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posted ago by yeldarb1983 ago by yeldarb1983 +14 / -1

I'm not asking for myself or even anyone I know, but it occurred to me that capital investments are taxed at a lower level than labor-based income or even self-employment, so maybe there would be a way to break out of poverty easier through investment than through traditional means.

I'm not advocating for welfare programs or anything like that, I'm just trying to think in terms of a "hack the system" sort of solution to poverty.

Edit: to clarify, my thought is to teach people how to invest properly as a method of helping them escape from extreme poverty.

Comments (19)
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Cyborg9080 8 points ago +8 / -0

Yes, but it requires discipline and due diligence.

Your first wealth generator should be your job. To get a higher wage, develop a skill that is in demand but will not put you in debt to learn. Getting your CDL might be a good idea because it's in demand right now and pays well to start.

Keep your expenses low, avoid frivolous things and gold digging women while making smart investments.

While it's good to have some cash on hand, inflation is only getting worse, so I've been looking at crypto to make my savings work for me. I can stake and lend to get a return, and it adds up, but I always have to pay attention.

I would like to buy rental properties in the future, but the market is just so overpriced right now.

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Winged_Splinter 4 points ago +4 / -0

I'm right there with you on the crypto. I'm about to be making the move here very soon. I already liquidated my AMC shares that I bought for 12.96 per and sold for 42.

I'm on the fence about my dwac. I want to hold, hell, I kinda wanna buy more, but as I watch the dollar crumble around me I'm not sure I want to do either.

The simple fact is I know I can keep my money safe with crypto and if I was already invested I would have made an extra 15k today with the info I get beforehand.

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yeldarb1983 [S] 2 points ago +2 / -0

Not really looking at it for myself, just throwing an idea out there and seeing what sticks. =) Good points, though.

CDL

Might have to go HVAC, fiance's afraid I'll run someone over, lmao.

rental properties

Fair warning: rental laws very much favor the renter, not the landlord, and you gotta be prepared to fix anything that breaks at a moment's notice.

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Cyborg9080 3 points ago +3 / -0

This is true, though it also depends on the state you're in. The tax benefits are lucrative.

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yeldarb1983 [S] 1 point ago +1 / -0

as long as you know what you're doing, lol

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Piroko 7 points ago +7 / -0

The problem is much more Petersonian.

People stay on welfare because they're addicted to immediate gratification. The ones who aren't might occasionally need unemployment assistance but they almost never get themselves into needing housing or food assistance.

Breaking an addiction to immediate gratification is extremely difficult.

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yeldarb1983 [S] 3 points ago +3 / -0

can confirm, lol.

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Greatheart 6 points ago +6 / -0

capital investments are taxed at a lower level than labor-based income or even self-employment...

That is the argument used to justify rising the capital gains tax. The reality is this. The Capital gains tax is too high and "labor-based" income tax is too high. In fact there should be no income tax at all.

If you have enough resources to invest in the markets I do not believe you can qualify for welfare.

The welfare system does not encourage savings. It encourages you to spend everything you get as soon as you get it.

The welfare system is not interested in getting people off of welfare. It is interested in keeping the system going.

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yeldarb1983 [S] 4 points ago +4 / -0

The Capital gains tax is too high and "labor-based" income tax is too high. In fact there should be no income tax at all.

agreed.

The welfare system does not encourage savings. It encourages you to spend everything you get as soon as you get it.

The welfare system is not interested in getting people off of welfare. It is interested in keeping the system going.

Absolutely. To clarify, I'm not looking at this from a "use the system the way it was intended" perspective. I'm looking at it from a "How can we help people trapped in this system game their way out of it?" kind of way. Sort of like how people here worked together using the stock exchange to hold hedge funds to account.

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CaptainButthurt 7 points ago +7 / -0

The biggest hurdle facing poor people is many prefer their state of affairs and don't have the ability to not be poor.

For example: if I gave some random down trodden baby mama 50k to use as she saw fit, she'd spend it all within no time and it would be gone.

However, if I gave that same 50k to someone that is investment minded. This could be someone even middle class. They would probably grow that 50k into something useful.

You see stories all the time of poor people winning the lottery and a couple years later be totally bankrupt. Its the same situation. It takes a certain mindset to not want to be poor and break free of that condition. Anyone can do it but it does take time and effort.

I guess the best way to summarize is to say: being poor is not an economic state. It is a mental state.

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yeldarb1983 [S] 4 points ago +4 / -0

good points all around, lol.

Thanks for not looking at the question like I was a moron, even if I approached it somewhat naively. = )

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Greatheart 3 points ago +3 / -0

As far as I know you cannot break free from the system while still in it. You are supposed to report all sources of income and whatever savings you have. Once you have any savings you do not need welfare. So the push is not to have any savings.

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Icepck 3 points ago +3 / -0

If somebody happened to open an account somewhere, deposit their whole check and catch a 10x gain by accident it would help them less than the average person on these forums. What is welfare, $500 a month? Turn that into $5000 overnight and are you still in poverty? Are you going to spend it wisely?

More importantly, what are the odds a welfare recipient actually goes through the setup process AND guesses the right stock at the right time? They're way more likely to go to the casino.

If they were to invest slowly they'd reach a threshold where they have too much to get their welfare but not enough to live on the investments.

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yeldarb1983 [S] 1 point ago +1 / -0

a fair point, lol.

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MajorClark 2 points ago +2 / -0

Excellent post. Yes, if poor people understood how to invest they could get out of poverty. Or... they could lose it all. It's gambling.

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yeldarb1983 [S] 1 point ago +1 / -0

Yeah, but a lot of poor people gamble anyway, might as well learn how to count cards is all I'm saying, lol.

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Annpi 1 point ago +1 / -0

These ppl were broke, living in trailers, had 2 kids, debt, a business failing.... they created a YouTube channel sharing their life and how the fixed up their mobile homes... now they bought a house with cash, and a new 30$k tractor, a bus, have zero debt... It took time and discipline, most people have no discipline. https://youtube.com/channel/UCRKjjDhP3w2lnx3csu3G3aw

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