Took out a loan to transition to full-time trading. 24 years old.

Discussion in 'Professional Trading' started by wabu27, Mar 14, 2016.

  1. qxr1011


    we did not need to... if we did we would become old prematurely :)
    #561     Mar 2, 2018
  2. lylec305


    The interest tax deductible ?
    #562     Jul 13, 2018
  3. wrbtrader


    I think only if its a business loan for a business entity that the trader is trading thru depending upon the country.

    Thus, I don't think its tax deductible if its a "personal loan" for a trader.

    #563     Jul 13, 2018
  4. newwurldmn


    And business loans are only deductible to 30percent of your income.
    #564     Jul 13, 2018
  5. bln


    Depends on the country you are living in. In many European countries one are able to deduct one third of interest against salary.

    If you get a $40,000 unsecured personal loan for 5% you pay a effective rate of 3.33% annually. You need full time employment of course to get a low borrowing rate from retail bank.

    The interest amount is deducted from you income tax. The government/state will pay part of your interest. They subsidize your borrowing.
    Last edited: Jul 13, 2018
    #565     Jul 13, 2018
  6. wrbtrader


    ...depending upon the country you live in (country location of the business loan).

    Last edited: Jul 13, 2018
    #566     Jul 13, 2018
  7. newwurldmn


    yes. I was assuming he was in the USA.
    #567     Jul 13, 2018
  8. wrbtrader


    I live in Qu├ębec, Canada but I'm a citizen of France and the U.S.

    Own business in France and Canada...both with business loans. I'm not too familiar with business loans & taxes in the U.S. even though I grew up there. Yet, I do have a tax account familiar with taxes in all three countries that charges me a mint every year :(

    Yet, he has guided me successfully thru two audits :cool:

    Tip: Be careful about what you disclose online...the info can be used against you. :wtf:

    Last edited: Jul 13, 2018
    #568     Jul 13, 2018
  9. Humpy


    I guess wabu27 the OP blew up some time ago ?
    Hope he didn't borrow off the mafia !!
    #569     Jul 13, 2018
  10. If OP is 24 yo, then you have roughly 60 years of opportunity, until 84.

    Suppose you have 10K of cash , then

    1) with annual 5% compounded, 10*1.05^60 = 186.7919K is expected.
    2) with annual 10% compounded, 10*1.1^60 = 3044.816K is expected.

    If you have saving of 100K, then

    1) with annual 5% compounded, 100*1.05^60 = 1867.919K is expected.
    2) with annual 10% compounded, 100*1.1^60 = 30448.16K is expected.
    #570     Jul 13, 2018