Maybe I am misinformed, the investing part makes sense, but not paying taxes on capital gains while willingly "unemployed" in your productive years to "enjoy life" and "freedom" sounds the same as the crypto miners trying to avoid taxes.
Contrary to popular belief, taxes are supposed to benefit society (at least that is the intent & purpose). I agree this is not the case for corrupt countries, but if everyone just retired early or sat at home mining coins, where will society end up?
...that haven't been realized yet. As you draw on your reserves, you'll be forced to realize those gains and pay taxes on them, making this a non-issue.
>willingly "unemployed" in your productive years to "enjoy life" and "freedom"
Ah yes, because the goal of life isn't to enjoy it, it's to be as productive as possible! Freedom is overrated anyways!
>as the crypto miners trying to avoid taxes.
Are miners known to be tax dodgers or something?
>but if everyone just retired early or sat at home mining coins, where will society end up?
"retired early": there would be an imbalance of labor demand compared to supply. This will cause prices to go up, which will make it less attractive to stay "retired" and more attractive to start working again.
"sat at home mining": same thing that would happen if everyone decided to gold mine. eventually there would be a saturation of miners and it won't be profitable anymore, causing people to exit.
That sounds like an epic tax dodge if true: take a sabbatical, realize your gains with zero tax. The only thing I can think of that could go wrong is dividends taking you over the 40k limit. Assuming your portfolio has 2% dividend yield you would start running into trouble once your portfolio approaches $2M in value. Anyways, will be calling my accountant tomorrow to discuss this ;)
Capital gains are part of your income, so realizing the gains themselves will take you over the limit unless total profit including gains and dividends is < $40k-ish.
You might be able to take out small amounts strategically to avoid the 40k threshold.
I may be mistaken, but isn't FIRE telling people to live off 4% of their investments forever? If the goal is 1 million, that is exactly 40k.
The math works out perfectly to leech on society - and
(this is just a hypothesis) possibly causing S&P 500 ETFs to inflate as these FIRE "retirees" promote their methods online, creating a feedback loop and illusion of ever-increasing stock market boom for the last 10 years
Contrary to popular belief, taxes are supposed to benefit society (at least that is the intent & purpose). I agree this is not the case for corrupt countries, but if everyone just retired early or sat at home mining coins, where will society end up?
https://beunsettled.co/blog/is-the-fire-movement-really-the-...