Let’s take a look at what you need to know about the estate tax on stock and dividends, including who needs to worry about this issue and what strategies can be utilized to minimize the tax bill.
Many investors want to know whether or not their individual portfolios can make them financially independent during retirement. In other words, just how much dividend income do you need to live comfortably during your golden years, and how large a portfolio is required? That’s a complicated question, but here’s a basic guide that can help you think through some of the biggest factors.
Tax-deferred retirement accounts like IRAs and 401(k)s serve as an essential part of most people’s long-term savings plans. While these are powerful tools, they also come with some tax complications after investors reach a certain age due to required minimum distributions, or RMDs. Let’s take a closer look at the complications posed by RMDs, as well as the suitability of using dividend stocks to meet these requirements.
The Social Security Administration estimates that two thirds of retirees will get the majority of their income from the program, which has important implications for investors hoping to supplement these payments with dividends. With this in mind, let’s take a look at how dividends can affect Social Security benefits to help you maximize your income in retirement.