TennesseeTuxedo said:
You will still pay taxes at some point but it is the closest thing because you can defer some of the taxes on one end or the other.
Ways to Build Wealth ?
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You will still pay taxes at some point but it is the closest thing because you can defer some of the taxes on one end or the other.
Brute 23 said:
Wrong.
TennesseeTuxedo said:
:lol: The floor is yours... please enlighten us all
Use you Google machine.
Bright Raven
Well-known member
I am retired and am currently using several retirement investments as follows:
1. A Federal Civil Service Retirement Annuity. It is taxed at the federal level. However, some states exclude federal annuity payouts from taxable income based on a formula. Kentucky is one of those states.
2. Thrift Savings Plan. It is a federal savings investment that functions under the statues of a 401K. It is taxed at the Federal level and the state level in Kentucky.
3. ROTH IRA. There was no tax deferral when investments were made but the greater benefit is that withdrawals are not taxed.
4. Traditional IRA. The investments were tax deferred but withdrawals are taxed as income.
Going to Brute's statement on a Roth IRA. There is no deferral of taxes when investments are made. There is no income tax on payouts at retirement. I think that is what TT means.
1. A Federal Civil Service Retirement Annuity. It is taxed at the federal level. However, some states exclude federal annuity payouts from taxable income based on a formula. Kentucky is one of those states.
2. Thrift Savings Plan. It is a federal savings investment that functions under the statues of a 401K. It is taxed at the Federal level and the state level in Kentucky.
3. ROTH IRA. There was no tax deferral when investments were made but the greater benefit is that withdrawals are not taxed.
4. Traditional IRA. The investments were tax deferred but withdrawals are taxed as income.
Going to Brute's statement on a Roth IRA. There is no deferral of taxes when investments are made. There is no income tax on payouts at retirement. I think that is what TT means.
You deposit after tax dollars in your Roth IRA and the earnings are not taxed as they compound or upon withdrawal. A self directed Roth IRA is a little more sophisticated and requires special handling but the upside is tremendous. Again, the earnings are not taxed.
TennesseeTuxedo said:
Going back to the original comment. I said there is no way to legally avoid taxes. (TRUE)
TT said a self directed Roth IRA. You DO NOT avoid taxes with ANY IRA. You can pay them on the front... you can pay them on the back... you can pay them in the middle... but you will pay taxes. Which way is the most beneficial will depend on your situation and a little bit of luck.
I said it is the closest thing to avoiding taxes (also TRUE) because it is. If you break down the amount you pay in taxes over the whole investment, including its growth, its the lowest tax rate you will ever see... better than capital gains.
I stand by every thing I said and don't see what TT comment has to do with any thing being discussed... once again. :tiphat:
Stand wherever you please. Not my job to educate you.
TennesseeTuxedo said:
Don't worry about that... your comments don't get close to educating any one.
CattleMan1920
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Why are you guys focused on a piddly little Roth IRA?
I would think you would want to incorporate your operation, preferably an S-Corp versus an LLC. Then I would focus on funding a SEP IRA. You can put $56k in for 2019. Let your accountant explain this to you, but it's a no brainer if you have the income to fully fund it. Don't forget 179 deductions on equipment.
I personally would invest 100% of the SEP in Vanguard Total World Stock Index Fund Investor Shares (VTWSX). I would stay away from fixed income like the plague. Once rates rise you will get creamed unless the duration is low in the portfolio. You might be somewhat safe in T-bills.
Equities are probably going to get creamed as well soon, but you can at least dollar cost average into them monthly to be on the safe side.
These are a few ideas, along with raw land and passive income from rental property.
My suggestions are solely my opinions and NOT direct, investment advice. Speak to your accountant or financial advisor first.
I would think you would want to incorporate your operation, preferably an S-Corp versus an LLC. Then I would focus on funding a SEP IRA. You can put $56k in for 2019. Let your accountant explain this to you, but it's a no brainer if you have the income to fully fund it. Don't forget 179 deductions on equipment.
I personally would invest 100% of the SEP in Vanguard Total World Stock Index Fund Investor Shares (VTWSX). I would stay away from fixed income like the plague. Once rates rise you will get creamed unless the duration is low in the portfolio. You might be somewhat safe in T-bills.
Equities are probably going to get creamed as well soon, but you can at least dollar cost average into them monthly to be on the safe side.
These are a few ideas, along with raw land and passive income from rental property.
My suggestions are solely my opinions and NOT direct, investment advice. Speak to your accountant or financial advisor first.
I had a SEP the first 7 years. At the time it was tough but my brother convinced me to pour the coals to it. I'm glad he did.
************* said:
I'm talking about a self directed Roth IRA. I find nothing "piddley" about growing wealth that is tax free particularly when you learn how to use it to flip properties using other people's money. Too complicated to lay out here but you know how to reach me.
True Grit Farms
Well-known member
I'm good just being a poor redneck with a few toys, traveling the country hunting, fishing and seeing the sights. The government will bailout the rich again....or maybe this time take "tax" their investments to keep from loosing the country. Some of our new leadership sees this as a good idea, and the fact is, the poor can't bail anyone out.
callmefence
Keyboard cowboy
I ve got everything tied up in scrap iron.
Bright Raven
Well-known member
Brute 23 said:
You guys are being hardheaded.
Brute is saying IRAs are taxed either on withdrawal or principle, the money going in, is subject to income tax.
TT is making the point that Roth IRAs earn, grow, appreciate, AND those earning are forever and always tax exempt. Since the earnings are not THE PRINCIPLE , the earnings are never subject to federal income tax.
Bingo, give the Bright bird some seed.
Caustic Burno
Well-known member
True Grit Farms said:
You sound like a redneck version of OAC.
1982vett
Well-known member
pretty good place to start if you don't have a plan...
https://www.bogleheads.org/forum/index.php
Not for everyone as it is a no nonsense place....LadyGeek will shut it down. ;-)
Check it out when this place is slow.
https://www.bogleheads.org/forum/index.php
Not for everyone as it is a no nonsense place....LadyGeek will shut it down. ;-)
Check it out when this place is slow.
Dave
Well-known member
Want to build wealth? Get some lumber and nails. Build a house. Sell it for more than you paid for the lumber and nails. You just "built" wealth.
Stocker Steve
Well-known member
callmefence said:
Does this count as precious metal in your area?
