Discussion in 'Non Surf Related' started by Zippy, Dec 25, 2016.

1. ### yankeeWell-Known Member

Sep 26, 2008
you made a good tax move, in terms of ROI, relocating out of that other place & into where you are.

Sep 26, 2008
+1 ^^

3. ### yankeeWell-Known Member

Sep 26, 2008
I'm not going to do your work for you, sparky.

Anyone can simply get onto the compound interest calculators & plug in numbers & see for themselves how it works. You have a pretty hefty ego, butt I fail to see how you justify same because you haven't lived enough of Life to have developed coherent, experiential opinions.

The world needs cannon fodder, though, so in that respect you'll always find a home

Last edited: Dec 27, 2016

Sep 26, 2008

Jul 27, 2012

6. ### TowelieWell-Known Member

Nov 27, 2014
If you need a calculator to do this basic of math, then yes, perhaps the best way for you is to put your money into an index and "compound" away lol you forgot to say "ergo" like 4 times in this post also, you don't sound as smart without the ergo.
Besides your little millennial routine (who's condescending now, tool?) you really have nothing to show for your claims or opinions, nothing tangible or notable at least, even in the ever-mediocre way that persists around your achievements.
Fact is you need to self assert yourself in a know-it-all way to stay relevant. you're not tho.

Moving on.

7. ### TowelieWell-Known Member

Nov 27, 2014
Btw are you sure you're punching the numbers right?

8. ### TowelieWell-Known Member

Nov 27, 2014
So you ACTUALLY get (199800 - (30000 + 1000 * 12 * 10))= 49800
^^ this whole thing = 150000
Then 49800 / 150000 === 33.2% cap gain

Divide by 10 years = 3.3%

Subtract 1.7% monetary depreciation via inflation (im being liberal here, instead of compounding lol )

= 1.6% cap gain a year...

Subtract about 40% of that for taxes, unless using ira whatever = that 1.6% * 0.4 = 0.64 or something
Now 1.6 - 0.64 = 0.96 % annual yield

Which is what you can get from a savings account. So yeah....

Which is exactly WHY they give you upto 1% annual yield on your money.

Last edited: Dec 27, 2016
9. ### JayDWell-Known Member

Feb 6, 2012
I love #s b/c that don't lie. But, they can be misrepresented. Towlie, he used \$12k compounding annually with each payment being received at the beginning of the year....

10. ### TowelieWell-Known Member

Nov 27, 2014
Doesn't matter dude, 12 k / year or 1k / month, the compounding interest is applied annually not monthly

11. ### JayDWell-Known Member

Feb 6, 2012
Long term capital gains rate is 20% for top earners and 15% otherwise....back to the drawing board.

12. ### JayDWell-Known Member

Feb 6, 2012
wrong. 12k going in on day one compounds for 12 months. 1k going on day one compounds for 12 months, 2nd 1k goes in and compound for 11 months and so on. This is a moot point though, because markets don't "credit your account" at any particular time. But, my point is each extra 11k has 11 more months to compound versus systematically investing each month. When using straight #s as you did in the calculator, the difference in your # and yank's # is exactly the result of when the additions to the account are made...to put it another way, you two have different #s based on how you chose to calculate it.

13. ### TowelieWell-Known Member

Nov 27, 2014
What's long term? The previous example is a "whopping" 33% cap gain in 10years. Which equates to fairly minute profits.. after year 10 you're "making" 10k on your 200k a year, before taxes, not considering inflation. I mean sure you can take a vacation, or buy a few pieces of furniture, but ultimately that won't get you retiring any time soon

14. ### JayDWell-Known Member

Feb 6, 2012
Long term is defined as holding the investment for more than 1 year.

15. ### TowelieWell-Known Member

Nov 27, 2014
Dude fine, if you add 1k a month and it compounds let's say monthly instead of annually that nets you 204700 instead of 199800 a WHOLE 5 grand more after 10 years. Slightly skewing the numbers.

16. ### JayDWell-Known Member

Feb 6, 2012
I'm not arguing with you on that point...not arguing at all really.

We are talking about a 5% rate of return which is not epic. but, you can't argue with the compounding effect. Couple that timing difference with your tax rate difference, and you are getting somewhere. You are right in including the inflation rate, which erodes purchasing power over time.

17. ### yankeeWell-Known Member

Sep 26, 2008
In other words, you're sort of sideways admitting that your mouf inhaled your brain again? Just take your medicine, sparky. And listen to those who know, in this case JayD took the time & had the patience to school you. It's investing, it's not an emotional game - - you get emotional you get owned, not only by the markets.

Stay calm, kid, stay calm

Nicely explained JD.

18. ### TowelieWell-Known Member

Nov 27, 2014
Dude you really have no idea what you're talking about, ergo go compound something

19. ### TowelieWell-Known Member

Nov 27, 2014

Where'd you even get 207 from Einstein? Wishful thinking doesn't translate to account balance

20. ### SloFloWell-Known Member

Oct 6, 2016
^You are grossly mistaken, being that everything I typed is fact, and nothing about it was in the least bit "condescending"; although, it is interesting you personally took it that way. Perhaps you took it that way, due to the video of the guy going off, but I do not know.

As for Zippy, I do not know a thing about him, other than he appears to be quite nice and wisely conservative with his investments, and I believe both to be good.

As for the other, here is the deal: when an individual handles a large amount of corporate tax return preparation, which then includes personal tax return preparation, for a wide variety of corporations, as well as the personal estate planning for those corporate owner(s), as well as other legal aspects, many things are learned (or, at least, should be). The 500K typically gets hit with the "around 4%", and if the assets are higher, the percentage is typically lower.

I never suggested Zippy nor others should do it, but people do it, and those who do are not typically the type who have to worry about credit, etc; furthermore, I never once said that I do it (not anyone's business what I do).

Perhaps that will settle your Yankee self down a bit, but if not, you will survive, and it should be further entertaining.

Last edited: Dec 27, 2016