the burger neets guide to cashing out

[Anonymous No.24363677]

Hi There Biz. I started working on my plan on what I would do if I were to cash out and wanted to share it with you all to help all of my fellow anons out there. There are a lot of threads out here that talk about mooning but they don’t talk about how to cash out and live for “free”. I do want to preface that I am not a professional so there may be some errors in the information below. The scenario below assumes that we have cashed out and made 5million USD. This strategy may not allow you to become ultra rich but it can allow you to live comfortably for a very long time with no headaches. Note this guide is a work in progress – feel free to add suggestions, lets try to make things comfy for everybody.

Starting Amount of Cash: $5,000,000
So let’s assume we are about to cash out 5mil. Now you might be thinking ok, well I know I have to pay taxes on this and youre totally ok with this. One thing to keep in mind when you cash out is that you have to pay taxes on all income. Meaning that once you cash out, and you have the cash on hand guess what? Even after you pay capital gains tax, you still have to keep paying taxes on the money? Why is that you ask? Simple – interest. The longer you hold Cash, the more interest it generates, and the more income it creates for you, therefore you never ever want to hold a large amount of cash if it all possible. So how do we reduce this? Simple, let’s first start at the federal level.

Ok so starting off at the federal level. Let’s assume you have a 5million dollar sale and you, with your titanium hands have held the asset for longer than a year. That means with the 2020 marginal tax rate, you will have to pay around 23.80% with an effective tax rate of 23.03%. This means you are paying a total of $1,151,701 out of the gate. (Post 1 of 3)

[Anonymous No.24363691]

(Post 2 of 3)
After handing over your tithe to our favorite buddies at the IRS, you are now left with, $3,848,299.

But wait there’s more. Depending on where you are located you also have to pay STATE income tax as well on your cash out as well. So let’s assume you are located in california.

Now after factoring in the state marginal and effective tax rate you are now out an additional $678,582. Your total capital gains taxes is now $1,830,283

This now leaves you with $3,169,717.

Ok so how do you avoid paying a tithe in your state? Simple, establish residency in another state. So you might be thinking “Ok faggot let me just get up and move to another state because thats real simple dumbass”. Well guess what? You don’t have to. Easiest way to establish residency in another state is to have property in another state. So here’s what you can do, go to ebay.com or landwatch.com and look up land parcels or destroyed houses. Generally you can find land parcels in tax free states that are a sliver of land (like 0.1 acres) for under $10,000. Buy purchasing the land and dropping a mailbox on it (if you want), you are now an established member of that state because you pay property taxes. So with your smaller investment of $10,000 (hypothetical here), you managed to just save yourself $668k.. Not a bad deal huh? Do keep in mind that you have to pay property taxes, but since the land you bought it so worthless, the property tax will be negligible compared to what you save by not paying state income tax.

[Anonymous No.24363716]

(post 3 of 4)
Anyway – Let’s assume we have gotten residency and cash conversion out of the way. Your next question might be, well how do I make this money work for me? You might be thinking about investing in other shit coins or investing in the stock market but I have a proposal for you… Looping back to the statement above, whatever you do, as long as you make income you have to pay taxes right? But what if I told you there was a way to make income and not have to pay tax on it? What if I told you there was a way for you to live for free in a state?

[Anonymous No.24363739]

(post 4 of 4)

Thats right there is. The boomers best kept secret, the municipal bond. Municipal bonds come in tax exempt formats, that allow NEETS to invest money in a certain municipality. The municipality then pays a coupon rate on the bond, also known as annual interest. Fun fact about the interest on these bonds is that the interest is TAX FREE (in most states / cities). Additionally you get tax write offs in some states by holding certain bonds or investing in certain state projects. So now you’re thinking well, that’s fucking stupid, bonds have a low payout… Well yes you’re right, but remember, you’re a millionaire now, 2-5% turns out to be thousands of dollars rather than pennies on a dollar.So let’s assume you put 3million dollars into 10 year bonds with a 5% coupon with a yield to worst of 2.650. The annual interest paid on this bond is 150k (Bi-annually). Meaning that every 6 months, the local government is forking over 75k to you, TAX FREE. There is a chance that the city or municipality that you are loaning money to goes bankrupt, but research shows that bonds are relatively safe with a low default rate. Anyway, at the end of the 10 years, you get your money back in full.

Comfy strategy or no?

[Anonymous No.24363795]

>>24363677
or just move to puerto rico

[Anonymous No.24363833]

>>24363795
You still have to pay federal income tax in puerto rico. But moving to puerto rico would help with the state tax issue. I'll add that to guide. Thanks for pointing this out

[Anonymous No.24364166]

bump

[Anonymous No.24364181]

>>24363739
Texas is a good state with cheap desert land. There’s also good farm land and cities, it could be good to develop rental properties with your interest and have farm land for selling milk and stuff close by passive ofc. Bonds are an excellent choice as there is a set div and guaranteed payout aside from hyperinflation it is failsafe. It may be a good idea to wait to get the best possible price to make like 10% on the coupon assuming GBR next year, depends how setyou want to be.

[Anonymous No.24364364]

>>24364181

I like your idea as well. My only concern with your strategy in my current model is that you are attempting to make the land that you purchased in texas valuable. This can be a catch-22 as the more valuable the land becomes, the more expensive it becomes due to takes and upkeep. There's also additional personal overhead required to ensure that the land remains in a workable state. My goal is to find the easiest way to generate an income without having to do any additional work.

[Anonymous No.24364622]

>>24363677
Thanks op, I plan on screenshoting this thread for future reference.

[Anonymous No.24364672]

>>24363677
based op

[Anonymous No.24364694]

>>24364181
>>24364364
If that’s your goal it should be sustainable that’s why I’m starting to think rent is better. You keep your initial and can decide to reinvest or travel or whatever, but it could be possible to beat the game, it would require a lot of work, but it really is unnecessary to a certain point. You’re also not tied down you can see how you spend the first couple of years and then get back into the game at any point with a lofty sum, it may be good to enjoy or think of a strategy to expound your gains. I really like your idea though and could use it I was thinking considering I do better than the average stock market year I could continue to do that with a huge sum , but I know how it can be when you’re in over your head.

[Anonymous No.24364721]

>>24364672
Now that I'm done bumping -

Additional amendments:

Yield to worst: This is only applicable if you purchase a callable bond, aka a bond that can be redeemed before full maturity (aka contract end date). You should try to avoid these if at all possible. Yield to worst indicates the bare minimum in interest youll receive if this occurs.

[Anonymous No.24364832]

Cheers Robert Kiyosaki. Good stuff.

[Anonymous No.24365319]

So you skipped over the OP title, part 1 which is CASHING OUT. Any strategies on dodging that first 23%?
I have a strategy that involves a 2nd passport but I'm curious if any burgers have come up with anything in the meantime.

[Anonymous No.24365421]

>>24365319

So there is a way to avoid federal income tax, but it's tricky because of the way tax laws work.

Hypothetical situation (alot of rich people do this as well - see any sort of Foundation: Zuckerberg / Melinda / Bill gates/ foundations etc) - is that you form a 501(c) and then cash out the funds under the 501c umbrella. The funds technically then belong to the 501c so they are cash free but the issue with this strategy is that the funds become public property (including all assets purchased with the funds) if you decide to close down the 501c. This strategy requires work because you now are responsible for running a non profit, but on the other hand this strategy is great if you have plans to build long term generational wealth

[Anonymous No.24365871]

>>24365421
Interesting. Something to look into.
Now back to your muni-bonds, where are you finding 2.6% + yields? I am looking at a few states and the A rated 10-year ones are all under 2%. Thats barely enough to keep up with inflation over 10 years.

[Anonymous No.24366115]

>>24365871
Look for bonds in states with high revenue generated from various public infrastructure investments and or large budgets for various infrastructure projects that generate a large amount of revenue on taxes from the services it offers:

For example:
Washington State has a bond for it's Convention Center located in Seattle.
Pay Frequency SEMI-ANNUALLY
Coupon 5.000
Maturity Date 07/01/2037
Insurer N/A

The convention center generates a large amount of "lodging tax".

https://kingcounty.gov/depts/executive/performance-strategy-budget/about/Lodging%20Tax.aspx..

Seattle has a very large budget and the city as a whole generates loads of revenue because the city loves to tax everything that it can (besides income).

I use fidelity investments to search for bonds.

[Anonymous No.24366204]

>>24365421
bumping to prevent my thread from being buried by Jew / CCP Psyops that are lowering the quality of this board.

Correction on this post: "The funds are belong to the 501c so they are TAX free - not cash free"

[Anonymous No.24366381]

I was looking at different bonds because of this thread and came across Vanguard Tax-Exempt Bond ETF (VTEB). Someone explain to a brainlet why the ETF basically follows the market with less volatility compared to being mostly stable due to the constant yield? Default risk?

[Anonymous No.24366449]

>>24366381
Or is it simply because people were cashing out of the market and selling?

[Anonymous No.24366482]

sadly i don't have nearly enough money in crypto to be worried about this.

[Anonymous No.24366483]

>>24363677
why would you ever cash out? the dollar is dead you fucking dense retard.

[Anonymous No.24366557]

bump

[Anonymous No.24366580]

>>24366483

cashing out to metal, of course. you're going to stay in crypto? lol

[Anonymous No.24366773]

>>24363677
I wonder about the claiming residence just because you own land in another state thing. Seems like there would be a requirement to show proof you are living there through bills/cc statements. If I'm paying rent in California and my credit card statement is mostly purchases in the area of where I'm living how can I get by on taxes by claiming Florida as my residence just because I own a cheap piece of land?

[Anonymous No.24366792]

>>24366483
This is my main concern, You'll end up making gaining more wealth just hodling even longer than selling. And the hyperinflation is a real threat especially coming into 2021 when banks are getting desperate to get people to pay their loans.

[Anonymous No.24366822]

>>24366381
It may have something to do with the makeup of the ETF itself. If you look at the prospectus, you may find the answer to your question. I'm not familiar enough with the ETF to answer this question. Apologies anon.

>>24366483
Not everything in America is purchasable with crypto. Further, as with all gains, it's not considered gains until you take a profit. I see I have now attracted fudders and naysayers.

With that being said you are free to continue to invest in crypto. The strategy above does leave additional capital that can be reinvested in crypto. But at the end of the day, mortgages and rent still have to be paid and thus you need USD.

[Anonymous No.24366879]

>>24366773
You would only need to prove residency with the bank you are cashing out with. Property tax / tax statements are accepted by banks. The strategy above isn't explicit but the idea here is that you'd own land in that state and open a bank account in that state with the address tied to your lands parcel number.

Sorry for not making this clear.

>>24366792
This is just an assumption, this scenario doesn't have to include a full cash out. Nothing is stopping you from investing in crypto further after you have cashed out some of your earnings. Hyperinflation or not, you still need USD to pay for major services in the US.

[Anonymous No.24366931]

>>24366115
Nice. Thanks fren.
Do you purchase them through fidelity as well?

>>24366381
It was a liquidity crisis in that all assets were sold for USD. VTEB looks like a good place to find additional muni bonds like OP was talking about. Good post.

[Anonymous No.24366973]

>>24366931
Yes, I would. I have a brokerage account with Fidelity.

[Anonymous No.24367067]

>>24364364
No income tax in texas as well

[Anonymous No.24367119]

I don't know where but there are 'casinos' in bugland that will let you cash out your crypto and send it to your account for a flat fee. However they glow brightly and the feds will consider you a national security threat

[Anonymous No.24367245]

>>24367067
Indeed, but any income generated is still taxed at the federal level. The idea here is to keep any additional tax liabilities to a bare minimum after paying capital gains taxes.

[Anonymous No.24367318]

I wouldn't want to be all on on municipal bonds due to the relatively unstable political climate we are in.. did you not notice many cities are nearly bankrupt until covid gave then billions?

[Anonymous No.24367400]

On a related note, if you don't want to pay the tax man for purchasing gift cards with crypto in minecraft, how can you stay anonymous considering they know you own crypto the moment you load the gift card?

[Anonymous No.24367460]

>>24367400
XMR

[Anonymous No.24367478]

>>24367318
On the contrary, with democrats entering the office next year and US politics moving more towards heavy taxation, I would argue that going in all in on municipal bonds with high coupons right now is a smart idea. Democrats love taxes and UBI. Cities will make up for the lost revenue from COVID by taxing the hell out of everyone once things start to stabilize. Besides as I mentioned above, there is a risk that the cities will default, but it's small and you will eventually get your money back if they do. Governments are desperate for money right now meaning that the odds are in the favor of the individuals who have money

Some related example: canada real estate and foreign investors buying it all up for pennies on the dollar

[Anonymous No.24367552]

>>24367460
What crypto you pay with doesn't matter. If you load a gift card, they can get your identity by using your account information and they already know you own crypto because that's how you bought the giftcard.

[Anonymous No.24367587]

Hang on: the whole moonshot/making it scenario is basically premised on massive inflation. You're basically advising that people wait until inflation is tremendously high and then buy fixed-income securities that will depreciate precipitously in exactly that environment.

[Anonymous No.24367617]

I live in Northern Nevada and it’s full of insanely rich people hiding money. No state income tax. None. My property taxes are below $1000 a year on a house worth over $700k. Highly recommend this place if you do what OP suggests

[Anonymous No.24367619]

>>24363677
How the fuck do you cash out ? For example if you have 5 million $ in link .. do you just sell it for btc and cash out fiat $ over time via coinbase or a btc atm?

[Anonymous No.24367769]

Not a burger, but I hope this is correct for the sake of burger anons. Myself, I will probably stay in academia if I make it since I am already on a good way to position myself decently there. Stress-free life with a purpose and I will not care about the shitty money they pay academic staff here.

[Anonymous No.24367771]

>>24367587
Massive inflation in the future is a plausible scenario. But as you mentioned it's a scenario. We have a good idea what's going to happen in the future but no one here is 100% sure, as no one here is in any sort of position with any real power that would be privy to that level of info.

There are anons out there that have already made it by being early investors / adopters, this scenario/idea could be hypothetically used now if that is the case.

Hell there's a chance that the US government could completely bans the purchase and sale of any non sanctioned cryptocurrency in the future in the US, thus rendering all strategies useless and tanking the crypto market permanently.

But to be honest, the inflation issue is a huge fucking problem, and I don't have a true solution to deal with it at this time. See the chapwood index for more information on how fucked we are in the US

>>24367619
Sell the coins on an exchange for USD and then wire transfer the money to your bank account.

[Anonymous No.24367937]

>>24367617
I was looking into moving to Nevada for this exact reason. The homes in summerlin look pretty nice and I heard it's a relatively safe area.

[Anonymous No.24367964]

>>24363677
Why not just leave your shit in crypto and only take out what you intend to spend? You'd surely see better gains this way, right?

[Anonymous No.24368034]

I plan on starting a nonprofit organization for veterans to learn about farming and ranching. I got the idea from a prison program that has inmates take care of horses. Being around nature and animals is extremely healing and it lifts the fog of depression that these people are stuck in. Physically building and growing something is very rewarding and I hope my dream becomes a reality. Would I just start a non profit, put myself on the payroll, and call it a day? Do I need a board of directors or more than one employee? I always wonder how these big non profits make so much money. Also I was thinking, how do these hackers cash out? They are able to steal wallets and billions of coins and no one looks.
Meanwhile, we make over 10k in gains and “we’re on a list” and get audited.

[Anonymous No.24368095]

>>24367964
The idea here is that you're cashing out after making your gains and thus realizing your gains as profit. This thread isn't for providing strategies on how to increase your gains (although those are certainly welcome). It's for those who want to turn those gains into tangible profit.

Cryptocurrencies are unregulated, there is no guarantees that will continue to generate profits in the future. What is guaranteed is that the US will under no circumstance let it's currency become 100% worthless as it wants to maintain its dominance. Domination is in the blood of our country.

[Anonymous No.24368127]

>>24368034
The cash out via legal Money laundering iby investing in things such non profits(that they own) or tax exempt equivalents in their various countries.

[Anonymous No.24368169]

>>24368034
Sorry I forgot to answer your other questions. But at a minimum a non profit in the US Needs a president and a corporate secretary as well as a board of governance. All of these are required to register a non profit in the US.

[Anonymous No.24368206]

>>24368034
they use teams of mules to cash out
its not sophisticated, its just organized

[Anonymous No.24368373]

whats the state & local cap gains tax in NYC ?
fUCK MY LIFE

I'm doing the establish residency in another state
fuck NYC
jews and their bagels and shit

[Anonymous No.24368488]

>>24368169
Do they have to be paid or can they volunteer? Ofc I’ll have other veterans running the show I could pay them for their time. I would likely just break even in any profits I get from the farm.

[Anonymous No.24368523]

>>24368373
8.8%, same as NY income tax.
>>24368488
Board seats for non profits are generally unpaid positions.