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Thread: Realistic rate of return

  1. #21
    In the US deduction on any capital gains is 50%?? At some point I plan on incorporating and starting a small foundation if everything goes through

  2. #22
    Quote Originally Posted by jeft View Post
    I would agree in many situations. However, I would not if you utilize a special needs trust. This structure helps from a benefits standpoint. You can greatly reduce the rate at which you burn through assets. The trade-off is that you introduce a couple of additional complexities.

    You have to have a trustee. This can be your CPA. Regardless, you cannot simply set up an account to manage the funds.

    Tax planning is very important. In the US, capital gains after very few deductions is around 50%. The exception is municipal bonds in your home state. I have no idea how this may or may not apply in other countries.
    I have my own TSFAAccount with BMO investorline damn liberals dropped the annual increase to 5,500$ when it was supposed to go up to 10,000 bastards .anyways I use that for equities like LMT, TRP , STEM etc oh but it can turn into rocket science you start getting in the fundamentals, technicals and sentimental analysis pros and cons in between mutual funds and ETFs etc. Does ETFs ETFs are basically clumps of stocks some people live by but I want actively managed mutual funds for my large sum of money. And maybe at one point after five-10 year lock-in I'll get my license take over myself.


    I think things are a bit different in America, but is it better to pay a broker commission yourself or is it better to use smaller brokerage that is given commission by the large firms who actually control the funds, after they invest their clients money in them.

    At some point I'd like to get in the real estate as well. I think the biggest thing I has to watch for as a young man with large sum of money, but one thing about my paralysis is it takes away a lot of options money doesn't go nearly as far. That's why I have the large bulk of the money locked in anyways...if you can stay within the budget maybe even stay under it and compound interest rather than spend it, eventually the stock market always goes up as long as your not in high risk penny stocks. Although I've missed a fantastic opportunity rent in vivo therapeutics back in 2013

  3. #23
    I agree that if you need to set up a special needs trust or anything complicated, it's best to seek out professional financial assistance. James, I've invested in both actively managed funds and passive index funds. I much prefer index funds. They don't try to beat the market, they just match it. While actively managed funds try to outperform the market, the bottom line is that they rarely accomplish that. IMO, the best thing to do is absolutely minimize your fees and avoid trying to time the market. On 2 million bucks, a typical wealth management team will charge you 1% of assets. So you're talking at least $20,000 per year. And then whatever fund fees/transaction costs on top of that. With a low cost company like vanguard, your fund fees will be around 0.1%. Maybe lower. So about $2000 annually. Just my 2 cents. But I'm not in a situation where I need a trust or anything.

  4. #24
    Quote Originally Posted by JamesMcM View Post
    In the US deduction on any capital gains is 50%?? At some point I plan on incorporating and starting a small foundation if everything goes through
    I've gotten too detailed bud, sorry. No, this tax rate is specific to certain trust related stuff. My whole point is to simply start with an elder care attorney.
    Jason

    C5/6 Complete - water skiing accident 1994.

  5. #25
    Quote Originally Posted by tarantella View Post
    I agree that if you need to set up a special needs trust or anything complicated, it's best to seek out professional financial assistance. James, I've invested in both actively managed funds and passive index funds. I much prefer index funds. They don't try to beat the market, they just match it. While actively managed funds try to outperform the market, the bottom line is that they rarely accomplish that. IMO, the best thing to do is absolutely minimize your fees and avoid trying to time the market. On 2 million bucks, a typical wealth management team will charge you 1% of assets. So you're talking at least $20,000 per year. And then whatever fund fees/transaction costs on top of that. With a low cost company like vanguard, your fund fees will be around 0.1%. Maybe lower. So about $2000 annually. Just my 2 cents. But I'm not in a situation where I need a trust or anything.
    I think it's definitely worth my time to go talk to vanguard, it's just ETFs arnt actively managed correct? But in your opinion that is a pro. On another note how do you guys feel with what's going on in China, increasing interest rates and obviously the drop of oil prices that's been going on a while?? Could this be as bad as 2008 or worse?

  6. #26
    I believe ETFs can be either actively managed or passive. They are very similar to mutual funds, except they can be traded at any time during the day when the market is open, just like a stock. You can't buy and sell mutual funds throughout the day. They are priced at the close of the day. So ETFs give you more flexibility if you want to be actively buying and selling them at certain points during they day. I'm not that type of investor. I invest for the long term and don't worry much about daily fluctuation.

    There are a lot of bad headlines right now that are obviously negatively affecting the market. Personally, I think the market could go way down. Not as bad as 2008, but not good. But people have been saying that exact thing for years now. And if they weren't investing in stocks, they missed out big time. The thing is...nobody really knows what the market's gonna do. But we do know that over the long term, stocks are simply the best investment out there. So that's why I put money there and try and leave it alone.

    The drop in oil prices is funny to me. It seems to be killing the market. But my family is loving it...I literally have a couple hundred more dollars to spend every month (we spend a lot on gas). So it's great for main street, but not for wall street. At least right now, I don't think that correlation is always the same.

  7. #27
    Senior Member canuck's Avatar
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    James you're probably better off asking for advice in the Canada section instead of here as 99% of the advice you're getting is from Americans & the laws/rules/regulations are different between the two countires.

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