Quote:
Originally Posted by Stu from NYC
To some extent it is an emotional thing. When we did our taxes and were accumulating 1099's had no idea our capital gain distributions would be as high as they were.
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sure, but its negative for success, which if you examine it on an emotional level, is counter productive, and keeps you down and is a subconscious block to successful investing.
Simply stated: the difference in mentality of wealth maximization vs tax/expense minimization. wholly opposite mentalities, and you get what you subconsciously want.
to be successful in investing, you have to celebrate success, not demean it. . . its all in the psychology to keep going forward. .
My guiding statement came from T Boone Pickins, who had a $20M gain, and thought about selling, but waited to sell when the investment became eligible for long term capital gains. When that time came, the profit was gone. Taxes should seldom enter the gain selling decision. Taxes are a by product of success. . .
likewise, if you want to not pay taxes on gains, which is a tax minimization strategy, you need to pay more attention to statements, and then sell losers to offset gains prior to year end. . .
I have more examples, but I am still on my fixed income, my salary