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by flashback2199 994 days ago
First of all, taxes will be what, a quarter or a third of it. So ok, north of 1M, still enough to retire. Second of all, if you bring in more than a million and spend most of it, down to 500k, in 3 years, then that's on you..
1 comments
sokoloff 994 days ago
If most of those hit in one year and as short term gains (which algo trading will be), taxes in my state would be around 12% and federally would be around 35%. You're down to just over a million. Paying yourself a salary means 15.3% on whatever your salary is for FICA/Medicare. For a $130K salary for each of 3 years, that's another $60K, taking you to right at a million before you've spent a dime on anything except taxes. Your first box of ramen makes you not a millionaire.
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flashback2199 994 days ago
> $130K salary for each of 3 years

We have totally different ideas about this, lol..

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sokoloff 994 days ago
You're going to have to comply with the "reasonable and appropriate" standard. What's "reasonable and appropriate" for an engineer/trader who, through his sole efforts, built a system which produced $2M in profits? It's going to be hard to argue that it's much less than the figure I proposed, but feel free to.
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flashback2199 994 days ago
No you misunderstand, I have no idea what you're talking about. If I bring in 2 million I think worst case for me is I declare it all income in which case I have just north of 1 million after tax. Then I keep investing that so it's not sitting cash obviously so then I retire on the returns which is bare minimum of 40k per year if all I could find to invest my million in was a measly 4% per year for some reason. I don't think I'm missing anything and I think it's pretty silly that people think you need more money than that to retire. Inevitably I'm going to get interested in working in some kind of job after a while so then I will have a real income on top of it. In summary there is zero percent chance that I could not retire having brought in one million after tax. Perhaps the main impedance mismatch here is you are talking with an extremely frugal midwesterner..
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