It’s been a while since my last post. I’m the type of person that needs a routine to get stuff done. The day I break that routine, essentially nothing gets done until I start it again.
I think my goal of one post a day was far too much, so I’m changing it to 30 minutes a day. Which probably means one post every couple days, but we’ll see how it goes.
I have several mistakes in my previous posts that I will correct tomorrow. Today my objective is just to get back into the routine of writing blog posts.
For me today marks a great occasion for my investments – I have unrealized long term capital gains! Recall that long term capital gains are taxed at favorable rates: 0% at the 10% and 15% marginal brackets, 15% at the 25% to 35% marginal brackets, and 20% at the 39.6% marginal tax brackets. Capital gains (the difference between the cost basis – typically the amount I paid for the investment, and the sale price) become long term capital gains when they have been held for at least a year. I made my first investment in my taxable account on 6/05/2014, so today, 6/06/2015, marks one year and one day since that purchase. And I made many purchases since then (at least once a month) so I have made more unrealized capital gains that will be becoming long term capital gains in the coming months
I’m pretty excited to join the “club” of making money in a tax efficient manner. This is how the rich get richer. As they say, it takes money to make money. I can’t think of a better example than these tax efficient investments. Proper index investing results in exponential increases in capital gains in the long run (thanks to the stock market), and these gains are taxed at lower rates than normal income. Also, for the first $117k of gross wages, not only do you pay federal and if applicable, state income taxes, you also pay FICA taxes, which are 7.65% (and 1.45% for wages above $117k). Earning money from a job is not tax efficient. But of course, in order to invest money, you need money to invest.
I have many things planned for future posts:
- Correct errors in previous posts
- Reveal my new Investment Policy Statement and the rationale for the change
- Take a step back and look at what three things you need to do to achieve financial independence, and how these things work together
- Earn money
- Save money
- Invest money
- Examine the 4% rule, which is instrumental in determining how much money is required before declaring financial independence.
- Discuss the numerous ways I save money, including credit card rewards, discounted gift cards, and shopping portals
- Discuss the numerous ways I make money on the side, such as credit card signup bonuses, bank signup bonuses, gift card churning, and manufactured spending
- Discuss the merits of biking
I also plan on migrating this blog to a paid server soon, along with its own domain name.
Hopefully you will enjoy all my new content!