101–110 of 120 posts
Earlier quoted context omitted.
Yes, the tax can be thought of an extra expense ratio. Same impact on you, at the end of the day.
Calling the expense ratio a tax is like calling the labor cost of your car repair a tax. The expense ratio is what the fund manager is charging to cover their labor and expenses. It's not a tax on the transaction going to the government.
Earlier quoted context omitted.
Calling the expense ratio a tax is like calling the labor cost of your car repair a tax. The expense ratio is what the fund manager is charging to cover their labor and expenses. It's not a tax on the transaction going to the government.
No, I am saying the tax is like an additional expense ratio.
About a year ago, Draghi released this report on European Competitiveness ( https://commission.europa.eu/topics/competitiveness/draghi-r... ). In it he says "A key reason for less efficient financial intermediation in Europe is that capital markets remain fragmented and flows of savings into capital markets are lower." I don't have data readily to hand (and Draghi probably mentions this in the report, I can't remembe…
> Europeans basically keep their savings in bank savings accounts. USA is not much different. The wealthiest 10% of the U.S. population holds the vast majority of stock market wealth. Recent data shows this group owns around 90-93% of all stocks, with the top 1% controlling about half of the total household equity. Many people hold cash in savings to prepare buying a house, paying for a child's college and more. IMHO…
Because parking money in a savings account essentially erodes its value over time due to inflation. It’s safer, sure, but it’s a safe way to be guaranteed to lose money over time.
Equity investing is essentially the only way for savings to outpace inflation.
Earlier quoted context omitted.
> Europeans basically keep their savings in bank savings accounts. USA is not much different. The wealthiest 10% of the U.S. population holds the vast majority of stock market wealth. Recent data shows this group owns around 90-93% of all stocks, with the top 1% controlling about half of the total household equity. Many people hold cash in savings to prepare buying a house, paying for a child's college and more. IMHO…
> If you're happy with your job and don't need the extra money (or risk), then why invest in the stock market? Because parking money in a savings account essentially erodes its value over time due to inflation. It’s safer, sure, but it’s a safe way to be guaranteed to lose money over time. Equity investing is essentially the only way for savings to outpace inflation.
The value erosion isn't significant in the short term, especially if people spend most of what they earn.
In your 20s and 30s, the time horizon for the cash is about 10-15 years (saving up to buy a house).
In your 30s and 40s, maybe good time to have equity investments, but perhaps that extra cash just goes into the mortgage or college savings funds.
Earlier quoted context omitted.
> If you're happy with your job and don't need the extra money (or risk), then why invest in the stock market? Because parking money in a savings account essentially erodes its value over time due to inflation. It’s safer, sure, but it’s a safe way to be guaranteed to lose money over time. Equity investing is essentially the only way for savings to outpace inflation.
Not really? Inflation in europe is ~2.2%, which is about what HYSAs in europe offer. The value erosion isn't significant in the short term, especially if people spend most of what they earn. In your 20s and 30s, the time horizon for the cash is about 10-15 years (saving up to buy a house). In your 30s and 40s, maybe good time to have equity investments, but perhaps that extra cash just goes into the mortgage or colle…
Frankly, investing in equities in your 20s and 30s is easily the best time to do it. You let the compounding of growth happen over the decades, not so much later in life.
Earlier quoted context omitted.
Not really? Inflation in europe is ~2.2%, which is about what HYSAs in europe offer. The value erosion isn't significant in the short term, especially if people spend most of what they earn. In your 20s and 30s, the time horizon for the cash is about 10-15 years (saving up to buy a house). In your 30s and 40s, maybe good time to have equity investments, but perhaps that extra cash just goes into the mortgage or colle…
If your money stays worth exactly the same in net present dollars, it’s effectively eroding in value compared to what you could be earning. 10-15 years is quite the long time horizon. You could easily be earning 7% real/10% actual in equity investing. Most recommendations I’ve seen discuss short term savings such as HYSAs for a house being more in the 5 year or sooner timeframe. Frankly, investing in equities in your…
Lack of education IMHO is a huge part. Crypto has way more education around how to invest than equities investment. If people are investing, many are choosing crypto.
> Frankly, investing in equities in your 20s and 30s is easily the best time to do it. You let the compounding of growth happen over the decades, not so much later in life.
I agree, but for many people in their 20s and 30s, there just isn't much cash left over to invest, especially in Europe with high taxes and mandatory social security funds and pensions.
Earlier quoted context omitted.
I think in that case, you, the hypothetical wage worker, got hoodwinked pretty effectively by the beancounters when they were able to get away with compensating you in contracts that are apparently worthless to you.
Do you think about the things you say, or is it just reflex? Everyone working for a startup knows it may be 5 years to a liquidity event. We're all big boys, we work on uncertainty and expectation. If the government changes the rules halfway through, it's pretty brain-damaged to blame the beancounters for hoodwinking the employees, and not using their magic oracular powers to predict how the laws would change under t…
More to the point, however, I think if 2 years is insufficient notice to get your tax situation in order w/r/t employee stock options, either your finances are enough of a mess, or you're frankly just so stupid, that you would not be helped much more with 5 years, or even 10 years, of advance notice. And at that point, you (the poster, not the hypothetical hapless employee) are just arguing that the government should never change its tax policy, which is just absurd.
Earlier quoted context omitted.
I totally get that it’s an understandable political strategy. I just think it’s in defensible as anything but a political strategy, and that it will ultimately make life worse for more people versus simply treating assets as assets, including homes. If homeowners do not wish their homes to be treated as assets, then they could simply forgo the right to profits, but I suspect they will not do that.
While I don’t disagree, I think it’s worth noting that the Netherlands has a pretty good level of social housing. Not perfect, but I think it’s 26% based on the stats link in the parent. Also rent controls. Although these also tend to reward people who have been in the system longer (which _might_ be by design, but that’s just like my opinion)
Earlier quoted context omitted.
If your money stays worth exactly the same in net present dollars, it’s effectively eroding in value compared to what you could be earning. 10-15 years is quite the long time horizon. You could easily be earning 7% real/10% actual in equity investing. Most recommendations I’ve seen discuss short term savings such as HYSAs for a house being more in the 5 year or sooner timeframe. Frankly, investing in equities in your…
I get it... but im just explaining why people are doing what they do: choosing to hold cash over higher risk investments. Lack of education IMHO is a huge part. Crypto has way more education around how to invest than equities investment. If people are investing, many are choosing crypto. > Frankly, investing in equities in your 20s and 30s is easily the best time to do it. You let the compounding of growth happen ove…
More education around investing in crypto? I think we must be exposed to some very different parts of the internet. Investing in boring index funds are very widely spread around these days. Might not be exciting, and I guess there isn’t really something to sell (unlike crypto), so perhaps that’s part of the reason.
well this will probably cause an exit of businesses