How the Rich Are Getting Richer(quicksprout.com)
quicksprout.com
How the Rich Are Getting Richer
http://www.quicksprout.com/2013/04/08/how-the-rich-are-getting-richer
3 comments
"If this doesn’t seem like a big deal to you, just imagine pushing $1,000,000 into your life insurance company. And then they take that million and invest it in a hedge fund that is producing 20% returns per year." (Table of 10 years of gains.)
Do hedge funds really return 20%? For 10 years?
Do hedge funds really return 20%? For 10 years?
A few do, RenCap is a good example, though good luck getting your money into them.
Most don't, Most measure themselves against an index and then mark their P/L accordingly, ie if your index is the Nasdaq and you return -10% in 2001 then you did really well, you just didn't get a bonus:)
Most don't, Most measure themselves against an index and then mark their P/L accordingly, ie if your index is the Nasdaq and you return -10% in 2001 then you did really well, you just didn't get a bonus:)
[deleted]
does anyone use any of these strategies? how difficult is it to start an insurance company?
> does anyone use any of these strategies?
Yes, but they don't really work. The article was written by someone who isn't in a position to know this.
> how difficult is it to start an insurance company?
The real question is how difficult it would be to make that strategy produce any tax benefit. And the answer is "very difficult".
Yes, but they don't really work. The article was written by someone who isn't in a position to know this.
> how difficult is it to start an insurance company?
The real question is how difficult it would be to make that strategy produce any tax benefit. And the answer is "very difficult".
"Some people 'claim' to live in a state with no income tax, but they aren’t really living their [sic]."
"What they’ll do is buy a home in Las Vegas, switch out their driver licenses to a Nevada one and claim that they are living their [sic]."
At first I didn't believe it, but this author actually doesn't know about the word "there".
"So if you bought an apartment complex for 1 million bucks, you can right off $25,641 every year from your taxes."
"Right off"? Really?
This kind of prose typically comes from someone who only hears words spoken and never reads the writing of others. I call it "homonymitis".
The article also misses the basic reason why the rich become richer over time -- compound interest, which disproportionately benefits people who already have money:
http://arachnoid.com/wrong/index.html#Economics