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Subject:  Re: Retirement question about the tax cuts Date:  5/2/2006  1:46 PM
Author:  KenAtPcs Number:  10492 of 22090

But not CGs--the two rates will be 10% and 20% as before (or your marginal rate if it's lower than 20%).

Oops, now it's my turn to say "my bad". Yeah, I forgot that LTCGs were tax-favored before (duh). Thanks for the correction, fleg.

I don't think I'd do anything different from what I'm doing now, but it would definitely mean less money in my pocket (or my portfolio, to be more accurate). And it would certainly make rebalancing more painful.

I've been in the 15% tax bracket up until last year (and again this year, I think). It was awfully nice to be taking LTCGs at 5%, let me tell you. 15% LTCGs aren't quite as nice, but still not too bad. Going up to 20% isn't going in the right direction, but it won't make me change anything from an investment standpoint.

I usually don't get much in the way of qualified dividends, something like $5k last year I think, so a 10% hike in that hurts to be sure, but again not enough to change anything I'm doing.

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