banksters coming after your 401(k)

[Coronita]

[quote=NicMM]Don’t they need to pay tax for their rental income?[/quote]

Yes, but that’s after taking deductions from depreciation, cost of repair etc. Plus the tax on income (small) was during their earning years..Then post retirement they went from rental property to primary property, and sold, taking the tax free cap gains limit….nice, huh?

[edna_mode]

That strategy only works well in an environment with rising real estate prices and falling interest rates over the highest earning years of your career. Plus predictable taxation burden (i.e. government giving a generous mortgage subsidy).

Now, if they were in an environment with sideways real estate prices with highly volatile interest rates, would they do the same strategy?

BTW, not necessarily advocating for maxing out the 401(k)…depends on your offerings by your employer. At some, company match is in company stock…

[edna_mode]

That strategy only works well in an environment with rising real estate prices and falling interest rates over the highest earning years of your career. Plus predictable taxation burden (i.e. government giving a generous mortgage subsidy).

Now, if they were in an environment with sideways real estate prices with highly volatile interest rates, would they do the same strategy?

BTW, not necessarily advocating for maxing out the 401(k)…depends on your offerings by your employer. At some, company match is in company stock…

[edna_mode]

That strategy only works well in an environment with rising real estate prices and falling interest rates over the highest earning years of your career. Plus predictable taxation burden (i.e. government giving a generous mortgage subsidy).

Now, if they were in an environment with sideways real estate prices with highly volatile interest rates, would they do the same strategy?

BTW, not necessarily advocating for maxing out the 401(k)…depends on your offerings by your employer. At some, company match is in company stock…

[edna_mode]

That strategy only works well in an environment with rising real estate prices and falling interest rates over the highest earning years of your career. Plus predictable taxation burden (i.e. government giving a generous mortgage subsidy).

Now, if they were in an environment with sideways real estate prices with highly volatile interest rates, would they do the same strategy?

BTW, not necessarily advocating for maxing out the 401(k)…depends on your offerings by your employer. At some, company match is in company stock…

[edna_mode]

That strategy only works well in an environment with rising real estate prices and falling interest rates over the highest earning years of your career. Plus predictable taxation burden (i.e. government giving a generous mortgage subsidy).

Now, if they were in an environment with sideways real estate prices with highly volatile interest rates, would they do the same strategy?

BTW, not necessarily advocating for maxing out the 401(k)…depends on your offerings by your employer. At some, company match is in company stock…

[Coronita]

[quote=edna_mode]That strategy only works well in an environment with rising real estate prices and falling interest rates over the highest earning years of your career. Plus predictable taxation burden (i.e. government giving a generous mortgage subsidy).

Now, if they were in an environment with sideways real estate prices with highly volatile interest rates, would they do the same strategy?

BTW, not necessarily advocating for maxing out the 401(k)…depends on your offerings by your employer. At some, company match is in company stock…[/quote]

I forgot to add:
Disclaimer: past performance is no guarantee of future returns…. 🙂

[Coronita]

[quote=edna_mode]That strategy only works well in an environment with rising real estate prices and falling interest rates over the highest earning years of your career. Plus predictable taxation burden (i.e. government giving a generous mortgage subsidy).

Now, if they were in an environment with sideways real estate prices with highly volatile interest rates, would they do the same strategy?

BTW, not necessarily advocating for maxing out the 401(k)…depends on your offerings by your employer. At some, company match is in company stock…[/quote]

I forgot to add:
Disclaimer: past performance is no guarantee of future returns…. 🙂

[Coronita]

[quote=edna_mode]That strategy only works well in an environment with rising real estate prices and falling interest rates over the highest earning years of your career. Plus predictable taxation burden (i.e. government giving a generous mortgage subsidy).

Now, if they were in an environment with sideways real estate prices with highly volatile interest rates, would they do the same strategy?

BTW, not necessarily advocating for maxing out the 401(k)…depends on your offerings by your employer. At some, company match is in company stock…[/quote]

I forgot to add:
Disclaimer: past performance is no guarantee of future returns…. 🙂

[Coronita]

[quote=edna_mode]That strategy only works well in an environment with rising real estate prices and falling interest rates over the highest earning years of your career. Plus predictable taxation burden (i.e. government giving a generous mortgage subsidy).

Now, if they were in an environment with sideways real estate prices with highly volatile interest rates, would they do the same strategy?

BTW, not necessarily advocating for maxing out the 401(k)…depends on your offerings by your employer. At some, company match is in company stock…[/quote]

I forgot to add:
Disclaimer: past performance is no guarantee of future returns…. 🙂

[Coronita]

[quote=edna_mode]That strategy only works well in an environment with rising real estate prices and falling interest rates over the highest earning years of your career. Plus predictable taxation burden (i.e. government giving a generous mortgage subsidy).

Now, if they were in an environment with sideways real estate prices with highly volatile interest rates, would they do the same strategy?

BTW, not necessarily advocating for maxing out the 401(k)…depends on your offerings by your employer. At some, company match is in company stock…[/quote]

I forgot to add:
Disclaimer: past performance is no guarantee of future returns…. 🙂

[Veritas]

delete

[Veritas]

“The federal government seems to have noticed that a whole bunch of money, much of the almost $20 trillion currently held in retirement accounts in the US, is about to get moving as the baby boomers retire. They want a piece of the action and Dodd-Frank may offer the Feds a way to weasel into your 401k.”

http://cronychronicles.org/2013/02/15/the-government-wants-to-help-you-manage-your-401k/

[UCGal]

[quote=Veritas]”The federal government seems to have noticed that a whole bunch of money, much of the almost $20 trillion currently held in retirement accounts in the US, is about to get moving as the baby boomers retire. They want a piece of the action and Dodd-Frank may offer the Feds a way to weasel into your 401k.”

http://cronychronicles.org/2013/02/15/the-government-wants-to-help-you-manage-your-401k/%5B/quote%5D

Here’s the link to the original article.
Note the lack of details or substance. I don’t think we have to worry yet. It’s talking about consumer protection… not a “piece of the action” or “weaseling” into your 401k.

Having had friends sold crappy retirement products like variable annuities (still underwater on them 5 years later), etc… perhaps this is needed.

Dodd Frank already added much needed transparency… now the full expense ratio’s are listed on your 401k funds. That’s a GOOD thing for consumers.

[Aecetia]

We’re from the government. We’re here to help you.

[Author]

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