You want to beat market but you also want monthly dividends. In which world paying 25% tax on returns a sound solution to maximizing your CAGR ?
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@JaqenH Good point, Ashish! Mathematically speaking, you're right: deferring taxes offers a CAGR advantage. But for me, investing is more than just Excel optimization until the end of time.
Here's my perspective:
1. Cash flow is psychological freedom: I'd rather pay 25% tax today on real cash flow that lands in my account than stare at a number in my portfolio for 40 years that I can't touch. Dividends give me the freedom to make decisions today – not when I'm 67.
2. Reinvesting according to strategy: I don't blindly buy the market with my dividends, but rather direct the capital strategically to where the best opportunity currently lies (e.g., crypto, DeFi, or undervalued individual stocks). This active allocation can easily outweigh the tax disadvantage.
3. Asset class diversification: You're only seeing my stock portfolio here. My overall portfolio (crypto, DeFi, cash) is structured so that cash flow forms the basis for riskier bets.
Mathematics is the foundation, but cash flow is the fuel. I optimize for quality of life and financial flexibility, not for the theoretically highest final value in 40 years. But thanks for the input! 😉
Here's my perspective:
1. Cash flow is psychological freedom: I'd rather pay 25% tax today on real cash flow that lands in my account than stare at a number in my portfolio for 40 years that I can't touch. Dividends give me the freedom to make decisions today – not when I'm 67.
2. Reinvesting according to strategy: I don't blindly buy the market with my dividends, but rather direct the capital strategically to where the best opportunity currently lies (e.g., crypto, DeFi, or undervalued individual stocks). This active allocation can easily outweigh the tax disadvantage.
3. Asset class diversification: You're only seeing my stock portfolio here. My overall portfolio (crypto, DeFi, cash) is structured so that cash flow forms the basis for riskier bets.
Mathematics is the foundation, but cash flow is the fuel. I optimize for quality of life and financial flexibility, not for the theoretically highest final value in 40 years. But thanks for the input! 😉
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