Learn whether you should realize capital gains now and pay taxes or hold your investment and defer taxes in this step-by-step Excel analysis. This video covers key concepts like understanding capital gains tax brackets, calculating starting values, capital appreciation, and taxes paid for both scenarios. You’ll also see a comparison of the final values and how much additional return the earlier realization scenario would need to break even. Perfect for investors looking to optimize their tax strategy, this tutorial simplifies a complex financial dilemma with clear examples in Excel.
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Chapters:
0:00 – Introduction: The Capital Gains Dilemma
1:03 – Understanding Capital Gains Tax Brackets
2:03 – Forming Assumptions Regarding Expected Returns
2:49 – Calculating Starting Values for Each Scenario
3:57 – Calculating Capital Appreciation Over Time
5:41 – Calculating Taxes Paid at the End
7:01 – Comparing Final Values of Both Scenarios
7:40 – How Much Extra Return Is Needed to Break Even?
9:17 – Conclusion: Key Takeaways and Final Thoughts
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
