
1:53.1	That was good. We don't want to lose our audience before the show has even started. So we're just
1:57.9	going to dive right in with this first question, which comes from Michael.
2:02.4	Hey, Paula. I had an interesting question. I don't think I've seen anyone cover elsewhere.
	...

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