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Krispy Wafer posted:Hedge funds make a lot in fees. Carried interest is their share of whatever the hedge fund makes. Which can be really good, except since 2008 hedge funds are up about 22% whereas the S&P is up 85%. So it doesn't sound like most hedge fund managers are getting a lot of carried interest money. Sure, S&P returns would be better, but carried interest is also massively leveraged. Management fees are around 3% a year as I understand it, taxed as income, versus taking 20% of profits taxed as capital gains. It really matters how the 22% is spread over the decade though, because they don’t share in losses. (Other than reduced management fees because of a reduced NAV, of course.) The few hedgefolk I ran into when I was in VC emphasized carry when talking about comp, which they would do at the slightest provocation.
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Jan 7, 2019 00:32
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I really like ancient architecture. Do they have a pyramid-themed investment option?
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Jan 7, 2019 00:33
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Weatherman posted:https://folio-sec.com looks like themed stupid idiot actively managed mutual funds
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Jan 7, 2019 00:49
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Weatherman posted:There are ads in front of me on the train for an investment app that lets you "invest", from your smartphone, according to "theme". Idea being that you pick your area of interest and invest in that. Buying what you use is a completely rational investment strategy. Buying your fetishes is the natural evolution of that. Subjunctive posted:Sure, S&P returns would be better, but carried interest is also massively leveraged. Management fees are around 3% a year as I understand it, taxed as income, versus taking 20% of profits taxed as capital gains. It really matters how the 22% is spread over the decade though, because they don’t share in losses. (Other than reduced management fees because of a reduced NAV, of course.) The few hedgefolk I ran into when I was in VC emphasized carry when talking about comp, which they would do at the slightest provocation. The 22% is slightly misleading in that most hedge funds had far worse returns. So some managers are making a lot of money from carried interest whereas others are relying on those fees for income. And also probably laundering money because who keeps their money in a hedge fund that's returning 2% over a decade.
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Jan 7, 2019 00:50
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Hedge funds are bullshit just like every other high-fee fund, you can safely ignore anything a hedge fund person says
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Jan 7, 2019 01:01
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Can I leverage my investment in cosplay by using a super chill loan? https://twitter.com/jesawyer/status/1079443162957897728?s=21
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Jan 7, 2019 01:02
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 What's the problem?
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Jan 7, 2019 01:06
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Krispy Wafer posted:And also probably laundering money because who keeps their money in a hedge fund that's returning 2% over a decade. They might just to have exposure to a different asset class as part of some family office’s strategy. Even pensions and endowments typically have some target percentage of the VC/PE/hedge sort of asset class, for reasons that I am not financially sophisticated enough to quite understand. It was helpful when raising a fund, though!
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Jan 7, 2019 01:38
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quote:What's the problem? Because we have not been good until now, to you who wish to expect from now.
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Jan 7, 2019 01:38
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SpelledBackwards posted:Can I leverage my investment in cosplay by using a super chill loan? Get a super chullo
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Jan 7, 2019 01:43
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Subjunctive posted:Even pensions and endowments typically have some target percentage of the VC/PE/hedge sort of asset class, for reasons that I am not financially sophisticated enough to quite understand. Regulatory capture, probably
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Jan 7, 2019 01:51
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H110Hawk posted:
Oh poo poo, they are on sale!
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Jan 7, 2019 01:59
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 I'm a new grad who invested unwisely last year and last a bunch of money. Help! quote:could really use your help turning this ship around.
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Jan 7, 2019 03:30
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Jan 7, 2019 04:16
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Business, Finance, and Careers > Bad With Money 2019: Portfolio allegedly down about 45%
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Jan 7, 2019 04:23
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90k job with a CS degree in loving Palo Alto? As what, the night manager of the Mathilda Ave Denny's? That's the first of so many red flags. Never get tired of people who genuinely believe making more money can equal a net loss due to taxes simply by not comprehending that the max tax rate is only on the last portion of your new income, instead of now applying to all of it.
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Jan 7, 2019 04:29
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Sometimes I wonder if these people learned about tax brackets by watching The Big Lebowski.
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Jan 7, 2019 04:42
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I read the title and assumed the person lost a fair amount in their 401k last year. But no, they do the crypto. Lol. Also isn't 90k in Palo Alto kind of low? Dude just sold his crypto so it's either a bad troll or he was thinking it was a bad idea to have crypto already. Amazing. Americans are brilliant. History does say America works best with a high top tier tax bracket. The Economics of Soaking the Rich https://nyti.ms/2GUnmWB SiGmA_X fucked around with this message at 05:21 on Jan 7, 2019 |
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Jan 7, 2019 05:15
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I suspect that the tax bracket thing sometimes is used as a socially acceptable way for people to refuse overtime. Like your boss asks you to do some extra hours and you're tired but can't outright say so, so you say that. Obviously noone ever looked at their pay stub and went "oy that higher tax bracket on those last x $ earned really stings".
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Jan 7, 2019 05:47
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During periods of high inflation you can get burned on taxes as your pay increases to offset higher costs, but the tax brackets haven’t been adjusted to compensate. So if you’re 70 you have an excuse since it’s been about 40 years since we had really bad inflation.
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Jan 7, 2019 06:33
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Starting this year my work introduced new medical premiums that scale with your pay. Its a surprisingly progressive way to hide a insurance increase, but its not gradual. At 75k and 150k base salary you pay the next rate. Depending on which plan you chose and if you need a solo/spouse/family plan, up to the first 6k after a step up might be a net loss.
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Jan 7, 2019 06:39
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Same with a preschool subsidy my city recently introduced, very steep cut off between ~65-90k means practically every dollar of wage increase in that range goes back to the city.
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Jan 7, 2019 06:48
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Xenoborg posted:Starting this year my work introduced new medical premiums that scale with your pay. Its a surprisingly progressive way to hide a insurance increase, but its not gradual. At 75k and 150k base salary you pay the next rate. Depending on which plan you chose and if you need a solo/spouse/family plan, up to the first 6k after a step up might be a net loss. My wife works for an insurer and they've been doing that for several years now. The more you make, the more you pay for insurance. It's a nice way to give employees on the lower end of the pay scale a break. I don't think you pay any more as a percent of your income, but obviously it gets progressively more expensive for managers and executives.
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Jan 7, 2019 07:24
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Bibendum posted:Same with a preschool subsidy my city recently introduced, very steep cut off between ~65-90k means practically every dollar of wage increase in that range goes back to the city. Krispy Wafer posted:My wife works for an insurer and they've been doing that for several years now. The more you make, the more you pay for insurance.
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Jan 7, 2019 07:40
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aphid_licker posted:Obviously noone ever looked at their pay stub and went "oy that higher tax bracket on those last x $ earned really stings". Oh, yes, that's something that definitely happens. I've heard a lot of people bitch about it. I was one of them until somebody explained what was going on. It can sting when you work some overtime and don't see as large of a number on your check as you'd expect because withholding is based on the entire gross pay for that pay period. It all works out at the end of the year, you owe what you owe, but it can make it seem like you're putting in extra hours and not seeing a corresponding increase in pay because too much is being withheld from that larger than usual check.
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Jan 7, 2019 08:27
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SiGmA_X posted:Holy poo poo, preschool costs 25k a year? Two kids so yeah about that. Subsidy max was 75% coverage and our kids don’t totally overlap on age so we still save a bit. Vasectomies are definitely GWM. I’m not bitter, the important thing is the low income households are helped out, but i would be curious to talk to the people setting that curve.
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Jan 7, 2019 09:13
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I sold my old car for 1000 bucks to my father in law (66). It is very out of the ordinary for him to buy old, cheap cars. He and his wife have bought or leased a new car about every year and a half, on average, between the two of them. My mother-in-law in very frugal, but her dentist husband wanted her to have nice things. He even bought a 2006 mustang convertible last year as a fun car, but garages it 5 months of the year because he lives in northern Ohio. He is a "fiscal responsibility" Republican, and i found out that he has been dodging paying his taxes for a while now. I wish I had details, but the payment plan is $5,300 a month for the next 4 years. My old car is to help them shed a car payment on one they cannot afford any more. He has not told us any of this. My wife learned it through her mom. I was shocked by just how hosed they were because he was just talking about a vacation they're taking this summer, and doing a renovation on their master bathroom. It turns out that he's not that hosed, because his very GWM 90+ father is going to give him his share of the inheritance early, a quarter of a million dollars or more. I'm just pissed because my FIL has been living a lifestyle he had no chance of affording all while pretending nothing was wrong. Every meal he purchased for us, every gift we've received, has technically been paid for by his dad. I guess his dad is mandating a budget be produced and followed - even making his son drop his season tickets for his Alma Mater, something he has had for literally 45 years. I'm not supposed to know any of this. It's mind boggling how a person can be a dentist for their whole life and still have absolutely nothing to show for it.
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Jan 7, 2019 13:58
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doctors and dentists are notoriously bad with money if he's in practice for himself leasing a car is probably GWM at some point
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Jan 7, 2019 14:18
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He sold his practice a few years ago. I had heard rumblings of the tax issues back then, but assumed that he paid it all off with the sale.
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Jan 7, 2019 14:22
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It's fun how the people who say "fiscal responsibility" are usually the people with the least, and with very little understanding of money in general. gently caress large inheritances as a social norm. Tax the poo poo out of large amounts. All the things lovely people say about handouts making people lazy and stupid are true - for them.
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Jan 7, 2019 14:36
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Nocheez posted:I'm not supposed to know any of this. It's mind boggling how a person can be a dentist for their whole life and still have absolutely nothing to show for it. You say he has “nothing to show for it”, but it sounds like he spent his entire professional life “showing” off the money that he earned. He just showed it off too early, too fast and didn’t save anything.
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Jan 7, 2019 14:48
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And it sounds like he's going to be completely bailed out?
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Jan 7, 2019 15:13
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brugroffil posted:And it sounds like he's going to be completely bailed out? I'm trying to come up with a too big to fail joke here.
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Jan 7, 2019 15:23
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KYOON GRIFFEY JR posted:doctors and dentists are notoriously bad with money It would be difficult to justify the need for a business vehicle that wasn't a taxable fringe benefit as a dentist if the IRS ever came looking. It sounds like the IRS has come looking.
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Jan 7, 2019 15:53
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Bought an expensive house 3 months ago, wants to file for bankruptcy now: $40,000 in debt, bankruptcy seems to be the best option right now quote:Hello, Wow that's a lot of debt, when's your lease up? quote:Car lease ends in about a little less than 2 years. The lease is a nissan rogue since it easily fits two car seats. Any home equity? quote:No, it was purchased 3 months ago.
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Jan 7, 2019 17:59
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Debt comes in. Debt snowballs. You can't explain it.
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Jan 7, 2019 18:03
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I like the "student loan - deferment" line, i.e. "It's not currently eating in to my bills, so it doesn't exist". How long can you defer them? I feel like this guy is going to go from hosed to turbo-hosed in no time.
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Jan 7, 2019 18:06
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Inept posted:Bought an expensive house 3 months ago, wants to file for bankruptcy now: Cowards from Broward get sprayed in debt.
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Jan 7, 2019 18:11
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I always thought Dave Ramsey was too hardline about credit cards but now I think I understand where it comes from.
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Jan 7, 2019 18:30
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AndrewP posted:I always thought Dave Ramsey was too hardline about credit cards but now I think I understand where it comes from. I always took it as essentially treating a financial equivalent to alcoholism. Some people just really need complete abstinence.
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Jan 7, 2019 18:55
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