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FYI: ALLAN ROTH likes to describe himself as argumentative—and, on that score, it’s hard to argue with him. But it’s also hard to argue with the points he makes, because he has this nasty habit of being right. Regards, Ted https://humbledollar.com/2018/11/simple-isnt-easy/
A ton of wisdom in a short interview article. Allan Roth is one very smart guy. You'll enjoy the article and learn plenty simultaneously. Here is just one of the nuggets of insight provided in the interview:
“Minimize expenses and emotions, maximize diversification and discipline” is Roth’s succinct formula for investment success. “It’s easy to say. It’s a lot harder to do. "
"Roth notes, fee-only advisors are also conflicted. If they’re charging, say, 1% of a client’s portfolio, they may ...advocate complicated strategies simply to justify their own fee."
Does he have evidence that this is happening to a significant degree? What is happening to a large enough extent that it has raised concern at the SEC, is reverse churn, essentially the opposite of what Roth is describing. https://www.stratifi.com/blog/reverse-churning/
"Less than 100% of a realized capital gain will be taxed, because you’ll have some sort of cost basis on the shares."
No, assuming a cap gain is recognized, 100% of that gain is taxed. The reason why less than 100% of the proceeds from a security sale is not taxed is that some of those proceeds represent cost. But 100% of the part that is gain is taxed.
Right idea, but horribly expressed.
An example of where a cap gain is realized but not recognized is in the sale of a primary residence. The first $250K of gain by an individual is realized but not recognized for tax purposes.
Comments
A ton of wisdom in a short interview article. Allan Roth is one very smart guy. You'll enjoy the article and learn plenty simultaneously. Here is just one of the nuggets of insight provided in the interview:
“Minimize expenses and emotions, maximize diversification and discipline” is Roth’s succinct formula for investment success. “It’s easy to say. It’s a lot harder to do. "
Invest a few minutes and profit.
Best Regards
Does he have evidence that this is happening to a significant degree? What is happening to a large enough extent that it has raised concern at the SEC, is reverse churn, essentially the opposite of what Roth is describing.
https://www.stratifi.com/blog/reverse-churning/
"Less than 100% of a realized capital gain will be taxed, because you’ll have some sort of cost basis on the shares."
No, assuming a cap gain is recognized, 100% of that gain is taxed. The reason why less than 100% of the proceeds from a security sale is not taxed is that some of those proceeds represent cost. But 100% of the part that is gain is taxed.
Right idea, but horribly expressed.
An example of where a cap gain is realized but not recognized is in the sale of a primary residence. The first $250K of gain by an individual is realized but not recognized for tax purposes.