4 ms·
assuming losing 30% off the top for taxes, taking 3% of the principle every year for "salary" is $126k. That seems like more than enough for me, too.
by joshAg 14y ago
assuming losing 30% off the top for taxes, taking 3% of the principle every year for "salary" is $126k. That seems like more than enough for me, too.
- legutierr 14y agoI would think the tax rate would be lower, considering that a sale of shares is treated as capital gains. 15%?
- joshAg 14y agotrue. but that's only for long term. i have no idea what short term tax is, but i know it's also less than 30%. i was trying to overestimate taxes (so that the reported annual income, if anything, would be less than actual annual income) and use a nice round number so i didn't have to use a calculator.
- legutierr 14y agoLong-term is holding the asset for a year or more. Short-term is treated as ordinary income.
- joshAg 14y agotrue, but what's the interest rate for short term cap gains? i know it's (15,30), but i can't rememeber if it's just 18% or something more like 25%. and since i am efficient (read: lazy :), i just overestimated to 30% instead of wikipedia-ing.