free4now
Thinks s/he gets paid by the post
- Joined
- Dec 28, 2005
- Messages
- 1,228
Sounds familiar... once I cashed out I imagined I was entirely "after tax" only to realize that I was holding on to some big cap gains, for which the tax man will come calling.
Even if you start out with a portfolio that has no tax liability, you will incur tax liability as your portfolio grows and is spent, so everyone living off portfolio growth will have to deal with taxes.
Cap gains rates are definitely better than paying ordinary income rates though.
One nice thing about renting is not having to worry about whether the home goes into the net worth
Even if you start out with a portfolio that has no tax liability, you will incur tax liability as your portfolio grows and is spent, so everyone living off portfolio growth will have to deal with taxes.
Cap gains rates are definitely better than paying ordinary income rates though.
One nice thing about renting is not having to worry about whether the home goes into the net worth