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 taxable account.

This strategy allows individuals to benefit from the tax advantages of retirement accounts while still having access to their funds in a taxable account. However, it is important to note that the KFTY strategy may not be suitable for everyone, and individuals should consult with a financial advisor before implementing this strategy. Additionally, the tax implications of this strategy may vary depending on individual circumstances and tax laws.