Would you do 10 years in Prison for a Million Dollars?

[dullard]

Originally posted by: desk
lmao....u can do your own math if you are trying to prove a point.

I got ~$34,000 a year (post tax) doing the math (varies by state). At the age of 80, the investment will have dwindled down to $0. This is assuming he doesn't blow the money and invests it all except for the car. Most people who suddenly get cash like that blow it. So in reality, I'd expect him to get a lot less than $34,000 a year.

Note: if you repeat it but have the investment be 24% on all odd numbered years (starting with the first year getting 24%) and 0% on the even numbered years, the answer drops to $28,000. That means fluctuations in the stock market severely reduce returns.

Originally posted by: Mill
Again, you don't pay taxes until you sell for a gain, and you can invest in bonds for liquidity(aka easy access to tax-free cash) and have your stocks to grow your principal.

He'll have to sell part of it each year. That is to have living expenses. Thus there will be tax each year on the amount that was sold. The first year will be a $1 million income, and that will all be instantly taxed.

 

[OffTopic1]

I do that 8 hours or more per day. And yes, as long I as I have access to books & intarweb.

And, I don't hink I can complaint about the living condition & food since it is free.

 

[dullard]

Originally posted by: Mill
I wouldn't say I disagree with you there. I don't do drugs so it really doesn't an effect on me, but what if drug laws were structured like alcohol laws?

I'd like them structured like alcohol laws, but severely stricter for violators. An MIP now is ~$25 fine in my hometown. That just isn't enough to do anything. If an MIP was $2,500 that'll be a different story.

 

[Mill]

Originally posted by: dullard

Originally posted by: desk
lmao....u can do your own math if you are trying to prove a point.

I got ~$34,000 a year (post tax) doing the math (varies by state). At the age of 80, the investment will have dwindled down to $0. This is assuming he doesn't blow the money and invests it all except for the car. Most people who suddenly get cash like that blow it. So in reality, I'd expect him to get a lot less than $34,000 a year.

Note: if you repeat it but have the investment be 24% on all odd numbered years (starting with the first year getting 24%) and 0% on the even numbered years, the answer drops to $28,000. That means fluctuations in the stock market severely reduce returns.

Originally posted by: Mill
Again, you don't pay taxes until you sell for a gain, and you can invest in bonds for liquidity(aka easy access to tax-free cash) and have your stocks to grow your principal.

He'll have to sell part of it each year. That is to have living expenses. Thus there will be tax each year on the amount that was sold. The first year will be a $1 million income, and that will all be instantly taxed.

For the purpose of this argument I'm assuming that the million would be a million, so perhaps you'd get whatever amount it takes to end up with a flat million after the initial taxes. Like I said, yes you might have to sell some stocks for money, but using bonds is a way to shelter yourself from paying that many taxes, plus most dividends are tax free now. If you invested in heavy dividend bearing stocks and only reinvested a portion of them, as well as used bonds for liquidity your taxes wouldn't be that high. Keep in mind that Capital Gains taxes are only 15% of any profit, so you still wouldn't be paying a massive amounts of taxes.

 

[dman]

I thought it said 10 million. For 1 million, not a chance. Any of you who would are crazy and probably should be locked up for your own safety.

 

[desk]

Originally posted by: dullard

Originally posted by: desk
lmao....u can do your own math if you are trying to prove a point.

I got ~$34,000 a year (post tax) doing the math (varies by state). At the age of 80, the investment will have dwindled down to $0. This is assuming he doesn't blow the money and invests it all except for the car. Most people who suddenly get cash like that blow it. So in reality, I'd expect him to get a lot less than $34,000 a year.

Note: if you repeat it but have the investment be 24% on all odd numbered years (starting with the first year getting 24%) and 0% on the even numbered years, the answer drops to $28,000. That means fluctuations in the stock market severely reduce returns.

Originally posted by: Mill
Again, you don't pay taxes until you sell for a gain, and you can invest in bonds for liquidity(aka easy access to tax-free cash) and have your stocks to grow your principal.

He'll have to sell part of it each year. That is to have living expenses. Thus there will be tax each year on the amount that was sold. The first year will be a $1 million income, and that will all be instantly taxed.

what do you mean by "the investment will have dwindled down to $0"? aren't we assuming that he is living on the interest/earnings?

 

[Qwest]

If it's 10 million...

1. Is there any sort of internet/ wifi access in the prison?
2. Are conjugal visits allowed?
3. Is the money tax free?

 

[OffTopic1]

Originally posted by: Actaeon

Originally posted by: dullard

Originally posted by: Actaeon
Invest the rest in stocks? Buy my own franchise?

My comments from another thread:

Many people who suddently get $1 million do something like this:
They quit their job, buy a $500k house, blow $200k immediately for fun or debts, and then invest the $300k that is left. Well the $300k that is left will only net you maybe $11k a year with good investments. How many people here can live on $11k a year even if there was no mortgage? Not many. Especially when you think the property tax on that house is probably $8k-$10k. That leaves this "millionaire" with $1000 to $3000 a year to live on. Bankruptcy soon follows.

You make a good point, but I wouldn't put myself in that position. I couldn't see blowing $500k on a house alone, and I really couldn't see myself throwing $200k into "fun". I don't have any debts right now either.

I'd spend maybe $150-200k for a house (nothing too fancy, in FL, its not as expensive compared to other places), spend my $75k on my Corvette. That'll leave me with about $700k to mess around with to invest, I am sure something would get done with that cash. If I was bored enough, I would get a part time job.

You made a very good point, but I just don't think I would blow that much money, that quickly. I am sure something would get done with that $700k, wether I am buying a franchise (food), invest in stocks, or just put it into interest in a bank account.

Meanwhile Mill's latest offer is even more inticing. Interest = good!

Tax would be a good lump sum from one million, then on a fixer-uper house at $150-200K that would cost money to upkeep ++ taxes. $75K on a car that work nothing in 5-7 years and cost $$$ to upkeep ++ taxes.

IMHO, are lucky if you have $350K after taxes and the intitial spendings. And cross you fingers on the investment with the left over, because more than likely it is not going to generate enought money for your yearly expenses.

 

[Armitage]

would you do it if you could nef on atot 10 hours a day?

 

[jst0ney]

freedom is worth more that 100K/year. I'd rather be a bum.

 

[imthebadguy]

fvck no, i can make a million in 10 yrs....

 

[imthebadguy]

Or you could try a spin on this age old question:
Would you suck Bill Gates' d!ck for half his fortune? And the stipulation is that it is broadcast on HBO....mosy people I know have said yes.

 

[captains]

i thought this was just a generic question not some bs insight into freedom or whatever else it turned into :brokenheart:

 

[jdub1107]

No thanks

 

[AyashiKaibutsu]

If after taxes it was a million I'd do it. Also there would have to be no hard labor. Just sitting on my ass for ten years getting paid for it would be paradise....

 

[Jfrag Teh Foul]

Originally posted by: imthebadguy
Or you could try a spin on this age old question:
Would you suck Bill Gates' d!ck for half his fortune? And the stipulation is that it is broadcast on HBO....mosy people I know have said yes.

Nope.

 

[dullard]

Originally posted by: desk
what do you mean by "the investment will have dwindled down to $0"? aren't we assuming that he is living on the interest/earnings?

The numbers in my last post used up the money entirely to make the yearly money as large as I could possibly make it and still be somewhat realistic. In my first posts, that was interest only.

 

[Rock Hydra]

No

 

[Kev]

that's only 100k a year, not even close to worth it. maybe a billion dollars might be worthi t

 

[YOyoYOhowsDAjello]

conjugal visits?

access to anandtech?

maybe then

 

[yhelothar]

Hell no. I'd rather take a big loan and slave away and get a few doctorates in 10 yrs than go to prison.

 

[iamme]

no way.

miss 10 years of my son growing up? no money is worth that.

 

[classy]

A lousy million dollars for 10 years in prison? No way.

 

[yhelothar]

A million is gonna be worth less than half as much by the time you get out. Won't even buy you a shack in So. Cal. Especially considering the super high inflation rates with the Bush administration.

 

[mrrman]

Originally posted by: SacrosanctFiend
Hell no.