/biz/ - Business & Finance

For my fellow stinky linkies who want to know if they made it, all you need to make it is a 5k stack. Here is the math for you:

>5k stack at 1000$ per link earns you 5 million USD
>20% capital gains tax rate for anything held over 1 year drops you to a net 4 million USD
>4 million USD is 100,000k a year in interest assuming you get a rate of 2.5% interest, which is common among high yield savings accounts and CDs.
Now here is where the fun part starts. You do not pay social security or medicare on interest earnings. That means you don't pay for boomer retirement welfare or boomer healthcare welfare. That means you lower your tax rate by ~7.65%, which means you're going to be paying less taxes than someone making 50,000 a year.
>If you take the standard deduction your taxable income is 100,000 - 12,200 = 87,800 taxable
>$14,382.50 plus 24% of the amount of taxable income over $84,200 is the taxes you will owe
Your taxable income over 84,200 is 3600
>24% of 15,800 is 864. 864 + 14382.50 is 15,246.5
>Subtracting that from 100k nets you 84,735.5 USD per year after all taxes, this is your net income
So your net income is:
>Interest is paid monthly, so you will work with a 7,061.29 USD budget per month as a complete NEET off a 5k linkie stack.
>your effective tax rate will be 15.264%, which means you pay less tax than people who make half your income.