It is not good. 18% 3-year cap translates to a growth rate lower than 6% a year. That means the most one can get is a return equivalent of a 5.5% CD. It could only be better than a CD when its return is treated as a long term gain.
There is a good chance that the Democrats will win and reverse that tax bill. The chance is very low that at the time of redemption, S$P is exactly 18% higher or lower than it was when you signed the paper. Not to mention CD rate can go higher. What is more important is that one gives up his/her active management of his/her own finance when the money is lock in for a long time. I could be very wrong.
There is a good chance that the Democrats will win and reverse that tax bill. The chance is very low that at the time of redemption, S$P is exactly 18% higher or lower than it was when you signed the paper. Not to mention CD rate can go higher. What is more important is that one gives up his/her active management of his/her own finance when the money is lock in for a long time. I could be very wrong.