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No. of Recommendations: 4
If your income-stream is taxed at ordinary-income rates (currently, 25%)

Not sure what ordinary income rates you're talking about, but there hasn't been a 25% bracket since 2017, and under current law, won't be a 25% bracket again until 2026. The current brackets are:

0%
10%
12%
22%
32%
35%
37%

So even if all of your divys are taxed at ordinary income rates, you'd have to have taxable income well over $200k (single, HOH) or $400k (MFJ) to have an effective 25% rate. That said, many preferreds pay qualified dividends, which have their own tax brackets, the same as capital gains:

0%
15%
18.8%
23.8%

So if your income was mostly qualified divys, you wouldn't even get to a 25% marginal rate, much less a 25% effective rate.

Sorry, your analysis is unrealistic.

AJ
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