EPISODE #055

THIS IS HOW TO MAXIMIZE ON QUALIFIED DIVIDENDS

PERSONAL FINANCE TIPS DELIVERED DIRECTLY IN YOUR INBOX

Subscribe to our free newsletter and get strategies you can use right away.

By submitting your name and email you are allowing us to store your personal data and send you emails
riskalyze financial planning logo orange and grey

RISK SCORE

Does my portfolio fit me?

The 19 Sources of Retirement Income: Qualified Dividends

In this episode, John continues his series the 19 Sources of Retirement Income. He takes a deeper look at last week’s episode. He also explains qualified dividends, and how they differ from ordinary dividends. A mix of both can bring you a resilient and tax-efficient income stream.

John is the author of 5 Ways Your Wealth is Under Attack and It’s Your Wealth – Keep It.” He has lectured extensively on financial planning and is a recipient of the Five StarSM Wealth Manager Award.

Don’t miss John’s takeaways:

  • Dividends come from owning stock in a company. Shareholders are paid from them in regular intervals.
  • Owning stocks as an individual—in addition to whatever you own in your investment accounts—provides another income stream. This can give you redundancy and protection in your retirement plan.
  • Your dividend yield should derive from both qualified dividends and ordinary dividends.

Plus:

  • All dividends are ordinary unless they are specifically designated “qualified”. In this case they have to meet certain standards set by the IRS. A company can pay out qualified dividends if:
    • It is a US company, publicly traded on a US market, or
    • It is a foreign company that either has been incorporated in the US or is part of a comprehensive income tax treaty, and
    • The investors hold their shares for a specified set period of time.
  • Qualified dividends are taxed at the capital gains rate. This is much lower than your tax bracket for ordinary income. It’s also the primary benefit of this type of dividend. You could pay 20% tax, 15% tax, or 0%, depending upon your income tax bracket
  • Do you have both qualified and ordinary dividends from many different types of companies in different industries and in different countries? If so, this gives you a resilient, tax-efficient income stream.

At Smallwood Wealth, we want you to accumulate as many of the 19 Sources of Retirement Income as you can. Investing in stocks as an individual gives you a separate stream of income from your retirement accounts. It also protects your plan from unforeseen events.

For more, listen above. If you are new to Smallwood Wealth schedule a Wealth Curve Conversation here.

You can connect with us on social media. Call us at (800) 797-1000 and set up a free, no-obligation phone call.

Let’s diversify your income streams for retirement.

Talk to a Smallwood Wealth Management Financial Advisor

No Cost, No Obligation.

qualified dividends thumbnail

SHARE

SUBSCRIBE

To go deeper on the insights from Smallwood Wealth Management, request your FREE COPY of 5 Ways Your Wealth Is Under Attack 

Everyone is impacted by these 5 problems. The question is, how big are yours? What impact do they have on your wealth potential? CLICK HERE TO GET THE BOOK

Browse Podcast

All
  • All
  • Business Ownership
  • Debt
  • Disability Insurance
  • Financial Planning
  • Insurance
  • Investment Management
  • Life Insurance
  • Retirement
  • Wills and Trusts
615d9f2cdfdd43159609bf0d03f746f3

Financial Pressure Webinar – Sustainable Investing & Policy and the New Administration

Does your QBI come with salted BAIT

DOES YOUR QBI COME WITH SALTED BAIT?

Podcast Image

The Foundation of a Financial Plan

Podcast Image

A Conversation About Market Volatility

Podcast Image

As January Goes, So Goes the Year: The Return of Market Volatility

Podcast Image [Autosaved]

The Wealth Curve Conversation

Podcast Image

Looking Back in Order to Get Ahead

Podcast Image

The Swiss Army Knife Strategy for Inflation

Podcast Image

Social Security Stupidity (Part 2)