College Savings - buy/sell comics or tax free savings plan?? 0

[Mr.Mcknowitall]

[grebal]

Wow, thought you were just joking. Kudos to you!

 

Does the name Madoff trigger any thought of considering a reset to your trust system?

 

You might have missed aerischan just a few posts further upthread refer to him as "Bernie," eh? ; )

[Mr.Mcknowitall]

[batman_fan]

Again - I want to be very clear here.

 

If the OP sends me $10K in cash, I will guarantee $16K five years from the date I get the money. I'll sign a binding contract and have it triple notarized or something. That's a 9.86% CAGR risk free.

Wow, thought you were just joking. Kudos to you!

 

Does the name Madoff trigger any thought of considering a reset to your trust system?

 

It shouldn't. I'm dead serious here and I'm not sure people are getting it.

 

If the OP gives me $10,000, I will give him back $16,000 five years from the date I get the cash. I guarantee the return.

 

Would you put up collateral?

 

+1, If you have something to insure I get my return beyond saying you guarantee it, I will go in for more than $10k. My current ROI is less than that.

[Iceman399]

@FD I don't questions your ability to make good on the promise but why wouldn't you just get a loan? Instead of having to give up 6k?

[1Cool]

@FD I don't questions your ability to make good on the promise but why wouldn't you just get a loan? Instead of having to give up 6k?

 

Not sure there is a loan available that lets you not make a payment for 5 years and then make a lump sum repayment which would be ideal for his business.

[Iceman399]

@FD I don't questions your ability to make good on the promise but why wouldn't you just get a loan? Instead of having to give up 6k?

 

Not sure there is a loan available that lets you not make a payment for 5 years and then make a lump sum repayment which would be ideal for his business.

 

a 10k loan at 5% would be about $200 a month payment and result in a total loan with interest of about $11,300.

[1Cool]

@FD I don't questions your ability to make good on the promise but why wouldn't you just get a loan? Instead of having to give up 6k?

 

Not sure there is a loan available that lets you not make a payment for 5 years and then make a lump sum repayment which would be ideal for his business.

 

a 10k loan at 5% would be about $200 a month payment and result in a total loan with interest of about $11,300.

 

Good question. He may have a different answer but I'd suspect he want to keep all the money "in play" for the full 5 years. Every $200 payment is money that could be used to buy $1 books that can be sold for $10 (based on his previous comments).

[FlyingDonut]

@FD I don't questions your ability to make good on the promise but why wouldn't you just get a loan? Instead of having to give up 6k?

 

Not sure there is a loan available that lets you not make a payment for 5 years and then make a lump sum repayment which would be ideal for his business.

 

a 10k loan at 5% would be about $200 a month payment and result in a total loan with interest of about $11,300.

 

Good question. He may have a different answer but I'd suspect he want to keep all the money "in play" for the full 5 years. Every $200 payment is money that could be used to buy $1 books that can be sold for $10 (based on his previous comments).

 

Basically.

[Bomber-Bob]

Serious question. I am no lawyer = I really don't know. Can you legally take your child's inheritance and loan it to a complete stranger ?

[1Cool]

Serious question. I am no lawyer = I really don't know. Can you legally take your child's inheritance and loan it to a complete stranger ?

 

I talked to my tax guy today and it would be a pain on a lot of different fronts such as yours so my daughters money is going into a tax savings account. It may not yield the biggest return for her but it will be easier all the way around.

[Iceman399]

@FD I don't questions your ability to make good on the promise but why wouldn't you just get a loan? Instead of having to give up 6k?

 

Not sure there is a loan available that lets you not make a payment for 5 years and then make a lump sum repayment which would be ideal for his business.

 

a 10k loan at 5% would be about $200 a month payment and result in a total loan with interest of about $11,300.

 

Good question. He may have a different answer but I'd suspect he want to keep all the money "in play" for the full 5 years. Every $200 payment is money that could be used to buy $1 books that can be sold for $10 (based on his previous comments).

 

Basically.

 

I'm sure if you try you can find a private lender that would lend you the money with no payments till all due at the end for less than 16k

[Bomber-Bob]

Probably 25 years ago, give or take, I once gave a loan to my LCS owner for 3500 . He wanted to buy a Michael Jordan Rookie Card. We drew up an agreement and he gave me a box of comics as collateral. They were all Valiant, actually more valuable than SA

for a brief moment in time. It was all good as he paid me back really quick.

[SquareChaos]

I'm not doing any of that. None. He gives me 10K, I'll give him 16K in five years. I'll put up collateral (but it will be books) on it.

 

You apparently aren't taking me seriously - and that's fine - but he can do whatever he wants with his money. If he wants a guaranteed 9.86% CAGR, he can send me ten grand.

 

Why not just give him $6k for nothing right now? It's so much quicker

[Mephisto]

Probably 25 years ago, give or take, I once gave a loan to my LCS owner for 3500 . He wanted to buy a Michael Jordan Rookie Card. We drew up an agreement and he gave me a box of comics as collateral. They were all Valiant, actually more valuable than SA

for a brief moment in time. It was all good as he paid me back really quick.

 

 

Good thing he paid you back quick, since those Valliants dropped like a rock real fast!

[the blob]

oh please, using the flying donut technique, dan will have rinsed and repeated that $10K into $70K after 5 years easy peezy. pretty sure he's good for it.

Edited January 22, 2017 by the blob

[MK Ultra]

 

It doesn't, to me. I am sure you will advise him (and his family) to factor in the loss of a 2K deduction per year over the next 4 years if he deposited 2K of the 10K every year, while using another financial investment vehicle for the declining sum....and here I would think you woud advisie him on short term non-taxable paths... and reserving the other 2K for a IRA account starting now, for an extra deduction in year 1 (now), and then factor in a non-reduction of Scholarship FAFSA reduction using the Ohio 529, and then factoring in an additional tax free income via scholarship/grants under the Ohio 529, and the additional savings utilizing in-State CC for the first 2 years realized by the Ohio 529 process, and then the wonderful world of parent contributions as an additional tax deduction, and then weigh all that against the taxes he will pay on your generous return of unearned income to him (unless you are suggesting he not claim same and that is the reason you suggested a cash transaction). Then of course is the legal conundrum of enforcement of such an offer in the unlikely event of a contract breach, which I am ceratin will not occur, and then there is the vehicle to be used for the transfer of 10K as a personal loan, unless you are suggesting you are placing the cash in a Trust in his daughter's name and the grantor/grantee affiliation is clear unless the 10 K is being invested in your legitimate licensed enterprise and you are declaring the source and expenditure and investment trail to the IRS, and then....

 

 

Dear God - you do know it all.

 

I know, right?

[oakman29]

Serious question. I am no lawyer = I really don't know. Can you legally take your child's inheritance and loan it to a complete stranger ?

 

I talked to my tax guy today and it would be a pain on a lot of different fronts such as yours so my daughters money is going into a tax savings account. It may not yield the biggest return for her but it will be easier all the way around.

 

Very wise and responsible choice.

[Mr.Mcknowitall]

Serious question. I am no lawyer = I really don't know. Can you legally take your child's inheritance and loan it to a complete stranger ?

 

I talked to my tax guy today and it would be a pain on a lot of different fronts such as yours so my daughters money is going into a tax savings account. It may not yield the biggest return for her but it will be easier all the way around.

There is no doubt that your daughter will recognize your love and caring and concern for her future by your decision. Maybe not today or tomorrow, but she will.

That is worth far more than 6K.

[fastballspecial]

@FD I don't questions your ability to make good on the promise but why wouldn't you just get a loan? Instead of having to give up 6k?

 

Not sure there is a loan available that lets you not make a payment for 5 years and then make a lump sum repayment which would be ideal for his business.

 

a 10k loan at 5% would be about $200 a month payment and result in a total loan with interest of about $11,300.

 

Good question. He may have a different answer but I'd suspect he want to keep all the money "in play" for the full 5 years. Every $200 payment is money that could be used to buy $1 books that can be sold for $10 (based on his previous comments).

 

Basically.

 

I'm sure if you try you can find a private lender that would lend you the money with no payments till all due at the end for less than 16k

 

I doubt he would go to that length, but I am sure he appreciates your suggestions.