Related Posts
Why do holidays when you can extend your impact

Additional Posts in Partner One
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
Why do holidays when you can extend your impact

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Download the Fishbowl app to unlock all discussions on Fishbowl.
Copy and paste embed code on your site

Scan your QR code to download
Fishbowl app on your mobile

Take the loan / rate arbitrage.
Rate is higher than MM/CDs - no arbitrage.
Buy in is not as much of an issue relative to the first tax payment
This!
You should get arbitrage from the loan arrangement, ie you earn prime + .75% on the capital and the loan is charged at prime -.75%. At least this how most of the capital loans at the B4 are set up.
As others have said, as a K1 your biggest worry should be your first two years of taxes.
Oh this is an interesting point - are the taxes higher than your K1 income? If you have an annual/semi-annual dividend payment, wouldn’t they land around the same time? probably would need to speak to my HR about this.
Yes’ish. It’s due to a gap between being a W2 employee with withholdings and K1 without. And generally, depending on when you are admitted as compared to the fiscal and tax year could end up with a very low tax burden your first year followed by a significant one.
We tell all our newly admitted partners to bank their distributions and live off their draws the first two years. By the way this is good advice in general
Arb the hell out of it and keep your assets where they are. The borrowing is so cheap it should be a conflict but then again, who owns the firm?