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I get that, but would rather have a $300k salary with a COLA each year or an S&P 500 index fund with an expected return of $300k? There is just no way your take
by megaman821 5y ago
I get that, but would rather have a $300k salary with a COLA each year or an S&P 500 index fund with an expected return of $300k? There is just no way your take-home income is less with the index fund over a 10, 20, or 30 year period.
- refurb 5y agoSeems like an odd comparison considering your $300k salary would grow over 30 years too. Point is, if you pay taxes on the nominal returns, your tax rate is much higher than the 20% long-term capital gain rate implies.