LogFAQs > #964046916

Moonroof posted...

Speaking of taxes, I made around $320k profit in 2021. In order to yield that much I had to invest/risk about 99% of my money at a time. The problem was that because I made so much money, I had to pay 35% in taxes. So that means I risked 99% of my funds for at best a 65% gain, whereas I probably could have invested/risked 60% of my money for a much similar gain (I didnt do the math so I could be off a bit). When you look at it like that, it makes you wonder why bother investing all your money.

I think for years like 2020 and 2021, your strategy was fine. For most years and down times, you really should just try to think of your investing in a different fashion.

One way to think of it is... if you take your profits over the last 2 years, and invest them at 6%, how many years until that profit ends up being a million dollars? If you had 250k in profit, that's a million bucks in 24 years.

that's a fairly conservative way to think about it but at the same time compounding interest is such a good friend if he's on your side. and you have capital, so, he's on your side :)