Posted by baseball55 on April 11, 2014, at 20:11:29
In reply to Re: taxes » baseball55, posted by Phillipa on April 10, 2014, at 20:43:00
> I understand about withholding more of your money but why give the government money of yours that you could invest in the meantime? Phillipa
(1) A lot of people simply have a hard time saving. They plan to, but don't. So having the IRS "save" for you makes sense. (2) The rate of return on safe, liquid investments right now is about 1% - money market funds and bank accounts for example. So, add that to the difficulty of forcing oneself to save...let the IRS do it. (3) Higher returns can be made in more risky assets, like stocks, but people who need the money to spend within a year or two can not and should not tie money up in risky, less liquid assets.
poster:baseball55
thread:1063932
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