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7.4 Trillion! 7.4!!!!
"Keith nuttle" wrote in message
... Dave wrote: On Tue, 25 Nov 2008 15:38:10 -0800, "Capt. JG" said: If the assets are "taken out" and the taxes are paid, then what becomes of the reduced assets is a loss. Why? You haven't sold them. Under your theory, no sale, no loss. And what's with this "reduced assets?" You moved $10,000 in assets, let's say, from your 401K to a taxable account at your broker's, wrote a check from your checking account at the bank for the taxes on that $10,000, and continued to hold the $10,000 in assets in your account at the broker's. No loss, right? Another way of looking at it is if you must withdraw say 1000 a year from you 10000 retirement fund to live. Your 1000 is 10% of you retirement account. If the market drops by half you must now with draw 20% of the account to get the same 1000 required to live. If the market has historically returned 10% per year the return on the first scenario will match what you need to live. In the second scenario the return is only half of the 20% you need to with draw. In this scenario your retirement fund runs out in less than 10 years. Who is going to support these people when their retirement is gone. You've identified the problem, basically. Now, I don't know your situation, but for me, I don't have to touch anything. I can wait out the return in value without taking a loss, since nothing in my portfolio will change. Who's going to support these people? The taxpayers of course! We already do that for millions of people. We do that via programs like welfare, medicare, social security, etc. It's a good and bad thing. It's good because we (well, most of us) care about our fellow citizens. It's a bad thing (especially now) because the price is so high and we can't continue forever at such a high price. We need to find solutions, and claiming, as Dave does, that it's solely the function of the private sector is a fantasy at best. The ultimate "private sector" scenario transfers all social programs, including police and fire to those who can afford them, which is a non-serious argument. -- "j" ganz @@ www.sailnow.com |
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