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  • #975037
    Muzz
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    Hi all,

    I am aware that I will need to speak with an accountant on these matters however I’m just after a heads up before proceeding.

    I have just started trading the US futures market with some very good results. My sons have also shown some intrest in this and have asked to join me. I would like to provide for all of my family but I am unsure what type of business structure to set up. Family Trust, Company, Sole Trader etc..

    It makes me sick to think that I will have to pay the government 47% of my profits.

    What would be my best approach?
    How would I go about paying family members?

    #1072035
    AveSol
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    Hi Muzz,

    You’re right – you will need to speak to either a lawyer or an accountant concerning an appropriate business structure.

    Whilst there are several important issues your adviser will take into account in determining a suitable structure, a key issue which you have noted in your posting is your desire to be able to provide for all the family. You have also mentioned tax rates.

    Perhaps the most effective structure for income distribution is a discretionary trust. This structure enables a trustee to determine trust income and to distribute that income to whichever beneficiary it wishes (in accordance with the trust deed). In exercising discretion to distribute income the trustee might, for instance, have regard to which of the beneficiaries can take the income in the most tax effective manner. Potential beneficiaries might be described as anyone within or associated with the family group, or even more broadly.

    Income distribution can also be achieved through other structures, notably a private company structure, but perhaps with less efficiency.

    Your adviser will inform you of the pros and cons associated with a trust, and those associated with other structures which might be suitable in your particular circumstances. If you need further advice or assistance, please don’t hesitate to get in touch with me.

    Many happy trades!

    Richard

    #1072036
    Shaukat Adam Khalid
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    47% kicks in when ur net profits are 180k and above. if you are new to futures trading then beware that the best traders i know have taken 7 years to BEGIN to make consistent income.

    I started in december 2005 and then move onto trading the e-mini s&p 500 in june. my biggest “curse” was i made lots of money and became arrogant not realising that in trading, you are up against cut throat veterans who dont know you and dont really care.

    what do you trade by the way and what kind of timeframe (day, months, week, scalping)?

    #1072037
    Muzz
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    I trade the Gold/Crude spread.

    Intra day between 09:30 and 11:30 US EST.

    I have been sim trading this for two month now making between $600 – $1000 per week consistantly on 1 contract.

    My intention is to increase the contract size by 1 for every $4000 target.

    This being the case I would see my trading capital grow quite rapidly.

    This has been in the making for about 12 months now. I have a business plan and a Trading Plan with very strict trading rules. In some cases I may only take two trades for the week and in others five.

    In saying this my eduction with Futures Trading spans over 10 years and some $80,000 in “education” losses.

    #1072038
    Shaukat Adam Khalid
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    local broker or international? i use global futures.

    muzz, you seem to have the “secret” formula to a successful career in trading. When u mention “education” losses, it’s obvious u are grounded and dont have ur head in the clouds.

    have u considered offering an info product on what you do? it might generate some extra income on the side. it might also attract trading partners.

    #1072039
    Muzz
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    I use Infinity Brokers. I also use their trading platform AT in conjuction with Trade Navigator.

    What I have found with any type of trading plan is you must stick to it. Too many people get wrapped up in the hype of making big money fast. They will sit and work on their trading plan, back test it, then go live. The minute they take a loss they think something is wrong with the plan and they go and change it. Thats where the big losses come in.

    What I do is no secret. Anyone with the desire to learn and spend a bit of money can do it. My “savier” in the trading world is Rockwell Trading.

    http://www.rockwelltrading.com

    check it out, it’s well worth it.

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