Comment on Ask HN: FU Money: What is your number?parentComments−prostoalex12yAt that level the recommended allocation would bias towards munis and dividend stocks, so taxation burden will be lighter.−stephencanon12yToday. If you're planning long-term, it's reasonable to assume a non-zero chance of dividends being taxed more inline with normal income.−prostoalex12yEMH says this will get priced in, and companies who pay dividends will just switch to stock buybacks or other more efficient methods of capital distribution.
Comments
At that level the recommended allocation would bias towards munis and dividend stocks, so taxation burden will be lighter.
Today. If you're planning long-term, it's reasonable to assume a non-zero chance of dividends being taxed more inline with normal income.
EMH says this will get priced in, and companies who pay dividends will just switch to stock buybacks or other more efficient methods of capital distribution.