01 May 2026
Trite
/trīt/
Trite describes an idea, remark, or story that is boring, unoriginal, and overused to the point of losing its impact. It implies that the freshness or cleverness of the expression has been “worn out” through constant repetition.
If every LinkedIn post, conference keynote, and financial webcast featuring the line “It’s not what you earn, but what you keep!” paid a nickel to the audience, we could retire — pay the taxes — and never hear it again.
The line is trite. It is also wrong.
How much you earn is vitally important.
Consider this: put $5,000 in a shoe box under your bed for five years. After five years, you keep every dollar — zero taxes owed. Is that the goal? Of course not. Avoiding taxes produced nothing. The money bought less than it did five years ago, and you’re no wealthier for it.
The actual goal is to have more money after taxes — not to minimize taxes as an end in itself. Tax avoidance is a tool, not a destination. Letting it drive investment decisions is the classic case of the tax tail wagging the dog (another trite line?).
And taxes may be less punishing than you think or marketed to investors.
Based on 2026 rates, a couple filing jointly doesn’t reach the top rate of 40.8%* on short-term gains and interest income until taxable income — not gross income — exceeds $768,700. For long-term capital gains and qualified dividends, the top rate of 23.8%* doesn’t apply until taxable income exceeds $613,700. Most investors are not in those brackets, and even those who are may be better off earning more and paying the tax.
So many of the industry sales pitches look to shock the audience with worst case tax bills. How many folks actually are in those top brackets? And again, what is the goal? More money after-tax or a lower tax bill?
At Frontier, we launched an illustrative tool to help visualize how even modestly more return (with more tax) can create more wealth, both pre- and post-liquidation for investors. Give it a look and contact your Frontier Sales Representative to obtain a link to the tool.
For Financial Professional Use Only – Not for Distribution to the Public.
No one should pay more taxes than necessary — that’s not the argument. But a tax bill is sometimes the price of a good investment decision. Investors should aim to earn as much as they can and finish with more money after taxes. Those are not the same thing as minimizing taxes at every turn.
“It’s not what you earn, but what you keep” is an easy line to sell. Easy doesn’t mean right.
*Includes 3.8% Net Investment Income Tax.
Frontier does not provide tax or legal advice. Please consult with a licensed professional for recommendations pertaining to individual circumstances.
Past performance is no guarantee of future returns. Performance shown represents total returns that include income, realized and unrealized gains and losses. Nothing presented herein is or is intended to constitute investment advice or recommendations to buy or sell any types of securities and no investment decision should be made based solely on information provided herein. There is a risk of loss from an investment in securities, including the risk of loss of principal. Different types of investments involve varying degrees of risk, and there can be no assurance that any specific investment will be profitable or suitable for a particular investor’s financial situation or risk tolerance. Frontier is not responsible for any trading decisions, damages or other losses resulting from this information, data, analyses, opinions or their use. Diversification does not ensure a profit or protect against a loss. All performance results should be considered in light of the market and economic conditions that prevailed at the time those results were generated. Before investing, consider investment objectives, risks, fees and expenses.
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