Replying to Avatar therationalroot

You need to increase your after-tax cash flow by over 7.1% a year just to keep up with average US Dollar inflation.

Investing in S&P 500 only gives an annual 2.7% real return after adjusting for US Dollar inflation. There is obviously a lot of risk involved to pursue that 2.7%.

note1gc79v2y6s40l7d9hjlnz0mqelpahyn24wpqwe4hymcy3mag0h4zqcc7gyw
Avatar
therationalroot 2y ago

You did well on your risky investment, now your capital gains tax is paid on the nominal rate making it a negative real return 🤯.

Investing consists of losing your money fast, or losing your money slow.

Your government thanks you.

Reply to this note

Please Login to reply.

Discussion

No replies yet.