@davepl1968 We don't currently count borrowing money over the share cost-basis as a gain. (We arguably should)
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Andy Holmes
3.1K posts
Andy Holmes
@Andymantweet
Sharing awesome stuff I find on the internet since 2010!
Kansas City, MO Katılım Temmuz 2010
55 Takip Edilen5.6K Takipçiler
For this to be true, Bezos would have to live off his $82K salary. Clearly, he does not.
Thus, he must sell SOME property (ie: shares), which generates capital gains, which results in taxation.
If there were a legal way around that, I'd be doing it and I'd be quiet about it. There ain't.
Wall Street Apes@WallStreetApes
This is how Amazon Founder Jeff Bezos avoids paying a personal income tax - For the last 20 years he’s had the same salary, $82,000 - He does this because a higher salary that would support his lifestyle would be subject to payroll and income tax, he doesn’t want to pay that - Instead all his money is in his stocks, those are never subject to any taxes as long as they aren’t sold - He takes out a loan and borrows against his stocks - The only money he’ll ever had to pay is the loan and interest on the loan This is common practice for billionaires so they avoid the majority or all of a personal income tax
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@DemetriSpanos It's more machine learning adding value through robotic slaves.
Imagine organizing every item in your local landfill. It would be incredibly expensive and a job no one would want to do. Now imagine having 14,500 robot slaves working 18/7 (6 hours per day charging)
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I tread into Elon posts reluctantly. Still, people ask me about this.
Does Elon mean every family gets
- 3+ BR house
- meals from Whole Foods
- clothes from Ralph Lauren
- 2 Teslas
- private school
- global travel
If so, I don't see how AI makes it work.
If not, what is UHI?
Elon Musk@elonmusk
Universal HIGH INCOME via checks issued by the Federal government is the best way to deal with unemployment caused by AI. AI/robotics will produce goods & services far in excess of the increase in the money supply, so there will not be inflation.
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@rightnGA @Budgetdog_ I'm talking specifically covid-era mortgages (sub 3.5% or so) that are not repeatable today.
Taking excess cash to kill a covid era mortgage adds cashflow risk and lowers your net interest yield compared to putting it treasuries.
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As a retired person that paid off two mortgages after selling my business I can tell you that the peace of mind is very real as is the $48,000 a year in mortgage payments that I do not have to make.
Having said that, I fully understand that it was not strictly a good financial decision depending on your mortgage rate and where you are on the amortization schedule. But for me personally it was worth it. I still have plenty of investments in equities.
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Don’t let some ‘financial bro’ tell you it’s a bad idea to pay off your house.
They have a lot of Excel experience and little life experience.
Such a silly take.
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@zuess05 Learn to solve problems. Learn to sell. Learn to identify and calculate risk. Avoid debt that isn't asset-backed.
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@Budgetdog_ Imagine allocating $35,000 in excess cash toward paying off a fixed 2.85% covid-era mortgage. 2 weeks later you lose your job. 5 days after losing your job you have a sewer line collapse under your driveway and it'll cost $26,450 to repair. You don't have $26,450.
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@Andymantweet Your opinion dictates how everyone feels?
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@greendragonhq Govt subsidies to corporations are basically just bounties for private industry to carry out the government's wishes through production of what the govt wants more of.
That isn't the case with govt subsidies to the poor.
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Why is welfare bad when it’s for a poor person, but good when it’s for a rich person?
Elon Musk has received upwards of $40 billion in corporate welfare.
Elon Musk@elonmusk
@jgebbia Providing free government/taxpayer money that exceed the living standards of 90% of Earth means that 90% of Earth has a financial incentive to come to America. This will bankrupt our country.
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@rashiumapathi @Budgetdog_ Financial peace of mind comes from having cash when you need cash. Buy treasuries if risk concerns you. Slowly selling treasuries to make mortgage payments is infinitely less risky than needing money in the future and re-mortgaging your home.
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@Budgetdog_ Peace of mind is underrated. Not everything has to be optimized for max return… sometimes it’s about sleeping better.
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@YorkJimbob @Jason______A @DaveRamsey Could be any number of things. Big out of pocket medical expense. Huge home repair or renovation. Uninsured accident where they were at fault and need cash to settle. Loved one needs caretaking and doesn't have assets of their own. Etc.
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Whenever I see things like these I assume it’s rage bait but then I remember how stupid the average American is and I understand why @DaveRamsey is so wealthy.
Imagine paying down a 3.75% mortgage. The bank jumped for joy. They prob had a board meeting to party after seeing that $260k gift.
Average Money Joe MD@averagemoneymd
Last month, we received a family gift of $260,000. We debated a lot and ultimately decided for a few reasons to drop it all on our 3.75% mortgage. Our mortgage went from $750k --> $490k We recognize we could have made much more investing, but it felt secure to take a little risk off the table. Mortgage calculator shows this will save us $285k in interest. We then recasted our mortgage and our payment dropped from ~$3,800 to ~$2,400. A little bit closer to freedom.
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@camdencosta @averagemoneymd The whole "financial peace of mind" from having a paid off home is nonsense. Financial peace of mind comes from having cash when you need cash. Buy treasuries if risk concerns you.
If you later need that money, you will have to borrow the money at a MUCH higher rate than 3.75%.
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@averagemoneymd statistically, this was a bad decision
peace of mind has a value, but delaying that satisfaction here would have truly afforded you the opportunity to escape the rat race faster in the end
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Last month, we received a family gift of $260,000.
We debated a lot and ultimately decided for a few reasons to drop it all on our 3.75% mortgage.
Our mortgage went from $750k --> $490k
We recognize we could have made much more investing, but it felt secure to take a little risk off the table. Mortgage calculator shows this will save us $285k in interest.
We then recasted our mortgage and our payment dropped from ~$3,800 to ~$2,400.
A little bit closer to freedom.
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@JamesSurowiecki It's a weird problem we have for sure, that we aren't all represented equally.
I don't have a solution, but it seems like if the electoral college continues to exist, there needs to be some kind of non-numerical representation to adjust for Cali/NY/Texas/Florida.
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There's no good civic argument for the electoral college. It was arguably necessary to ensure the ratification of the Constitution, but it's an anti-democratic device that gives some American citizens far more voting power than others, based purely on where they live.
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@heresyfinancial The actual tradeoff is the government would be giving up its most effective tool for manipulating behavior.
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The best tax system would be a single flat sales tax
1. Most effective at promoting economic growth because the only disincentive is on consumption, and no investment/saving/earning is punished
2. It’s still progressive because the top 10% spend 50% of all consumption, so they would still be footing the most of the bill
3. No more tax filing for individuals, businesses are responsible for collecting and paying the sales tax
4. Tax code becomes obsolete, freeing up the brain drain and capital drain from the entire tax industry to productive work that contributes to economic growth
5. It’s somewhat voluntary because if you want to pay less in taxes you can consume less
6. A 10% sales tax would likely be revenue neutral after just a few years - and could balance the budget shortly after. Right now the government taxes about 17% of gdp. Re-aligned incentives and freed-up capital would stimulate massive economic growth that would more than make up for the short term revenue drop.
The main problem people have with this is it feels unfair to the poor who will pay the same percentage of their spending as the rich. But same percentage is not the same dollar amount. Rich still pay more. If you really wanted fairness, it would be the same dollar amount for everyone.
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I understand the math, and I'm sure they did too. However, you can't put a price on your piece of mind. There is no better feeling than having your house paid off. They are under 30, there is still plenty of time to invest and build up a huge investment portfolio. Especially, since they no longer have a mortgage.
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Just heard the best/worst caller on the Dave Ramsey podcast.
Married couple, under 30. $145,000 household income. Came on the show to celebrate paying off the mortgage on their $450,000 Georgia home.
Said they starting paying it off early 5 years ago, meaning they had a low interest rate home loan (probably <3%) and started to aggressively pay it down right as interest rates were starting to rise.
Dave Ramsey loved it, launching into a lecture about how 26-year olds who say they can’t buy homes should look at this couple for inspiration. Hahaha.
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@ElephantofLox @UziCryptoo Piece of mind? They literally have more risk and less liquidity than if they had simply bought treasuries.
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@TheFrogDies @PeterMallouk Have you seen the balance sheet and income statement of the respective public companies that make up the "vast majority of stocks" recently?
You'll quickly find the companies are FAR from worthless lol.
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yes, this is the case against holding an S&P-500 index tracker
the VAST majority of stocks you are holding are worthless
worse than that, nobody would ever buy most of the stocks you hold, if they were not in the index - i.e. it's literally only index trackers that are buying those stocks
some companies would be worth pennies, if it wasn't that they were in the index
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Absolutely insane stat:
Just 3.7% of stocks created 100% of U.S. stock market wealth over the last century.
Miss a handful of winners … and you miss the market.
That’s why you need to diversify.
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@ToddHagopian The cap went up, so did inflation. It won't go insolvent because social security is paid in dollars, and dollars can (and will) be printed.
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If a husband, and wife, each made $76,200/year in 2026 they would pay TWICE the social security taxes than a guy making $100,000,000/year in 2000 did
Facts
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@Jacksonsrule "Pay almost nothing"
Uhhh, you seen interest rates on margin loans lately?
That said, to your point, it's probably time we implemented taxation on borrowing above the investment basis.
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Billionaires don’t have bank accounts like you and me. They have art collections,Yachts,Mansions,Stocks. None of it gets taxed until they sell it. So they just never sell it. They borrow against it instead. Live off the loans. Pay almost nothing. Then when they die, their kids inherit it all tax-free. The wealth never gets taxed, It just gets passed down.
And we wonder why the gap keeps getting wider.
໊smolaraa@kesikesiluv
Hit me with the harshest reality truth.
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