When I hear people talk about investing they often divide money earned from investing into two separate and distinct entities, capital gains and 'income' dividends or interest payments.
Or at least they act like they are distinct types of money. I understand that tax treatment can make a big difference, but what's the difference between the two otherwise? Isn't money fungible? What's the difference between buying an index fund and selling 5,000$ of it every year as it grows and buying a bond and earning 5,000$ a year in interest or dividends?
Submitted February 05, 2017 at 01:13PM by Nowhere_Cowboy http://ift.tt/2jPRyq5
