dhodson wrote:I'm not sure though why you said its like a ROTH since a ROTH has tax free growth and this is the exact opposite where growth is taxed as income instead of long term capital gains rates.
So, Merton and the actuaries will tell you the goal is inflation-adjusted real income. But if you talk to the typical financial planner who is running calculations, the numbers that you need to save for retirement are dramatically lower than when you assume steadily rising expenditures.
Xpe wrote:While we're on the topic... Can you gift appreciated stocks to a family member in a lower bracket, they sell and pay lower taxes, then gift the money back to you? Or is that tax fraud?
Also does above mean, if my cost basis for the stock was X$ and the price now is now 2X$, the cost basis for the recepient is still x$ not 2x$?