Proper question here /biz
I've been lurking for a long time and have seriously thought about investing for the long term. I have a my own business and I've been taking 2500 euro's as my salary of which I put 500 back into the business as a loan to the company every month. I've been doing this because I don't need the money and I get 3% interest as opposed to just putting it in a low interest savings account. Should I even bother investing? I know I would have to do some homework to keep myself updated on news of stocks and I don't really have the time to do so (because of the business and my 1 year old).
Also the money I put back into the company is readily available (plenty cashflow) and I've already payed taxes so its free to take in case of emergency.
Should I still look into investing or just keep my 3% carefree interest?
Pic related its what I do
Pretty sure what you're doing isn't legal, or if it is, you're double taxed on this money.
Country of residence is holland btw
Neat job anon!
As for investing. It's all about diversifying. To invest straight in stock is risky Imo unless you know what you are doing.
To get a3% return look for managed funds. Depending on your appetite you can invest at various risk degrees but a min. 3% should be easy to achieve.
>>1293899
Thanks, and yes I agree that more than 3% should be easy, but to what extent. I'm getting 3% doing nothing, is it worth my time to get a few more percent while I could spend that time working?
>>1294647
buy index funds
>>1293843
Lol. Double Taxed.
>Earn money
>Pay Income Tax
>Spend money
>Sales Tax
>Gas Tax
>Acquire items with spent money
>Property Tax
>Sell property to get out of property tax
>Income Tax
>Capital Gains?
>>1294648
this is the answer.
>>1294648
>>1294672
Thought so, had a talk with my accountant, he said in hindsight he would've invested instead of building up a retirement plan. Retirement agency's here invest with your money and at the end of the year its always the same old shit. You get a letter telling you that because of their shitty investments your money has dropped a few percent. Good luck feeding yourself when you're 70 while still working because your "retirement" isn't enough to pay the bills
>>1293833
why aren't you taking a smaller salary and then getting paid a dividend at the end of the year? this would lessen your personal tax bill.
>>1293833
>I get 3% interest
How are you getting the 3% interest? Is that just the interest rate you determined on your loan to the company? Are you the sole owner of the company? I'm just asking if the 3% interest is essentially taking money out of one pocket and putting it in the other.
>>1295327
Self determined interest, 3-4% is acceptable to the IRS. I have 50% shares, the other 50 is owned by my business partner.
>>1295670
Okay, I don't know the tax laws in your country, but I'm guessing you're doing this rather than just giving yourself an equivalent dividend/distribution because the company can deduct the interest expense?
>>1295685
Exactly, we could still do both but we really don't need the income personally, we prefer more cashflow for the company untill we decide to invest when we have too much sitting in the company account
