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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Glenstache on September 26, 2014, 11:25:47 AM

Title: Recommended reading to understand taxes
Post by: Glenstache on September 26, 2014, 11:25:47 AM
I'm looking for recommendations on reading (books, blogs, articles) to help me get up to speed on understanding how to account for taxes in my investing. Ultimately my goal is to be able to incorporate taxes into my investment strategy at least at the level of not doing something stupid now, and eventually to be able to make the correct choices when it comes time to reverse the spigot and start withdrawing... which is still quite a few years down the road but decisions made now will affect me then.

Apologies if this is already covered in a thread somewhere... when I searched most of what I saw was discussing nitty gritty or specific situations rather than a broad overview to get started. Thanks!

edit: I'm in the United States. If you have recommendations for other countries, I'm sure readers from elsewhere would appreciate it as well. 
Title: Re: Recommended reading to understand taxes
Post by: GuitarStv on September 26, 2014, 11:34:24 AM
What country do you live in?
Title: Re: Recommended reading to understand taxes
Post by: swallowtail on September 26, 2014, 11:36:56 AM
Posting to follow. 
Title: Re: Recommended reading to understand taxes
Post by: TN_Steve on September 26, 2014, 11:54:07 AM
[Assuming US citizen,] The BogleHeads' wiki on taxes is probably a good place to start:  http://www.bogleheads.org/wiki/Tax_basics

[Also, linked from the bottom of that page are all of that site's discussions of "tax considerations"  http://www.bogleheads.org/wiki/Category:Tax_considerations ]

[] = added by edit.

Title: Re: Recommended reading to understand taxes
Post by: Glenstache on September 26, 2014, 12:10:37 PM
[Assuming US citizen,] The BogleHeads' wiki on taxes is probably a good place to start:  http://www.bogleheads.org/wiki/Tax_basics

[Also, linked from the bottom of that page are all of that site's discussions of "tax considerations"  http://www.bogleheads.org/wiki/Category:Tax_considerations ]

[] = added by edit.

Bingo. This is exactly the type of information I was looking for. I need to spend more time over at Bogleheads, I hadn't seen the wiki portion of the site before.
Title: Re: Recommended reading to understand taxes
Post by: Gone Fishing on September 26, 2014, 01:10:14 PM
I'm getting better, but understanding taxes, I mean really understanding them, has been one of the hardest parts of my FI journey due to the number of rules, moving targets, and annual changes (and now ACA).  I have changed tax strategies many times over the past 14 years or so as my knowledge base has improved.  Connecting with the ER community last year has given me the biggest shot in the arm by far.  There are several CPAs on the forum than can help with specific questions as well. 

One thing that really helped me boost my understanding of taxes, just this year, was to study, and I mean really study, my last several tax returns.  (To the average person, they might as well be in Chinese, but you are not average if you are on this forum)  Then get on one of the tax estimator websites (Taxcaster) and start playing with the figures and see what changes in your investment strategy/marriage/kids do to your taxes.

Right now I think the strategy outlined here:  http://www.madfientist.com/traditional-ira-vs-roth-ira/ is one of the best for ER types.  Of course the risk is that congress goes and changes the rules before you retire, but you can't worry about that too much, just do the best you can right now.