Quoted from dueyftw:My problem is the difference between long-term and short-term capital gains. With short-term capital gains your tax just like hourly wage slave. But if you hold off from taking profit or interest for just over a year you get a free ride for the first 40K and then everything else after is 15%. It's not hard to change short-term capital gains into long-term capital gains you just have to be patient. How many people know this? How many people know that if you reinvest into stocks and then hold them for a year, your first 40k it's a free ride? And just how many people know if you don't owe any income tax you're not required to file? Or should I say you "must" file. Another thing I like about our government they don't use the word "require" an income tax documentation. Otherwise their documentation would have Fourth Amendment issues.
Not true, for your case specifically in 2021 and 2022, short term would be 10-12%, not "slave wage tax" as you put it.
You keep saying free ride but if your investments tank, you can lose a lot more than 10-12 percent. You keep saying these things like there's zero risk with long term and you should always just ride it out... I would actually be quite concerned for you if you are relying on this strategy alone and doing nothing else to prepare for your financial future.
I'm not criticizing any part of your choices... If YOU are happy with the results and live a happy life, that's amazing and I am very happy for you. Honestly, that's all that matters.
Also, the only people that "know these things" are those who are affected by it. Most younger workers these days don't invest AT ALL so why would they care? See how that works? Honestly, if you even try to explain a simple concept to any working American like why you should not go to WalMart to file your taxes, they just look at you like you are crazy and explain how they can get a check THAT DAY if they just pay extra for it.
People living paycheck to paycheck don't really care if they are robbed blind when you are waving tax return money in front of them. For those people, timing is way more important than interest on a loan or giving some of their tax money away at that moment.
Now, if you are retired, you have a lot more control over your investments. It's just the way our country and 401K investments are built.
Most retired people know these things if they have any $ when they retire... Those that don't know these things? ...well it's not my fault or my concern that they are not paying attention in life.
If you are not of retirement age, sometimes "employees" can't pick and choose when to buy and sell for short or long term gains. So, for a lot of people, it does not really matter anyway because they don't have control over those decisions.
The most incredible thing that I find is that a lot of these simple workforce investment concepts are not taught in our public schools. It should be required teaching these days. Instead, kids are being taught how society should treat them. Then when society does not treat them like that, they lose it, go nuts, and use self medication and self riotousness to get them through life. It's no wonder young adults are not investing in "that society"? Ha, no chance in hell that's happening.