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
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No, YOU'RE not the crazy one.ladycaviarApril 17 2009, 02:26:13 UTC
The way I was taught, you are only investing if you buy stock that pays dividends. If, OTOH, you buy non-dividend paying stock hoping to sell it for more that you paid, that is not investment but speculation, something entirely different.
In the 80s and 90s, it was fashionable to advise people to do things like you listed -- speculate instead of invest, and to carry a mortgage instead of paying off your house "for the tax break." That was when we were protected by banking regulations instituted after the Great Depression. Ironically, it was in the same 80s and 90s that those same banking regulations were crippled, making such fashionable advice utterly worthless, as you so rightfully noticed.
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In the 80s and 90s, it was fashionable to advise people to do things like you listed -- speculate instead of invest, and to carry a mortgage instead of paying off your house "for the tax break." That was when we were protected by banking regulations instituted after the Great Depression. Ironically, it was in the same 80s and 90s that those same banking regulations were crippled, making such fashionable advice utterly worthless, as you so rightfully noticed.
Ironic, huh?
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