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assuming losing 30% off the top for taxes, taking 3% of the principle every year for "salary" is $126k. That seems like more than enough for me, too.

I would think the tax rate would be lower, considering that a sale of shares is treated as capital gains. 15%?


true. but that's only for long term. i have no idea what short term tax is, but i know it's also less than 30%.

i was trying to overestimate taxes (so that the reported annual income, if anything, would be less than actual annual income) and use a nice round number so i didn't have to use a calculator.


Long-term is holding the asset for a year or more. Short-term is treated as ordinary income.


true, but what's the interest rate for short term cap gains?

i know it's (15,30), but i can't rememeber if it's just 18% or something more like 25%. and since i am efficient (read: lazy :), i just overestimated to 30% instead of wikipedia-ing.


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