Understanding how the capitol gains tax works will help you prepare for retirement. I listened to a podcast about travel hacks where they mentioned you should consider your kids ages when planning a trip to Disney or any other big destination because air fares/tickets/entertainment are cheaper for younger kids. It didn’t make me want to march my kids to Disney World before they are three years old so I can save a couple thousand dollars. It did however make me aware, I could save some money just by planning ahead (2). This is the same approach I am taking to understanding capital gains. When it is understood that you can save money by holding onto a house for over a year (considering what your stocks have made/lost) it is worth learning. Now that doesn’t include taxes, cost of maintaining, or wear and tear. It is worth doing a budget that will help your money work for you. Below is a hyperlink to a site which has all the charts and examples to help understand how you can make the capital gains tax work for you (1).
- Choose Fi, podcast by Jonathan Mendosa & Brad Barrett
Ben & Jamie Anderson Realtors 