ISNT TIMING MORE EXPENSIVE THAN HOLDING?
It is. There can be capital gains taxes with every sale and brokerage commissions with every transaction. But expense is only half of the equation. Return must also be included in the calculation. The real issue is whether the gains derived from timing– after taxes and commissions have been paid– exceed the gains from simply holding– after taxes and commissions are paid. Timers can minimize expenses by using deep discount brokers. Taxes, on the other hand, are a fact of life. If you hate paying taxes, your only recourse is to stop making money. The Moose program minimizes taxes to the extent that index funds generally have lower capital gains distributions due to less turnover, but Index Moose will clearly be more profitable in tax-deferred portfolios like IRA’s, SEP’s and so on.
