KFTY
KFTY is a term that refers to a specific type of financial transaction or investment strategy. It stands for "Keep Fidelity Taxable, Yearly." This strategy involves maintaining a taxable investment account while also contributing to a tax-advantaged retirement account, such as a 401(k) or an IRA, on a yearly basis. The goal of KFTY is to take advantage of the tax benefits offered by retirement accounts while still having access to the funds in a taxable account for immediate needs or emergencies.
The KFTY strategy typically involves the following steps:
1. Contribute to a taxable investment account throughout the year.
2. At the end of the year, contribute the maximum allowable amount to a tax-advantaged retirement account.
3. Roll over any remaining funds from the taxable account to a tax-advantaged retirement account or another
This strategy allows individuals to benefit from the tax advantages of retirement accounts while still having