5 ms·
But you can invest those one-time taxes and generate far more returns than the interest costs. Historical S&P500 returns are 6% per year, where as we are lookin
by RestlessMind 6y ago
But you can invest those one-time taxes and generate far more returns than the interest costs. Historical S&P500 returns are 6% per year, where as we are looking at only 1% mortgage rates for a billionaire.
- naveen99 6y agoSuppose there were no taxes. When would you stop taking on additional leverage with a 1% loan given historical returns of 6% ? I guess kelly criteria puts it around 2.5x. Now suppose you are already there, but now you add back taxes. Do you pay taxes or lever up ?