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i want to avoid taxes.

i'm going to invest my income over the next two years (about $2200 for 9 months each year). investing Foolishly, i should have around $55,000 at the end of year 2. this will be turned into say $100,000 by year 4, assuming 15% growth (using passive investment approaches such as index funds and Dow investment approaches).

short-term concern: i don't want to pay captital gains every time i sell for gain. do i pay capital gains if i make $40,000 overseas? do i pay capital gains if salary is $0 (zero yearly salary). my income will be quite low after year two, but, my capital gains--i.e. yearly gains on sold Dow approach stocks --will grow, though i'll reinvest.

it occurs to me the answer is to buy all index funds. hold long-term. sell as needed for income.

can that be the best way to approach my retirement? i would like to invest the $50,000 for 10 years in index stocks and dow approaches. have between 15% and 30% growth. should have something worth between $200,000 and $1 mil.

after ten years, i'd like to live off the interest. how can i manage this?

note: i am an expat american. since i will never make $70,000, i don't and will not pay income tax. until the very end when i sell all to put in an interst bearing (income paying) retirement savings account.

this message isn't all that well-stated. please excuse me, but try to infer what it is i'm asking.

thanks for your replies.

please respond to board plus this email addres:

musil78@bigfoot.com
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