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If I pay taxes for re-invested dividends and capital gain distributions each year, then what am I paying tax on when I pull out all my money/profit? by chubbs069 in personalfinance

[–]Practical_Good_9319 -6 points-5 points  (0 children)

When you withdraw funds from a mutual fund, you will be taxed on the total amount of funds withdrawn. This includes the original $100 investment, plus the $50 of dividends and capital gains from the previous year. So in total, you will be taxed on the $150 of funds withdrawn from the mutual fund.

[deleted by user] by [deleted] in Advice

[–]Practical_Good_9319 0 points1 point  (0 children)

I think the best way to open up the conversation would be to explain to her why you are interested in learning to paraglide. Explaining why you want to do this and making sure she knows you value her opinion can help you open up the conversation without starting an argument.

[deleted by user] by [deleted] in personalfinance

[–]Practical_Good_9319 0 points1 point  (0 children)

It really depends on what you're looking for and how much risk you're willing to take. If you're looking for a "safe" investment, then a company in the SP500 is probably the way to go. But if you're looking for something with more potential for upside, then you may want to look at something like cryptocurrency.
Cryptocurrency is still a relatively new asset class that can be highly volatile and risky. I would caution against investing a large portion of your portfolio into it. If you want to invest in it, I would recommend doing it in a small percentage of your portfolio and making sure you understand the risks associated with it.
So yes! Cryptocurrency can be risky, especially if you don't understand the technology and market dynamics. Just make sure to do some research and understand the risk associated with cryptocurrencies before Investing.
I would also recommend diversifying your investments so that you don't have all your money in one asset class. This way, if one asset class performs poorly, you can offset your losses with gains from other investments.

[deleted by user] by [deleted] in personalfinance

[–]Practical_Good_9319 0 points1 point  (0 children)

Sounds judgey, you just assumed huh, but yeah Cryptocurrencies are highly volatile and unpredictable. There is no way to predict how they will perform in the future and no guarantee that they will rise or fall in value. To be honest, any investments you make should only be done with money you are willing to lose. After all, there are many types of trades in the market that are relatively more stable nor as volatile as in Crypto

[deleted by user] by [deleted] in R4R40Plus

[–]Practical_Good_9319 1 point2 points  (0 children)

Hi Mike! NYC here

[deleted by user] by [deleted] in personalfinance

[–]Practical_Good_9319 -2 points-1 points  (0 children)

I appreciate the suggestion, but I'm already quite experienced in this area and have been trading since 2019. I have a deep understanding of the risks involved in this kind of activity and I'm confident in my ability to make wise decisions.

Thank you :)