Some online brokerage firms let investors set up an automated investing schedule.
Once the automatic investment schedule is set up, the investor uses an application on the computer to make withdrawals. Visit https://www.sofi.com/invest/ to get all the details.
The withdrawal is supposed to be made between the opening of the market and the end of the trading day.
This is what a portfolio manager normally does in real time.
All the investor has to do is choose the percentage of his or her portfolio to withdraw from the account at the start and end of each day. It is the automatic investment schedule that causes the withdrawal to be made on the basis of this percentage.
A common investor asks the question “What if I make a withdrawal and the market falls? What happens to the excess from the withdrawn amount? What if I make a withdrawal and the market rises?” In this case, the excess is capital gains, the return on an investment in an investment portfolio and what is called a capital gains tax liability.
The net capital gains tax liabilities calculated at the end of the calendar year. It includes the income, the capital gains (net of depreciation, interest and the transfer tax) and a share of the capital gains. It also includes interest on the deferred capital gains arising after 6 months and on any distributions, which means the interest and dividend from any shares held for six months.
Capital gains tax rate This is calculated according to the general rate of tax applicable to the net capital gains arising after 6 months. It is calculated before the effect of inflation is taken into account. It can differ between countries. It is sometimes referred to as an inflation rate. It is different from the general rate of tax.