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I read somewhere that a reasonable measure it to consider the invenstment. If you were to buy your share, you'd have to put $X down to get a return of 45%*profit(not salaries)/year. Calculate backwards to get the interest rate on various down payments, and see what makes sense.

Considering that the 100k is profit and not your salaries, the share's profit is $45.000:

$100.000 = 45% interest rate .. a little too nice!

$1.000.000 = 4.5% interest, keep your money in the bank

$300.000 = 15% interest - pretty sweet spot.

Back-of-the-envelope, I'm niether an accountant or an auditor.



I've been modded a bit around on this, does anyone care to elaborate on whether this is a sensible method?


I want your bank. Where do I sign up for a 4.5+% account?





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