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Smokey-Seven
17th March 2010, 05:47
The answer to, "How Much Do I Need?"

This question pops up frequently enough and gets as many different answers that it is confusing. I thought some on the question and came up with a simple idea and as I did the math, it got really scary.

The formula:

Add up all the taxes you pay each year. That covers fed income tax, state income tax, local taxes, like auto excise tax, gasoline fuel tax, property tax and don't forget the insidious sales tax and total it all up.

The number is scary enough until you realize you pay the government that number each and every year! So if you pay the government that much, why not pay yourself that much? Match the number and buy silver and gold to that amount. Use a simple ratio and buy 50 to 1 silver to gold and buy that number every year.

It appears that I have to go to the store, having just finished my taxes.

ArchitectJS
17th March 2010, 08:09
According to an article I read- After you factor all the taxes you pay across the course of the year, including sales tax, property tax, income taxes, car registrations, licensing fees, etc. etc. etc. 60% of your wages go to the tax man.

If this is true, it is impossible to "pay yourself" according to this ratio. Just add what you can...

nmreich
17th March 2010, 08:10
That is a good idea. Very good.