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Posts by Ajax
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2020-04-10 at 1:08 PM UTC in successful people*throws name in the hat*
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2020-03-28 at 11:04 PM UTC in I spend about 12 hours a day on the computerGet a blue light fi.lter. If you wear glasses, you can get it in your lenses.
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2020-03-05 at 10:37 PM UTC in Going to EuropeI’m still going. Fuck the coronavirus.
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2020-02-25 at 6:09 PM UTC in Bernie's $97 trillion
Originally posted by Obbe If you made $5,000 every single day, and worked every single day for 500 years, you would still not have as much money as Jeff Bezos - you wouldn't even have 1 billion.
Jeff Bezos must work a lot harder than you.
Run that through a compound interest calculator with basic index assumptions and tell me what you get. You’ll be surprised. -
2020-02-23 at 1:48 AM UTC in Will property prices ever come down?Sorry OP, property taxes will only continue to increase. If you can’t afford to live in the city in which you work, you need to either increase your income where you are or move somewhere you can afford.
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2020-02-17 at 6:36 PM UTC in Creating an unregistered companyPretty sure my house cleaner doesn’t have a registered business license. That’s ok though because she does a good job for a good price.
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2020-02-04 at 6:22 PM UTC in I will improve your business exponentially
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2020-02-04 at 6 PM UTC in I will improve your business exponentially
Originally posted by Lanny Internship/contract with the intent to get hired probably isn't the best. It definitely happens but it doesn't seem like a great plan just because you're betting months/years of your time on something that may or may not happen and is beyond your direct control. If the experience is meaningful/helpful externally when you're looking for your next gig elsewhere then it's probably worthwhile.
Originally posted by ORACLE You should never intern somewhere to try to get hired there, you're just their nigger at that point. However it is good for experience if you want to get hired in that industry at least somewhere.
I took an internship while I was in college with the intention to get hired. I’ve worked at that company for over 11 years now. -
2020-02-01 at 10:27 PM UTC in Going to Europe
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2020-02-01 at 9:06 PM UTC in Going to Europe
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2020-02-01 at 8:14 PM UTC in Going to EuropeI’m going to Europe for two weeks this summer. We have a place to stay with friends in Sicily, so we will spend at least a few days there.
Where should we go? Where should we not go? -
2020-01-31 at 11:52 PM UTC in Impeachment is dead
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2020-01-30 at 1:41 AM UTC in One of these days i'm going to to get owned so fucking hard...This thread is full of taking yourself too seriously.
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2020-01-28 at 5:24 PM UTC in What's the longest time you have been unemployedI haven’t been unemployed since I was 16.
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2020-01-26 at 11:36 PM UTC in Kobe Bryant killed in helicopter crashI would like to open up the bidding on this timely collectible.
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2020-01-25 at 12:38 AM UTC in What business should I start with $20k-$30k?
Originally posted by Fox You’re right I compounded annually just using the calculator in my phone. Wasn’t thinking, it’s just how I usually do it when I go to calculate my yearly salary increases at my job (3%).
But I’m not against investing. I have several hundred k tied up in different assets including a 401(a), REIT, money market account, plus my home’s equity. I’m just saying you’re gonna make this idiot think he can retire on 30k.
Also doesn’t a Roth IRA have a max annual contribution of like 5k or something. 10k if you’re married? I don’t remember because it’s been a while since I looked into it. Or are you saying to take the 30k he has now and invest it in a Roth IRA over the next 5 years? That would significantly reduce the amount he’d have after that 30 years.
Either way, I’m by no means a tax expert, I’m sure there’s all kinds of ways around shit for the super rich, but I’m pretty sure there is no way you can earn 570k in interest and not have the majority of that amount be taxed at some point. Maybe at a lower rate, but I don’t think it’s that easy to avoid the tax man
IRAs have contribution limits of $6,000 per year per individual at the moment. That’s why I said dollar cost average the $30k over 5 years.
You’re right that it would significantly reduce the ending number. It would still be better than putting it in a taxable account.
Here is the scenario. Let’s keep the 10% rate of return compounded daily to keep it apples to apples. If he invests $500 per month ($6,000 per year) for 5 years ($30,000 total), he will have $38,916.50 after the 5 years. Leave that invested for another 25 years and you have $473,932. Yeah, it’s less than my original $600,000 figure, but still not bad. Add another decade and you have $1,288,103.31. Compound interest is awesome.
As far as being a tax expert, I’m not one, but I have invested a significant amount of my time in researching this stuff. A Roth IRA is a great way to minimize taxes. You use after-tax dollars for your contributions and then the growth or withdrawals are never taxed. There are reasons why you might use a tax-deferred account like a traditional IRA or 401(k) such as having more dollars available to deploy pre-tax and then using a Roth conversion ladder later in life, but tax-free accounts like a Roth IRA will generally let you come out on top if you have a long investing time horizon. -
2020-01-24 at 6:42 PM UTC in What business should I start with $20k-$30k?
Originally posted by Fox First of all good luck finding a fund that reliably averages 10% a year for 30 years. Not that they don’t exist, some pay even more than that, but that itself would be a gamble. More likely it’ll be closer to 8% or less.
Even at 10% a year the total at the end would be closer to 500k than 600.
The taxes they take out will be close to the maximum rate so you’ll maybe walk away with a little over 300k.
Not to mention with inflation at an average of 2-3% a year, 300k would probably have about half the purchasing power in 30 years that it does today
I use more conservative figures for my personal projections. I usually use 6-7% to help account for inflation. 10% is not unheard of though.
As far as your 500k vs. 600k argument, you are wrong. I take it you compounded annually? That’s the only way you’d be closer to 500k. Open up your financial calculator of choice, start with 30,000 initial contribution, 10% interest rate or rate of return, 30 years, compound monthly. You get $595,121.98. Compound daily and it’s $602,318.57.
As for taxes, dollar cost average it into a Roth IRA over 5 years. He has the money now so it has already been taxed. He won’t owe on his contributions and his distributions will be tax-free when he is 59.5.
Are you against investing or are you just being pedantic? -
2020-01-24 at 6:17 PM UTC in What business should I start with $20k-$30k?To expand on that, don’t start a business just to make money or you will be disappointed. Start with a hobby or passion and play to your strengths. Take something you’re good at or like to do and figure out how to monetize it and get clients. Once you’re ready to fund your business, take it out of the index fund mentioned above.
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2020-01-24 at 6:05 PM UTC in What business should I start with $20k-$30k?Throw it in an index fund and forget about it. 30 years later, at a 10% average annual rate of return (average of the S&P 500), you’ll have close to $600,000. Tack on another decade and you’ll have $1.6 million. That’s if you never add another dime to it.
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2020-01-22 at 3:52 AM UTC in Do you use
