How to make money over pension obligations?

State and local government. Inflation is 2%, and they are all complaining 5% increases in tax revenue aren’t enough.

They need a citizen CFO :slight_smile: May be we should push for a board of directors form by citizens to oversee government budget.

Now you know you have friend telling you this state will be in trouble in the next recession. Start selling folks!

Pay attention to negativity and you will make nothing out of your life.

But, let’s talk about freeloaders. Many abound everywhere. Except us, right?

You sell a thing, you pay the taxes on the transaction, everybody does it, right?

Ok, now that I got your attention, how about paying taxes right away for that real estate transaction, no 1031?

How about you die, you leave that house to your son, OK with me. But if your son dies and he leaves the same house to his heirs, then I see a problem. Pay taxes on that transaction. Period!

Cha…chin!

You know I am right at least on one response. :laughing:

Not a bad idea. It gives the first-gen heirs a peace of mind, but also incentive to work!

No need for the state to act. Very rare for the wealth to stay past the third generation. Either the 2nd or the 3rd generation would find a creative way to squander all away.

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You miss the point. Why is there capital gain tax? Is a double taxation!!! You earned the income, paid the income tax to blood suckers, took the risk, invest in some assets, gain value, got taxed!!! Yes, post-income tax money got tax one more time!!! Many nations already done away with capital gain tax, did I mention Singapore? In Singapore, we don’t take away your hard earned money through all kinds of taxes. Even the government has to earn its keep, GIC (government investment corporation) and Temasek holdings.

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You can probably find ways to ensure it does not happen, no? Maybe trust distribution or something.

Some super rich (1B+, 10B+) could set it up to distribute some sort of annuity.

This is federal, but you can see who’s paying taxes.

Notice how the top 1% who supposedly get all the tax breaks pay at least a 2x higher percentage then everyone middle income and below? The bottom 2 groups have no blue for federal income tax.

Read somewhere can still creatively bankrupt those if the 2nd and 3rd generation is sufficiently creative.

Well, what’s good for the goose, is good for what?

Somebody here again is deflecting on the topic.

I keep reading “freeloaders” on this forum. But in the past, I’ve said it many times, we all enjoy of freeloads. We just need to find them.

Capital gains are supposed to be paid when you sell any asset. But if you are single or married, $250K-$500K are deductible, right? Freeloading!

But at to what point taking away that deduction would keep the real estate market as in other countries where whoever has money buys without the gimmicks you see in this country?

We all are freeloaders, don’t forget that.

And freeloaders enjoy that status by utilizing all the loopholes in the tax code other people can’t use, or don’t know how to use. Welfare, section 8, tax cuts, etc. Ask the Rothschild and Kennedy, Rockefeller, and whatnot families.

Owning property already need to pay property tax, cost of maintainance/ repairs/ re-models, utilities, etc. Still need to own capital gain tax? Day light robbery. Don’t forget about mortgage interest and buying/ selling cost.

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You don’t understand the difference between:

  1. People that use tax deductions but still pay a lot in taxes
  2. People that don’t pay any income taxes

I’m not even going to attempt to explain it, since you never did understand compound vs. simple interest.

You mean the idiot that doesn’t understand that even paying 6% when receiving 6% compound interests, compounding wins?

You can’t recognize compound interest vs. simple interest. I actually calculated it in detail for you in another thread. You keep making your false statement. The loan interest is compounded.

Here you go:

In year 2, the loan amount is $80,000. The accumulated loan amount is $84,000. Year 3, the loan amount is $80,000. If it was simple interest, the accumulated loan total would be $168,000. The accumulated loan amount is $172,200. The extra $4,200 is the $4,000 interest from the prior year, since it’s not being paid off plus another $200 for interest on the interest. Interest on interest is compound interest.

Then there’s this math.

-$100,000 into policy
+$6,300 (7% gain on the $90K cash value of policy)
-$4,000 (5% interest on the $80K borrowed)
+$80,000 (borrowed from policy)
+$5,600 (7% gain on the borrow $80,000)

Total is -$12,100 for the year. As you can see, the $90,000 in the policy is only earning you $2,300 after the interest expense of borrowing $80,000. Your net return is a whopping 2.6%.

Alternatively, one could simply invest the whole $100,000, earn 7%, and be +$7,000 for the year. That means just investing the $100K is $19,100 better than buying the IUL and borrowing from it. What can I buy with that extra $19,100/yr or $1,592/mo? I can buy a $3M term life policy for 25 years for under $600/mo. Do you realize $1,000/mo compounded for 25 years at 7% gain is $810,000. Plus, I’d have my $100K/yr compounded for 25 years at 7% worth $6,325,000. That brings my total to $7,135,000.

You can’t argue the math, so you’ll launch more personal attacks.

LOL…I am going to stop your ignorance right here and right now. This is so embarrassing, really.

First of all, “personal attack” is consider a weakness for you, right? Well, then, stop pretending to know it all by calling me a fraud, that is more than a personal attack, it is called libel. Poor kid…really!

As I said, this is so embarrassing but I needed to uncover your ignorance on math, or at least the method you are using, despicable, incredible, so many ignorant assumptions from you.

I used Bankrate for educational purposes, the site preferred by financial guys, and I got **$1K x 25 years, $1K a month @7% compound and it gave me this result:

$792,897 after 25 years. Compounded annually
$820,523 after 25 years. Compounded monthly.

Tell me mister “I know it all, I debunk anything”, where did you get your $810K? If I were anybody else on this forum, I wouldn’t follow anything you say, you just made some people lose lots of money! :sweat_smile::sweat_smile::sweat_smile:

It doesn’t stop there:
$100K, or $8,333 a month, x 25 years @ 7% is well beyond your numbers! I would suggest anybody on this forum following you to take a look at you not knowing what you are mumbling jumbling about. The least I could come up with was $6,607,209 <-------You just made somebody lose $300K-$500K :rofl::rofl::rofl:

I told you before, I don’t know where you get your stuff, but it doesn’t make any sense. If your math is like that, how can posters here trust you with anything? :crazy_face::crazy_face::crazy_face::crazy_face:

Since you are not a high tech Engineer but a Human Resources guy, let me ask you a few questions:

1-Who are you? Who made you the "I know more than the department of insurance accepting, approving, blessing, yada, yada, yada these illustrations?

2- Do you feel confident now to say you debunked anything? You have been found incompetent to talk about math. I bet those numbers are coming out of your famous “spread sheet”. Right? The one you couldn’t produce when I asked for it? :smiley::smiley::smiley:

3- Are you going to tell your audience your numbers are based on false math and that your investment is risky, that it is not after taxes? That you can lose up to 38.5% as in 2008-2009? How about these days? Up and down, you lose 5%, you need 10% to recover. :scream:

4- You argue that $600/month x 25 years on a term insurance is a good inversion? Really? You could make $475,738. And if you were smart, have added another $400K and invest it in your own scheme and make, using your fake numbers, $810K :rofl::rofl::rofl:


You’ve been owned!

Wow, you want to point to differences in the calc based on if the money is deposited at the beginning or end of the month? That’s the best you can do? Yawn…

The irony is you just proved the person would have much higher net worth if they didn’t buy your IUL.

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That’s it?
You just didn’t get it, did you?

Look Marcus, you lost appeal for those who read you. You can’t even use a compound interest calculator for Christ’s sake!
:rofl::rofl::rofl::rofl::rofl::rofl::rofl::rofl:

Do you know how FV formula works in excel?

I did FV = (0.0.7,25,-100000). I did the full amount in one annual payment instead of separate monthly payments. Monthly is $6.75M.

Thanks again for proving if we buy term life insurance and invest the difference then we’ll end up wealthier.