| From: | Robert Watkins <robert.watkins@******.COM> |
|---|---|
| Subject: | Money management (was Re: All that Karma) |
| Date: | Fri, 6 Feb 1998 08:35:31 +1000 |
>Gurth wrote:
>>
>> A million nuyen buys you about the same as a million US dollars today (if
>> you disregard some of the strange/high prices SRII charges for some
items,
>> like mobile phones). I say this because FASA has stated in the Denver
>> GM sourcebook that a nuyen equals about one 1994 US dollar.
>
>Still wouldn't last too long, unless the character had some kind of
>investment skill
What do fixed term investments offer in your neck of the woods? Here, a
$1,000,000 fixed term, for five years (maximum yield), would return about
6-7%, depending on where you go (the higher interest rates will have fees
which will about balance it out, though). You can either have the interest
pumped back into the investment (this is called _compound_ interest, for
those of you with "no investment skill"), or split off to a separate account
(simple interest, natch). If you want the compound interest (which is the
best bet), you can split that 1 million into 20 lots of $50,000, and have
the payout periods staggered.
6% simple interest on a million will return about $60,000. If it's compound
interest, the payout can be bigger, depending on how often it's calculated.
(Calculated monthly, over a year, it would be, um... about $62,000. Daily,
it's a little bit more).
Did I need investment skill for this? Yeah right... I got it out of reading
my bank's term deposit pamphlet.
Last year (yeah, it's a bit atypical, but so is the stock market of 2050), a
skilled stock market player with a million+ to play with could have reaped
at least 25% gains. I know this 'cause my superannuation account managed it.
And that was with a fairly conservative approach. The real speculators could
pull off much bigger coups (for much bigger risks, of course).
This is why a million nuyen will buy you a permanent high lifestyle (10,000
x 100 for the person who questioned my maths before). You buy the capital
intensive stuff (house, etc) up front, and leave enough over so that you can
live off the interest. Any cash management fund will give you enough to live
off on one million (as it says in Corporate Shadowfiles, it won't make you
rich(er), though).
If you have a character with a million+ nuyen, and they are running solely
for the money, then you need to examine your character concept again. If you
have a character with a million+ nuyen, and they are running for some other
reason, then that's okay.
Oh, Panther, make sure your GM is giving you this interest. For Panther's
GM, this is how you avoid it... most "anonymous" style accounts (eg, Swiss
banks) don't actually pay interest. In fact, they'll charge for the
privilege of putting your money in their vaults. If Panther wants that cash,
it'll need to be registered with a SIN (false, presumably), get taxed
(unless it's in a tax haven... try the Carribeans), and be subject to IRS
audits (again, unless it's in a tax haven).
--
.sig deleted to conserve electrons. robert.watkins@******.com
