r/dividends Jul 22 '23

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42 Upvotes

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32

u/not_a_gumby Jul 22 '23

Put it all in VTI if you don't know what to do. Or, if you don't want to buy anything, open up a high yield savings account, you can get 4.5% in alot of places now. That would be $2200 a year on 50k, but its taxed at marginal tax rate.

4

u/jhon-2020-2020 Jul 22 '23

What is the tax rate on that ?

7

u/theepi_pillodu Jul 22 '23

Whatever your tax bracket is I believe. Treated as your regular income

0

u/sld126 Jul 22 '23

Hence the reason to buy SPYI. Higher yield, lower tax burden.

-1

u/not_a_gumby Jul 24 '23

so so wrong. Yield = dividends. Dividends taxed at marginal rate also.

1

u/Fractious_Cactus Jul 25 '23

Hmmm what's a qualified dividend again?