2 ms·
Like some other commenters have called out it kind of just kicks the can down the road, but the longer you can kick that can down the road the longer you can re
by twalla 4y ago
Like some other commenters have called out it kind of just kicks the can down the road, but the longer you can kick that can down the road the longer you can reap the benefits of compound interest.
- MikePlacid 4y agoYes, you and I would have reaped the benefits of compound interest - if the “wash sales” law is repealed. What’s wrong with that?
- anonymouskimmer 4y agoA couple of things wrong with wash sales: 1) I can't reap the benefit, because I don't have enough income to save for retirement (outside of my pension). If I did, like most people, I'd likely be saving in something like a 401(k) that is tax-deferred. Tax-deferred retirement accounts, by law, gain no additional tax benefit from a wash trade. https://www.irs.gov/newsroom/what-if-my-401k-drops-in-value https://www.irs.gov/newsroom/what-if-my-401k-drops-in-value 2) You incentivize people to sell and buy additional securities outside of their normal investment planning. This will have a market distorting effect when compounded over many, many stockholders.
- dataflow 4y agoI get that part but the difference in compound interest still seems too small compared to their multi-billion-dollar assets. The real issue seems to be inheritance tax cost basis step-up, if I'm understanding correctly. Which would explain why generational wealth is such a bigger deal than people give it credit for.