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Pauldb1806

Cashing Out

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7 hours ago, RandyMarsh said:

what with the close-up photo of yourself?  what do these hand symbols mean? 

it's not him , it's limp bizkit singer.. won't judge here

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Posted (edited)
12 hours ago, VegitaXRP said:

Rich is anything  over $10 million. Epicly rich is over $500 million.

Not bad, but I don't think you have to aim QUITE that high.

 People who study wealth talk about HNWI's, VHNWI's, and UHNWI's. It always refers to liquid assets excluding one's home and personal property.

High Net Worth = liquid assets  >1M

Very High Net Worth = liquid assets  >5M

Ultra High Net Worth = liquid assets >30M

If you are  one of those with greater than 30 million, that puts you in a very elite club. .003% of the world's population and your group holds 13% of the world's liquid assets.  It might sound like those people are really savvy, but about half of them inherit the wealth. So those who accumulate that level on their own merits (or by hook or by crook) represent a vanishingly small fraction of humanity.

I ask only what I need to live in the style to which I have become accustomed, and to be able to afford really good coffee.

 

 

 

Edited by dr_ed

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All I want is about 500k dollars, so that I can clear all debt and buy a decent house with a swimming pool. Not selling until I get there, but my stack is pretty pathetic so let's see.

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I am willing to lose (and have lost) $1 million for the chance to make $10 million, but am I willing to lose $10 million for the chance to make $ 50-100 million.  UGH.  The devil on my shoulder keeps telling me it's not enough.  Trying to come up with some sort of strategy but I haven't been able to so far. 

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Posted (edited)
12 minutes ago, Eric123 said:

I am willing to lose (and have lost) $1 million for the chance to make $10 million, but am I willing to lose $10 million for the chance to make $ 50-100 million.  UGH.  The devil on my shoulder keeps telling me it's not enough.  Trying to come up with some sort of strategy but I haven't been able to so far. 

10million at 5% interest is 500,000 after capital gains tax that is 400,000 a year. 

33,333.33 a month

how on God’s earth is this not enough? 

this is the kind of greed that causes people to end up with nothing.

edit: fair play though for having the option of cashing out a million and not doing it, all be it regretfully.

Edited by BarryPotter

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11 minutes ago, Eric123 said:

I am willing to lose (and have lost) $1 million for the chance to make $10 million, but am I willing to lose $10 million for the chance to make $ 50-100 million.  UGH.  The devil on my shoulder keeps telling me it's not enough.  Trying to come up with some sort of strategy but I haven't been able to so far. 

The most I ever lost was about 100K and that taught me a fairly serious lesson about position size.

I am willing to risk 100K to make 5M. You need a very assymetric opportunity to do that. XRP and several other alts still have that kind of upside, I believe.

One question? How old are you, Eric?

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2 minutes ago, BarryPotter said:
13 minutes ago, Eric123 said:

I am willing to lose (and have lost) $1 million for the chance to make $10 million, but am I willing to lose $10 million for the chance to make $ 50-100 million.  UGH.  The devil on my shoulder keeps telling me it's not enough.  Trying to come up with some sort of strategy but I haven't been able to so far. 

10million at 5% interest is 500,000 after capital gains tax that is 400,000 a year. 

33,333.33 a month

how on God’s earth is this not enough? 

this is the kind of greed that causes people to end up with nothing.

Warren Buffet has some good advice for this predicament:

https://www.investopedia.com/articles/investing/012116/warren-buffett-be-fearful-when-others-are-greedy.asp

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Posted (edited)
1 hour ago, dr_ed said:

So those who accumulate that level on their own merits (or by hook or by crook) represent a vanishingly small fraction of humanity.

You're right. There's a famous analogy of a national coin-flipping contest. Say you're in a large country and you recruit 100 million contestants. Everyone whose coin land on heads goes through to the next round, while the rest are out. After 12 rounds, there are about 24 thousand contestants left, and they're all selling their stories to the press, about how they developed such astonishingly consistent coin-flipping technique. When enough people replicate a low-probability endeavour, some of then are guaranteed to succeed through pure luck. It's impossible to choose your own parents, so inheritance is just another example of randomness.

Edited by Guest

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Posted (edited)

Warren Buffet's father was a four term US Congressman, and Warren was born on third base, and thinks he hit a triple.

I consider Warren Buffet's advice to be highly suspect. When Warren got started you could fall off the turnip truck and make money. His entire premise for how to do well in markets is tailored for people who are already rich. I will give him credit for making a plan and working a plan, which did work very well in the 2nd half of the 20th century.

His advice, which distilled down is simply "buy low and sell high" , is a big oversimplification of his system, and his system no longer works nearly as well as it once did anyway. I think the anti-Buffets are running the markets now.

Edited by dr_ed

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@BarryPotter  interest income is taxed at the ordinary income rate and not the long term capital gains tax rate (and 5% is impossible to get on a secured investment) so  it would actually be closer to $24k a month after taxes on a 5% return.  Now for a secure investment (no risk except for inflation)  4 month Treasuries (the safest place for a $10 mill investment) only pay 2.38% interest and that is before taxes.  So realistically you are basically looking at an after tax income of about $13k a month (i live in NY worst state for taxes).  Still not bad for doing nothing but eh that's regular people money.  And that's without spending any of the original $10 million -  and you actually had to make $12.5 million to end up with the $10 million after long term cap gains taxes.  So it's really not that much money.  But I agree greed messes up a lot of good trades.  

When is enough, enough? Who knows.  

  

@dr_ed mid 40's.

 

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1 minute ago, BarryPotter said:

 Ah fair enough mate must be different where you are.

in the UK on 500,000 after tax we would have 406k 

which is 33,800 a month after tax

but I hear you on getting a decent safe 5%

Aviva, GlaxoSmithKline, Coca Cola etc would probably get the 5% figure.

hopefully il be in a situation where I need to start looking where to put 10million, although I think at 1million I’m out and never looking back.

4167D042-A474-4DE6-892D-AAABC68DCB62.png

No - you are confusing capital gains tax with income tax.

You would be charged between 0-10-20% CGT (on the marginal amount depending on the total amount of capital gains - as show in your picture) when you cashout your XRP to FIAT.

If you planned on living off the interest of your subsequent investments you would be subject to normal income tax 0-20-40-45% 

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30 minutes ago, xiaoipower said:

No - you are confusing capital gains tax with income tax.

You would be charged between 0-10-20% CGT (on the marginal amount depending on the total amount of capital gains - as show in your picture) when you cashout your XRP to FIAT.

If you planned on living off the interest of your subsequent investments you would be subject to normal income tax 0-20-40-45% 

Ah right cool. cheers mate.

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2 hours ago, Sirbergan said:

All I want is about 500k dollars, so that I can clear all debt and buy a decent house with a swimming pool. Not selling until I get there, but my stack is pretty pathetic so let's see.

same here , would like 200k for a small appartement / house , but I d need price to get really high

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