RE Short Term Capital Gains Table
The following is a table showing how much one has to beat
the market EVERY year to achieve significantly better performance. I made the assumption
that the short term tax rate, which is your ordinary
income rate, is at combined 30% or 40% both federal and state.
Sobering, if you are honest with your ability to time the market.
Initial investment "10,000"
Short Term Tax Rate 30%
Growth Rate 15% 15% 15% 15%
Buy/Sell Discount 15% 20% 25%
Year Holding 30 years Buy/sell Every Year
1 " $10,000.00 " " $10,000.00 " " $10,000.00 " " $10,000.00 "
2 "$11,500.00 " "$10,983 " "$11,460 " "$11,938 "
3 "$13,225.00 " "$12,062 " "$13,133 " "$14,250 "
4 "$15,208.75 " "$13,247 " "$15,051 " "$17,011 "
5 "$17,490.06 " "$14,548 " "$17,248 " "$20,307 "
6 "$20,113.57 " "$15,977 " "$19,766 " "$24,242 "
7 "$23,130.61 " "$17,547 " "$22,652 " "$28,939 "
8 "$26,600.20 " "$19,271 " "$25,959 " "$34,546 "
9 "$30,590.23 " "$21,165 " "$29,749 " "$41,239 "
10 "$35,178.76 " "$23,244 " "$34,093 " "$49,229 "
11 "$40,455.58 " "$25,528 " "$39,070 " "$58,767 "
12 "$46,523.91 " "$28,036 " "$44,775 " "$70,153 "
13 "$53,502.50 " "$30,790 " "$51,312 " "$83,745 "
14 "$61,527.88 " "$33,815 " "$58,803 " "$99,971 "
15 "$70,757.06 " "$37,138 " "$67,388 " "$119,340 "
16 "$81,370.62 " "$40,787 " "$77,227 " "$142,463 "
17 "$93,576.21 " "$44,794 " "$88,502 " "$170,065 "
18 "$107,612.64 " "$49,195 " "$101,423 " "$203,015 "
19 "$123,754.54 " "$54,028 " "$116,231 " "$242,349 "
20 "$142,317.72 " "$59,337 " "$133,201 " "$289,304 "
21 "$163,665.37 " "$65,166 " "$152,648 " "$345,357 "
22 "$188,215.18 " "$71,569 " "$174,935 " "$412,269 "
23 "$216,447.46 " "$78,601 " "$200,476 " "$492,147 "
24 "$248,914.58 " "$86,323 " "$229,745 " "$587,500 "
25 "$286,251.76 " "$94,805 " "$263,288 " "$701,328 "
26 "$329,189.53 " "$104,119 " "$301,728 " "$837,210 "
27 "$378,567.96 " "$114,349 " "$345,780 " "$999,420 "
28 "$435,353.15 " "$125,584 " "$396,264 " "$1,193,058 "
29 "$500,656.12 " "$137,922 " "$454,119 " "$1,424,212 "
30 "$575,754.54 " "$151,473 " "$520,420 " "$1,700,154 "
31 "$662,117.72 " "$166,355 " "$596,401 " "$2,029,558 "
After Tax " $539,694.18 " "$161,890.53 " "$573,606.84 " "$1,930,736.90
Short Term Tax Rate 40%
Growth Rate 15% 15% 15% 15%
Buy/Sell Discount 15% 20% 25%
Year Holding 30 years Buy/sell Every Year
1 " $10,000.00 " " $10,000.00 " " $10,000.00 " " $10,000.00 "
2 "$11,500.00 " "$10,810 " "$11,280 " "$11,750 "
3 "$13,225.00 " "$11,686 " "$12,724 " "$13,806 "
4 "$15,208.75 " "$12,632 " "$14,352 " "$16,222 "
5 "$17,490.06 " "$13,655 " "$16,190 " "$19,061 "
6 "$20,113.57 " "$14,761 " "$18,262 " "$22,397 "
7 "$23,130.61 " "$15,957 " "$20,599 " "$26,316 "
8 "$26,600.20 " "$17,250 " "$23,236 " "$30,922 "
9 "$30,590.23 " "$18,647 " "$26,210 " "$36,333 "
10 "$35,178.76 " "$20,157 " "$29,565 " "$42,691 "
11 "$40,455.58 " "$21,790 " "$33,350 " "$50,162 "
12 "$46,523.91 " "$23,555 " "$37,618 " "$58,941 "
13 "$53,502.50 " "$25,463 " "$42,434 " "$69,256 "
14 "$61,527.88 " "$27,525 " "$47,865 " "$81,375 "
15 "$70,757.06 " "$29,755 " "$53,992 " "$95,616 "
16 "$81,370.62 " "$32,165 " "$60,903 " "$112,349 "
17 "$93,576.21 " "$34,771 " "$68,698 " "$132,010 "
18 "$107,612.64 " "$37,587 " "$77,492 " "$155,111 "
19 "$123,754.54 " "$40,631 " "$87,411 " "$182,256 "
20 "$142,317.72 " "$43,923 " "$98,599 " "$214,151 "
21 "$163,665.37 " "$47,480 " "$111,220 " "$251,627 "
22 "$188,215.18 " "$51,326 " "$125,456 " "$295,662 "
23 "$216,447.46 " "$55,484 " "$141,514 " "$347,403 "
24 "$248,914.58 " "$59,978 " "$159,628 " "$408,198 "
25 "$286,251.76 " "$64,836 " "$180,060 " "$479,633 "
26 "$329,189.53 " "$70,088 " "$203,108 " "$563,568 "
27 "$378,567.96 " "$75,765 " "$229,106 " "$662,193 "
28 "$435,353.15 " "$81,902 " "$258,432 " "$778,077 "
29 "$500,656.12 " "$88,536 " "$291,511 " "$914,240 "
30 "$575,754.54 " "$95,707 " "$328,824 " "$1,074,232 "
31 "$662,117.72 " "$103,460 " "$370,914 " "$1,262,223 "
After Tax " $539,694.18 " "$100,358.69 " "$354,077.99 " "$1,187,026.49 |
