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I'm not saying your math is wrong, but I'm confused as to how the breakeven can be a 7% cut when the capital gains rate is 15%. Can you explain why my intuitio
by thedufer 12y ago
I'm not saying your math is wrong, but I'm confused as to how the breakeven can be a 7% cut when the capital gains rate is 15%. Can you explain why my intuition is wrong here?
- ganeumann 12y agoBecause it's only 15% of the gain, whereas both investment gains and customer payments are revenue to the insurance company and I've assumed the insurance company needs to keep some percentage of their revenue to pay overhead expenses, marketing, commissions, etc.