it takes money to make money.
Real world reaction if/when markets crash? Will this time be different?
- Thread starter Dave Taylor
- Start date
it takes money to make money.
The Kalmyk
Well-Known Member
JPark
Well-Known Member
The classic estate tax evil is a family farm or other small business that is worth a lot of money because of it's land/building value but doesn't have that much revenue. The kids get hit with the estate tax and have to sell everything.
Tax laws are written by rich people for rich people.
Dave Taylor
Rex kwan Do
Ahh, silly you, you forgot the loopholes...the problem with your theory here is that the wealthier you are the better you are at hiding income. You are a fool if you really think the wealthy pay a higher relative tax rate. This is where life insurance policies and all the other BS loopholes come into play.
Ten Ways Billionaires Avoid Taxes on an Epic Scale
After a year of reporting on the tax machinations of the ultrawealthy, ProPublica spotlights the top tax-avoidance techniques that provide massive benefits to billionaires.
www.propublica.org
The Kalmyk
Well-Known Member
Ahh, silly you, you forgot the loopholes...the problem with your theory here is that the wealthier you are the better you are at hiding income. You are a fool if you really think the wealthy pay a higher relative tax rate. This is where life insurance policies and all the other BS loopholes come into play.
Ten Ways Billionaires Avoid Taxes on an Epic Scale
After a year of reporting on the tax machinations of the ultrawealthy, ProPublica spotlights the top tax-avoidance techniques that provide massive benefits to billionaires.
To be honest Dave. The only advise i would consider from you in regards to gaining wealth, is moving to Maryland so i could afford a new bike. 🤘🏻🤘🏻😂
Dave Taylor
Rex kwan Do
This has nothing to do with gaining wealth. I don't care how you get rich either. I do my own things for myself and my family. Personally I just bought another JPM short note for October 23 expiry and 15% return. Basically $SPX, $NDX and $RTY need to be down 30% from here at expiry to lose money. Even if a month closes 30% down on one of those I only don't get paid that month's premium. I did just buy 200 shares of TQQQ yesterday but expecting to add another 400 over the next month or so for a long term hold.
Now, where do the markets stand in relation to my original crash call in 2020? Well, I guess we will find out soon enough as Jerome Powell seems persistent on pulling every printed dollar(QE) out of the markets since 2009(QT). I don't see markets correcting until we stop raising rates and reverse course.
On a side note, that last crazy sunup in SPACS in early 2021 created a ton of bag holders(many on here) that are now 60-90% in the hole on those. Cathy Woods ARKK ETF being the best example. And I still wouldn't touch that thing at this level. Everyone claims "in the long run it always goes up". Ok, right...so how long will it take before we see 4800 SPX again?
The Kalmyk
Well-Known Member
Dave Taylor
Rex kwan Do
Then you should be retired by now. Every one of you that has all of these great investment plans. I mean, it's really pretty simple. Just double you money 10 times. $2000, 4000, 8000, 16000, 32000, 64000, 128000, 256000, 512000, 1024000...there, you're now a millionaire.
The Kalmyk
Well-Known Member
Again, point proven😂
A millions dollars in the bank, three kids at 46.
Retirement... Hell yeah!! Great idea🤘🏻🤘🏻
Dave Taylor
Rex kwan Do
I don't get your point? And I didn't realize you were that old? Everyone here has all these great retirement plans but pretty much everyone I talk to plans on not retiring until 65 or older. I plan to be done in 12 years.
rick81721
Lothar
Ahh, silly you, you forgot the loopholes...the problem with your theory here is that the wealthier you are the better you are at hiding income. You are a fool if you really think the wealthy pay a higher relative tax rate. This is where life insurance policies and all the other BS loopholes come into play.
Ten Ways Billionaires Avoid Taxes on an Epic Scale
After a year of reporting on the tax machinations of the ultrawealthy, ProPublica spotlights the top tax-avoidance techniques that provide massive benefits to billionaires.
Haha billionaires are a far cry from those making 100 - 500K.
rick81721
Lothar
I don't get waiting until 65 - or older - either, unless you have to. I saw too many at work stick around too long, finally retire and then kick the bucket a few years later. I went out exactly years ago to the day at 58.
The Kalmyk
Well-Known Member
As long as people are brushing their teeth you are golden
Too bad it takes more than a million to retire these days.
Most people have to.
Dave Taylor
Rex kwan Do
Then why all these fancy IRAs, Roths etc if you still wait that long?
I don't know, I'm planning to retire as early as possible.
tax deferment on trades, and a penalty if you get an urge to buy a boat when the market is up figuring it is going to the moon.
so your $120k becomes $60k and the market tanks and now it is $45k....and the value of the boat goes to $30k, if someone will buy it.
at 7% it doubles every 10 years.
at 10% is doubles every 7 years.
Rule of 72..
there area 40 investing years @ 7%, starting with $60k could make it...
I did the math somewhere else, I think it is $100/week starting at 20 yo
Using $400/month to make it easier. (i could have done it $4800/year.. but it would be quite a bit less cause of the slower compounding)
F = P * ([1 + I]^N - 1 )/I
7% is .07/12 - monthly rate .0058333
40 years * 12 per year = 480
400 * ([1.006]^480-1)/.006 = $1,110,775
At @clarkenstein or @thegock (please check the formula - i think this is the future value of a stream of equal payments.)
And if you're lucky that $1.1 mil will last you about 10 years.
The good news is the 50 year return is over 10% with reinvested dividends....
The 30 year return is 9.9%
so maybe get an extra double+ in there somewhere.
Still isn't going to last without being smart about it.
given the investor was smart enough to get there, i bet they can manage the other side.