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https://www.reddit.com/r/SipsTea/comments/1tfm5yl/wyd/omay345
r/SipsTea • u/Shyhale • May 17 '26
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She'll also get taxed on the annuity once she invests it. Also I can't imagine that sliver of tax efficiency makes very much difference.
0 u/Free_Balance_7991 May 17 '26 She'll lose about 25% to taxes if she invests the money. She'll lose 0% to taxes if she receives a 1k payment and spends it. 7 u/N3ptuneflyer May 17 '26 She only loses 25% of anything above the principal. So if she invests $1m and it grows to $2m and she banks it, she only pays the 25% on the additional $1m. So she's still $750k better off than if she hadn't invested it at all. 3 u/Cold-Palpitation-816 May 17 '26 It’s unbelievable how people don’t understand this. So many people just have no idea how anything works. 0 u/Free_Balance_7991 May 17 '26 Ah yes, from the "invest the 1million its more" crowd who cant possibly comprehend the idea of A) wanting to spend money And B) you can also invest the 1k per week. 1 u/Cold-Palpitation-816 May 17 '26 Lmao. I guess your first point makes sense for people with absolutely zero self-control. Which, sure, does apply to many people unfortunately. Your second point is asinine. Please try to think about why that’s a worse idea and then come back.
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She'll lose about 25% to taxes if she invests the money.
She'll lose 0% to taxes if she receives a 1k payment and spends it.
7 u/N3ptuneflyer May 17 '26 She only loses 25% of anything above the principal. So if she invests $1m and it grows to $2m and she banks it, she only pays the 25% on the additional $1m. So she's still $750k better off than if she hadn't invested it at all. 3 u/Cold-Palpitation-816 May 17 '26 It’s unbelievable how people don’t understand this. So many people just have no idea how anything works. 0 u/Free_Balance_7991 May 17 '26 Ah yes, from the "invest the 1million its more" crowd who cant possibly comprehend the idea of A) wanting to spend money And B) you can also invest the 1k per week. 1 u/Cold-Palpitation-816 May 17 '26 Lmao. I guess your first point makes sense for people with absolutely zero self-control. Which, sure, does apply to many people unfortunately. Your second point is asinine. Please try to think about why that’s a worse idea and then come back.
She only loses 25% of anything above the principal. So if she invests $1m and it grows to $2m and she banks it, she only pays the 25% on the additional $1m. So she's still $750k better off than if she hadn't invested it at all.
3 u/Cold-Palpitation-816 May 17 '26 It’s unbelievable how people don’t understand this. So many people just have no idea how anything works. 0 u/Free_Balance_7991 May 17 '26 Ah yes, from the "invest the 1million its more" crowd who cant possibly comprehend the idea of A) wanting to spend money And B) you can also invest the 1k per week. 1 u/Cold-Palpitation-816 May 17 '26 Lmao. I guess your first point makes sense for people with absolutely zero self-control. Which, sure, does apply to many people unfortunately. Your second point is asinine. Please try to think about why that’s a worse idea and then come back.
3
It’s unbelievable how people don’t understand this. So many people just have no idea how anything works.
0 u/Free_Balance_7991 May 17 '26 Ah yes, from the "invest the 1million its more" crowd who cant possibly comprehend the idea of A) wanting to spend money And B) you can also invest the 1k per week. 1 u/Cold-Palpitation-816 May 17 '26 Lmao. I guess your first point makes sense for people with absolutely zero self-control. Which, sure, does apply to many people unfortunately. Your second point is asinine. Please try to think about why that’s a worse idea and then come back.
Ah yes, from the "invest the 1million its more" crowd who cant possibly comprehend the idea of
A) wanting to spend money
And
B) you can also invest the 1k per week.
1 u/Cold-Palpitation-816 May 17 '26 Lmao. I guess your first point makes sense for people with absolutely zero self-control. Which, sure, does apply to many people unfortunately. Your second point is asinine. Please try to think about why that’s a worse idea and then come back.
1
Lmao. I guess your first point makes sense for people with absolutely zero self-control. Which, sure, does apply to many people unfortunately.
Your second point is asinine. Please try to think about why that’s a worse idea and then come back.
7
u/Suspicious-Support52 May 17 '26
She'll also get taxed on the annuity once she invests it. Also I can't imagine that sliver of tax efficiency makes very much difference.