weakside Posted March 30, 2015 Posted March 30, 2015 Just curious on a Monday morning what other members on BP do after a selling splurge. Do you just buy more sets for investing? Buy yourself or someone new toys/gifts? Pay down debt somewhere? More alcohol, entertainment, drugs lol, Or just pad the bank account for a rainy day or the next good buying opportunity? Combination? Sales have been great for me from Nov-current...been on a hot selling streak with this hobby, guess those sets bought within 2 yrs ago have matured enough for decent profit/demand. Wife is happy the closet is kinda bare now compared to before and I used profits for new TV, tablet, phone, guys Vegas trip...so I have a second wind to start buying more for investing again May the good times roll in 2015 with more profitable sets/opportunities and overall strong reseller market. 1 Quote
BrickLegacy Posted March 30, 2015 Posted March 30, 2015 Buy more to reduce tax liability seems like a good option to me. Quote
biking_tiger Posted March 30, 2015 Posted March 30, 2015 Reinvest. Our debt is all at relatively low interest rates, so reinvesting makes more sense (and $) in the the long run. Quote
exciter1 Posted March 30, 2015 Posted March 30, 2015 Fund my wife's shopping sprees and corn dogs. 3 Quote
Darth_Raichu Posted March 30, 2015 Posted March 30, 2015 What extra cash from flipping ? You were assuming there was much left after fees and taxes Quote
asharerin Posted March 30, 2015 Posted March 30, 2015 We keep re-investing every week. When you are in a strong growth phase the worst thing you can do is remove profits. Every $1 we keep in now will be worth many multiples of that in the medium term. Obviously when you are piggybacking on another company's success there is always the risk that things can go pear shaped quickly so we always monitor TLG policies and production. So far we see every indication they are being proactive to protect the secondary market which is good news for our projections. If they decide to do away with bans, limits and surprise retirements we will scale back our purchases for this product and maybe even take some profits 2 Quote
Guest TabbyBoy Posted March 30, 2015 Posted March 30, 2015 Reinvest before the Tax Man gets his grubby mitts on it. Quote
@rtisan Posted March 30, 2015 Posted March 30, 2015 Reinvest before the Tax Man gets his grubby mitts on it. Tell that to Amazon`s business model, they apparently haven`t turned a profit in X # of years haha. Quote
dubzero Posted March 30, 2015 Posted March 30, 2015 Step 1: Spread cash on the ground in a big pile. Step 2: Roll around in said cash, do the 'worm', swim like Scrooge McDuck Step 3: Reinvest 125-150% of initial capital outlay Step 4: Bribe wife with gifts Step 5: Save the rest 1 Quote
BrickLegacy Posted March 30, 2015 Posted March 30, 2015 Tell that to Amazon`s business model, they apparently haven`t turned a profit in X # of years haha. Reading the Millionaire Next Door and that's one of the #1 secrets of millionaires: minimize tax liability and reinvest in appreciating assets. 3 Quote
@rtisan Posted March 30, 2015 Posted March 30, 2015 Reading the Millionaire Next Door and that's one of the #1 secrets of millionaires: minimize tax liability and reinvest in appreciating assets. Absolutely, it`s a great strategy, I was just referring to the apparently on paper amount, they re-invest as much as possible for maximum growth in the shortest amount of time. Now`s the time to do it, look at the markets. People think you have to turn a profit immediately to run a successful business. Not necessarily true, what good is piles of money in the bank just sitting there, right? Anyway, I`m rambling, same thing for Lego, buy, sell, reinvest asap. Quote
imirish11 Posted March 30, 2015 Posted March 30, 2015 As my finance professor and investment club advisor once said, "Cash earns 0% ROI." 1 Quote
Sandwraith Posted March 30, 2015 Posted March 30, 2015 I re-invest it, and use it to fund personal builds for my collection It's nice being able to fund a hobby, with said hobby! Quote
wsuskee Posted March 30, 2015 Posted March 30, 2015 Wow I wish I had the profit to take a Vegas trip. I could really use one right now but anyway the smart thing would be to reinvest. If you really dont need to put the money back into Lego then by all means spend it on entertainment, alcohol and drugs since it seems like its extra money for you. Or you can do what I do and combine both options just remember once the minifigures start talking to tone it down a bit. 1 Quote
Bold-Arrow Posted March 30, 2015 Posted March 30, 2015 Buy more to reduce tax liability seems like a good option to me. isnt inventory considered profit ? 1 Quote
BrickLegacy Posted March 30, 2015 Posted March 30, 2015 isnt inventory considered profit ? To be perfectly honest, I'm not sure. I'm planning to meet with my CPA after tax season to determine the best way to minimize my tax liability each year. I probably have a lot to learn ;-) Quote
Darth_Raichu Posted March 30, 2015 Posted March 30, 2015 Wow I wish I had the profit to take a Vegas trip. I could really use one right now but anyway the smart thing would be to reinvest. If you really dont need to put the money back into Lego then by all means spend it on entertainment, alcohol and drugs since it seems like its extra money for you. Or you can do what I do and combine both options just remember once the minifigures start talking to tone it down a bit. They never talked to me, but they seemed to moved from my desk to the floor for unknown reason. Buy more to reduce tax liability seems like a good option to me. So becoming a bigger operation or bust ? More inventory = bigger operation, right ? 1 Quote
redcell Posted March 30, 2015 Posted March 30, 2015 Buy more to reduce tax liability seems like a good option to me. Just so you know, that won't work. You can't deduct the cost of an item until you sell the item...otherwise, our tax code would give every business a path to reducing their tax liability to $0 through the acquisition of debt-funded inventory. 5 Quote
matt1147 Posted March 30, 2015 Posted March 30, 2015 It all goes back into more LEGO at this point... Either personal collection or more investment! Quote
BrickLegacy Posted March 30, 2015 Posted March 30, 2015 Just so you know, that won't work. You can't deduct the cost of an item until you sell the item...otherwise, our tax code would give every business a path to reducing their tax liability to $0 through the acquisition of debt-funded inventory. My accountant always shakes his head when I come up with stupid idea that won't work. Thanks for saving me from the embarrassment this time :-) 1 Quote
terrymc4677 Posted March 30, 2015 Posted March 30, 2015 More Tumblers and Slave I's. The lego beast must continue to be fed. Quote
jaylay Posted March 30, 2015 Posted March 30, 2015 pay down my credit card bills or reinvest ... those are the two best options ... savings accounts are worthless and you all know Lego investing beats out stocks in the short term ... haha Quote
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