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Started By
Message
Dum Idea: income rate swap
Posted on 9/27/19 at 11:49 am
Posted on 9/27/19 at 11:49 am
Setup: fixed rate on income, maybe 1%.
A Side: turns 18 and is going to college
Side B: turns 18 and is entering the workforce immediately
Length: 8 year term
Theoretically, side A should be making income off the then working Side B and Side B would be losing money initially. But as side A enters the workforce, Side A will generally be making more than side B so side b will be making a profit on side A.
Both sides won out.
A Side: turns 18 and is going to college
Side B: turns 18 and is entering the workforce immediately
Length: 8 year term
Theoretically, side A should be making income off the then working Side B and Side B would be losing money initially. But as side A enters the workforce, Side A will generally be making more than side B so side b will be making a profit on side A.
Both sides won out.
4
Posted on 9/27/19 at 11:50 am to athenslife101
You can be a winner at the game of life.
This post was edited on 9/27/19 at 11:52 am
Posted on 9/27/19 at 11:52 am to athenslife101
Theoretically of course.
Posted on 9/27/19 at 11:58 am to athenslife101
This is an awful idea because of all the college graduates who don’t find jobs in their field and it gives them greater incentive to be lazy.
Posted on 9/27/19 at 12:22 pm to TheWalrus
That’s why you need large volumes of people and returns would not be great.
It’s a form of risk hedging though.
It’s a form of risk hedging though.
Posted on 9/27/19 at 12:25 pm to athenslife101
Unless Side A obtains a degree in gender studies
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