Investing primarily in individual stocks helped us get the high returns that allowed us to retire early. And even today, individual stocks make up the majority of our portfolio. But it didn’t start out like that. Like many people, our first foray into investing began with mutual funds. Back then, we knew nothing about analyzing companies or even how to go about buying and selling stocks. Mutual funds were less intimidating, but I still remember not really understanding what w

In my last post , we talked about how long-term capital gains stack on top of ordinary income when calculating your federal taxes. We also looked at the magical unicorn of tax brackets: the 0% long-term capital gains bracket. This “stacking” concept doesn’t just help reduce your taxes today—it can also shrink your tax bill years from now by intentionally using the 0% tax bracket. And that’s where capital gains harvesting comes in. Yes, “harvesting,” as if we’re out in a fiel

When I first started buying and selling stocks, I never held any shares for longer than a few months. Then tax season rolled around, and I found myself staring blankly at a Schedule D tax form, thinking, “What the heck are capital gains , and why did my tax liability jump?” If you’re new to investing, there are two ways to make money through stocks: capital gains and dividends. In this post, we’ll break down what capital gains are, how they’re taxed, and why your holding per