Employer doesn't offer 401k
04-17-2012, 04:37 PM
#21
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Re: "Financial collapse" - what I think is most probable is the Fed Gov will face a severe deficit, and REAL cuts will be needed. No, it's not a "collapse". These sacred cows will be seen as easy to gore:
- Military
- gov't contractors
- Gov't pensioners
- Retirees
- Medicare/Medicaid/Obamacare
- home loan interest tax breaks
- retirement accounts
The "mayhem" will probably be limited to riots a la England and Greece, and swaths of the population dependent on the gov't teat, seeing their handouts shrink.
- Military
- gov't contractors
- Gov't pensioners
- Retirees
- Medicare/Medicaid/Obamacare
- home loan interest tax breaks
- retirement accounts
The "mayhem" will probably be limited to riots a la England and Greece, and swaths of the population dependent on the gov't teat, seeing their handouts shrink.
invest in tax accountants?
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04-17-2012, 05:15 PM
#23
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I'm all for starting a successful business if you have the entrepenuerial spirit and business sense, but it's not for everyone.
The only ways Jason's market and economic outlook are going to make money are (A) recommending buying gold, (B) start selling a fear-based newsletter, (C) become inspired to start a small business that becomes successful.
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04-17-2012, 05:25 PM
#25
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the only ways jason's market and economic outlook are going to make money are (a) recommending buying gold, (b) start selling a fear-based newsletter, (c) become inspired to start a small business that sells based on the fear generated by (b) and becomes successful.
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04-17-2012, 05:27 PM
#26
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Scrappy Jack is making the false dichotomy logical fallacy:
"The economy will be hunky dorey in 20 years or all hell will break loose. The latter is silly therefore it will be hunky dory".
I think it's gonna be well in between.
"Gov't deficit is so bad that the bastards need to make real cuts" is not the same as "The economy is so bad that no biz will make money"
Some random examples off the top of my head, of recession resistant biz:
- retirement homes
- day care center
- rental property
- home appliance repair
"The economy will be hunky dorey in 20 years or all hell will break loose. The latter is silly therefore it will be hunky dory".
I think it's gonna be well in between.
Some random examples off the top of my head, of recession resistant biz:
- retirement homes
- day care center
- rental property
- home appliance repair
Last edited by JasonC SBB; 04-17-2012 at 05:46 PM.
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04-17-2012, 07:38 PM
#28
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I am going to try harder not to be "that guy"
that brings monetary systems and macro-economics in to every thread, so I am happy to continue that element in one of the other two we have going. 
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04-17-2012, 08:28 PM
#29
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Well you were the one who set up a strawman by saying I implied a financial collapse:
I'm telling the OP what Kiyosaki has said. I think it is very sound advice.
And do not assume that the tax laws that apply today for retirees withdrawing from their retirement accounts, will apply in 10-20 years.
And I explained why.
I myself am looking into where to buy rental real estate, and into small businesses to invest. So I'm putting my money where my mouth is. I'm not looking into "buying ammo and food stockpiles".
P.S. One good reason for contributing into a 401k is if the employer "matches". Put in the minimum that will maximize the employer contribution. This way even if you decide to pull out your entire 401k because the Fed Gov is about to pull an Argentina, and eat the 10% penalty and taxes, you still come out ahead.
Originally Posted by Scrappy
"If you feel there is a reasonable probability of financial collapse in the USA, you should be buying a house in Costa Rica or saving for an apartment in Singapore and stockpiling canned goods and ammunition and planning your escape route once the mayhem ensues."
And do not assume that the tax laws that apply today for retirees withdrawing from their retirement accounts, will apply in 10-20 years.
And I explained why.
I myself am looking into where to buy rental real estate, and into small businesses to invest. So I'm putting my money where my mouth is. I'm not looking into "buying ammo and food stockpiles".
P.S. One good reason for contributing into a 401k is if the employer "matches". Put in the minimum that will maximize the employer contribution. This way even if you decide to pull out your entire 401k because the Fed Gov is about to pull an Argentina, and eat the 10% penalty and taxes, you still come out ahead.
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04-17-2012, 08:37 PM
#30
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A 401k/IRA/Roth does not depend on current tax law or rates to be profitable. They may be less profitable or efficient if tax law changes - or they might be more so, depending on how the tax law changes.
I cannot think of an example where the US government has completely changed the taxation of an investment vehicle (like a 401k/IRA/pension/annuity/etc) that would affect the majority of the investing public. I am open to being corrected.
I cannot think of an example where the US government has completely changed the taxation of an investment vehicle (like a 401k/IRA/pension/annuity/etc) that would affect the majority of the investing public. I am open to being corrected.
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04-17-2012, 09:55 PM
#31
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just to bring it back to what simplified conventional wisdom would suggest:
that's what I do. my employer funds my 401k without me contributing anything.
scrappy mentioned limiting your Roth contributions based on your tax bracket but keep in mind it'll phase out above a certain income level anyway. It's still a pretty reasonable investment and you can always pull out your contributions (NOT the earnings) without penalty.
also you can invest in individual stocks or [wtf / god forbid] fracking-practicing gas companies with a Roth IRA / IRA.
start there. If you want to research Jason-style investment later, you still can.
scrappy mentioned limiting your Roth contributions based on your tax bracket but keep in mind it'll phase out above a certain income level anyway. It's still a pretty reasonable investment and you can always pull out your contributions (NOT the earnings) without penalty.
also you can invest in individual stocks or [wtf / god forbid] fracking-practicing gas companies with a Roth IRA / IRA.
start there. If you want to research Jason-style investment later, you still can.
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04-17-2012, 11:56 PM
#36
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I don't mind the thread drift. If I were looking for 100% serious advice, I'd be sitting down with a financial advisor, not posting questions on an internet forum dedicated to a secretary's car.
Roth IRA seems to be the obvious choice here, especially since my current income level is probably lower than any of you would guess.
Roth IRA seems to be the obvious choice here, especially since my current income level is probably lower than any of you would guess.
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04-18-2012, 01:18 AM
#39
The thread was trashed before I got here but I'll add my $.02
IRA - Buy Apple at $0.06 and sell for $600,000 a share - pay hundreds of Billion$ in taxes on the profits
Roth - Buy 15% less shares of Apple - pay $0 in taxes on the profits
I've used my Roth to buy more risky investments than my wife has. This may be why she has 3x as much in her Roth as I do even though we invested identical amounts. Anyway, your investment choices may also change the type of IRA you should use.
IRA - Buy Apple at $0.06 and sell for $600,000 a share - pay hundreds of Billion$ in taxes on the profits
Roth - Buy 15% less shares of Apple - pay $0 in taxes on the profits
I've used my Roth to buy more risky investments than my wife has. This may be why she has 3x as much in her Roth as I do even though we invested identical amounts. Anyway, your investment choices may also change the type of IRA you should use.
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