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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121256  
Subject: Re: Taxes and UG5 Date: 10/3/1997 5:29 PM
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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
Roy

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