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Well you also can't spend paper gains, you have to sell and therefore pay taxes.

And you could, you know, lose money in the stock market.




Not always true about paying taxes - inherited assets are "bullet-vested" to the time of inheritance, with taxes only on increase in value after death.


> Well you also can't spend paper gains, you have to sell and therefore pay taxes.

Wealthy people don't have to spend their capital. They have enough income through e.g. dividends. E.g. Warren Buffett bought (through Berkshire Hathaway) Coca-Cola in 1989, and has never sold a single share. He has indicated he plans to keep holding on to them forever. Hence, he will never pay taxes on the capital gains.

> And you could, you know, lose money in the stock market.

That is true. But how is that relevant?




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