Capital gains taxes can eat over 20% of your investment gains each year.Looking at the investments outlined above the $124,000 that becomes $580,000 after 10 years, grows to only $434,000 after yearly taxation. Inflation has averaged 3-4% for the last 30 years. Invest Your Home in the Stock Market Thus the 17% loses 3% due to inflation and the remaining 14% is reduced by 2.8% for taxes. Has it happened in the past? However I would caution anyone against investing more than they feel comfortable losing and strongly urge investors to spread their investments among other classes of assets such as realestate, bonds, [...] So if you purchased your home for $150,000 in 10 years at just 5% annual appreciation, your home will be valued at $244,000. Are you paying a mortgage around 8%? It has almost always returned more than the interest rate for an average home.If you are making 20% while paying 8%, you are gaining 12% on your invested money. But is it possible? You also need to understand how to invest your money wisely and look for opportunities to make money on the float.***************************************************************© Simple Joe, Inc.David Berky is president of Simple Joe, Inc. Since its inception, the New York Stock Exchange has averaged an increase of 11% per year (including the years of the crash of 1929 and subsequent depression).
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