D2Cat
Well-known member
Here's a situation where one is required to take the 10% each year, however if the money is not needed it can be reinvested and available whenever it is needed (and only pay taxes then on the interest growth then).
Retirement
- Thread starter CSM
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Here's a situation where one is required to take the 10% each year, however if the money is not needed it can be reinvested and available whenever it is needed (and only pay taxes then on the interest growth then).
Caustic Burno
Well-known member
True but you're still paying taxes and it goes against your annual income.
jschoolcraft86
Well-known member
For what it's worth, 6 years ago I was a city/suburb grandkid with zero experience farming or ranching. My grandfather passed away and no one else in the family had the willingness or ability to step up and take it all on. I jumped in feet first and it has completely changed my life and the plan I thought I had for the future (in a good way).
Good to hear. So the rest of the family just stepped aside and you took over? Are you the sole owner now?
Caustic Burno
Well-known member
Yes it's the required minimum.
If I am not mistaken you can't make IRA contributions after that birthday.
Government doesn't want anymore nontaxable money.
Make more of your SS taxable you already paid taxes on.
D2Cat
Well-known member
Yep, but the good thing is you're not broke!!!!
Ok i was thinking wrong about how taxes works on a 401k plan.
If I remember right you have two options as to how you want to pay the taxes on money going into a 401k.
You can pay the taxes on 401k deposits before it is deposited or when you start withdrawing it at retirement age.
If I am not mistaken the advantage to choosing to deposite it before taxes have been taken out. Your able to make money off the nontaxed money by investing it over the years . Money that you wouldn't have made had you not of had the nontaxed money to invest over 30 or 40 years you were in the 401k plan.
But you probably end up paying more taxes than you would have by just paying the taxes before the money was deposited ? Or another way of looking at it is you made more money by having that non taxed money to invest over the years too ?
401K you're investing money that hasn't been taxed. You pay taxes as you withdraw presumably at a lower tax rate because you would be out of the workforce.
Roth IRA comes from money you paid taxes on already but no capital gains tax as you withdraw.
Somebody correct me of I'm wrong but that's how I understand it.
jschoolcraft86
Well-known member
My Dad is the sole owner of the LLC which legally owns the ranch but he is hands off of the management. When all this first came about he was mildly interested and went to a pecan short course at Texas A&M with me but his interest quickly faded. He let me know it is coming to me after he passes and I was present for the signing of the Will so at some point I will be the sole owner.
I have a younger sister who is not agriculturally inclined and my two cousins were never in serious consideration (lack of interest and an unwillingness to relocate) so it was up to me or the ranch would be gone. Considering what I've seen from the other properties in the area that came up for sale it would be subdivided into as many little ranchette lots as whatever developer could make.
True, I sold my 32 acre "farm" in Huntsville Al because it was too small to make any money off of. It is 3 farms now!
jschoolcraft86
Well-known member
100 acres almost backing up to me came up for sale 3 years ago. It would have been a real game changer but there was no way I could swing it. The ranch was a money pit when I first took it over and it just now started breaking even (without factoring in wages for me or anything) but I gave it my best shot. That 100 acres is now 5 separate lots. I'm doing my best to make sure I'm in a position to strike next time I have an opportunity.
I agree on the return of investment. I was referring to 10 % interest where there is no risk to your capital.
Like CDs
Son of Butch
Well-known member
Monday August 16 2021
S&P 500 49 record high closes year-to-date.
77 is the all time record for r.h. closes for the S&P set in 1995
1995 gain of 34.11% is also the record gain for any calendar year.
Biggest 1 day drop -20.47% Oct 19 1987 finished 1987 up 2.03% for the year
March 2020 dropped -20% in 16 days, and was a followed a few days later with a 14% drop in 14 days yet finished 2020 up 16.26%
Historic Bottom Line:
Every one of the 38 market decline "corrections" of 10% or more for the S&P 500 has always been followed by a new record high on average in 11 months, with the longest gap between highs being 5 years 7 months.
S&P 500 49 record high closes year-to-date.
77 is the all time record for r.h. closes for the S&P set in 1995
1995 gain of 34.11% is also the record gain for any calendar year.
Biggest 1 day drop -20.47% Oct 19 1987 finished 1987 up 2.03% for the year
March 2020 dropped -20% in 16 days, and was a followed a few days later with a 14% drop in 14 days yet finished 2020 up 16.26%
Historic Bottom Line:
Every one of the 38 market decline "corrections" of 10% or more for the S&P 500 has always been followed by a new record high on average in 11 months, with the longest gap between highs being 5 years 7 months.
On another note, my $40 "joke" investment in Dogecoin in 2014 is now worth $6,500. I wish I had a time machine.....
I had my auto buy deal set to buy S&P at 2000 during the big covid fall. It only got to 2100 or 2200. I'm kicking myself for not just grabbing it. Long term it's where I would have preferred to be.
My cows are giving me a 300% return. Wait, that is a -300%.
I agree. That is why I do not like investing lump sums. I prefer just to buy in a little every month for years and years. I'm a dollar cost average person.
The people that cost average invest like that retire rich.
