A Millionaire's "Dilemma"

[RoadLessTraveled]

I have a net worth of greater than $5M most of which is very illiquid and would be taxed at 25% to sell it, so I am hesitant to ever sell it.

Why would it be taxed at 25%?

Long-term capitals gains is 15%.

If you were taxed at ordinary income, you'd pay the top marginal tax rate + medicare.

How is 5 million only giving off a 2% return?

If you sold for 5 million and paid this 25% tax, you'd have 3.75 million.

At even 6% return on 3.75 million, you'd get $225,000 a year (which would be taxed at capital gain's rate) without every touching your principal.

So by paying this tax, you almost double your money without every touching your principal.

What am I missing?

Capital gains tax is federally 15%. But what about state?

5M is giving off 2% because of automatic reinvestments.

But, you are still right that I should do some liquidation and i like how you made the point. My return may still run a bit high--15%. That was one of the reasons I was hesitant to sell.

 

[RoadLessTraveled]

He is getting taxed above 15% because his income is "interest" not dividends.

He should immediately liquidate all illiquid assets, sounds like the guy is some sort of weird inheritance because of you have $4M liquid you should feel amazing. Get your shit invested into recurring pmts, ie bonds dividends, lending club, rent out your home. Remember run shit lean, dont have multiple "places" all that means is liabilities. Go see a doctor.

Your post also makes no sense you like blondes but want to move to Lat Am? :-/. I'd just go to Russia/eastern Europe man. Going to LAT AM for blondes is straight retardation.

Anyway dude, with $5M I would travel around find a place I want to spend the rest of my life shack up do some job I enjoy (personal trainer, teacher, whatevs) then slay and play all day!

Thanks for the advice. I am on vacation right now scoping out northern and eastern Europe. I totally agree with you about the lack of blonds in Latin America. I want to bring them down.

 

[RoadLessTraveled]

Sort yourself out physically and mentally before plunging in...

With such huge funds you could afford the top-of-the-line stuff to get you healthy and happy again. Then see where you're at.

Stuff like

Physical:

Hormone testing
Spectracell bloodwork
Adrenal fatigue testing
1-on-1 diet + exercise coaching from one of the Paleo health guys
Full early cancer screening/tests, heartscan for calcium deposits (may as well make sure you're not heading for trouble, if there are any problems you wanna know now and you have the luxury of being able to find out)

Beyond that, you say you're in constant pain. From what? There are some pretty innovative treatments nowadays for even the most debilitating diseases. Depending on what you have, I'd seriously consider researching the fuck out of the cutting-edge treatments / approaches and see how much you can fix yourself, you have the resources. Things like Parkinsons can be largely halted in their tracks or reversed (really). Fibromyalgia can be eradicated. Busted joints and arthritis can be fixed. If I was in constant pain but with $5m, I'd make this my priority.

And then...

Mental:

Hoffman Process - deep emotional detox
See a Neurofeedback expert - hack your brain to optimise it and sort out any underlying depression, anxiety, ADD, trauma etc.


THEN see where you're at. Everyone has a need for community, connection, purpose. I think you're getting wires crossed with your plan to make a business out of building that from scratch just so you can feel happy... sort out your health and well-being, and then personal life, then see where you're at.

It has been my priority. And for whatever reason working on my farm has been the best. I need less medication. I have seen so many doctors... Naturopaths, alt med, nutritionist, well qualified MDs. I am bit overwhelmed by the info, the pain and the lack of energy. I was diagnosed with rheumatoid arthritis and chronic fatigue/fibromyalgia. Maybe we can talk about it in private message.

 

[RoadLessTraveled]

I would be pretty impressed if this is legit.

By the way, the "lack of existential angst" you feel when working on the farm is probably just getting more sun. Go to the doctor and ask for T-level tests, Vitamin D tests.
Then start working out a bit (pushups, chinups, etc) and supplementing 2000 - 10,000 IUs of vitamin D daily. 5,000 IUs/day is a solid number to average on.
See where you're at in two months. Feeling old when you're 40 is probably a function of testosterone.

Thanks. I have not been takin the vitamin d. My levels are lowish.

 

[RoadLessTraveled]

There's a couple issues with your plan. At least in the United States, people who are swingers are old and unattractive. Very rare to find young hot chicks since every guy will want to bang them.

Secondly, why are you limiting yourself to Scandinavian chicks? If you want to establish some type of "volunteer" system to get young hot chicks, your best bet is to try and get young hot Eastern European girls to work at your resort during the summers.

Thirdly, most beachgoing Europeans tend to go more frequently to Thailand than to Latin America. I think your best bet is to target the same chicks who hit the beach resorts in Thailand and hit the full moon parties.

On the other hand, using young Eastern European girls as employees (similar to how they go to Ocean City,MD every summer, is a way to have a ton of guaranteed young hot ass around your resort.

I know Ukrainians can come over using the Shengen visa and go thru the Spanish consulate but I bet it would be hard (probably a few thousand dollars) for them to get visas if they are not already in the EU. But it's worth looking at more. I want a blonde for a wife/girlfriend, but I still like eastern euros for shorter term.

I agree with what you said about euros (i always see big groups of swedes) usually being in Thailand. I lived there. A friend told me today that Americans can own thai corporations, but it's most likely impossible to own land in Thailand. But perhaps Turkey and Indonesia (ie. Bali or Lombak) is another consideration. Never been to either country.

Thanks for the info... Young hot swingers girls tend to be bisexual. And they are a bit hard to find. But they exist. I am not that picky though. Generally a swinger party has a few hotties anyways. But this is a potential problem here.

Europeans and even some Latinas from the home country might be a bit looser the typical americans i run into. It would be hard to advertise and avoid the ugly and old but I have a lot of time to think about it.

 

[RoadLessTraveled]

I was hoping to hear some more non health related stuff, solutions and how money could be used to create the kind of rewarding life for yourself. I love designing and building things and gardening. I put over a 1,000 plants in the ground (about 500 edible trees/bushes) The farm is good size. I am trying to do some stuff for poverty in the area.

 

[Hades]

I was hoping to hear some more non health related stuff, solutions and how money could be used to create the kind of rewarding life for yourself. I love designing and building things and gardening. I put over a 1,000 plants in the ground (about 500 edible trees/bushes) The farm is good size. I am trying to do some stuff for poverty in the area.

Generally speaking, to help out poverty in the area you have to offer assistance that is not condescending while avoiding nuking the local economy.

So buying an empty lot or two and building an open-door community garden would be pretty solid. You would employ two or three high school kids to help garden, have them learn skills like marketing by selling the produce, and fight obesity by offering healthier food alternatives. It's a tax write-off from heaven/the reader's digest. I actually think that would be really fun.

Either that or grow turf and start a local sports team. I suggest rugby.

Both of these options fight the negative effects of poverty because poor people are only dangerous to each other when they're strangers, so to speak. It builds community.

Come to think of it, seriously get a subscription to Reader's Digest.

 

[Big Nilla]

Fuck you.

Try not having any fucking money, then see how difficult life is.

You ok? No need to get jealous and take this guy's wealth as a personal insult to yourself and make light of his health issue.

I know you're not speaking to me, but I'm making a lot of money NOW, but I've been broke plenty of times. What's to say this guy doesn't know how life is without money? What's to say broke people will always be poor?

A serious/chronic health problem is easily worse than having no money... especially for anyone who lives in a socialist paradise in the western world.

 

[Big Nilla]

I am trying to do some stuff for poverty in the area.

Perhaps consider creating a free English class type of deal for the locals. Benefits them as they can better target the tourists you bring in and benefits tourists because they're probably more comfortable speaking English to locals instead of Spanish.

Create some greenhouses for locals to grow their own local foods (for your resort too). Set up a small place to grow chickens/rabbits/etc so they can get their meats (and you too). If there are local businesses, setup some sort of chamber of commerce type thing and be the leader and help them grow their businesses with tourists to your hotel and with locals.

 

[MikeCF]

I would not trade $5 million to have rheumatoid arthritis. Sorry to hear, man. I know that condition well.

Have you been to the dead sea?

 

[WestCoast]

If i were in this cat's shoes i would simply get liquid. If the guy has a real health issue that's pretty much game over. Problem with getting "rich" is you usually have to work your balls off to get there and that comes with severe risks to your health.

Health everything including cash
Lots of cash trumps a legit crew
A legit crew of guys trumps women
Women trump 99% of dudes you meet

 

[RichieP]

RE: Fibromyalgia/chronic fatigue/ rheumatoid arthritis, it absolutely can be treated.

First thing is get on a Paleo diet to reduce excess inflammation. It should help (but wont nail the cause). I'll PM you more.

 

[MikeCF]

Honestly, bro, if I had your money, my only priority would be getting better.

I have an autoimmune condition that has a lot of similarities to RA.

It fucked me up and almost took me out of the game (of life).

Because my condition is similar to RA, I know a lot about it.

You should get in touch with Dr. Terry Wahls:

http://www.youtube.com/watch?v=KLjgBLwH3Wc

 

[RoadLessTraveled]

I was hoping to hear some more non health related stuff, solutions and how money could be used to create the kind of rewarding life for yourself. I love designing and building things and gardening. I put over a 1,000 plants in the ground (about 500 edible trees/bushes) The farm is good size. I am trying to do some stuff for poverty in the area.

Generally speaking, to help out poverty in the area you have to offer assistance that is not condescending while avoiding nuking the local economy.

So buying an empty lot or two and building an open-door community garden would be pretty solid. You would employ two or three high school kids to help garden, have them learn skills like marketing by selling the produce, and fight obesity by offering healthier food alternatives. It's a tax write-off from heaven/the reader's digest. I actually think that would be really fun.

Either that or grow turf and start a local sports team. I suggest rugby.

Both of these options fight the negative effects of poverty because poor people are only dangerous to each other when they're strangers, so to speak. It builds community.

Come to think of it, seriously get a subscription to Reader's Digest.

I was thinking of building houses together. I could get some badly needed experience in the process and show I give a shit about them. I am heading back to school to study carpentry and construction so that i can be outside. (some scandinavian person was recommending that I take free construction, carpentry, etc in Sweden. They said that there should be a special program for Americans even if we don't have Erasmus in Europe.). I want to know enough about construction so that I can supervise projects easier.
The other thing was farming. I think my farm is going to have a very high yield... I am going to have to give this stuff away.

 

[RoadLessTraveled]

I would not trade $5 million to have rheumatoid arthritis. Sorry to hear, man. I know that condition well.

Have you been to the dead sea?

The crazy thing is that I have been to some of the best doctors in the world and they cannot put a label on some of my symptoms but can only say to seek safe alternative protocols and it will probably go away or it will manifest itself later as cancer, MS or something else.

RE: Fibromyalgia/chronic fatigue/ rheumatoid arthritis, it absolutely can be treated.

First thing is get on a Paleo diet to reduce excess inflammation. It should help (but wont nail the cause). I'll PM you more.

Honestly, bro, if I had your money, my only priority would be getting better.

I have an autoimmune condition that has a lot of similarities to RA.

It fucked me up and almost took me out of the game (of life).

Because my condition is similar to RA, I know a lot about it.

You should get in touch with Dr. Terry Wahls:

http://www.youtube.com/watch?v=KLjgBLwH3Wc

My Fibromyalgia has been brutal, brutal--I have zero memory, little energy and a ton of pain.

This is all very solid advice. I need to put some Terry Wahls focus into this. That was some good advice I have been looking for from Terry Wahls. http://www.youtube.com/watch?v=7tu9nJmr4Xs&feature=relmfu is pretty good too. I feel like I am going senile at the moment. I had been on a paleo diet for about 8 months after I went to a nutritionist. The nutritionist said that I was the most compliant client he's ever had. It's helped a lot... It's got me out of bed--I was bed ridden. I am very compliant with the protocol unless I am travelling. And the first 4 months of the year, I didn't drink. And after that, it was once every couple weeks for a few drinks. I broke every rule on this trip though. But, I feel like I am losing it and it's hard to remember that I am different than everyone else. There is too much for me to live in SE Asia or Eastern or Northern Europe. There is too much partying.

I want to just get to the farm and start a new life. Slow things down. If I can create a controlled environment with clean air, sunshine, no drama women, warmth and lots of nutrition, I might be able to get off of the medication. But focusing solely on health, visiting doctors and getting blood work is pretty depressing.

If I create a large community and even a watered-down light version of what I mentioned, I might be very happy. A community seems to be a key to happiness. I am not so concerned about making lots of money. I think this about having everything.

 

[RoadLessTraveled]

Or just make it a "detox" themed resort to some degree. That sounds so good.

 

[el mechanico]

If El mechanico had all this money, i doubt any senior member on this forum would be fully broke.

That's the reason I'm not rich but who cares. My fun comes first I think the OP should hire me as a lifestyle consultant.

 

[Bad Hussar]

@RLT

Don't know much about arthritis so won't comment on that other than to wish you well in your search for relief.

As far as what to do in Latin America:
If it is a poor country or area you are moving to I'd guess there are already a lot of Peace Corp, UNDP etc. etc. type programs already targeting small scale agriculture. What about trying something different and setting up some sort of small scale tourism project that connects "poor" locals with foreign tourists in some sort of novel and mutually beneficial way?

I don't know how it is in Latin America, but in Africa a lot of the tourists don't really interact with the average local. In South Africa, where I am now, quite a few locals from "townships" (same as Brazilian favella's) have set up novel for profit tour companies to help tourists get a feel for how people there live. A lot of them are run quite well, and do not come off as "exploitative".

Anyway, maybe something similar will work where you are going. In poor countries a lot of tourists are understandably weary of slums, so they are avoided - and those living there receive very little benefit from tourism. You could find a way to help bridge the divide and get some cash flowing to people you feel you want to assist.

 

[Jalouse]

How are you able to make so much money with your medical symptoms? It seems like it would prevent you from doing any kind of work or running a business.

 

[Veloce]

If I was rich and had chronic pain, I'd just go pro until I could rehabilitate myself. Seriously, if you like SoCal, we've got gorgeous russian pros (we're talking 9s here) that'll fuck an 80 year old in a wheelchair. They hang out in high end hotel bars.

I echo WCs advice, go liquid and take the tax hit. Fuck all this lofty nonsense of owning businesses and assets all over the place. Liquidate everything, property and whatever else ties you down. It's just going to drain you.

I can't speak much about your condition, but that should be your first priority. As for you dreams of clean air, healthy lifestyle, and drama free women....dude. Women ARE drama, I don't care where you go. Sounds like you want to settle down with a nice lady. Well, you need to learn game before you do that.

If I were you, I'd buy a small ranch in SA somewhere, probably argentina or brazil, and focus on serious rehab, and bring in the occasional pro. They're gonna be cheaper than funding some golddigger to stand by your side. There's gotta be high end clinics down there for your condition. Once you start feeling better about life, feeling younger and such, keep the ranch, rent a condo in the city and start gaming and enjoying life.