One for the filthy rich guys :)
02-23-2007 | 02:42 PM
#61
Race Car
Joined: Apr 2004
Posts: 4,159
Likes: 8
From: Chicagoland
Originally Posted by krisd
I was hoping someone could explain the effect of the Alternative Minimum Tax with respect to the Captial Gains on the investment income. A little time spent on the phase out of the itemized deductions would also be a lot of fun! I live in California so be sure to bring in those lovely taxes as well. I am sure there are a few folks from New York, so those taxes will be just as fun. We could then round that out by going over the various fund managers and how the conservative ones are getting a 10 to 15 percent return. If I could get a constant return any where in that range, I may be able to seriously consider the original question in the post.... Oh yea, that's right, how would I spend alot of money! 
I would start with about a 80 foot boat, that would certainly be a great way to reduce my bank account while having a great time. It would be big enough to strore plenty of water toys and accomodate several friends in comfort. It is also a size that you don't necessarily need a crew to enjoy, which would be my personal preference...at least for another 10 to 20 years.
A couple houses in different climates would be great also, maybe throw in a jet.
And certainly a few fun cars.
Lastly, trusts for all the family members as well as some charitable trusts.
Now let's get back to the tax discussions!
Kris
I would start with about a 80 foot boat, that would certainly be a great way to reduce my bank account while having a great time. It would be big enough to strore plenty of water toys and accomodate several friends in comfort. It is also a size that you don't necessarily need a crew to enjoy, which would be my personal preference...at least for another 10 to 20 years.
A couple houses in different climates would be great also, maybe throw in a jet.
And certainly a few fun cars.
Lastly, trusts for all the family members as well as some charitable trusts.
Now let's get back to the tax discussions!
Kris
There are plenty of web sites that attempt to explain the AMT. It is basically unexplainable....you just have to do it to find out. It is like filling out a second tax return and applying the unique tax rates of the ATM to your income after plugging back in certain deductions taken on the first return. You pay the higher calculated amount.
Jim
02-23-2007 | 02:48 PM
#62
Race Car
Joined: Apr 2004
Posts: 4,159
Likes: 8
From: Chicagoland
Originally Posted by smackboy1
I'm in the process of rebalancing my portfolio right now and note that for an S&P 500 Index fund the returns for 2006 were over 15%, approx 7% average over 5 years, 8% over 10 years and 12% since inception in 1976. 10-15% annual returns are not unrealistic.
If I had crazy amounts of money, I would invest it in the stock market. Nothing sweeter than your money working for you to make more money.
If I had crazy amounts of money, I would invest it in the stock market. Nothing sweeter than your money working for you to make more money.
If you were that confident that you could make 10-15% each year in a fund, it would be a no brainer to borrow as much money as you possibly could, mortgaging everything you could and putting the money in that fund.
Decisions tend to be slightly different when you play with real money, but dreaming is a good thing.
02-23-2007 | 03:31 PM
#64
Race Car
Joined: Apr 2004
Posts: 4,159
Likes: 8
From: Chicagoland
Originally Posted by care4era
You bunch of dummies. In the Ukraine you get 12% on USD, yes 12! In foreign banks too. I am moving some of my savings there in the next month.
02-23-2007 | 04:38 PM
#66
Race Car
Joined: Apr 2004
Posts: 4,159
Likes: 8
From: Chicagoland
AYou wanna be rich. It's real simple on paper:
Invest $0.01 (a penny) and double it every day for 30 days. You now have over $10,000,000.
Start with a dollar and you will have more the $1,000,000,000 in 30 days.
Start with $10,000 and you only have to double it 10 times and you would have almost $11,000,000.
Better start now.
Invest $0.01 (a penny) and double it every day for 30 days. You now have over $10,000,000.
Start with a dollar and you will have more the $1,000,000,000 in 30 days.
Start with $10,000 and you only have to double it 10 times and you would have almost $11,000,000.
Better start now.
02-23-2007 | 05:57 PM
#68
Thread Starter
Racer
Joined: Aug 2005
Posts: 261
Likes: 0
From: Prague ,CZ
Originally Posted by 1999Porsche911
Then, like I said above. why not mortgage your life to the hilt and make that 12%. I mean it IS guaranteed, right?
Well, slightly risky but it is guaranteed as long as the banks do not go bust. That is why I am going to an Austraian bank. BTW I bought my house cash, and my porsche too. I am a ***** when it comes to credit. Something my parents beat into me. I am willing to give it a go though if the investment is good.
02-23-2007 | 06:06 PM
#69
Race Car
Joined: Apr 2004
Posts: 4,159
Likes: 8
From: Chicagoland
Originally Posted by care4era
Well, slightly risky but it is guaranteed as long as the banks do not go bust. That is why I am going to an Austraian bank. BTW I bought my house cash, and my porsche too. I am a ***** when it comes to credit. Something my parents beat into me. I am willing to give it a go though if the investment is good.
02-23-2007 | 06:12 PM
#70
Burning Brakes
Joined: Dec 2006
Posts: 814
Likes: 1
From: Zurich, Switzerland
There is no free lunch folks!
care4era: why should an Austrian Bank like "Erste Bank", "RZB" or "Bank Austria - Creditanstalt" pay you 12% on USD in the Ukraine when they can get it on the interbank market for Libor rate which is currently for 3-6 month Libor around 5.5%? Ever thought about this? I answer it for you: they transfer a risk to you that is marketed at 6.5%, so if you've luck, you make the 12% return and win but if you have bad luck, then your return might be 0% or negative. It would only be a free lunch if you'd have a guarantee from the Austrian mother-institute that guarantees you a return of at least USD Libor, so only upside, no downside - but again that's not existing in efficient financial markets.
care4era: why should an Austrian Bank like "Erste Bank", "RZB" or "Bank Austria - Creditanstalt" pay you 12% on USD in the Ukraine when they can get it on the interbank market for Libor rate which is currently for 3-6 month Libor around 5.5%? Ever thought about this? I answer it for you: they transfer a risk to you that is marketed at 6.5%, so if you've luck, you make the 12% return and win but if you have bad luck, then your return might be 0% or negative. It would only be a free lunch if you'd have a guarantee from the Austrian mother-institute that guarantees you a return of at least USD Libor, so only upside, no downside - but again that's not existing in efficient financial markets.
02-23-2007 | 06:23 PM
#71
Thread Starter
Racer
Joined: Aug 2005
Posts: 261
Likes: 0
From: Prague ,CZ
Sure, no returns possible but tempting eh?I thought it was some dodgy local banks but did some research and it is owned by Raffeissen. That gives me some more confidence. I will not bet the farm so if I lose it I will eat.
02-23-2007 | 06:53 PM
#72
Burning Brakes
Joined: Dec 2003
Posts: 949
Likes: 0
From: SoCal
Blah, blah blah, back to the topic:
1. Vacation home in Aspen
2. Vacation home in Scottland
3. Quit job, go back to school full time
4. Do a job I've always wanted to do, like teach high school or own a coffee house.
Word to your mother.
1. Vacation home in Aspen
2. Vacation home in Scottland
3. Quit job, go back to school full time
4. Do a job I've always wanted to do, like teach high school or own a coffee house.
Word to your mother.
02-23-2007 | 07:59 PM
#73
Burning Brakes
Joined: Dec 2006
Posts: 814
Likes: 1
From: Zurich, Switzerland
care4era: that the local bank in the Ukraine is owned by Raffeissen (RZB) gives you the confidence that they will not let their subsidiary go bust without any severe reason. However, the Ukraine is still not a western country, so there are several investment risks involved. One risk is that the central bank might have a USD shortage and forces all banks to pay out investments in local currency (Hryvna) at their rate. You need to know these risks and if you want to take them, then do it. There is a good chance that you get 112% back in USD in 1 year.
