AbsolutePunk.net
   Username
Password
 
Share
12:28 PM on 11/20/12 
#1
Offline
User Info.
birdman
DUNGEON MASTER
birdman's Avatar
Atlanta, Ga
Male
I've heard many businessmen say making money is making money....in fact I lifted that quote pretty much word for word from Mark Cuban.

What about someone who is 10 years away from retirement and has an investment portfolio that he could sell off now at a 15% cap gains tax or wait and sell it at a 25% rate. Why wouldn't they sell now and reinvest under the new tax code? Why would they reinvest at all?

We aren't talking about a billionaire here either, we are talking about your parents.

Raising the tax rate for the 1% is about symbolism, it's not a solution. Can we get an actual solution already?
12:33 PM on 11/20/12 
#2
Offline
User Info.
birdman
DUNGEON MASTER
birdman's Avatar
Atlanta, Ga
Male
Neither of my parents are lucky enough to have any type of investments, let alone have significant investments that would be vastly effected by an increase in the tax rate.

What does this have to do with luck?
03:29 PM on 11/20/12 
#3
Offline
User Info.
birdman
DUNGEON MASTER
birdman's Avatar
Atlanta, Ga
Male
Because the average return on investments is greater than the average return on fixed income, regardless of the tax rate.

"Money is money."

Eh, I don't know. If I am retiring in 10 years and my plan assumes a 15% tax hit, and that rate goes up 10%, it could put quite a hit on my plans.
03:42 PM on 11/20/12 
#4
Offline
User Info.
birdman
DUNGEON MASTER
birdman's Avatar
Atlanta, Ga
Male
Luck might not be the right word....fortunate, maybe. Definitely some luck though.

Usually, when you choose a career path that doesn't include college, you end up busting your ass for 40-50 hours a week at a full time job for an income on the lower end of median. If you're lucky, you'll be part of a union that fights to get you decent health benefits and maybe some dental. But chances are the income you're taking it won't be nearly enough to raise a kid, live in a halfway decent area, and still have extra income at the end to invest. That is, assuming you have any sort of education at all on even how to go about investing. As luck would have it, she's lucky enough to have a union that fought to get her a 401K and pension as well. Of course, sacrifices had to be made by the union to get those things...she can't touch either account until she reaches a certain age, and if god forbid something happens to her, her children (aka me) don't get to inherit those accounts. Only a spouse can. Kind of discriminatory towards single parents, IMO.

I find it pretty unlucky to have third parties (ie unions) provide you with things. But that's just me. Sometimes unions are necessary.
03:43 PM on 11/20/12 
#5
Offline
User Info.
birdman
DUNGEON MASTER
birdman's Avatar
Atlanta, Ga
Male
If you're retiring in 10 years, a large portion of your money should be in fixed income to begin with, so your point is pretty invalid from the beginning.

It's still not invalid. Your investments will certainly be more conservative, but not non-existent. Especially these days when people are trying to make up for lost ground from the 2008 crash.



NEWS, MUSIC & MORE
Search News
Release Dates
Exclusives
Best New Music
Articles
CONNECT
Submit News
Forums
Contests
Mobile Version
AP.net Logos
HIDDEN TREASURES
AbsolutePunk Podcast
Free Music
Sports Forum
Technology Forum
Recommendations
INFORMATION
Advertising
Contact Us
Copyright Policy
Terms of Service
Privacy Policy
FOLLOW
Twitter | Facebook | RSS
PropertyOfZack
UnderTheGun
Purevolume
Chorus.fm | @jason_tate