The Really Rich Podcast with Nicholas Crown cover image

The Really Rich Podcast with Nicholas Crown

What they don't tell you about market returns (and what to do)

Dec 13, 2023
This podcast uncovers the truth about market returns, revealing how taxes, rebalancing, and inflation chip away at profits. It explores a lesser-known investment strategy and discusses the benefits of annuities in securing market returns.
05:02

Podcast summary created with Snipd AI

Quick takeaways

  • Taxes can significantly reduce investment returns, with capital gains taxes potentially reaching up to 20% for higher earners.
  • Rebalancing and inflation can also diminish returns, with transaction fees, capital gains taxes, and the average annual inflation rate reducing a nominal return of 8% to under 5% in real terms.

Deep dives

The impact of taxes on investment returns

Taxes significantly reduce investment returns. Long-term capital gains taxes can be as high as 20% for higher earners, while short-term investments can be taxed at income rates as high as 37%.

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