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First. I said put $1000 in the "DOW". I did not say "stock market". Hence my specific wording.
You cannot put money in the "Dow". The Dow is a market index that includes STOCKS. You can put your money in some type of fund that mirrors the Dow, but you are still basically buying stocks.
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Originally Posted by RD5050
Second. You make a typo which changed $100 to $1000, and you want to blame others for not knowing what you meant?
Any bit of logic would lead one to know thats a typo. $1000 is more then the $600 in capital gains. How can you possibly pay more in taxes then you made? Its kind of like typing "I changed the car box after she crapped in it". Obviously a car doesnt crap nor does it use a box, so logically, youd assume its "cat" not "car".
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Originally Posted by RD5050
Third. If you hold stock for less than a year, and sell it, your capital gain is taxed at your standard tax rate, which is determined based on your income for that tax year.
Again, we come to the whole "sale of the asset" thing. You are right, if we assumed that they sold the shares right this minute (November 17) they would get taxed at their income rate. After rereading your post, I did notice you had written this
"Even if the person held it for less than one year"
and I completely missed that assumption. So I apologize for attacking you on that point. What you wrote was right if you make the assumption you tax rate assumptions are correct.
Quote:
Originally Posted by RD5050
You obviously don't know tax law for capital gains.
Hmmm, well, Im sure quite a number of my finance instructors would probably have to disagree on that one. I have that degree on the wall for some reason......
I didnt mention 400%, I just posted the data in response.
However, keep in mind that this data is year to date. Many of those shares have posted much larger returns if you shrink or expand the time frame a bit.
Youd have to go in and compare their 52 week high to their 52 week low to get the best picture. That is where companies like Citi, BOA and Ford will have over 400% return. Now will you finds hundreds of stocks that did that? Im not so sure about that, but you can probably find at least 100.
Id figure your average stock would probably perform pretty close to the market indices.
I didnt mention 400%, I just posted the data in response.
However, keep in mind that this data is year to date. Many of those shares have posted much larger returns if you shrink or expand the time frame a bit.
Youd have to go in and compare their 52 week high to their 52 week low to get the best picture. That is where companies like Citi, BOA and Ford will have over 400% return. Now will you finds hundreds of stocks that did that? Im not so sure about that, but you can probably find at least 100.
Id figure your average stock would probably perform pretty close to the market indices.
You don't have to be rich to be happy about the stock market. If you have a mutual fund, or a retirement account, or a college savings fund--all middle class savings vehicles, it's good news.
Why do you guys sit here posting all day instead of picking free money up off the floor while drinking expensive champaigne and snorting coke off the backs of strippers? Ben wasn't joking when he said he would drop money from helicopters!!! Look into the sky, is that a bird? Is it plane? NO! It's raining money!!!!..Weeeeeeeeeeeeeeeeeeee!
You cannot put money in the "Dow". The Dow is a market index that includes STOCKS. You can put your money in some type of fund that mirrors the Dow, but you are still basically buying stocks.
I have just a single word to respond to the above:
DUH !!!
Quote:
Originally Posted by Randomdude
Any bit of logic would lead one to know thats a typo. $1000 is more then the $600 in capital gains. How can you possibly pay more in taxes then you made? Its kind of like typing "I changed the car box after she crapped in it". Obviously a car doesnt crap nor does it use a box, so logically, youd assume its "cat" not "car".
You are the one who made the following statement ... not me:
Quote:
I think its important to point out that a person who has $1000 in stocks on March 9th would have $1600 in stocks (if they had a portfolio mirroring the Dow). The only way they would have exactly $1600 in cash is if they sold off every share for the closing price, which is just about completely impossible. Even then, they likely owe a chunk of that cash to the gov'ment in capital gains. That is going to reduce their spendable cash by over 1000 dollars.
Funny how you managed to avoid typo's everywhere else in the above statement, except in the one place that mattered?
Quote:
Originally Posted by Randomdude
Again, we come to the whole "sale of the asset" thing. You are right, if we assumed that they sold the shares right this minute (November 17) they would get taxed at their income rate. After rereading your post, I did notice you had written this
"Even if the person held it for less than one year"
and I completely missed that assumption. So I apologize for attacking you on that point. What you wrote was right if you make the assumption you tax rate assumptions are correct.
As I stated ... I was very precise in my wording in my original post, which is why I stated you should re-read it.
Quote:
Originally Posted by Randomdude
Hmmm, well, Im sure quite a number of my finance instructors would probably have to disagree on that one. I have that degree on the wall for some reason......
You made the following statement:
Quote:
Originally Posted by Randomdude
First of all, the max capital gains tax is 15%, obviously you do not know the difference between capital gains and income taxes. The max a person would lose is $90 (I stated $100 for a nice round figure).
Sorry ... but you get an "F" on that one. Any financial instructor with a knowledge of capital gains taxes would fail you. So having a degree doesn't help you one bit. Remember - you are the one who made the above statement! And your saying, "oh yeah ... I forgot about short term holds" after the test is over is too late. The grades are in. "F" for you. Next time, study harder!
I'm not referring to it as a "gain" in the taxable sense, but as a "gain" in the fact your stock is now worth 25% more than when it was down 50%.
Being down only 25% is a heck of a lot better than being down 50% ... don't you agree?
LOL! If you're joking then you're funny as hell.
If you're serious you're either flat out stupid or a born financial products salesperson.
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