No. of Recommendations: 2
I forgot to include comments about the 'silent' detriment of inflation. It is a non-trivial factor.
According to CPI Inflation Calculator, my $1 in 1997 (the first year Roth commenced) would now be worth $1.91 in 2024.
usinflationcalculator.com: Inflation Calculator | Find US Dollar's Value From 1913-2026
Like I say, very non-trivial. - BrerBaer-----------------
This gives me a chance to expound on a problem I see with the tax code. There are a lot of things that are indexed for inflation, SS payments, tax brackets, and so on.
But one thing that is NOT indexed but should be is Cap Gain taxation.
Using the numbers in your example, in 1997, you buy 1,000 shares of bhm enterprises for $1,000. Then in 2024 you sell them for $1,910.
Sweet, a $910 gain that uncle sugar taxes you on. But is it a gain at all, given inflation over the holding period?
