Leverage vs. liquidate
Leverage vs. liquidate
What selling investments to pay cash actually costs over ten years.
Estimates capital gains tax on the sale plus the growth those assets would have produced if left invested. Confirm your actual rate with your CPA.
$500,000
$250,000
20%
7%
Estimated ten-year cost of paying cash
$533,576
- Taxable gain
- $250,000
- Estimated capital gains tax
- $50,000
- Ten years of compounded growth forgone
- $483,576
Bring this one to your CPA or financial advisor. It's the conversation that usually changes the decision.