# $5,000 to $5,250 in 1 year



## It's Snake Pliskin (14 September 2006)

At 5 percent in one year you can achieve this from a bank account.


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## wayneL (14 September 2006)

Less tax


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## It's Snake Pliskin (14 September 2006)

wayneL said:
			
		

> Less tax



Wayne thanks for that accurate assessment. Yes the tax


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## WaySolid (14 September 2006)

bank fees?


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## dubiousinfo (14 September 2006)

Snake Pliskin said:
			
		

> At 5 percent in one year you can achieve this from a bank account.




So if my net worth today is $5000
Net worth in 1 yr $5,250 
Less Tax at say 30% Net worth $5,175
Inflation of 2.5% means my $5,175 is only worth $5,045

I figure I should be able to retire in around the year 2450      

So if I get myself frozen & brought back to life in 2450, I'll have it made.   :


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## NettAssets (14 September 2006)

dubiousinfo said:
			
		

> So if I get myself frozen & brought back to life in 2450, I'll have it made




Of course there is the little matter of a cold storage fee 
Liquid nitrogen stocks?


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## Bloveld (14 September 2006)

dubiousinfo said:
			
		

> So if my net worth today is $5000
> Net worth in 1 yr $5,250
> Less Tax at say 30% Net worth $5,175
> Inflation of 2.5% means my $5,175 is only worth $5,045
> ...




Get Real!
You wont be paying tax when you are frozen.
Because you wont be making an income.
Unless you work for the government, in that case you will probably get to keep your job.


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## Milk Man (14 September 2006)

Bloveld said:
			
		

> Get Real!
> You wont be paying tax when you are frozen.
> Because you wont be making an income.
> Unless you work for the government, in that case you will probably get to keep your job.




Yeah I think council workers still have to pay tax. You dont get much more frozen than that!


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## Realist (14 September 2006)

Okay, so take out the bank fees, then pay tax on what is left.

Then index that against inflation. Which is actually 4% now!

Hmmm, down 2% I'm guessing.



Maybe consider buying some shares.....


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## dubiousinfo (14 September 2006)

NettAssets said:
			
		

> Of course there is the little matter of a cold storage fee
> Liquid nitrogen stocks?




Damn!   Looks like I will have to stay in business & keep trading in shares.


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## It's Snake Pliskin (15 September 2006)

dubiousinfo said:
			
		

> So if my net worth today is $5000
> Net worth in 1 yr $5,250
> Less Tax at say 30% Net worth $5,175
> Inflation of 2.5% means my $5,175 is only worth $5,045
> ...




Yes, start planning for that retirement.

It proves saving money is not the way to go.


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## clowboy (15 September 2006)

"It proves saving money is not the way to go"

That is a bit of a silly statement.

Saving is the first thing you should get right before you worry about returns.
It may be the slowest way to wealth but it is also the safest way.

I often like this statement that I have heard.

If an egyptian put a single $1 into a bank deposit it would now be worth so much that all the currency in the world could not pay out the account.

Of course this does not account for tax etc etc but it does show that over time compounding outwieghs inflation.

Just becuase inflation reduces the worth of your money it does not reduce it's actual value and therefore compounding still occurs on the full value of funds (minus tax).

Besides, saving involves adding funds to the account.

Im not advocating leaving your funds in a bank account earning interestand doing nothing else with them but it is a good starting point.


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## Julia (15 September 2006)

Sorry to be asking foolish questions, but why "an egyptian"?

Julia


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## Milk Man (15 September 2006)

Move to iceland; their interest rate is 14% pa.


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## justjohn (15 September 2006)

Julia said:
			
		

> Sorry to be asking foolish questions, but why "an egyptian"?
> 
> Julia



WHY NOT :


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## NettAssets (15 September 2006)

Julia said:
			
		

> Sorry to be asking foolish questions, but why Egyptian




I think they are refering to a period rather than a person Julia. 

I would think they are refering to the  New Kingdom period 1550-1100 BCE when Nefertiti and Tutankhamun where saving for their retirement. Though I think those two had more than a dollar to invest


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## son of baglimit (16 September 2006)

Bloveld said:
			
		

> Unless you work for the government, in that case you will probably get to keep your job.




being a public servant myself, i 'should' be offended by that comment, but of course considering its totally true, i cant argue.

"lets hope that theres intelligent life somewhere out in space cos theres bugger all down here on earth"


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## Private Investor (16 September 2006)

WaySolid said:
			
		

> bank fees?




Obviously with today's relative low interest rates you're not going to build wealth rapidly solely by saving cash.

But having said that, developing discipline to save at least a small portion of your income for that hypothetical "rainy day" or whatever else is a good idea imo.

One way of cost effective saving is:

1) Open an internet only savings account - ie... ING Direct currently pays 5.85%pa calculated daily and paid monthly and with *no bank/account fees at all.  *.  There is also no mimimum balance to maintain. 

2) Link the above account to say a Commsec CDIA account which allows you *15 free electronic transactions per month*.  Therefore, if you don't need to do any over the counter transactions (which incur fees) then the CDIA account also has *no bank/account fees*.


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## quocchuong (9 October 2006)

yeah, saving money would be the safest way to somebody, but think again, why you have to work so hard whilst your money is taking a rest.


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## rub92me (9 October 2006)

Milk Man said:
			
		

> Move to iceland; their interest rate is 14% pa.



Colder there too, so less nitrogen required for the freezing and required for a shorter period; win-win.


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## nioka (9 October 2006)

First rule in saving is to control spending. Just add up the money you needn't have spent over the last few years. Often works as good as investing for getting ahead. Interest will at least balance inflation. Any extra you can make by investing it is a bonus.


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## RichKid (9 October 2006)

nioka said:
			
		

> First rule in saving is to control spending. ..........




Excellent point, important to read Richest Man in Babylon by Classon imo, most libraries should have a copy.


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