seraphim
Thinks s/he gets paid by the post
- Joined
- Mar 6, 2012
- Messages
- 1,555
I appreciate this thread - I really have to look at tax laws for my taxes beginning next year. Everything's starting to change, in our circumstances.
Gone4Good said:Our tax code is in love with passive income. So much so, it is quite possible for a retiree living off of a large portfolio to pay almost nothing in taxes. Consider the case of a married couple with a $10MM portfolio, split evenly between muni bonds and individual stocks yielding 3% a piece. That portfolio will generate $300,000 in annual income and a tax payment of just $8,970 . . . for an effective tax rate of 2.9%.
That's one of the things that makes the example a tad far-fetched.
And then the market goes down 30% and you pay 8 grand in taxes in each of the next ten years until you "break even". lol
Gone4Good said:Or it goes up 30% and I still pay $8K . . . not sure what the point is.
Gatordoc50 said:I didn't read your post very well. I now see where you stated investment in individual stocks not stock mutual funds. My bad. Nonetheless, it seems unfair to tax someone taking that much risk that much just to keep pace with inflation.