IBKR portfolio

[JackAlabama]

id be also pretty concerned about usa overall state and the loss of the reserve currency status.
Looking at this erratic behavior, Id say capital controls are also in the cards.
I hence am making plans to reduce holdings at ibkr to a minimum.

 

[JohnnyDoe]

I invest via a llc

 

[Mercury]

I see. Should then be a multi-member LLC since "U.S. source assets held through a single member limited liability company that is treated as a disregarded entity for U.S. tax purposes (i.e., NOT taxable as a corporation), are also subject to U.S. estate tax." (Charles Schwab).

 

[JackAlabama]

well the common fix for this is having a hold co owning the llc like bvi or smth.
But that wont help much with the incoming capital controls.

 

[JustAnotherNomad]

What's the alternative? Any good non-US brokers?

 

[JohnnyDoe]

This is not the appropriate place to speculate about my setup and discuss about LLC taxes. The thread is about investments.

 

[Matade]

Why do you guys love dividends so much? You are forced to pay tax on them and account for them in reports every time you receive them.
Dividends are not magic money out of the sky. When you don't get a dividend, you get that money accumulated in share appreciation which is more beneficial long term. There is a reason Berkshire doesn't pay a dividend. It's not tax efficient.

 

[JohnnyDoe]

It’s a way of investing. One of the benefits is that you don’t have to time the market and you have regular cash flow to be allocated for other purposes (for example buying btc).
What’s the problem with that?
I always pay dividends out of the companies I control, and I like when the companies I own do the same (instead of wasting all their cash on salaries, expenses and t&e).
In theory yes, which doesn’t make any practical difference.
If you time the market correctly, perhaps. But you are not comparing apples to apples.
This might work for some, not for everyone.

 

[Mercury]

Making profits selling your assets constantly keeping your capital growing implies substantially more time, efforts and some would say "luck" than just passively harvesting scheduled dividends/interests.

 

[Matade]

But how is selling a portion of stock any different?
You can also borrow against the stock you hold for daily expenses (what most HNW individuals do).
As I said, dividends are NOT magic. What you get in dividend gets excluded from stock appreciation and you are forced to essentially SELL that portion and pay tax right there and then.

Problem is with dividends you are FORCED to pay tax each time you get dividend. But as you hold stock, you are not forced to pay tax. If you decide to sell stock 20 years down the line, you can find a stock efficient mechanism to do so and pay less tax.
It does when it comes to accounting and taxing.
Ok, fair.

 

[Matade]

As I said, you can borrow AGAINST assets. All billionaires do this and high NW millionaires.

 

[Mercury]

Sure, the little prerequisite is to have at least 8 figures that you can lock for -possibly- years.
Unless what they borrow is a tiny % of their assets, not sure these people sleep well during a long-lasting bear market impacting their collateral.

 

[Bomber747]

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[JohnnyDoe]

If the llc is a disregarded entity you are taxed based on your personal residence

 

[Liam13]

Companies paying dividends are typically more disciplined, for instance they rarely decide to create a metaverse department because they are flooded with cash.. it can also be in the form of cash buybacks..