Tuesday, November 29, 2016

Which one is better?

You had an insider tip that could be hardly prosecuted and made a million dollar.


From a new strategy you developed, you made $10,000 each in 10 trades.

You are right in either answer. It all depends on your age. If you have more than 10 years from your expected life, most likely the second one is better.

Consider the compounding benefit for the second option. However, no strategy is evergreen and hence you have to modify it to suit current market conditions. The second advantage is tax. You may have to share your million with Uncle Sam and your friendly state collector is smiling too. If your strategy has been proven, you can use it in your Roth account to reduce taxes.

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