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Getting more accurate projections by importing holdings?

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(@njsteveicloud-com)
Active Member
Joined: 3 months ago
Posts: 2
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Brand new user, so apologies if this has been discussed already. I've input my various accounts and used a rough percentage to divide into asset classes. But of course this tends to produce income flows that are distinctly different from what is really happening from a tax point of view (interest/ordinary vs. qualified/cap gains). So I was wondering if there could be a simple way to add or import holdings? To me this would be a way to bottoms up create the balance for each account, assign asset classes to each holding, include basis, and dividend/interest. Even more sophisticated would be something like Fidelity's Full View. Even without linking accounts, you can enter ticker and basis and it assigns asset class and brings in dividend/interest knowledge.

I'm just thinking how I can engineer the inputs so the projected income & taxes come out somewhere where they are today.


   
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(@smatthews51)
Member Admin
Joined: 4 years ago
Posts: 1015
 

@njsteveicloud-com At least for the forseeable future, this is a purely manual process for all Pralana tools.

Stuart


   
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(@ricke)
Estimable Member Customer
Joined: 4 years ago
Posts: 174
 

@njsteveicloud-com

I tune the amount of interest/non-qualified dividends and qualified dividends/CGD to match my prior year's 1099. I gave an example in another thread, but will try to repeat it here. I do this by looking at my qualified and non-qualified dividends as a percent of the taxable balance. For stocks, My 1099 showed I roughly have 1.2% qualified dividends and 0.4% non-qualified dividends. Then I divide each of those by my projected basis for stock total return, which I happen to use as 8% (we want nominal, not inflation adjusted here). So I apportion the stock gains as 0.4/8= 5% non-qualified dividends/interest, 1.2/8=15% qualified dividends taxed as LTCG annually and the remaining 80% as taxed as LTCG when withdrawn. That creates a change in dividends each year that matches the projected change in taxable balance.

For bonds, I don't actually hold any in taxable as that's not a good place for them from a tax efficiency standpoint, so I use Build-Advanced Portfolio Modeling -Asset Allocation/Location and select Mode 2 and prioritize putting stocks in taxable first and putting bonds in tax deferred. If I did hold bonds in taxable, I would model their tax treatment as entirely taxable as interest each year and be happy if the market created a surprise and also provided a capital gain.


   
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