Core Insights - The individual has significant financial resources, including $3 million in investable assets and an annual income of $250,000, alongside maximum Social Security benefits of $60,000 [1][3][4] - The individual is considering retirement and the implications of required minimum distributions (RMDs) from retirement accounts starting at age 73, which could affect tax brackets and withdrawal strategies [3][4][6] Financial Situation - The individual owns a home valued at $1.2 million with a mortgage of $300,000 at a 3% interest rate [1] - The current income and asset levels suggest a comfortable financial position for retirement, but careful planning is necessary to manage tax implications and withdrawals [3][5] Retirement Planning - Roth conversions are recommended to optimize tax efficiency as the individual transitions into retirement [3] - The necessity of managing withdrawals from tax-deferred accounts is highlighted, especially considering the potential for high tax brackets and additional taxes on investment income [4][6] Spousal Considerations - The financial situation of the spouse is also crucial, as she may have her own Social Security benefits, which could provide additional income during retirement [6] - The potential for tax implications related to spousal benefits and the risk of falling into higher tax brackets as income is drawn down from investments is noted [6]

If you own a lot of stock, does that mean you’ll owe a lot of taxes? The answer is a bit complicated, but it comes down to this: You only owe when you sell. You pay taxes on the profit from selling stock. How much and when depends on a few factors. Here’s what you need to know. How stocks are taxed When you sell a stock for a profit, it’s called a capital gain, so you’ll owe capital gains tax. The amount of the tax depends on your income, filing status, and how long you held the stock. Also, expect to ...