Quote:
Originally Posted by SSLance
I never meant to suggest that one should not invest to make money...just because you'll have to pay taxes on the gain. What I was trying to get at is the result of whatever happens at the end of the investment should be figured into the total ROI.
The other part of my post was in regards to how to figure out the value of an investment, any investment. And what really drives the value of said investment up or down?
I was mistaken on what I was thinking about Estate Taxes. For some reason I forgot that the Tax Act of 2012 extended the 5 million dollar exemption on estates. For a while there it was looking like it was going to revert back to 1 million dollars. That takes Estate Taxes out of the question for the most part.
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When I read your posts --- what I get from you --- is that you're thinking way too much. You're TRYING to make investing complicated. It is NOT.
10 million for a married couple -- since in most states the "estate" is split evenly right down the middle… each has the ability to do a pass through of 5 million… The problem comes with the total gets passed down to the next generation. And then that's when trusts come into play. Again --- this is NOT complicated and if you have that kind of money then that's what lawyers are for… A person doesn't have to know about it or lay around thinking about it - you just take the issue to the proper people - and they figure it all out and give you some simple options. Most people don't have an inheritance tax issue.
Investing is not about taxes -- it's not about inheritance - it's not complicated… it IS about putting money into investments (whatever that choice is) as early and often as a person can… and allowing time to compound the money. Trying to avoid this - or plan down the road for all the what if's is a complete waste of time. By the time you're rich and living off your investments -- the rules will have changed twice or more anyway…