Monday, October 20, 2008

thoughts on investing and taxes

I've learned a few things lately concerning money that are very interesting to me. First I've learned that if one makes enough money they have opportunities to make or keep money that others don't. For example I looked at savings account rates today and saw that an account of $100,000 can make 1.75%, or $1,750 a year. The same account will give .10% to any amount under $24,999. For my personal purpose the account would hold $1,000 and make $10 a year. So $10 vs. $1,750. 

Another example is something I hope to do someday. You can pay for a life insurance policy that lasts for twenty years to cover you if something should happen. While you're covered for twenty years, if you have the means, you can save enough money to no longer need life insurance. If you don't make enough money you can never get out from under that payment of life insurance. So if you have enough money, eventually no life insurance payments. If you don't make enough, you make life insurance payments. 

These are just two small examples of how people with money have opportunities to make money. People without money do not. Now I'm all for this type of system where people can work hard and have chances to get ahead and do well. I'm not against making money or being wealthy. I find it interesting though many breaks like this are available to the rich and not the poor. I struggle with the idea that we should feel bad for people making a lot of money because they pay more taxes. I hear people argue that the wealthy pay most of the taxes and that's wrong. They say they are punished for succeeding. Considering all the breaks wealthy people have I don't think it's unfair if they pay more taxes. They certainly aren't being punished by banks, insurance companies and others. It makes a lot of sense biblically and economically if everyone has the chance and incentive to succeed. If the poor get more money they will spend and invest which will cause us all to have success. Since the poor don't get the same opportunities as the rich we ought to do something to level the playing field so others have the incentive to work hard and enjoy success too. So let those with money seek after and enjoy the benefits of making more money with their investing. Let also those with little money have a chance to succeed. In the long run if the poor prosper, we all prosper.