1M cash right now In exchange for… A permanent 75k nerf on TC when TC >300k Note in the latter case, the effect would be up to 40k loss in income post-tax when considering marginal taxes. So it would take 25 years for you to get 1M this way. In the former case, you could get 5-10% returns compounding from the new capital. Meaning +50/100k per year.
Is the $1M taxable as regular income in the year it’s received?
Nah 1M free and clear
I'm over 40 so yes absolutely
1M will get you 75k/yr earlier than 25 yrs if invested.
No, I would not accept a $1M interest only personal loan with a 7.5% interest rate, a perpetual term, and no option to pay back the principal.
I’ve seen the movie, I know where this goes
If 1m is tax free. Assuming 40k a year post tax deductions, for someone at 30 years old, assuming 30 more years of work to go. That’s 1.2m paid back over 30 years. So basically you are taking a 30 years 1m loan and only need to return 1.2m after 30 years. That’s a pretty good deal, even better than taking a mortgage.
I only read the first line saying $1M. For the rest, sorry that it has happened to you or that’s great, keep it up!
Hahahahah