Well , just like your 401k, you built up the base in your early age, and cash out when you are old, but in a slower pace, so that you pay your tax slower, and at the same time your money can still grow in your 401k account.
The same thing for stocks, in your early age , you accumulated the stocks and built up a big base , say , within 10 yeaqrs , and then you retired and start to cash out in a much slower pace so that the tax will have the least impact , and the rest of your holdings will continue to grow as years go by. Of course , you will eventually have to pay tax on all your profit , that is the time you go to see GOD !!! |
