Here's how it goes:
>Invested in X crypto
>Make 1mil from gains
>Put 1mil into 5% dividend stock
>Dividends return 50k annually
>Live off 50k, invest a little, live life
So the question is, how possible is this? Mostly in terms of tax, it looks like in the UK the tax man wants 30%+ of this 50k.
Did I read the .gov website correctly?
Would having the dividends pay into an offshore bank stop the 30%+ loss?
Not interested in tax evasion, just 30%+ seems excessive for a case like this.
Pretty much my exact plan dezu sempai. Except I'm here in burger land so not too familiar with your gay laws and shit
Sounds pretty gay. What are the tax laws like over there in the United States of trump? Will you get anally probed by Mr Johnathon TaxMan too? Or do you have a plan?
Long term Capital gains/dividends are capped at 20%.
You're best bet is to make enough money to pay taxes so tack on another 340K.
In my state we have a 25% capital gains tax. I don't think there's any way for me to legally avoid it even if I moved out of the country I'd have to revoke my citizenship to avoid paying.
Capped at 20% for the UK right?
That seems... Better.
So you suggest buying 340k extra in dividend stocks to average out the dividend return (after tax) to 50k?
That sounds fair
Why are people so blind and only see stocks?
For $1 mil you can buy multiple apartments and rent them.
You can live from the STEADY income.
And if in need, you can sell it for an even higher price (at last where I live).
The point in buying dividend stocks is that it is purely passive.
Buying apartments probably nets more money but there's a lot more responsibility tied to it. Water leaks? Broken windows? It's typically the landlords job to fix these.
Or is there some secret I'm missing?
From a 1mil purchase, what would you personally return in profit annually from apartments?
There's ways around paying the majority of that tax in the UK.
You could be self employed and claim a lot of expenses, like mileage (you can write off 5 to 10k in income right there). Then depending on what you "do" enables you to write other stuff off to, for eg, an IT consultant would let any IT purchases be an expense, bringing your amount taxable even further.
You could lease a car and that would bring it down more. Phone bill, internet bill etc.
So with your £10000 tax free limit
You could write off an additional £15000 and only pay tax on £25000 of your income.
If you have a partner, you could pay them £10,000 of that income - utilising their tax free amount.
Now you're suddenly paying tax on only £15000 income.
This is tax evasion of sorts - but it is completely legitimate and has been for years.
I only earn like £20k a year and I put that in a LTD company and pay myself £500 per month and claim the rest on benefits whilst my company stacks up cash which I can use to pay myself dividends every quart. Or buy shit with lol
That's for the US, sorry I'm tired. Yes buy enough Dividend stocks that you can have 50k after taxes.
Because owning stock in reits means that I don't have to be a landlord and personally deal with tenants, repairs, buying, selling, miscellaneous expenses.
Thanks for the info.
Is it valid to start a Ltd company, have the dividend payments go straight to the company, then pay myself minimum wage and be self employed as the boss of the company who can and will spend the 'profits' as and when desired without giving reason?
Would the dividends still be taxed even though they're the company's 'earnings'
In this scenario I wouldn't bother with a LTD company and just do self employed.
You say 50K as a figure but the reality of that is people earn that in a job and put some of it away in savings - your money is technically already in savings, so you'd probably be more beneficial withdrawing what you need, like 30k and then if you want to splash out, just withdraw a lump at that point.
I'm only guessing here - but if you had a LTD company having your profits going into it, then it would count as profit in the company and the company would be liable to pay tax on it.
And yea, you can put money into your LTD company and it'll probably be called earnings to it'd be taxable.
I'm not sure how it works with the boss spending company money but I know its possible. For example I have a friend who is the Director of his company and has a company credit card which he spends everything on (personal) and the company pays it off each month.
Personal dividends are subject to tax after a certain point - can't remember the cut off but its something like you can pay yourself £10000 tax free and after that til £20k its eligible to 7% tax.
let's say it's 1 mil Euro and you live in Munich, which is a booming city.
On a presale of business apartments (20 sqm) you could have bought them for 160k + taxes = 170k which gives you 600 euro monthly minus 50 euro if you don't want to do the landlord thing, so 550 each month.
For 1 mil, I would get 5 of those apartments which give 5x 550 = 2750 euro which would be around 2000 Euro monthly AFTER taxes.
24k yearly without doing shit is nice.
This is the most lucrative thing I know of when it comes to buying and renting.
24k is under 50k.with 30% taxes is 35k, which is more than what you'd get from apartments. Assuming you could find a good, stable dividend stock at 5%, you'd be much better off not buying and renting apartments because
1) you get more money
2) you don't have to deal with tenants/repairs
>your money is technically already in savings
> you can pay yourself £10000 tax free and after that til £20k its eligible to 7% tax.
I see. So by "already in savings" does that mean with every quarterly payment of dividends, I can elect to only withdraw enough to pay myself 20k/year, and leave the rest in "savings"? Does savings here mean having it left in dividend stocks, or is it kept in a savings account as actual currency?
That maybe so, but I don't have to worry about market crashes.
Housing bubble is not an issue for me as long as I don't sell. People still need a place to live.
Maybe less income, but I prefer a (almost) guaranteed income over more profit but at a higher risk
>trading back into fiat, ever
Enjoy watching all your money evaporate when hyperinflation hits.
Enjoy eating cardboard boxes when the store doesnt accept shitcoins to buy bread.
Fiat is a modern day necessity, get off your high horse and give real help pls
On the income tax side, it's not so bad. Assuming you don't have any other income sources then on exactly £50k you pay:
> (11,500 x 0%) + (33,500 x 20%) + (5,000 x 40%) = £8,700 p.a.
This works out at an effective rate of 17.4%
The real kicker is the capital gains tax. If you take it all out in one tax year so only one annual exemption, then tax will be (1,000,000 - What-you-bought-it-for - £11,300) x 10% = ???
You can feed in £20k p.a. into an ISA and can buy shares and funds with no tax but will take years.
>not just buying bullets
Best currency.
And remember, no national insurance to pay on investment income. NI is just for us wagecucks.
If you can't already see the writing on the wall for "modern day" society, then you really can't be helped.
This guy has the right idea.
> (11,500 x 0%) + (33,500 x 20%) + (5,000 x 40%) = £8,700 p.a.
Why did you divide it up like this?
>The real kicker is the capital gains tax.
Where would capital gains tax come into play? I'm guessing it would take place when i try to withdraw the 1mil from an exchange after selling X crypto?
OP u basically described every normies retirement plan. This is usually how it's done.
For the UK, tally up your allowable gains and allowable losses every time you sell or buy cryptoshit in GBP. Subtract your allowance and losses, then give 20% or whatever rate it is of whats left to the taxman.
The gains are whatever you made between buying your cryptoshit and selling it IN THE EXCHANGE, in GBP.
You're not going to find a stock with a 5% dividend.
You can invest in a diversified portfolio of stocks and bonds, average an 8% return between dividend and appreciation, and withdraw 4% forever without losing principal. So if you want 50k, you need to start with a bit more, closer to 1 and a quarter million
Also, move to burgerland. If you're making 50k on long term gains and qualified dividends, you'll pay 0% in Federal taxes. So that 50k is actually 50k
>You're not going to find a stock with a 5% dividend.
Cobham (COB)
Yield: 5.7%
Industry: Aerospace & Defense
Legal & General Group (LGEN)
Yield: 5.6%
Industry: Insurance – Life
NewRiver REIT (NRR)
Yield: 5.6%
Industry: REIT Retail
IG Group (IGG)
Yield: 5.5%
Industry: Capital Markets
Am I missing something here?
enjoy being shit nocoiner