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A comment on The Rich Are Already Using Robo-Advisers, and That Scares Banks. Parent comment

Re:The Rich Are Already Using Robo-Advisers, and That Scares... by ForHackernews on Sunday February 07, 2016 @03:03PM (#11054533)
> And taxes! That tiny amount of interest on 50k won't be taxed at nearly the same rate as that from 50m.

Actually, it will probably be taxed at a lower rate. Interest on a savings account is taxed as ordinary income, while investment income on a $50m portfolio will likely be taxed at the 15% (or perhaps 20%) capital gains rate.

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Re:The Rich Are Already Using Robo-Advisers, and That Scares... by sandworm101 on Sunday February 07, 2016 @03:08PM (#11054558)
That's what the advice does, it makes sure your interest is gets investment treatment. Ideally, it isn't taxed. Ideally, the attorneys setup a structure whereby gains aren't treated as any sort of income until one decides to realize them.
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Re:The Rich Are Already Using Robo-Advisers, and That Scares... by WalterBright on Monday February 08, 2016 @01:49AM (#11056691)
> Ideally, the attorneys setup a structure whereby gains aren't treated as any sort of income until one decides to realize them.

There's no need to "structure" that. Buy stock and hold will do it.

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Re:The Rich Are Already Using Robo-Advisers, and That Scares... by sandworm101 on Tuesday February 09, 2016 @02:04AM (#11063635)
What use is that? If you never sell them then you cannot spend the money. The goal is to get cash money into the client's pocket without them having to pay taxes.
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Re:The Rich Are Already Using Robo-Advisers, and That Scares... by jvm on Sunday February 07, 2016 @11:32PM (#11056340)
I have < $50k of savings but most of my money is still in Betterment being taxed as capital gains. If you're using a savings account as an investment strategy the tax on your tiny interest payments is the least of your problems.
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Re:The Rich Are Already Using Robo-Advisers, and That Scares... by WalterBright on Monday February 08, 2016 @01:48AM (#11056687)
At $50M, the capital gains tax rate will currently be 25%, because even with tiny percentage gains you're going directly to the top CG tax bracket.
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