Rhythm and Ray: A DJ’s Journey

[Chapter 91: Fortune Favors the Bold]

The next morning, Alexandra Daddario woke up on the couch, stirred by the raucous sounds coming from the TV. She blinked and saw Ryan sitting next to her, eyes glued to something on the screen that resembled the overwhelming sound of live drumming.

"What's so important about this event?" Daddario asked, still half-asleep. Normally, if he had nothing scheduled, Ryan would sleep until noon.

As a countdown concluded, the stage revealed a massive LED screen that rolled out like a book. Ryan couldn't help but look on in awe.

In his recent visits to various clubs, even the top-tier ones didn't feature a display like this. It was completely different from anything he'd seen, like what he remembered from the Tremor music video. He mused that the current LED technology hadn't made its way there yet. Given that the opening ceremony was a global spectacle, using advanced tech seemed par for the course.

Just imagine if this tech could be applied to music festivals or nightclubs; it would really amp up the experience.

...

Fast forward nearly a month later, Ryan found himself once again glued to the TV, tuned in to the closing ceremony at the same early hour. As the finale approached during the London segment, he felt a rush of excitement upon seeing a familiar face -- Leona Lewis.

She shared the stage with the legendary guitarist from Led Zeppelin, performing Whole Lotta Love to signify London hosting the 2012 Olympics. This was the mysterious performance Simon had mentioned, and the reason he had been seeking songs that embodied "the spirit of sports." Riding the waves of the closing ceremony, Leona would certainly gain a lot of attention, and naturally, the project he'd collaborated on with her, Unstoppable, would receive more spotlight as well.

...

Not long after the Olympic buzz settled, breaking news from the financial world sent shockwaves through America.

"After the Federal Reserve declined to provide funding, the fourth-largest investment bank in the nation, Lehman Brothers, announced that it has filed for Chapter 11 bankruptcy protection, with debts exceeding $613 billion, marking the largest bankruptcy in U.S. history!"

Ryan, holding his phone, couldn't help but smile at the news report. On the other end of the line was his investment manager, sharing the good news.

The bankruptcy of Lehman Brothers left financial markets reeling; almost all investment prices plummeted. Those involved in mortgage-backed securities (MBS) were in freefall, while the cost of credit default swaps (CDS) skyrocketed.

After ending the call, Ryan took a deep breath; his heart raced. The feeling of overnight wealth was surreal.

He hadn't expected returns on his investments to come in so quickly or at such a high rate. Per his manager, his returns had skyrocketed to over seventy times his initial investment. Had he entered the market even earlier, the gains would have been even more staggering. He hadn't invested all his savings, keeping some for emergencies, but he calculated that his total returns were nearing $80 million.

"What's up with you, Ryan?" Daddario asked, stepping closer and noticing the complex expression on his face.

"Nothing," he shook his head, striving to calm himself.

He still had a hefty capital gains tax to deal with. His investment manager had explained that short-term gains could be taxed up to 37%, plus an additional 3.8% on net investment income.

Ryan thought of Trey, the one person he could always count on. As for Taylor, despite their close relationship, he didn't completely trust her parents. Besides, Taylor wouldn't be much help with this issue.

...

"Holy crab! No way... Oh my god!!!" Trey was stunned for a solid ten seconds after hearing about Ryan's enormous profits, then she couldn't stop exclaiming, her hands shaking as she clutched her cup.

"Yeah, I'd say this reaction is pretty normal for most people facing an unexpected influx of money," Ryan replied wryly.

"The taxes... The IRS is brutal," Trey lamented.

"Do you know any accountants who can help?" Ryan probed.

"The company accountant won't be much use. I'll find someone," she assured him.

...

After some digging, they got in touch with a personal accountant who had previously worked for one of the Big Four and now specialized in tax strategies for wealthy clients.

"If you're investing through a personal account, there's only so much tax sheltering you can do. However, there are some strategies to mitigate your tax burden. Do you have other investments? You could look into tax loss harvesting or donating to charity, or even setting up a trust or LLC... I wouldn't recommend transferring funds abroad since the IRS is vigilant regarding high income and offshore accounts."

"What's a trust?" Ryan asked, having only heard the term on TV but lacking understanding.

"Simply put, it's when you hand over money to someone else for investment. You would receive fixed returns after a certain period. There are restrictions -- if you want to make other investments, it might include extra 'fees.'"

Implying that using a shell entity is possible, but it may come with its own costs.

"And if I were to set up a company instead of a trust?" Ryan inquired.

"That would change the tax rates you'd face."

"What if I convert my investment into something else, like real estate? Wouldn't that reduce the extra 'fees'?"

"That is true, but real estate prices right now... well, you know, the economy isn't thriving, and there's widespread pessimism in the market, leading to significantly lower investment returns."

As for other investment avenues like futures or forex, Ryan decided to tread carefully.

"Unless I were to acquire a company," he suggested.

That statement was practically pointless; if Ryan knew which companies would fare well in the future, he would have acted already.

But he did know one thing with certainty. He remembered the strong sense of déjà vu when he first met Taylor, and what he had said to someone's brother -

She would definitely become a star!

...

In a pristine office, Scott glanced at the news while nervously tapping his fingers on the desk.

He was filled with regret for not listening to that kid's advice to invest in some CDS. Could that kid really be a genius? Scott recalled how certain Ryan had sounded back then.

Beyond just luck, Scott had to admit that Ryan had an astonishing boldness about him; he certainly didn't behave like a teenager barely in his twenties.

"Get me Ryan Rivers on the line," Scott directed, preparing to share the good news. Some of the CDS Ryan held had been purchased through Scott's connections.

"Uncle Scott, I was just about to call you," Ryan replied cheerfully over the line.

"You saw the news? Congratulations! You're officially a millionaire now," Scott said.

"I have a brand new plan. If possible, I want to acquire Big Machine Records and Taylor's recording contract..." Ryan casually laid out his ambition.

The owner of Big Machine likely wouldn't be interested in selling, but Ryan felt it was worth trying.

*****

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