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ABOUT TAXES: Proprietary Traders can do heaps better
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Old 04-29-2007, 01:42 PM
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Lightbulb ABOUT TAXES: Proprietary Traders can do heaps better

I don't see much comment on the tax affect on compounding trading profits. Is that because no one is making any profits or if they are does it mean they are oblivious to losing millions of dollars?
Compunding profits without annual tax magnifies end result enormously - do the maths for a 5, 8 or 10 year period and see the difference.
Then seriously consider whether it is worth being tax structured so at worst you can defer tax until cash out day.
Oh, and dont bother with the crap about using IRAs - they limit what you can put in and penalise you when you take out prematurely.
Of course you have to get off your proverbial and do something if you want to get out of the road of a speeding bullet. Is it apathy traders ignore tax planning? or stupidity? or just not making money?
If you are a proprietary trader for starters its the company not the trader that is taxed. And if the trading company is domiciled offshore then it is tax exempt.
Does that start you thinking?
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compare compunding $10,000 tax-free per month at 10% via www.markettraders.cc with doing it alone and letting Uncle Sam whip you each year.
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