Introducing Capital Gains Harvesting
Podcast Episode Summary
- Our guest: Jeremy from Go Curry Cracker
- Jeremy and Winnie are living the geo-arbitrage life: currently in Taipei, Taiwan and then on to a four month trip to Europe
- They are using travel rewards points to get nearly free business class flights from Taipei to Europe.
- “Retiring in your 30s is simple but not necessarily easy”
- The biggest contributing factor is saving a high percentage of your income
- It’s easier to save a high percentage of your income when you have a larger income
- Make unconventional choices to save a high percentage
- 2nd Generation FIRE and how college costs can be lowered
- Jeremy had $40,000 in debt when he came out of college
- They have already opened a Roth-IRA for their son and used the income he earned from ‘modeling services’ for Go Curry Cracker
- He used the 80/20 rule to look at where 80% of their spending was going
- Sold his car and rode a bicycle
- Winnie made it so her cooking was the best food in town and they never wanted to go out to eat
- They spend approximately $2 per person per meal for delicious gourmet home cooked meals
- Most of their entertainment was community based with friends where they weren’t spending money
- How did he get started on his FI journey? He took the first 6 years to pay down his $40,000 in debt. Didn’t take vacation, worked overtime to earn more money.
- On his first vacation he realized he didn’t want to work forever and started formulating his plan
- He set a 10 year plan and retired in 10 years plus 1 day from when he started!
- What was it like when he actually quit his job?
- The power of FU money and not needing to work plus how much more power it gives you while you are actually working
- How is he investing his money? 100% of his money is in 2 index funds
- Wait for compound interest to take hold so you can benefit over decades
- Unpacking his article ‘Never Pay Taxes Again’
- Harvesting Capital Gains and how it enables you to get up to $90,000 in tax free income each year and increase the basis in those funds so you are never paying taxes on the gains
- Wash sale rules aren’t relevant to harvesting capital gains, only capital losses
- Harvesting capital gains actually makes it easier to harvest capital losses in the future
- They also do the Roth-IRA conversion ladder to effectively make their regular 401k tax free
- Harvesting capital losses to offset other income
- Avoiding the wash sale rules: Need to buy back another fund (example: Sell Total Stock Market Index fund and buy S&P 500 Index fund)
- Hot Seat questions
- Favorite blog: JLCollinsNH.com
- Favorite life hack: credit card rewards points
Links from the show:
- Go Curry Cracker
- Frugalwoods
- Podcast Episode: Introduction to Maximizing Travel Rewards points
- Jeremy’s guest post on Budgets are Sexy
- Stock Series on JLCollinsNH.com
- Mad Fientist
- Never Pay Taxes Again on Go Curry Cracker
- Favorite articles:
- Favorite purchase: iPhone 7 Plus
- Google Project FI
- Go Curry Cracker on:
Books Mentioned in the Show:
