Message Font: Serif | Sans-Serif
No. of Recommendations: 1
JeanDavid originally said...

<<No: you should be a teacher. You just demonstrated why users of the UG5 should do it inside an IRA to defer the taxes.>>

And then, in the midst of a massive brain lock, TMF Taxes mumbled...

<<Maybe yes...maybe no. Think about somebody giving up a MAX capital gains tax rate (now at 20%), only to have this investment in a taxable IRA account on which tax will have to be paid at a HIGHER tax bracket (up to 39.6% currently).>>

Jeeze...what an Idiot I am.

As we all know, the UG5 method is a short term method. So the comparison to long term holding periods is just too stupid to deal with. And, in general, I would agree with JeanDavid's original statement now that I am somewhat coherent again.

By way of an excuse, when I read UG5, my brain registered F4 (which DOES deal with long term gains). It's a pretty weak escuse, but it's the best I got.

And thanks for the flurry of e-mail that I received from many of you pointing out my confusion. I'd love to be able to tell you that this will be my last screw up, but......

TMF Taxes

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.