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trying to create another start-up.
Few who think they are Einsteins stick around, but not many. Too young and naive, thinking they can do it again.
Sure you can get more than 2% and more risk but they DO have enough not to work rest of their lives.
These folks already did their 20-30 year stunt at SV Tech companies by 1999. I know a couple myself. Today, they live in a different world and mindset than many here. Everthing changes when you have that much and your not bound by location.
California tech billionaire finds Nevada move 'taxing'
Monday, July 17, 2006
By George Anders, The Wall Street Journal
INCLINE VILLAGE, Nev. -- California software entrepreneur David Duffield arrived in this Lake Tahoe resort a decade ago with big plans. He spent $50 million on a lakeshore estate and started a Nevada property-development business. What's more, by taking a big chunk of his wealth to Nevada, Mr. Duffield expected to save millions on taxes.
Then California accused him of shuffling assets to evade taxes, sticking him with a $19 million tax bill -- one of the state's largest ever. The 65-year-old billionaire founder of PeopleSoft Inc. denies the charge and vows further appeals.
Scores of wealthy Californians "go Nevadan" each year, relocating to a neighboring state famous for its low taxes. Among the transplants are Pierre Omidyar, founder of eBay Inc., and Andreas Bechtolsheim, a co-founder of Sun Microsystems Corp. But as Mr. Duffield's experience shows, what looks appealing on paper can prove far messier in real life.
Nevada transplants account for more than 20 percent of all tax disputes made public earlier this year by California tax authorities. Complex cases can take a decade or longer to sort out.
Brady Anderson, a native Californian who played center field for the Baltimore Orioles in the early 1990s, was dunned with a $322,410 California tax bill after claiming Nevada residency in 1993 and '94. The tax authorities "looked at where Brady was, every single day, and they subpoenaed credit-card receipts," recalled his accountant, Joseph Geier.
Read more: http://www.post-gazette.com/pg/06198/706480-28.stm#ixzz1QtJXM8cq
Sure you can get more than 2% and more risk but they DO have enough not to work rest of their lives.
These folks already did their 20-30 year stunt at SV Tech companies by 1999. I know a couple myself. Today, they live in a different world and mindset than many here.
Are you talking about bona fide retirees? If so, that's different. A retiree may move just to save on cost of living, which may include taxes, although I feel like taxes are the least of your problems in Silicon Valley. That's why you're saying Eureka and SLO too -- much cheaper to live there.
There are all kinds of things you can do with $10-20M that still are low risk and can preserve sufficient capital and hedge against inflation. Again, a financial adviser can help out here. People who have that much money have different financial options than mere mortals like you and I. I'm not even talking about hedge funds. There are simple things like Treasurys, Munis, and AAA corporate bonds that earn more than 1-2%.
Look, I definitely agree that the influence of dotcom-types who won the IPO lottery is lower than people perceive it to be, but suggesting that these people can be encompassed by any one description is similarly difficult to sustain.
He spent $50 million on a lakeshore estate and started a Nevada property-development business. What’s more, by taking a big chunk of his wealth to Nevada, Mr. Duffield expected to save millions on taxes.
Have you followed up on this guy since 2006? How'd his property investment business go? I have seen other people like him who were executives in huge tech companies who are getting their properties foreclosed and are filing for bankruptcy too. Lots of them thought they'd invest in property during the real estate boom!
Also, keep reading:
Now Mr. Duffield works in Walnut Creek, Calif. -- within 10 miles of PeopleSoft's old offices -- seeking customers for Workday Inc., a business-software firm with about 60 employees. He is negotiating to build a new home in Alamo, Calif., near his new offices. Incline Village now is just a summer vacation home. "The winters were too cold for us anyway," Mr. Duffield said.
HE MOVED BACK! If you read the tenure of the article, it also sounds like he was playing residency tricks -- e.g. staying in California while pretending his residence was in Nevada. It's not clear he ever really moved to Nevada.
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Almost. Classic bay area bubble. Someone made a killing, someone got killed. Or did they just 'walk away'.
Apr 12, 2011 Price Changed $499,000 -- gone pending
Mar 23, 2011 Listed (Active) $529,000 -- Inactive MLSListings #1
Nov 24, 2004 Sold (Public Records) $770,000 19.2%/yr Public Records
Jun 13, 1996 Sold (Public Records) $175,000 11.3%/yr Public Records
Apr 28, 1995 Sold (Public Records) $155,000 -- Public Records
http://www.redfin.com/CA/San-Jose/825-N-2nd-St-95112/home/1304865