IBD analyst income after tax?

chubbybunny's picture
Rank: Orangutan | 315

Suppose one was to be hired by JP Morgan as an investment banking analyst in New York City.

Judging from posts, an average starting analyst seems to earn about

  • Base: 70k
  • Sign in: 5 - 10k?
  • Bonus: 20 - 30k

(please correct if I'm wrong)

First Year Analyst After-tax Income and Savings

  • Question 1: How much income does one actually earn after taxes?
  • Question 2: After subtracting cost of living (non-luxurious, sharing rent etc.), how much on average does a starting analyst be able to save up in their bank account?

From Certified Hedge Fund Professional @LTV" shares his budget outline:

I'm aiming to save ~40k 1st year.
Income

  • Salary: $70,000
  • Sign-on: $10,000
  • Bonus: $30,000

Taxes/Expenses

  • Tax on Salary: $24,500 (@35%)
  • Tax on bonus: $16,000 (@40%)
  • Rent+Utilities: $18,000 (@$1,500/month)
  • Expenses: $13,000 (@$250/week)

Total Savings: $38,500

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Comments (211)

Jul 14, 2010

70,000(1-.33)
-10,000
(1-.40)
-30,000(1-.40)
-12 months * 2000
-500
52
=SUM()

    • 1
Jul 14, 2010

plenty of threads

Jul 14, 2010

im sure you have some mental capacity to do basic budgeting on excel. if not, then seek help.

Jul 14, 2010

check your math, bar

Jul 14, 2010
Jul 14, 2010

thanks dew, that link is very useful.

So from testing it out, it seems that a first year analyst who would probably earn about $100k would end up gaining in income about $62,000 (that's without subtracting living expenses) am I right?

Jul 14, 2010

you save very little except your bonus which you will probably blow on a watch because all the other bankers do it.

Jul 14, 2010

Wow, 60K is pretty weak when you consider you are working 100+ hours a week.... :/

Jul 14, 2010

You have to think of gross man or else your friends are all making $30k. You are making $100+ not 60.

Jul 14, 2010

yea i know.. 100+ hours and you get about 60k... Thats excluding living costs so considering you live in NYC, take out rent, food and the occasional night out and you would have around $30k left, so as workerbee put it, you save basically the amount of your bonus =/

Just wondering, in this case wouldn't it one be able to have more income if one works in a different country where tax rates are much lower, for example Hong Kong or Toronto? I've heard that investment banking salaries are pretty much standard everywhere (besides the bonuses)...

Jul 14, 2010
chubbybunny:

yea i know.. 100+ hours and you get about 60k... Thats excluding living costs so considering you live in NYC, take out rent, food and the occasional night out and you would have around $30k left, so as workerbee put it, you save basically the amount of your bonus =/

Just wondering, in this case wouldn't it one be able to have more income if one works in a different country where tax rates are much lower, for example Hong Kong or Toronto? I've heard that investment banking salaries are pretty much standard everywhere (besides the bonuses)...

I think that tax rates in Toronto are higher than in NY, but NYC may be an exception so don't quote me on that. Regardless, cost of living in Toronto is much lower than many major American cities, and higher quality of life (arguable) to boot.

Jul 14, 2010

I'm aiming to save ~40k 1st year.

Salary: $70,000
Sign-on: $10,000 (saved the whole thing since I had a decent saving left over when I graduated)
Bonus: $30,000

Tax on Salary: $24,500 (@35%)
Tax on bonus: $16,000 (@40%)
Rent+Utilities: $18,000 (@$1,500/month)
Expenses: $13,000 (@$250/week)

Savings: $38,500

I'm hoping to spend less in expenses in reality, so I'm hoping I'll still be around 40 even if I decide to take that vacation at the end of year 1.

Jul 14, 2010
unqwertyfied:

I'm aiming to save ~40k 1st year.

Salary: $70,000
Sign-on: $10,000 (saved the whole thing since I had a decent saving left over when I graduated)
Bonus: $30,000

Tax on Salary: $24,500 (@35%)
Tax on bonus: $16,000 (@40%)
Rent+Utilities: $18,000 (@$1,500/month)
Expenses: $13,000 (@$250/week)

Savings: $38,500

I'm hoping to spend less in expenses in reality, so I'm hoping I'll still be around 40 even if I decide to take that vacation at the end of year 1.

That seems pretty optimistic on the rent/expense front.

Jul 14, 2010

I'm assuming the bonus numbers are after tax right?

Jul 14, 2010

yes, that's why he taxed them again @ 40% after tax... because that makes sense...

Jul 14, 2010
ZIRH:

yes, that's why he taxed them again @ 40% after tax... because that makes sense...

Haha I'm just saying that 30K seems rather low....

Jul 14, 2010
Bernanke23:

Haha I'm just saying that 30K seems rather low....

Budgeting with worst case to make sure I still have enough in the bank in case we go into a double dip.

Jul 14, 2010

The COL eats up most of the money, 100K in NYC is lower middle class. Expenses are likely to be $300 on groceries per month, 2,000 for rent, $250 for transportation, so 2550 for the bare essentials. Assuming that the tax rate is 40% on average for your salary, you have 42,000 and spend 30,600 on necessities. You'll have an additional $11,400 in discretionary income from your salary. The bonus will be taxed at 50%. Assuming average bonuses, from a standard of living standpoint first year analysts in second-tier cities at MM IBs may do better than someone at Goldman, due to a state and city tax as well as the staggering COL, 150K in NYC is equal to 100K in Charlotte.

Jul 15, 2010

It's really ridiculous. There are so many people making less, much less, money in New York. They must live so meagerly (relatively speaking).

Jul 15, 2010

Keep in mind that you aren't making bank during your analyst years.

The analyst program is an investment in your education. Can't put a price or value on that.

Jul 15, 2010
froyo:

Keep in mind that you aren't making bank during your analyst years.

Relatively speaking, you kind of are though, aren't you? What other "entry level" job makes as much as an analyst at an investment bank? Sure, in terms of the finance world it's not bank, but as an analyst at a big firm, you're pretty much guaranteed to be making more than anyone else you know out of college.

Jul 15, 2010

1) NYC is pretty damn expensive so don't plan on saving too much. Save some, but don't kill yourself. I think 10-20K in the bank is reasonable to pushing it.

2) People can live on a lot less in NYC because they don't have to work all the time and can take a train to LI or Brooklyn or wherever. Rent drops a lot once you leave Manhattan.

3) You aren't going to get rich being an analyst. It really is an investment in your career. Many jobs pay nearly as much as what an analyst makes with a lot less hours and outside of high cost NYC. Thing is once your two years are done your salary skyrockets (in theory). If you go on for a 3rd year and then associate you will be able to save more. If you go to PE your quality of life will improve and you will be able to save more or you go to B school with the hopes of earning a lot more.

You have to factor in the intangibles also. You are paying a lot for rent, but you also don't waste tons of time getting home at night. Sleep becomes very precious when you work all the time. You are also living in Manhattan which I think is worth something. Rent is pretty cheap in Montana, but have fun tipping cows. You don't need a car, you don't need gas or insurance.

Honestly, if you eat modestly and don't go out to the bar excessively you should be able to put some money away. Lets face it. You are living in the best city in the USA ( or World ), doing a job which will set you up for an extremely lucrative career and life AND saving 10K. Most people in this country aren't saving anything while living a life well below what we consider standard on this board. Consider yourself lucky.

Jul 15, 2010

Good point.

TO THE SITE MAINTAINERS:

Could you add another column to the compensation database called "Approximate Take-Home Pay After Taxes"?

It's all well and good that we're making 6 figures on paper.. but how much can we actually keep?

Jul 15, 2010

Flashbang, we will makes sure to include this column as we compile the 2006 Bonus Database which should be out by mid-to-late July. we will also be slicing and dicing the data some other interesting ways for 2006 (region, 1st yr / 2nd yr / 3rd yr, etc.) and our database should be even more comprehensive.

  •  Jul 15, 2010

you can adjust your allowances on your w-4, more allowances = more money for you. Technically you could adjust your witholding so that you paid no federal or state income taxes throughout the year, but just backload it by taking more out at the end. This way you at least have better cashflow throughout the year and you're not giving the government an interest free loan. Just make sure by the end you have withheld 90% of your estimated burden and you should be fine.

As for reducing the absolute dollar number of your burden there are a number of ways, most of which require more information/professional help than this board warrants. Make sure you are writing off all allowable education expenses, non-reimbursed work expenses etc...(keep records). Also off the top of my head the best way to reduce your taxes is find something that you regularly do that you could turn into a legitimate business. Then write off your expenses associated with those activities. Just make sure you have a profit motive and file all necessary forms...

Jul 15, 2010

just got my signing bonus, was taxed 35% (chicago)

  •  Jul 15, 2010

Chances are if you are just getting out of college (hence signing bonus) you don't have a lot or any income for the year. Call up acct and tell them to let you adjust your w-4 and increase your allowances or if you had basically no other income for the year claim exempt status. 35% is the highest tax bracket and unless you have 300K income from somewhere else you shouldn't be paying anywhere close to that. I claimed exempt on my signing bonus and kept the whole thing minus social security.

Jul 15, 2010

Anyone else getting taxed by two different states?

Jul 15, 2010

Is it possible to send money from your bonus into a 401k thereby avoiding tax?

Jul 15, 2010

NY got taxed 44 percent for signing bonus

Jul 15, 2010

I actually wasn't taxed upfront at all on my signing bonus and ended up paying 15% (my marginal tax rate at the time). I went to school in MA but filed taxes in NJ.

Jul 15, 2010

good info in your post, thanks

Jul 15, 2010

Accounting majors got this on lock down.

Jul 15, 2010

just dont report taxes, thats what i did with my signing

Jul 15, 2010

Or put it in a swiss bank or siphon it into some offshore account.

"We are lawyers! We sue people! Occasionally, we get aggressive and garnish wages, but WE DO NOT ABDUCT!" -Boston Legal-

Jul 15, 2010

Good advice overall, except for the non-reporting part..

Jul 15, 2010

Putting it in a swiss bank won't help you not pay payroll taxes.

Account Inactive

Jul 15, 2010

Yea and I wonder when your company reports them and the IRS matches the two? Haven't you ever heard of IRS audits?
Btw how hard is it for an analyst to take out a first home mortgage; has anyone done it? I guess it would be easier if one has a spouse with a good income, but what about if u are single? I know in Boston it is pretty hard for single young people to get mortgages.

Jul 15, 2010

nice...i was waiting for this shit and researching online.

Jul 15, 2010

I hope you were joking, if the IRS opens a claim against you its my understanding that even if you settle it no BB will touch you. Its all about integrity and looking lily white.

Jul 15, 2010

i just received my bonus (for starting in july 07). i did not know about the withholding so they took out all the taxes. it ended up being 7500 (was 12500). will i get the money i would have saved back at the end of the year? or do i need to see if i can change it now? thanks

Jul 15, 2010

From what I've heard most banks pay this in the Spring after you've signed in the fall and there doesn't seem to be much latitude. Any suggestions for those of us getting a bounus in the Spring?

[quote=labanker]We all know that as bankers we get hit pretty hard with taxes. Here are a few tips for the new analysts that will help soften the blow:

(a) signing bonus: Try to make sure your bank pays you this in the fall of your senior year right after you get your offer.

Jul 15, 2010

Yea I know for instance my sign on only kicks in on the first day I start work...damnit.

Jul 15, 2010

I will be starting in Jul 2007 and I just received my sign-on bonus today. Needless to say, I got hit with a withholding tax on my bonus. My question is, when I file my tax returns for income earned in 2007, will the withholding tax be claimable as a tax credit? (i.e. Am I allowed to off-set the withholding tax suffered against the tax on my earned income in 2007?)

Thanks for the advice in advance.

Jul 15, 2010

Are you allowed to have 0 withholding and just pay all of your tax in April? I rather not give the government a 0% loan.

Jul 15, 2010

If you don't withhold, then I believe you are responsible for paying your expected income tax proportionately throughout the year (someone correct me if I am wrong, Personal Tax was not my strongest class). Ideally, you should have a bare minimum withheld, and pay the difference in April so you aren't hit with it all at once.

For anyone working in NYC, how does the city income tax work?

Jul 15, 2010

with 160 posts you should know the answer to that question, or at least where to find it.

Jul 15, 2010

Instead of taking the time to write that comment, you could have answered his question.

Jul 15, 2010

Agreewitme has 160 bananas, I think he knows how to use the search function.

Jul 15, 2010

the average what banker? a 1st year? a 2nd? an associate? a VP, an MD? I don't know why I m even responding

Jul 15, 2010

They make 10..sometimes 20

Jul 15, 2010

cents

a week.

Ok for real.

analysts 110-200
Associates 250-450
VP 500-1m
MD 1m+

This is very rough, do a search for better info. Numbers range over various years in specific positions, for BB banks.

Jul 15, 2010
matty200:

cents

a week.

Ok for real.

analysts 110-200
Associates 250-450
VP 500-1m
MD 1m+

This is very rough, do a search for better info. Numbers range over various years in specific positions, for BB banks.

After a response like this, I'll use the search function.

Jul 15, 2010

Analyst 200? VP 1m? You do realise this is after tax right??

Jul 15, 2010

he clearly means before tax so just take off half

Jul 15, 2010
Mr. White:

he clearly means before tax so just take off half

Half? Not 13%?

Jul 15, 2010

I thought taxes was more like 30%? I guess it matters in where/what industry you work in.

Jul 15, 2010

I would agree with White. In NY, CA or any other high state/city tax jurisdiction, between Fed, state, local taxes + social security, medicare, etc... you're probably netting close to 50% of your gross if you're single and earning over 200.

Jul 15, 2010

Ok so if an analyst makes $110k, they are left with $55k. From that $55k, they have to pay for rent, utilities so they are left with like $20-25k for the year?

Jul 15, 2010

An analyst that makes around 110k will end up with around 65k in CA. After rent and utilities, it's really not much. This is why posts claiming that you need to spend thousands of dollars on clothes are so ridiculous.

Jul 15, 2010

Even if it's before tax, it's got some really upper-end figures there. I'm not so sure about those myself.

Jul 15, 2010

Just live in Charlotte.

Jul 15, 2010

hahahahahah ... 13% ? hahahahahahahah.

Jul 15, 2010
angry_keebler:

hahahahahah ... 13% ? hahahahahahahah.

What's so funny dude? That's what I pay as a tax, and many others, as well. A flat tax rate on all income, regardless of its total amount.

Jul 15, 2010

yes Ivan, but in russia they are actually capitalists. unlike the US.

Jul 15, 2010

Agreed, Jimbo, they are.

Jul 15, 2010

No one in the world ever talks salary after tax... It's an assinine question to say, "Is this pre-tax or after-tax?"

Either you sling crack rock or you got a wicked jump shot

Jul 15, 2010

ahh the fallacy of the gross....

Jul 15, 2010

LONDON (gross - so take off 35% roughly)

Sample 2007 salaries (and bonuses, where provided)

Fund manager

Junior : APS38k to APS45k

Intermediate : APS42k to APS85k

Senior : APS60k to APS140k

Manager : APSperformance (ie, the skyaEU(tm)s the limit)

Fund marketer

Junior : APS28k to APS34k

Intermediate : APS30k to APS60k

Senior : APS50k to APS80k

Manager : APS70k++

Credit quants

Junior : APS45k to APS60k plus an average 50% bonus

Intermediate : APS60k to APS80k plus an average 60% bonus

Senior : APS70k to APS110k plus an average 80% bonus

Manager : APS110k to APS175k plus an average 150% bonus

Corporate financiers

Junior : APS35k to APS45k plus an average 100% bonus

Intermediate : APS45k to APS60k plus an average 150% bonus

Senior : APS60k to APS85k plus an average 150%+ bonus

Manager : APS85k plus an average 200%+ bonus

From the ghetto....

Jul 15, 2010

You can do things to lower your tax bill though, such as contributing to a 401K, funding an IRA, owning a home/condo for the deduction from the mortgage, etc.

Jul 15, 2010

marginal tax rates vary.

and yeah be grateful someone will pay you 120k out of school. that's ridiculous.

Jul 15, 2010

i know someone whos sign on bonus was taxed, leaving only about $6 000 from an initial $10 000. so about 40% chunk goes to taxes.

Jul 15, 2010

your sign on bonus is only supposed to be taxed if you made more than like 10k that year.

Disclaimer: The post above has been made by someone who is not currently employed in IBD, and has not had an interview yet...

Jul 15, 2010

you can see the fed taxes on many websites. Don't forgot state and city (like in nyc). Rule of thumb. If contribute 15% of your bonus into your 401k, you wind up with about 50% of the gross. so 100k bonus, 15k into 401k, you'll wind up with about 50k. still nothing to sneeze at, but taxes can be killer. try to live on your base and save your bonus, that'll work well. i am not a tax advisor.

Jul 15, 2010

Bonuses and sign on are witheld, meaning when you file your taxes you should get some of that back.

Jul 15, 2010

welcome to living in a socialist country (tax-wise)

Jul 15, 2010

bonuses aren't taxed at higher rates than regular wages. Witholding doesn't equal tax obligation. Of course, you still end up losing by giving the Gov. an interest-free loan.

Jul 15, 2010

How much generally is the state tax over there? Isn't the top tax bracket 35% (@ 311K)? Consider yourselves fortunate - here in Australia our top tax bracket is 45% (@ 150K AUD = 115K USD).

Regressive tax is the way to go!!

Jul 15, 2010

your bonus does get taxed at a high rate, but then you get some back. I had over 40% taken out.

BUT at year end, I made 150K and I ended up paying 25% of my total money out in taxes, so it wasn't that bad.

Jul 15, 2010

a first year analyst?

so 150 - 40 (tax: approx) = 110
110 - 25 (rent) = 85

85 - 25 (food/ expenses) = 60

60 - 10 (misc) = 50.

50 in the savings account? not bad at all.
Prob save 70 in the second year, 90 in the third year

$ 210 K in 3 years.... atleast enough for B school and then have some chunk of change left.

Jul 15, 2010

I've saved nowhere near that.. It would be nice, but the hard reality is that you work so hard that when you go out, you spend. Also you will spend far more then that on rent.

I wish I had saved that much, but I enjoy myself.

Either you sling crack rock or you got a wicked jump shot

Jul 15, 2010

Income taxes are so fucking unconstitutional. There should be a 1% tax on everything... but the rich wouldn't like that... that's how we got income taxes to begin with.

Jul 15, 2010

WT- I realize you're not American, but in which country on earth (that has a constitution) are taxes unconstitutional?

The 'fairness' of the taxation scheme and its constitutionality are entirely separate issues. And for better or worse, taxes are 100% necessary for a nation to run effectively.

And although my next comment is beyond the scope of this thread--

How much of one's income is taxed, and how those revenues (to the government) get distributed, is the key policy question--and not whether or not taxes are "constitutional" or necessary in the first place.

Jul 15, 2010

Bonuses are not taxed at a higher rate, that's absurd. Bonuses are with held at the highest rate, probably because it makes it easier for the payroll department, however when you file your taxes you will clearly get a return and only be taxed on your bonus based upon your tax rate. Its not rocket science.

Jul 15, 2010

Maybe I'm not thinking hard enough into it, but why did you start with 150k in your calculation? I mean standard first years get 60k + 10k sign on. So there's 70. Where is the other 80 coming from? I find it hard to believe thats a normal first year bonus. I think even getting 60k for a bonus is pushing it. I think a good number to start with gross wise is between 100k - 120k. Not 150k. What does everyone else think?

Jul 15, 2010
IronBanker:

Maybe I'm not thinking hard enough into it, but why did you start with 150k in your calculation? I mean standard first years get 60k + 10k sign on. So there's 70. Where is the other 80 coming from? I find it hard to believe thats a normal first year bonus. I think even getting 60k for a bonus is pushing it. I think a good number to start with gross wise is between 100k - 120k. Not 150k. What does everyone else think?

Yea...150K is excessive for first year. I would imagine that's more for the 2nd year. I think first years should expect a 6 figure income (sign on + base + bonus) but I think beyond 120K you're pushing it.

Come on...for 120K, you're getting 50K bonus in your FIRST YEAR. That's 87% of your base. Yes, some stars will get 100% so that pushes to 130K all in but 150K? 80K bonus on a 60K base? Sounds too high for a first year...unless you're the star.

Jul 15, 2010

I see why you used 150k now (the post before it). But I still believe most first years won't make near 150k.

Jul 15, 2010

taxes are retarded, and democrats think that the more you tax the more the government gets. Its a ridiculous that the people that have control over our tax laws have never even opened a economics textbook. Its also the reason our health care, education, and social security systems are so retarded. Even the democrats in congress cannot grasp the idea of a free market.

Jul 15, 2010

so true, its called the laffer curve.

Jul 15, 2010

My friend at JPMC pulled 140 K, and he is in ECM of all places! I don't know if hes a star though.... he actually pulled a 80 K bonus. So 150 K if you consider the sign on. Probably things are not going to be as rosy in 2007.

Where abouts do first years, 2nd and 3rd years end up saving...just curious.

Now I am starting to see why some unusual people go to B school after pulling 2 yrs as an associate...more savings I guess....

Jul 15, 2010
ghosht:

My friend at JPMC pulled 140 K, and he is in ECM of all places! I don't know if hes a star though.... he actually pulled a 80 K bonus. So 150 K if you consider the sign on. Probably things are not going to be as rosy in 2007.

Where abouts do first years, 2nd and 3rd years end up saving...just curious.

Now I am starting to see why some unusual people go to B school after pulling 2 yrs as an associate...more savings I guess....

I have heard figures like that but I just don't think this market is sustainable. Take it back to a downturn to like 5-6 years ago and that all in package would be going to an associate, not a first year.

I'm headed to DCM this year and i'm trying to be conservative and not get my hopes up. This is a hot market, but we all know hot markets eventually burn out.

Jul 15, 2010

65 + 10 + 70 - so pretty close to 150

Jul 15, 2010

how much of the 145 did you safely put in the vault, my man?
:-)

Jul 15, 2010

Thx nyc9982...that helps me put things in perspective.

My package is 60K, 10k for DCM in Canada.

I'm just hoping to be able to at least match my base in my first year (2007-2008).

Jul 15, 2010

away the entire bonus and also put 8% in my 401k. tried to put away a couple hundred a month for an emergency fund.

Jul 15, 2010

ghosht - respect the lady, man.

Jul 15, 2010

Rather than crying over something you can't get rid of...

Why don't you start realizing you can avoid some of the tax and read up:

http://www.ibankingoasis.com/node/1012

Jul 15, 2010

MB, thanks for the post, pretty good.

For with-holding...should we get in touch with compensation department before hand and express our o desire to do so?

Jul 15, 2010

A lot of signons won't be paid until you walk through the door now...so one of the points is pointless now...lol

Jul 15, 2010

I posted a few ways you can minimize your tax burden as an analyst...

Jul 15, 2010

everyone pays taxes

like the saying goes, there are 2 certain things in life, death and taxes

Disclaimer: The post above has been made by someone who is not currently employed in IBD, and has not had an interview yet...

Jul 15, 2010
aspiringmonkey:

everyone pays taxes

like the saying goes, there are 2 certain things in life, death and taxes

Uh, OK?

60 million + people a year don't report their income so there goes your "everybody" comment.

Jul 15, 2010

Budlight, I think you should try it and tell us how it goes.

Jul 15, 2010

I hear you.

Heck, I'm sure several of us on the forum can pitch in via Paypal to help finance a ticket for you to another country. Just give us your email...

Jul 15, 2010

Come to HK. 15% flat rate (for non-US citizens only), no withhold, global pay+housing allowances.

Americans can deduct $80,000-$90,000 foreign tax credit annually at most.

Jul 15, 2010

yeah but thats illegal,
to evade taxes = illegal
to avoid = legal
there are good ways to avoid....

Jul 15, 2010
titanboxer:

yeah but thats illegal,
to evade taxes = illegal
to avoid = legal
there are good ways to avoid....

Look at what you're saying, it's illegal to invade taxes yes, but we're talking about federal income tax... there is no law that requires anyone to pay this tax. They way that they get you is if you sign the 1040 then you have voluntarily complied to pay this tax, didn't you watch the video?

Jul 15, 2010

please go forward with this. you seem to be the smartest guy in the room, so i'd be interested to see the results. funny how almost everyone pays it if its "optional".

Jul 15, 2010
bigdirs:

please go forward with this. you seem to be the smartest guy in the room, so i'd be interested to see the results. funny how almost everyone pays it if its "optional".

Read your 1040 and tell me if it doesn't say "voluntary" right on the form, and please search for a law and show us where it says we are require to pay taxes on OUR WAGES. That right there would be unconstitutional and unlawful.

Jul 15, 2010

just finished watching the video, they bring up a lot of good points, but there is really nothing you can do about it, the gov't has all the guns.

But yeah America of today is really screwed up, since 9/11 we've given up a lot of our liberties, and it doesn't look like they are going to stop.

Personally having come from a communist country, America of today is no that different from Communist Russia.

Disclaimer: The post above has been made by someone who is not currently employed in IBD, and has not had an interview yet...

Jul 15, 2010

Well go back there you fuck face red.

aspiringmonkey:

just finished watching the video, they bring up a lot of good points, but there is really nothing you can do about it, the gov't has all the guns.

But yeah America of today is really screwed up, since 9/11 we've given up a lot of our liberties, and it doesn't look like they are going to stop.

Personally having come from a communist country, America of today is no that different from Communist Russia.

Disclaimer: The post above has been made by someone who is not currently employed in IBD, and has not had an interview yet...

Jul 15, 2010

you guys see v is for vendetta?

Jul 15, 2010

yep, we are 1 step away from that

Disclaimer: The post above has been made by someone who is not currently employed in IBD, and has not had an interview yet...

Jul 15, 2010

I think that's a little exagerated...in communist Russia you couldn't have your own car, home, or say anything bad about the government, no free press, and you couldn't go out to eat. Yeah, people are a little weird these days about critizing the government, but no one I know has yet to be arrested or disapear to a slave labor camp. The only people who might be getting a little "unfair" treatment are Muslims finantics who are plotting ways to blow up people in our country...sorry but I'm not too concerned about their freedom as long as they are trying to kill us.

Jul 15, 2010
nyc9982:

I think that's a little exagerated...in communist Russia you couldn't have your own car, home, or say anything bad about the government, no free press, and you couldn't go out to eat. Yeah, people are a little weird these days about critizing the government, but no one I know has yet to be arrested or disapear to a slave labor camp. The only people who might be getting a little "unfair" treatment are Muslims finantics who are plotting ways to blow up people in our country...sorry but I'm not too concerned about their freedom as long as they are trying to kill us.

um thats incorrect, my parents had an apartment that my mom got free because she was one of the architects for the buildings.

My parents also had a car, "Shesterka"

As far as freedom of the press...you gotta admit that the mainstream press is biased as hell.

As as the whole lack of going out, its not because you were forbidden, its because there weren't that many restaraunts, I'm not that informed on this subject becuse I was like 12 at the time...the only restaraunt I remember going was McDonalds :P

As far as the whole its ok if they are muslim...thats a slippery slope, Bush pretty much eliminated due process, now you can be held in prison w/o them charging you...so you won't even have a chance to prove your innocence. And you might think that as long as it doesn't apply to you, you could care less...but the law doesn't specify only muslims, so it does apply to you

Jul 15, 2010

"Some [people] assert that they are not required to file federal tax returns because the filing of a tax return is voluntary. Proponents point to the fact that the IRS itself tells taxpayers in the Form 1040 instruction book that the tax system is voluntary. Additionally, the Supreme Court's opinion in Flora v. United States, 362 U.S. 145, 176 (1960), is often quoted for the proposition that "our system of taxation is based upon voluntary assessment and payment, not upon distraint."

The Law: The word "voluntary," as used in Flora and in IRS publications, refers to our system of allowing taxpayers to determine the correct amount of tax and complete the appropriate returns, rather than have the government determine tax for them. The requirement to file an income tax return is not voluntary and is clearly set forth in Internal Revenue Code

Jul 15, 2010

http://www.originalintent.org/edu/lies.php
Read what you're writing dude...

"Some [people] assert that they are not required to file federal tax returns because the filing of a tax return is voluntary. Proponents point to the fact that the IRS itself tells taxpayers in the Form 1040 instruction book that the tax system is voluntary. Additionally, the Supreme Court's opinion in Flora v. United States, 362 U.S. 145, 176 (1960), is often quoted for the proposition that "our system of taxation is based upon voluntary assessment and payment, not upon distraint."

Now... what's a taxpayer? Yes that's right, someone who pays income tax.

Jul 15, 2010

rofl dude

Jul 15, 2010

are you kidding me? whatever, i'm done arguing. i'm just going to assume you were joking and will pay taxes to avoid jail.

Jul 15, 2010

note, I'm not saying the situation right now is the same as the Communist Russia, but since 9/11, we've seen numerous of our rights, being taken away from us. And we are only a few steps from becoming a totalitarian goverment.

Disclaimer: The post above has been made by someone who is not currently employed in IBD, and has not had an interview yet...

Jul 15, 2010

Stop bashing my country. Go back to Russia you fucking red.

aspiringmonkey:

note, I'm not saying the situation right now is the same as the Communist Russia, but since 9/11, we've seen numerous of our rights, being taken away from us. And we are only a few steps from becoming a totalitarian goverment.

Disclaimer: The post above has been made by someone who is not currently employed in IBD, and has not had an interview yet...

Jul 15, 2010

or an apartment in communist Russia. And since the government gave it to them, that also means they can take it away.

You can find numerous articles, books and pictures of communist Russia and notice how there are so few cars on the roads. Also, the majority of citizens lived in block housing that they did not own.

I'm sorry but you are freaking crazy if you think you would live a better life in communist Russia.

Tolitarian? Besides suspected terrorists can you please give me an example of this in mainstream America?

Jul 15, 2010

I'm not arguing where it is better to live but:

"or an apartment in communist Russia. And since the government gave it to them, that also means they can take it away.

You can find numerous articles, books and pictures of communist Russia and notice how there are so few cars on the roads. Also, the majority of citizens lived in block housing that they did not own. "

Excuse me?! Pictures, articles??? Please, do not give "facts" about things and places which you do not know about and have not seen. There are a lot of people from the former Eastern Block here and this is just hilarious. This is like a college kid trying to argue with an MD about I-banking. Stick to what you know.

Jul 15, 2010

There are Americans all over the world putting their life on the line for your freedom and well-being, and your trying to claim your rights are being taken away? Go the fuck back to your communist state. You don't appreciate for shit the sacrifice people are making every day to enable you to see tomorrow. These men and women are the main reason we have not seen another attack on US soil.

Jul 15, 2010
MetalJack:

There are Americans all over the world putting their life on the line for your freedom and well-being, and your trying to claim your rights are being taken away? Go the fuck back to your communist state. You don't appreciate for shit the sacrifice people are making every day to enable you to see tomorrow. These men and women are the main reason we have not seen another attack on US soil.

This is the most ridiculous and illogical argument I've ever heard in my life. Let me get this straight: Since people are in Iraq protecting our freedom, we shouldn't be worried about the loss of our freedoms and the ever-growing of the federal government? Taxes in general are inherently immoral (see the 14th amendment: no involuntary servitude). I have no problem paying a little to keep the police well-staffed, the military well-armed and firemen handy; I DO have a problem paying into a social (in)security system that will probably not be there when I need to collect; I DO have a problem paying into a educational system that I will probably not have my children use because it is too ineffective and my children would probably be better off at a private school; I DO have a problem paying into a health care system that offers poorer quality of care than would otherwise exist if the system didn't exist; and so on. People need to stop being resigned to paying their taxes and start demanding responsibility from their elected representatives. People also need to be informed about the costs and benefits (short and long term) of each governmental spending and taxing issue. Someday we as a nation will wake up with high unemployment, hyperinflation, poor health care, even worse public education, a strong fascist central government and wondered what the hell happened.

Jul 15, 2010

right on

MetalJack:

There are Americans all over the world putting their life on the line for your freedom and well-being, and your trying to claim your rights are being taken away? Go the fuck back to your communist state. You don't appreciate for shit the sacrifice people are making every day to enable you to see tomorrow. These men and women are the main reason we have not seen another attack on US soil.

Jul 15, 2010

yes don't trust pictures...I dunno how life was outside of Moscow, but we had plenty of cars.

And no they couldn't take anything away, since the house was in my family's name. My mom earned it, since she was one of the lead architects for the apartment building.

As far as metal jacket, yes damn straight, my rights are being taken away. And not some bullshit rights, rights guaranteed to me by the Constitution. Since 9/11 the gov't has been chipping away at our rights, and turning the country into a police state.

As far as people putting their lives on the line, who said anything about them? And I sure hope you don't mean the Iraq War, because its pretty obvious that we went in because the gov't lied about the situation. Where are the weapons of mass destruction?

---------------------------------------------------------------

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Jul 15, 2010
aspiringmonkey:

As far as people putting their lives on the line, who said anything about them? And I sure hope you don't mean the Iraq War, because its pretty obvious that we went in because the gov't lied about the situation. Where are the weapons of mass destruction?

---------------------------------------------------------------

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How about you pack your bag(s) and fuck on out of here. What is obvious is that you are a douche bag scum fuck.

Jul 15, 2010

hey i was one of thse americans putting my life on the line, and he didnt say anything offensive. he might have exagerated, but as far as people giving up freedoms out of fear, that is a very real situation. what we have now could easily turn into a scare like mccarthy of the '50s just replace "comunist" with "terrorist" on all blacklists.......
however lincoln did imprison his opposition to keep the union together...
its a tough balance, but know what your freedoms ARE and what youll do to keep them

Jul 15, 2010

you guys are unreal,

aspmoney, you never cease to amaze me, yep america is like communist russia, and also just one step away from facisim...no wonder you don't get a banking job because you have no common sense yet think you know everything

Jul 15, 2010
ke18sb:

you guys are unreal,

aspmoney, you never cease to amaze me, yep america is like communist russia, and also just one step away from facisim...no wonder you don't get a banking job because you have no common sense yet think you know everything

Ok, I'll list all the freedoms we lost
1st Amendment: Freedom of speech
Freedom of speech
-Thanks to the patriot act, your group can be labeled as terrorists if you do non-violent protests
-The goverment can now prosecute the people who keep our personal records, if they let you know that you are under investigation
Freedom of Association
-Goverment can now infiltrate any religious/political group, w/o a suspicion of criminal activity
-you can now be investigated by the goverment if you are involved with political, activist, or advocacy groups
Right of Access to gov't information
-Thanks to the freedom of information act, the gov't doesn't have to disclose or can limit any gov't records
-Goverment has conducted Immigration hearings behind closed doors. Before these hearings were public.

4th Amendment
-Goverment can now search your house and wire tap you w/o probable cause. And of course they keep records of all your email/web activity
-They can now demand any personal records from your doctor, employer, accountant etc, all they have to do is claim terrorism. And like I mentioned before they aren't allowed to let you know, your records were given to the gov't
-Judicial oversight of secret searches has been minimized, once again all they have to do is claim terrorism and the judge has to consent the search.

5th Amendment/6th Amendment
-Americans can now be jailed w/o a formal charge, or a speedy trial. Pretty much, all they have to do is claim you are a terrorist and you can't even appeal it.
-Going with the 5th amendment, you aren't allowed access to legal advice, because they claim it would interfere with interrogation
-the goverment is now allowed to monitor chats between lawyers and inmates in jails

8th Amendment
-Cruel and Unusual punishment no longer applies

14th Amendment
-The goverment has a registration program in place, for all muslims.

So no...America isn't Communist Russia...but its well on its way to crushing the liberties that made this country great.

I'm going to butcher the quote, but Franklin said it best "People willing to trade their freedom for temporary security deserve neither and will lose both." And this country is well on its way to fulfilling that quote.

Jul 15, 2010

The Law: The word "voluntary," as used in Flora and in IRS publications, refers to our system of allowing taxpayers to determine the correct amount of tax and complete the appropriate returns, rather than have the government determine tax for them. The requirement to file an income tax return is not voluntary and is clearly set forth in Internal Revenue Code

Jul 15, 2010

The IRS is so corrupt it's unbelievable, I stopped reading after the first lie.

"Taxpayers who fail to file income tax returns and pay taxes pose a serious threat to tax administration and the American economy."

Hahahahahaha, Jesus fucking Christ. Income taxes go straight to the private banks that make of the FED. They do not serve a purpose, they are strictly profit (as mentioned in the video). Don't you think it's quite weird that you pay income taxes and they don't say where the taxes go? You would think since you're paying all this money they would at least tell you how your money is benefiting the "American economy."

Also there is a reason why the 16th amendment went through right when the FED was created, look into it.

You don't have to pay income tax, why the fuck do we need income taxes, someone please tell me, I would really like to know. Our government worked just fine from its inception to 1913, why the change? Income taxes do not benefit us like property tax, gas tax etc. If everyone just stopped paying the damn thing the IRS couldn't do shit, it's like the music industry, they tried to scare us by suing a couple people but they failed and everyone keeps on downloading music. They use fear tactics to make us pay something that we don't have to.

Jul 15, 2010

you people are fucking retarded

ps. did you know that 9/11 was actually carried out by the government

Jul 15, 2010

I'd like the actual text of the law so that I can analyze it myself. I don't trust the IRS anymore. Never have, never do, and never will.

"We are lawyers! We sue people! Occasionally, we get aggressive and garnish wages, but WE DO NOT ABDUCT!" -Boston Legal-

Jul 15, 2010

don't you people think that if there was no text on it and if it was actually optional some very smart lawyers/law professors and or wealthy individuals would discovered this by now. clearly you all know more than bill gates, buffet, etc. who all pay taxes. and you know that whole thing where people go to jail for tax evasion clearly a law allowed the judge to sentence them to jail.

Jul 15, 2010

Clearly juries acquitted all 24 people who were "charged" for income tax related "offenses." Because there WAS no "offense" to begin with, and the prosecutors CLEARLY weren't able to meet their burden of proof. Innocent until proven guilty.

Yeah, and I'd like an ITEMIZED statement of every single penny that is sent to the IRS each year, month, day, hour and minute. Itemized as in I want a DETAILED DESCRIPTION OF EVERY SINGLE TRANSACTION THAT THE GOVERNMENT HAS ENGAGED IN since 1913. I want this audit done by a third party accounting firm with no government contracts whatsoever. I don't trust government internal audit. And no hiding anything.It'll be like, a billion pages, but I think I want to see the why the hell they need to collect such huge amounts of money.

"We are lawyers! We sue people! Occasionally, we get aggressive and garnish wages, but WE DO NOT ABDUCT!" -Boston Legal-

Jul 15, 2010

Al Capone, enough said

Jul 15, 2010

I think it's funny how all these ivy league kids here don't know shit about the constitution, an income tax goes against the constitution because it's a DIRECT TAX and not apportionment as the constitution demands.

Jul 15, 2010

Actually I lived in Moscow as a child because my dad had a stint there with coke. So I learned a lot about the changes from communist rule.

Jul 15, 2010

There were no retail shops selling cars. That is the main reason for the lack of cars. You could get a special entry to a queue of around a few thousands of people before you. And then you had to wait a few years, or maybe more than 10 years to get your turn to spend your money on buying a car for yourself.

Also, it was illegal to own an apartment. It was "lent" to you by the government.

Sylvester - what I meant by "they can take the apartment away" is:
if the government owns your apartment but "has it in your name" - it's not really yours! There was no ownership in communist Russia .

Jul 15, 2010

The main thing I want to point your attention at was a fact that in USSR there was no right for private property for individuals. This might seem unbelievable but it

Jul 15, 2010

A good friend works for the IRS. I asked him about the "law"... his answer? "well it's insane to ask about a law because the Supreme Court clearly ruled on it"

Then he pointed me in the direction of the recent victim of tax evasion, i.e. Wesley Snipes.

Just like in the movie... no straight answer. Je je je.

Personally, I will err on the side of continuing to pay my taxes. First, an orange jumper simply doesn't suit me! Second, bigger people than me with much better advisors are paying their taxes, e.g. Bill Gages, Warren Buffett et al.

Jul 15, 2010

Ja ja ja... I clearly meant to say "Bill Gates". Typo.

Jul 15, 2010

nyc like I said before whats happening is the gov't is chipping away at our rights. It may not be communist Russia just yet, but at this rate, its only a matter of time...sure they might not enforce these new laws...but they've laid the foundation...so in the future they CAN enforce them w/o worrying about the rest, because the law is on the books.

If you don't see a problem with giving up rights that were guaranteed to you by constitution, then there is no use arguing with you.

As far as cars, yes there was a waiting list, same with everything. Doesn't mean people rode around in sleighs.

And your "can't own anything more htan a toothbrush" is bullshit, the only things you couldnt own was property/business...and thats why communism fell.

Disclaimer: The post above has been made by someone who is not currently employed in IBD, and has not had an interview yet...

Jul 15, 2010

Why are you guys talking about Russia? Besides their easy women which you can purchase online, there isn't really anything to talk about, oh well I guess you can talk about all the Neo-Nazis there... aspiringmonkey, what's up with all the skinheads in Russia?

Jul 15, 2010

YOU ARE GOING TO CLAIM THAT YOUR SOVEREIGNE AND PROTEST THE UCC CODE. THEN, YOU WILL APPEAR IN COURT LIKE A STICKED TOOTH HILL BILLY AND SCREAM " I AM SOVERIEGNE YOU HAVE NO JURISDICTION OVER ME"!!!!!!! STATING YOUR RIGHTS THAT LABOR IS NOT TAXABLE, BLA, BLA, BLA. WHILE THE JUDGE WITH ALL OF HIS POWERS WILL GIGGLE AND SEND YOU TO FEDERAL PRISON.

HMMM.. SOUNDS LIKE A WAIST OF TIME, RIGHT?

HOWEVER, IF YOU WANT A PHD IN MONEY LAUNDERING OR ANY ORGANIZED CRIME THEN YOU SHOULD GO TO CLUB FED.

Jul 15, 2010

guess its something to set them apart from the populus.

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Jul 15, 2010

The complete and utter IGNORANCE of some people about other countries just completely befuddles me. I just "love" the idea of people having a detailed discussion on the topic they have barely any knowledge about?
Budlight... of over 1000 yrs of Slavic/Russian culture, the only two things you can name are Russian sluts and NeoNazi skinheads? You are a fucking moron my friend, especially taking into the consideration the comments that you made regarding taxes. If you think that by not paying your taxes you will change the World's, or at least the American, outlook on the "optional burden" placed upon all of us by the government, you will soon be wearing the orange jump suit. And your trial for tax evasion will not even get you a line in a local newspaper. If you still haven't realized it, there's three ways around tax: imprisonment, living in fear of imminent possibility of imprisonment, and death. Even if the law says it's optional, it isn't. Get over it. Yes I think that 40% tax is outrageous, but it doesn't stop me from paying it. The Congress can have the word optional amended or completely removed from that clause, again without much outcry since that won't change anything. Also, there's clear statutory law by the IRS stating the definition of the word Optional.
People all over the world pay taxes, get used to it, and get over it. The only difference is in the amount of taxes paid. Hell, in Russia, that has been so much dicussed above, the income tax is 13% flat.
It's just funny to me that all of a sudden you realized that you have been paying taxes all of your life and all of a sudden now you get this crazy conspiracy theory...
I think that you are one of those idiots that sit in the back of the Economics classes that ask: "Why do we need taxes? Can't the government just print out more money for it to use?"

Jul 15, 2010

slypko, you're a complete fucking idiot, go back to your shit-hole country you call Russia, get the fuck out of my country. We're not like most other countries and don't need 90% of are wages taxed you fucking idiot, what was the whole war of independence fought over? Go fuck yourself and die.

Jul 15, 2010

And nyc9882, the shit that you posted about the communist period seems to be straight from some textbook. If you don't have any direct knowledge about it, don't speculate. It was a hard time, but we managed. My parents bought our OWN car. We had our OWN flat. We had our OWN dacha (country house). Yes a lot of the things were conditional upon the government blessing and or approval, but people still seemed to do OK. People adapted, and that created this whole dark underground economy, which we shall not discuss now.
Obviously, many of you guys don't even know where Russia is and of course have not been to Russia lately, especially Moscow... It is one of the most cosmopolitan, energetic and yet beautiful cities in the world. Get over your stupid Cold War predicaments, especially in this age of globalization...

Jul 15, 2010

good for your family but i would imagine that you were at the upper crust of society

Jul 15, 2010

Dan Bush, I am an American citizen, so I have just as much right to live in this country as you. Probably even more so, because you just got lucky that you were born here.

Americans take a lot of things for granted, and when people see that they are throwing away rights that people in other countries dream off, its just retarded.

Disclaimer: The post above has been made by someone who is not currently employed in IBD, and has not had an interview yet...

Jul 15, 2010

You Wrote: Dan Bush, I am an American citizen, so I have just as much right to live in this country as you. Probably even more so, because you just got lucky that you were born here.

I Say: Are you fucking kidding me you little ass whipe fuck face red. I ought to shit on your face and smudge it with the ole anchor on red. Where the fuck do you get off assuming anything about me status as an American? You don't know me. You don't know me son. You're a fucking porn perv who is upset because he can't jack it to teenagers anymore.

Jul 15, 2010

apiringmonkey that I must have a very different life than you. Of all the people I know, I have never seen lose their freedoms like you describe. I don't know anyone who has had "cruel and unusual punishment" or has had the government wire tap their home. I have numerous friends active in political organizations and they have never mentioned any infringement by the government. Have you yourself had any of these problems? I honestly just don't think I'm that important that the government wants to say that I'm a terroists for the purpose of listening to my phone conversations or looking at my medical records. And for those that really might be terrorists, I have no problem with them doing that. I refuse to believe we are part of a tolitiarian government as I have seen absolutely no sign of it in my daily life.

Jul 15, 2010
nyc9982:

apiringmonkey that I must have a very different life than you. Of all the people I know, I have never seen lose their freedoms like you describe. I don't know anyone who has had "cruel and unusual punishment" or has had the government wire tap their home. I have numerous friends active in political organizations and they have never mentioned any infringement by the government. Have you yourself had any of these problems? I honestly just don't think I'm that important that the government wants to say that I'm a terroists for the purpose of listening to my phone conversations or looking at my medical records. And for those that really might be terrorists, I have no problem with them doing that. I refuse to believe we are part of a tolitiarian government as I have seen absolutely no sign of it in my daily life.

Jeez woman...its not widespread yet, but the important thing is that its on the books, its the law of the land now, so if they WISH to do that in the future, they are free to do so.

Do you really think that before the law, that if a terrorist knew some information about a nuke they wouldn't do anything in their power if it was a matter of life and death? Do you really think that they'd let NYC get nuked? Or would they "bypass" the law to interrogate Ahmed to get the information? But that was an extreme situation. With the law on the books, they can now use it against anyone they wish.

I mean honestly think about it...we are giving up these freedoms in order to "help" the war on terror. Do you really think we'll ever see a victory? Sure we can bomb the shit out of Iraq...whats next Iran? and on and on and on. But terrorism will remain, its a war you CAN'T win. Just like the War on Drugs, been going on for 30 years, and still no results.
So essentially we've given up these rights indefinetly.

And sure it might only affect Ahmed this time around, but it won't be long before it'll affect you.

This is Vietnam war all over again, the gov't lied to the American people by saying Iraq had weapons of mass destruction...which is similiar to the Gulf of Tonkin lie, and then when it was found out to be wrong, they don't pull out, but instead commit more and more resources.

I mean honestly can you tell me, why U.S. troops are dying in the middle of a civil war in another country, when there is absolutely NOTHING to be gained from it?

And dan learn to use quotes.

Jul 15, 2010

apiringmonkey that I must have a very different life than you. Of all the people I know, I have never seen lose their freedoms like you describe. I don't know anyone who has had "cruel and unusual punishment" or has had the government wire tap their home. I have numerous friends active in political organizations and they have never mentioned any infringement by the government. Have you yourself had any of these problems? I honestly just don't think I'm that important that the government wants to say that I'm a terroists for the purpose of listening to my phone conversations or looking at my medical records. And for those that really might be terrorists, I have no problem with them doing that. I refuse to believe we are part of a tolitiarian government as I have seen absolutely no sign of it in my daily life.

Jul 15, 2010

I don't swing that way

Disclaimer: The post above has been made by someone who is not currently employed in IBD, and has not had an interview yet...

Jul 15, 2010
nyc9982:

I refuse to believe we are part of a tolitiarian government as I have seen absolutely no sign of it in my daily life.

I have lived a free life in America as well. The secrets of our government don't exist to enslave Americans like you and me. They exist to protect our country. We couldn't begin to understand what goes on to protect America from outsiders that want to cause us harm. For example, it was recently declassified that the government and at&t, during the cold war worked together. Why? not to control the phone lines in a conspiracy, but to put optic fiber on the ocean floor so the government knew the location of every soviet sub! Today, there are new secret ways to protect our institutions and life that we will never know about for probably another 30-50 years. I don't think the government is out to get us. They want the people that are trying to cause harm to the nation.

Jul 15, 2010

As an estimate, I use a 35% effective rate for the base salary (including NYC tax, state tax, and federal tax). The 35% would be applied to the number after whatever you contribute to your 401k. 45% for bonus.

So assuming 85k base, and contributing 17.5k to your 401k, you'd be left with about 44k. From the numbers I've heard from first year analysts at my firm, average bonuses are probably around the 40-50k range. You can expect about 70k after tax based on my assumptions.

Jul 15, 2010

Check out http://www.paycheckcity.com/calculator/salary/ It'll help give you an idea about what you'd be looking at depending on your locale.

I just ran the numbers though for NYC and @Mongoose5's assumption is pretty on the money to what the website spits out.

Jul 15, 2010

Chad ought to move to the Gulf.

Jul 15, 2010

You're earning a 100% annual return on your stock investment portfolio? You're a child

Jul 15, 2010

What the hell did I just read? Are you essentially just saying he invested long enough to be taxed at the capital gain rate?

"Bro," but what if the next recession comes right as his investment(s) hit one year and his returns are down >50%?

Jul 15, 2010

Purely a hypothetical case study with Chad's strategy in a bull market but let's say Chad is a quant and took into consideration the market conditions and did his valuation properly prior to entering the positions. Also he will attempt to exit positions for a minor loss in which he would claim as short term and withdraw the funds to cover his taxes owed at the end of the year should markets turn. Respectively he could be trading for short term gains instead taking on a higher capital gains tax but will still reduce his income taxes as long as he's net positive after tax. Biggest thing is he's utilizing his current available income rather than paying it directly to the IRS. He could be gaining interest on it in a conservative approach are gains in a more aggressively managed approach. Either way, he's putting his funds to use instead letting Uncle Sam doe. Chads a killer whale that eats sharks for fun.

Jul 15, 2010

I still don't follow 100% because your grammar is horrid. No offense.

Jul 15, 2010

I was responding on a short break at work. See the above response.

Jul 15, 2010

Might not be plausible/feasible given that the inflow of funds available for investing is staggered semi monthly across the taxable year but that's what this post is discussing.

Consensus?

Jul 15, 2010

Very hard to follow your train of thought since this was written in an incredibly long-winded and douchey fashion, however you are basically asking if it is viable to reduce your pay as you go tax obligations, invest the proceeds, and pay back the tax at year end, keeping any excess investment income?

I'm not familiar with the US tax system, but on face value, would be viable. From a risk management perspective though, best to avoid. I would keep the funds in cash (or equivalents).

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