Do you know how rich people make a fortune from the stock market without lifting a finger, while others work hard for a fraction of the earnings? #StockMarketWealth #RichVsPoor
Curious about the powerful impact of capital gains on the wealthy and the disparity in wealth accumulation through investments? #CapitalGainsInsights
Unveiling the Stock Market Wealth Divide:
– Wondering how the rich amass wealth effortlessly through passive income streams? #StockMarketProfits
– Explore the startling earnings potential of capital investments in the stock market for the affluent. #RichGetRicher
– Discover the fact that having capital in the stock market can yield more profit than years of hard work. #WealthDisparityInsights
Calculating Capital Gains on Investments:
With just $1 million in capital, a 10% market increase equals $100k in earnings annually – mind-blowing, right? #WealthMultiplier
Imagine the staggering profits:
– $10 million capital = $1 million per year
– $100 million capital = $10 million per year
– $1 billion capital = $100 million per year
#StockMarketWealthGrowth
Unveiling the Truth Behind Stock Market Earnings:
– Uncover the harsh reality of the rich profiting from the stock market at the expense of the working class. #IncomeInequalityRevealed
– Shocking insight: a mere 10% annual gain is considered low for the wealthy, who capitalize on insider knowledge and expert advice. #StockMarketWealthSecrets
– Join the conversation on the wealth gap perpetuated by passive income generation in the stock market. #RichVsWorkingClassDebate
Isn’t it alarming that wealth accumulation through investment outpaces traditional work income? Let’s delve deeper into this unsettling phenomenon. #WealthDisparityDiscussion
On top of this income tax (tax on work) is usually higher than capital gains (tax on returns from investment).
It underlines how the wealthy are favoured and the poor are oppressed.
Thanks to my TSP I’ll be able to retire in another 20ish or so years.
Investing in the market early on in life is one of the very few ways the middle class is able to comfortably retire.
Literally anyone can open a brokerage account and throw $10 a week into a broad market ETF.
>If you have capital of $1 million and the market goes just up 10% that is $100k a year.
No, it’s not that simply. Said person would need to sell to realize that $100k gain and then pay taxes on that.
Also the market doesn’t go up every year. It was down nearly 19% in 2022, 5% in 2018, 39% in 2008, 22% in 2002.
>Isn’t sick that you can earn more just by having money than people working?
Again, nothing is stopping anyone from opening a personal brokerage account and throwing some money at a broad market ETF like SPY. Or if you want to be super conservative you can keep cash in said brokerage account or open a HYSA earning nearly 5% instead of sitting in a savings account earning next to nothing.
Wait until you find out banks pay you money to hold your money. Like literally, if you let them hold your money they give you more money. It’s insane.
This is why “lying flat” aka doing as little as possible is so important. Doing the bare minimum and dropping the stock from being up 5-10% to being down 5-10% is the difference between our oppressors getting bonuses/raises and having nice lives for over working us or them losing their houses/spouses/toys when they get fired for poor performance. Since we already have to leave every year or two to get raises anyways, there isn’t much for us to lose by doing this and there is pretty much nothing they can do to stop it. They determine the rate of pay, WE determine what they get for that pay and “market adjustments” can work 2 ways…
10% of $1M is $100k, ok, instant outrage. I had No. Freaking. Idea.
Unsure your point. Of course it’s easier to make money once you have money. It’s also easier to loss massive amounts of money if you are an idiot. This is why usually by the 3rd or 4th generation those born into wealthy end up blowing it all because they don’t realize the work that went into creating that wealth originally so they spend it all on frivolous shit.
All this said, I fail to understand why people continue to vote for those who want to raise taxes. The levels of tax we pay is insane.
Jesus Christ how is this news to you? How uniformed can one be
Um you can start in the market you still pay tax on it so be aware.
I started with $5-10 of my paycheck back in 2008. I bought AMD. And then also put a few into Voo and schd. Div invert in it self. I’m not rich but it sure has helped me build some money and generate some while I also busted my ass getting to where I am now.
Learning is not created equally
Pensions and 401ks are usually dependent on stock market performance too, it’s not just rich people.
Of course, there’s always the chance of a stock market CRASH, as we all witnessed in 2007-2008 where the stock market lost 50% …
10% is kind of average actually (which is still crazy, don’t get me wrong). It’s all a brutal cycle really
Yes except this is open to literally everyone? It’s not some secret that only rich people have (except for insider trading which is illegal unless you are Nancy Pelosi apparently).
Do you have any money in the stock market? If not why aren’t you benefiting from it?
In my lifetime the taxes on capital gains more than halved.
OP. It’s much worse than this. You can take out loans on assets and pay whatever the interest rate is at the time( it was almost 0 for way too fucking long). Say you have a 2 million dollar property. Instead of selling the property and paying capital gains , take out a loan for XX amount and live like a king while paying a 7% loan lol
I only need 2’666’400$ with annually return of minimum 1% yearly
to get 26664$ gross annually
or 2222$ gross monthly
minus 10% tax on profit in my country –> 2000$ monthly after tax
Then I can retire and live my life without spending money in dumb shit luxury stuff and live comfortable doing my hobbies.
Investing in stocks and you make profit –> pay only 10% of tax
Working a salary job, I pay 43% of my gross income as tax.
Capitalism is a scam
And then they pretend they worked for it. It’s just their money, making money.
Don’t forget that to maximize the value of stock they have minimize expenses, including paying employees as little as possible.
They claim that raising the minimum wage will increase the price of the product…. only because they aren’t willing to take it out of the company profit so it doesn’t hurt their investment.
Rich people have a vested interest in maximizing your output while minimizing your income. So they will absolutely shame you for being dumb, lazy, no work ethic, etc to motivate you to work more while shaming you for being greedy or entitled for wanting more compensation. Because they need your labor for their earnings.
Not just that, the way stocks go up is often making people work harder for less money. You lose in every aspect of them getting rich.
Eh, when it comes to capital gains, you have to be careful how you set it up. Capital gains has already been taxed. So, as an example, suppose you invested $300 in, IDK, Microsoft, say that after a year, that investment goes up to $4k. You sell. Instead of you paying full income tax, you get to pay a little bit less because you used post-tax dollars to make that initial investment. The idea would be you’re avoiding double taxation.
Someone who is a casual investor is going to benefit. The problem becomes when folks are doing high-volume trades and doing other things. If you’re a day trader, you’re getting taxed at income-tax levels (which is stupid). Why do I say it’s stupid? Because the SEC and others believe investments need to be long-term so they punish us normal people from wanting in on the action.
It’s very frustrating to watch this all play out in real time. I also think it’s important to look at how folks who do S&P Index funds are probably just casual investors (regular folks like us) who aren’t going to get 7 figure returns. We really need to look at reforming taxation, however.
One area that would cause immediate relief is lifting the cap on FICA. Not to mention a 2% increase on the payroll tax. That immediately would make Social Security work. We’d be able to fund it forever. Hell, we’d even be able to increase benefits by damn near $1000-$1500/month.
I feel like this could be delved into more.
What is the stock market actually? It’s people betting on a share, which is what, the value of a company? Which has no tangible value. Like, it can’t actually be predicted, it just goes up and down with social value not from their carbon output or how much they’ve enriched a community, blah blah in terms of $$.
So when a company goes from private to public then they disperse their ability to fail among people who are interested in the company, likely financially, which catapults the investors into a great position. How does this affect poor people? I’d argue the “middle class” helps the business grow and either gets a small return from helping the company. Whereas the company is benefited by using many of us. If it fails the company takes less of a hit because it’s dispersed among other poeple and they lose less than they would had if they did not cast a net to grow.
Since the poor are the workers than we can blame companies for not giving every worker shares. This should be an entitlement in addition to being wage paid or salaried. Otherwise, workers are essentially laboring without being given their royalties.
I guess I would argue that if a company gives its employees shares for free, then we can consider them decent, because the laborer earned it. Anyone who does not get shares from a public company is being taken advantage of.
What is it exactly you want to discuss? All of these Finance 101 posts get a little tiresome. Do you want to discuss what happens when the market doesn’t go up 10% in a year? Or when it drops? Or the liquidity problem with having investments alone? Or do you want to start spending some energy on starting your own portfolio rather than talking about some very basic market tenants as if they’re some new revelation? Capitalism is always going to protect the rich. The goal should be advancing measures to address income inequality (higher taxes on the true 1%, social welfare for the true middle class) while also advancing your own personal net wealth. The system is what it is. Complaining about it will get you nowhere.
The great thing about compounding interest in the stock market is that it doesn’t discriminate. I get the same 10% returns on my lower-middle class salary that the billionaire on his yacht does.
You left out dividends. Depending on your mix of investments you can pull in about $10K per $1M per year just in dividends alone. Think about that, with $100M in dividend stocks you’re going to pull in $1M/yr in dividends without even touching the principle on your investments.
Consistent 10% year over year is not a low gain for invested money.
OP clearly has internet. Open up a free vanguard account, or robinhood, or fidelity, or any investing platform and bam you have access to the same very safe large index funds most of these “rich people” invest in.
This is a crazy post.
One instant money hack the billionaire and coast elite cabal don’t want you to do know is you can also purchase stocks, thus, creating instantaneous returns. If we all bought stock no one would ever have to work or be home unsecured again. Then also no one will want to unalive, instead wanting to do the exact opposite, alive.
You think only rich people can invest their money? 61% of Americans participate in the stock market. … so it’s hardly some 1%er thing. If you have a basic 401k from your job, you’re also getting dividends from stocks lol
That’s the thing though. . . Anyone can invest in the stock market. It’s how almost everyone who has over a 1mm net worth got there, they lived on less than they made and invested the difference. You start compounding those returns over years and years and it adds up to a lot of wealth.
It’s not like some rich persons “trick” though, and stock market gains don’t steal anything from the poor (although I DO think capital gains should be taxed as regular income not a special rate, that’s some bullshit).
If you just put $100/ monthbinto the stock market from age 20 to 65 you eill have over a million dollars.
Anyone could start this with like $1000!
Yup, and they don’t pay a dime in social security tax on that either. If you were to tax Capital-Gains the same as you taxe personal-income, you could solve a LOT of the budgetary problems the US has. Eliminate the cap on personal income for SS and include Capitol gains, you’ve basically solved SS for the next 100 years.
This isn’t a secret society. Anyone can leverage the stock market’s compounding growth.
In Canada you can go to your bank and open a TFSA and buy [VFV.TO](https://ca.finance.yahoo.com/quote/VFV.TO) (a S&P500 Index) in ~$120 increments. It’s [been proven](https://www.investopedia.com/articles/investing/030916/buffetts-bet-hedge-funds-year-eight-brka-brkb.asp) that even elite hedge fund managers struggle to keep pace with a simple fund indexed to the S&P 500.
Do that once per year for 10 years, and (at the current 10 yr return of 14.85%) you’ll have [just under 3K](https://www.calculator.net/investment-calculator.html?ctype=endamount&ctargetamountv=1%2C000%2C000&cstartingprinciplev=120&cyearsv=10&cinterestratev=14.85&ccompound=annually&ccontributeamountv=120&cadditionat1=end&ciadditionat1=annually&printit=0&x=Calculate#calresult) to show for the $1200 you invested. Obviously it varies, but if you have the time and appetite for some risk, the rewards are [there](https://images.app.goo.gl/1PZ8AegM848U1uaQ6).
It’s apparent how little you know about these topics. 10% gains are unrealistic, there is also the risk of loss, and your stocks only make money at the expense of someone else, which by your post, stocks seem be exclusive only to rich people. Short term gains are taxed as ordinary income, and often people with substantial short term gains are already in a much higher tax bracket than the average person. So while their money has the ability to make money, they generally pay a higher tax than you do. Now, to your point, yes, if you have a million dollars, it’s much easier to make your next million by virtue of investing or other opportunities.