Japan Crashing

[BehindBlueI's]

Again I may be mistaken, but aren’t capital gains taxed? Did your equation take that amount into consideration?

Yes, but in broad strokes:

1) tax rates are very favorable vs wages (see my post above)
2) you don't pay taxes until you realize the gain. I don't pay any tax on the appreciation in a stock until I sell that stock, nor can I claim a loss until I sell and take that loss.

*So* even in a non-tax deferred account your money grows 'tax free' as long as you hold the investment. Once you sell, then you (potentially) owe taxes. You may owe taxes on dividends, though.

 

[BehindBlueI's]

If the trading platforms were shut down, how did retail investors sell so much?

 

[phylodog]

Think of the stock market as a second job, but one you invest money in vs time in to get the wage. If your wages, from whatever source, outpace inflation than your buying power goes up. If your wages don't keep up with inflation, your buying power goes down.

Just like any wage, if you don't "work there" then it doesn't matter to you personally and you get no benefit from those raises.

My goal is to walk away from this job without taking a pay cut and without working somewhere new. I can do that via the "wage" of passive income from investing supplementing my pension. So, I invest in both tax deferred and non-tax deferred accounts which will give me money to draw on both before traditional IRS-approved retirement age and after.

Then, funny thing, the "wages" from investments have a much more favorable tax burden than wages from working. Long term capital gains for a married couple are tax free until roughly $95k, and 15% after that until somewhat over half a million. Living on your passive income vs wages increases your buying power via reduced tax burden, which is even wider in some states. Move somewhere that doesn't tax pensions but doesn't have stupid high property taxes...literal profit.

Fully understood and strengthens my opinion, thanks.

 

[BehindBlueI's]

Fully understood and strengthens my opinion, thanks.

It certainly favors the wealthy and the established over the poor and those just starting out. Much like rising property values. When I first came back to the US, the economy wasn't great. I worked three part time jobs and went to school (so drawing GI Bill) so the only thing that mattered to me was wages. Now, wages are still the majority of my income by a large degree, but the proportion is shifting. I could use passive income to cover most of my monthly expenses, aside from mortgage, at this point if I absolutely had to. My son, however, would probably not be able to cover his electric bill without a wage.

*Some* inflation is desirable, but what we've seen over the past few years is well past that mark. I feel sorry for the young people trying to get started. Wages haven't kept pace, too much has been sent overseas on both the blue collar and the tech side, houses got too big and too expensive to be true starter homes in many areas, etc. I'm glad I'm in the position to give my son a leg up, but certainly get not everyone can.

 

[foszoe]

Got it , thanks. I ordered 2 rolls to start off with.

As of right now, you are up $4000/bitcoin so for 2 rolls, so you have made $160,000. Are you going to cash out or let it ride?

 

[oze]

As of right now, you are up $4000/bitcoin so for 2 rolls, so you have made $160,000. Are you going to cash out or let it ride?

I spent it all on Snickers bars.

 

[racegunz]

If the trading platforms were shut down, how did retail investors sell so much?

Stop limit selling?

 

[foszoe]

So, how far down has it crashed now?

 

[smokingman]

So, how far down has it crashed now?

It is doing ok atm, thanks to the FED buying US debt from them as part of the foreign bank rescue system.

 

[DoggyDaddy]

It is doing ok atm, thanks to the FED buying US debt from them as part of the foreign bank rescue system.

How does that even work? Let's say you owe me (I'll be the U.S.) 100 bucks. I'm going to "buy" that debt for $100 by giving you another $100?

 

[Super Bee]

Japan down 1200. . . . again.

 

[RobertIN]

Tangentially related, I'm planning a trip to Okinawa in November and am kinda illiterate when it comes to international finance... But what power is my dollar going to have when converted to yen?

 

[ditcherman]

Tangentially related, I'm planning a trip to Okinawa in November and am kinda illiterate when it comes to international finance... But what power is my dollar going to have when converted to yen?

Yes.

Maybe.

Our advice is to go out to the crypto ATM and get yourself two rolls of bitcoins. Don’t be a fool and spend it all on snickers though, only spend half of it.

 

[foszoe]

This thread gets awful quiet when it goes back up.

 

[firecadet613]

This thread gets awful quiet when it goes back up.

Well, it is titled "Japan Crashing" after all...

 

[ditcherman]

This thread gets awful quiet when it goes back up.

Doomsturbation.

 

[Shadow01]

And my IRA made money yesterday…