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1

The way most installment loans work is that they have a fixed interest rate and a fixed monthly payment. As you pay down the loan, the amount of each payment that goes to interest declines. For example, say you borrow $1000 at 12% interest. I say 12% because that works out neatly to 1% per month. The payments are $100 per month. So the first month, the ...


4

A loan with a fixed interest and principal amount is not a realistic scenario for an amortized loan. A more standard loan structure is one where the interest is calculated on the remaining principal balance each month, and as the principal is paid down, the amount of interest in each payment is reduced until the payment is almost all principal. That type of ...


0

Or if I put 100k back into the company to balance the books, I could then take out then 100k as dividends and pay the normal dividends tax on it? Yes, THAT is correct. You got it. If you decided to "pay yourself first", that is inviting the end of the universe. Sure, say you got paid (random example) 400k - of course both the company and you ...


2

The purpose of a director's loan account is to allow you a straightforward way to either subsidise a cash-poor company with personal capital (thus becoming a creditor to the company), or to take money out of the company (e.g. to cover personal living expenses whilst you operate the company, and thus become a debtor to the company). The purpose of the latter ...


1

If you plan not to pay the money back then it's not tax avoidance but criminal tax evasion. Also, if you go bankrupt, then anyone who is owed money by your company can go after you, because you owe the company £100k which needs to be repaid. If you pay the money back, then it's perfectly legal, and you can pay yourself the same money as a dividend, after ...


1

You have two separate issues and you are conflating them. You have a $15k personal loan and you are considering a TSLA covered call. One has nothing to do with the other. The real questions are: (1) Whether doing a covered call on TSLA is a good idea (2) Whether you have sufficient assets to support the margin loan. The answer to (1) is that you'll know ...


4

The amount of interest is not "contracted". It's how much interest you'll pay if you make the exact monthly payment on time. It's calculated monthly assuming that your payments reduce the amount of principal owed, and subsequently how much of your payment goes to interest. Only the amount of principal is contracted - meaning once you've paid off ...


3

A conversion to ROTH is a bet that your current marginal tax rate is less than what your future marginal tax rate will be at retirement. The $25K you pay in tax now is essentially a $25k opportunity cost from your 401(k). You're paying $25k to get $100k tax-free. Let's say that the future growth of either account is 8%. After 10 years, that $125k would have ...


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