Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : LSI Corporation -- Ignore unavailable to you. Want to Upgrade?

To: sea_biscuit who wrote (18501)	5/28/1999 12:41:00 AM
From: shane forbes	Read Replies (1) \| Respond to of 25814

Dipy: That has to be one of the weirdest things I have ever seen. If you agree that compounding money is the way to become wealthier then willingly paying taxes is sure as heck the antithesis of compounding. If something is going up then it is in your best interests to defer paying the tax man for as long as possible. "It's when you sell that counts" seems almost sad if it were not so hilarious. He should have retitled it: "For the IRS, it's when you sell that counts". For the economist and for calculations of net worth it is almost irrelevant. I would argue that every investor should own an accounting bucket of "Taxes Payable" and keep that in his or her net worth calculations, spreadsheets whatever. Or better when you sell a stock immediately send a check to the IRS (instead of waiting till 15 April of the following year). Then you or whoever feels that selling is so important will get a real sense of what damage regular selling does to one's net worth. BTW by paying the IRS those quarterly payments we are in effect "immediately sending a check to the IRS" - every year, depending on our experience for the year, it gets adjusted a bit but the point is the taxes are being paid and they hurt. There is a time-value to money. It is better to pay later than earlier. I want to say something about the dividends thing too but that's for later... <making up for lost time>