RE LTB&H Vs. Trading
I have done something interesting. All the LTB&H Vs. Trading has been with the assumption
that the price you sell is the price
you buy back in. If that was the case,
no one will want to trade anyway.
People obviously hope that they can buy
back at a cheaper price. So I took it
upon myself to come up with some
interesting numbers.
It is assumed that the growth rate is 15%.
The buy/sell rate is the rate one will get
for selling and buying back at a cheaper rate.
The first column is for buying and holding
for 30 years. The rest three column is for
with a constant growth rate of 15%,
with buy/sell discount of 5,10, and 15%
each. Buy/sell occurs after two years,
hence a long term capital gains tax is 20%.
Long Term Capital Gains Table
Initial investment "10,000"
Growth Rate 15% 15% 15% 15%
Buy/Sell Discount 5% 10% 15%
Year Holding 30 years Buy/sell Two Every Year
1 10000 10000 10000 10000
2 "$11,500.00 " "$11,500 " "$11,500 " "$11,500 "
3 "$13,225.00 " "$12,775 " "$13,384 " "$13,992 "
4 "$15,208.75 " "$14,692 " "$15,391 " "$16,091 "
5 "$17,490.06 " "$16,321 " "$17,912 " "$19,578 "
6 "$20,113.57 " "$18,769 " "$20,599 " "$22,514 "
7 "$23,130.61 " "$20,851 " "$23,973 " "$27,393 "
8 "$26,600.20 " "$23,978 " "$27,569 " "$31,502 "
9 "$30,590.23 " "$26,637 " "$32,085 " "$38,329 "
10 "$35,178.76 " "$30,633 " "$36,898 " "$44,078 "
11 "$40,455.58 " "$34,030 " "$42,942 " "$53,630 "
12 "$46,523.91 " "$39,135 " "$49,383 " "$61,674 "
13 "$53,502.50 " "$43,475 " "$57,472 " "$75,039 "
14 "$61,527.88 " "$49,996 " "$66,093 " "$86,295 "
15 "$70,757.06 " "$55,540 " "$76,919 " "$104,995 "
16 "$81,370.62 " "$63,872 " "$88,457 " "$120,744 "
17 "$93,576.21 " "$70,955 " "$102,946 " "$146,910 "
18 "$107,612.64 " "$81,598 " "$118,388 " "$168,946 "
19 "$123,754.54 " "$90,647 " "$137,780 " "$205,557 "
20 "$142,317.72 " "$104,244 " "$158,447 " "$236,390 "
21 "$163,665.37 " "$115,805 " "$184,400 " "$287,616 "
22 "$188,215.18 " "$133,176 " "$212,060 " "$330,759 "
23 "$216,447.46 " "$147,945 " "$246,796 " "$402,434 "
24 "$248,914.58 " "$170,137 " "$283,815 " "$462,799 "
25 "$286,251.76 " "$189,005 " "$330,304 " "$563,088 "
26 "$329,189.53 " "$217,356 " "$379,850 " "$647,551 "
27 "$378,567.96 " "$241,461 " "$442,069 " "$787,875 "
28 "$435,353.15 " "$277,680 " "$508,380 " "$906,057 "
29 "$500,656.12 " "$308,475 " "$591,653 " "$1,102,399 "
30 "$575,754.54 " "$354,746 " "$680,400 " "$1,267,759 "
After Tax 46260.45 $345,491.46 $662,650.80 $1,234,687.07 |
