Please be open to feedback and constructive criticism from others, and consider their suggestions and advice when making decisions or forming opinions.
- Manlobbi
Halls of Shrewd'm / US Policy❤
No. of Recommendations: 7
No. of Recommendations: 4
No. of Recommendations: 3
obviously I meant "get long term US capital gains tax rates"; with that benefit your real return shoots up if you are trading in a taxable account.
No. of Recommendations: 6
obviously I meant "get long term US capital gains tax rates"; with that benefit your real return shoots up if you are trading in a taxable account.
Best to do this type of frequent trading in an IRA or ROTH.
There is a saying "Don't let the tax tail overrule your return dog."
Running the same GTR backtests, Sp500 rrs(1,252) top 10, HTD 12, for 20 days and same for 252 days,
top 10 is CAGR 16.0% vs. 13.8%
Top 5 is CAGR 19.7% vs. 14.1%
Nasdaq100,
top 10 23.6% vs. 14.5%
LTCG tax rate is 15%
Sort term rate is same as ordinary income rate, generally for most of us, 22% or 24%.
12% if you are broke. But broke people don't generally invest. ;-)
So, which is better? 15% tax on 13.8% or 22% tax on 16.0%.
No. of Recommendations: 1
21% for annual trading; use the link I have
No. of Recommendations: 1
Thank you both for this discussion, as it applies to me, a retired person of annual moderate income earnings below social security taxation limits. I've been using successful MI in my IRA accounts but will soon be opening a taxable brokerage account from real estate profits. I am looking forward to using MI in my taxable account.
No. of Recommendations: 1
I meant "get long term US capital gains tax rates"; with that benefit your real return shoots up if you are trading in a taxable account.
The effect of taxes on net returns can vary quite a bit, depending on your investment horizon, your anticipated rate of return, and your tax situation. Broadly speaking, the advantage of avoiding short-term gains increases with the passage of time, and higher anticipated rates of return.
If you plan to pay for long-term gains annually, rather than only at the end, the difference may be smaller than you expect.
Baltassar
No. of Recommendations: 0
obviously I meant "get long term US capital gains tax rates...."
That's OK; in the longer long run, we're all dead anyway.
Eric Hines
No. of Recommendations: 4
There are some interesting things you can do with aggressive momentum screens and then hedging with the associated index’s futures. Long the screen, short the future at a ratio that dials in a comfortable personal risk level. Pay close attention to what happens when a major bear market begins to recover however.
Of course as Jim likes to say your results may vary and one must be comfortable with “variance” from your benchmark.
