Quote:
Originally Posted by Kaveh
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Index funds do about 11%, + compound interest. When you get 20-30% returns and then sell in a taxed account, you aren’t actually outperforming index funds
Hope this helps big J. You don’t have the options trading autism required for actual outperformance of the market, despite your ego. The advice is solid, take it or leave it
Also, getting a job is also sound financial advice
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circa 30% tax for the average income earner on a standard trading account, if short-term gains; 15% if the underlying security is held for a year,
at 20% gain this equates to a 14% net gain, at substantially higher risk than parking your investments into an index fund far less likely to suffer catastrophic less, yes, but we both know J is trading short-term and not working, because that's not really a problem if you have a 100k goose-egg paying you 30k/year; since the standard income/short-term tax rate on 30k/year is paltry.
Trading in a Roth with no intention to withdraw more than your net contribution under any circumstance (aside from the first-time homebuyer's allotted access toward borrowing up to 10k in gains before retirement), however, or even within an IRA if you've no intention to withdraw until the age of retirement where "employment income" is replaced with "Ira-withdrawal income" with a house owned in the clear is the way it should be done.
With that said, if losses are incurred in either IRA vehicle, they have no tax-writeoff benefit so THAT is the real unclear risk of these vehicles.
Then again, if you aren't gambling with your retirement with the expectation that your children and your grandchildren will be forced to pay for it anyways, you aren't doing it like Dad or America does it, so there's that.