25 January 2019 - securitize your future 2
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tomorrow >
Yesterday’s plan doesn’t mention why investors should buy in. Let’s
work it. When you become an adult, you’re issued 1000 shares in
yourself; you own them. Let’s arbitrarily say that a share represents
your income and pays dividends to its owner; in another choice, it
could represent your wealth and act as a store of value, like a
zero-dividend stock. Whoever owns the share gets that much of your
income—1 share, 1/1000 of your pay. You can keep all your shares
and live a life of quiet desperation, or sell some shares and
remodel the kitchen. When you find a better job, you can sell
shares, take a long vacation with the proceeds, then buy your
shares back after the market has lost faith in you, all before you
start the new job. So much fun! Life would be one long game!
clue:
In this scheme, if you pay your taxes in shares, then your tax
burden grows every year. Encourage the young, discourage the old;
it’s half good. There are all kinds of questionable effects. How
would you retire? By surprise: If the market knows you won’t work,
then your shares have value zero.
give me a clue so sweet and true