Interested?
You know, I read a ton of personal finance blogs, and investing blogs, etc. I keep seeing people writing about why you shouldn't invest money in things that pay regular dividends, because of the taxes. WTH?
It seems to me that if one has the opportunity to do absolutely nothing with their money, and have it just sit and be eaten away by inflation, versus investing it in, for example, Idaho Power stock, paying a dividend of 5.7% annually, it's still better to invest it, pay the taxes, and come out a little closer to breaking even with inflation.
I suppose if one was in the upper income brackets, and the money you made in dividends was taxed at 40%, it would seem like a bad idea. At my tax bracket, the taxes seem pretty negligible, and I'm getting paid every quarter for doing absolutely nothing. Given the wage freezes that have been in effect for my wife and I for a while now, I enjoy seeing my income go up, and produce more cash to invest.
All other things being equal, perhaps I should stick it in tax free municipal bonds, but they don't have all that great a return, so my net appears to be better with the taxable stuff.
Am I crazy?
It seems to me that if one has the opportunity to do absolutely nothing with their money, and have it just sit and be eaten away by inflation, versus investing it in, for example, Idaho Power stock, paying a dividend of 5.7% annually, it's still better to invest it, pay the taxes, and come out a little closer to breaking even with inflation.
I suppose if one was in the upper income brackets, and the money you made in dividends was taxed at 40%, it would seem like a bad idea. At my tax bracket, the taxes seem pretty negligible, and I'm getting paid every quarter for doing absolutely nothing. Given the wage freezes that have been in effect for my wife and I for a while now, I enjoy seeing my income go up, and produce more cash to invest.
All other things being equal, perhaps I should stick it in tax free municipal bonds, but they don't have all that great a return, so my net appears to be better with the taxable stuff.
Am I crazy?