retirement
- Thread starter ruffryder
- Start date
I have put most of my money in Austrialian Mutual funds, and taken the proceeds and purchased used Blue Jeans, and I sell them on the Russian Black Market.
If you're over 50 and you're still messing with 401k, you gambling with your early retirement. At 50, you should be a Saver, anything before 50, 'stock' up.
Hence, are you a 'saver' or an 'investor?'
If you're over 50 and you're still messing with 401k, you gambling with your early retirement. At 50, you should be a Saver, anything before 50, 'stock' up.
Hence, are you a 'saver' or an 'investor?'
D
Dano702
Well-known member
I guess you could say my investing style is not run of the mill. I have put all of my 401 k funds right back into my company instead of taking it out as a pay check.
For years i have paid myself the bare minimum, i could live with. All of my money has gone into heavy equipment, and now that is all paid for. My future funds will be going into rental houses. I am shooting for 10 to 20 rentals by the time i am 50 . Of course i will be building them all myself and paying cash, i don't borrow money. I learned that lesson years ago.
For years i have paid myself the bare minimum, i could live with. All of my money has gone into heavy equipment, and now that is all paid for. My future funds will be going into rental houses. I am shooting for 10 to 20 rentals by the time i am 50 . Of course i will be building them all myself and paying cash, i don't borrow money. I learned that lesson years ago.
E
EricW
Well-known member
One way to make capital gains tax free is "Tax Free Municipal Bonds". These are usually bonds that are rated, and are usually pretty transparent as far as risk. Bottom line is you can buy a bond for the new heart wing at the local hospital and the interest paid to you over the term of the bond passes to you tax free. There are a few of these types of things out there right now that are even being pushed by the Feds as a part of the "Economic Stimyouloose Package". Anything in the medical or retirement facility game should be a safe bet. You would want to look a little closer at the high school gym bond in a State where there is a huge defecit or history of deep cuts in public school funding. Infrastructure (hiways, bridges, rails, etc.) should be worth a look as a safe option as well. Your investments guy should be up on this.
The basic idea on your traditional IRA is that if you contribute while you are in a 30% tax bracket, the tax on that contribution is deferred to retirement (and as stated it comes off your earned income each year) when your probably in more like a 15% tax bracket. So if the fund has any growth you can combine that with the 15% tax savings and initial deduction for the total benefit.
Owning your own small biz that can fund the matching part of your own IRA can be a nice boost too if it is done right. Another idea is to have a small biz (Joe's Snowmobile Guide Service) that can expense those costs that you spend yearly on your sled addiction and at the end of the year come up with a business loss that also can be deducted from your income from your full time job. Might as well expense that sled, truck, trailer, gear, fuel, etc. The IRS doesn't bat an eye on 3-5 years of losses before expecting you to close up shop or show a profit. This is especially true in this economy.
Most biz licenses are less than $100 the rest is just disciplined book keeping and tax education. EricW's Investments will probably deduct this lap top just for all the typing I have done on this posttrying to solicit new customers. If I then use that puter to lurk Craigslist for a sled that I will have my son (broke college kid in the poverty bracket) buy then lease back to EricW's Guide Service, well thats between me and my conscience. You get the idea.
One last note on the life insurance thing. The life insurance with the investment component is usually considered "Whole Life". This product provides the same death benefit as "Term Life", but also invests the additional part of your premium (example $50,000 Whole Life = $150/month and $50,000 Term Life = $50/month) or $100 per month in a Mutual Fund type product which is usually a wholely owned subsidiary or the original life insurance company. Prudential for example will take your $150 and provide you with a $50,000 death benefit and then invest the rest in Prudential Securities and charge you a hefty comission and/or annual management fees to to your investing. In todays market if you are disciplined with your money you can shop a cut rate term life death benefit and do your own investments which gives you more control and a better return. If you are the type that just wants the $150 a month to go away before it gets into your hot little hands and becomes a new set of goggles, then the whole life is better than used goggles when your old or dead. I think I have rambled enough. Be well my soon to retire sledding brothers. EW
The basic idea on your traditional IRA is that if you contribute while you are in a 30% tax bracket, the tax on that contribution is deferred to retirement (and as stated it comes off your earned income each year) when your probably in more like a 15% tax bracket. So if the fund has any growth you can combine that with the 15% tax savings and initial deduction for the total benefit.
Owning your own small biz that can fund the matching part of your own IRA can be a nice boost too if it is done right. Another idea is to have a small biz (Joe's Snowmobile Guide Service) that can expense those costs that you spend yearly on your sled addiction and at the end of the year come up with a business loss that also can be deducted from your income from your full time job. Might as well expense that sled, truck, trailer, gear, fuel, etc. The IRS doesn't bat an eye on 3-5 years of losses before expecting you to close up shop or show a profit. This is especially true in this economy.
Most biz licenses are less than $100 the rest is just disciplined book keeping and tax education. EricW's Investments will probably deduct this lap top just for all the typing I have done on this posttrying to solicit new customers. If I then use that puter to lurk Craigslist for a sled that I will have my son (broke college kid in the poverty bracket) buy then lease back to EricW's Guide Service, well thats between me and my conscience. You get the idea.
One last note on the life insurance thing. The life insurance with the investment component is usually considered "Whole Life". This product provides the same death benefit as "Term Life", but also invests the additional part of your premium (example $50,000 Whole Life = $150/month and $50,000 Term Life = $50/month) or $100 per month in a Mutual Fund type product which is usually a wholely owned subsidiary or the original life insurance company. Prudential for example will take your $150 and provide you with a $50,000 death benefit and then invest the rest in Prudential Securities and charge you a hefty comission and/or annual management fees to to your investing. In todays market if you are disciplined with your money you can shop a cut rate term life death benefit and do your own investments which gives you more control and a better return. If you are the type that just wants the $150 a month to go away before it gets into your hot little hands and becomes a new set of goggles, then the whole life is better than used goggles when your old or dead. I think I have rambled enough. Be well my soon to retire sledding brothers. EW
