Capital Gains Taxes 101
Capital gains taxes are a bit dry…but important to understand! Let’s cover the basics and correct the common misconceptions.
Jesse Cramer created The Best Interest to explain personal finance and investing in simple terms. His writing has been featured by CNBC, MSN, The Motley Fool, and other national publications. He resides in Rochester, NY with his wife and their dog, where he works in wealth management. Follow Jesse on Twitter: @BestInterest_JC
Capital gains taxes are a bit dry…but important to understand! Let’s cover the basics and correct the common misconceptions.
Icarus flew too close to the sun. But underconfidence was a risk he faced too. Investors should learn both sides of that lesson.
In the financial world, the friction – or lack thereof – sends a clear message about who you’re dealing with.
It takes confidence to take action. Investing is risk, and risk is scary. But overconfidence leads to too much action and screws it all up.
The best time to extinguish a fire is at the start. Stop the compound spread as early as possible and prevent an inferno. Investing is the opposite. Interrupt your compounding as little as possible. Let your “inferno” grow and grow and grow.
An overemphasis on statistics leads to poor conclusions and poor decisions. When numbers replace thought, bad outcomes abound. It certainly happens in investing.