The Simple: You buy a bond that comes due in 10 years. It has a coupon of 7%. But instead of paying par value of a grand, you've bought it at $800. So over the course of 10 years, you'll amortize the appreciation of that bond from 800 bucks to a grand at the pace of 20 bucks a year....assuming it's not distressed or in trouble in some other way.
And oh, by the way, you'll pay ordinary income tax each year on that 20 bucks of gain. Sorry. Bonds are a tough way to get wealthy. (Unless you're E.L. James, but that's a different type of bonds.)
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Finance: What is an LLC?4 Views
finance a la shmoop. what is an LLC? LLC no that's not a rapper, that's a limited
liability company or look as professionals in the business pronounce
it. well why do you want one? because limiting your liability is a [man explains]
good thing if you're the one potentially liable for that stooge who slips on a
banana peel in your lobby waiting area and then Sue's you and wins. if you start
building your own company as an individual and not as an LLC and you get
sued for whatever, and you lose well you could lose everything you own.
that is the lawyers will come after your house your car your poodle your signed
Mila Kunis photograph collection, and legally well they'll be entitled to take
all of it. if you have existed under the legal structure of an LLC however, well [legal structures pictured]
the most you can be liable for is the assets of the business itself. yes
they'll take the company computer the remaining 17 months of lease on the
company building, and all your staplers and posted thingies but legally they
won't be able to go after your home your car your poodle or your autograph
collection. Mila is safe whew. so LLC's are a good thing they cost only a few
hundred bucks to set up these days, hi LegalZoom. so before you start up a lava
lamp company of your own think about setting up an LLC first. Mila and your [lava lamps in a row]
poodle gregory will thank you for it.
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