Replies to post #33709 on A.I.M. Users Bulletin Board (AIMUSERS)

[Adam]

Hi Karw, Interesting. If your portfolio increases by 10% in a year you pay 1.1*1.2%=1.32%. In the US in a taxable account we pay 15% on long term capital gains or dividends. So we pay 15%* 10%=1.5% . So if the market is doing well we pay more.

On the other hand if the market does not do well we may pay no tax while you still pay regardless.

So I assume you have no tax free retirement accounts?