[(former)FormerSanDiegan]

Is this assumption correct?

Generally, No.
You will have again or a loss each time you sell a position. You will pay taxes on the net gain each year (long-term and short-term gains are treated differently). This is regardless of whether you manage the funds or not. I assume that this is a money manager who is buying and selling stocks, etc.

However, if the money manager takes your funds and puts them in a pool, e.g. a mutual fund, then you are taxed each year based on the net gains/losses incurred by that fund in each year.

If so, is there a way to manage your own money/investments without paying taxes until you cash out or something similar?

Yes, well sort of … Build a portfolio based on index ETFs and hold without selling. You will have dividends, but no captial gains until you sell.

disclaimer : I am not a tax lawyer or a financial advisor. The advice above is based on personal experience.

[(former)FormerSanDiegan]

Is this assumption correct?

Generally, No.
You will have again or a loss each time you sell a position. You will pay taxes on the net gain each year (long-term and short-term gains are treated differently). This is regardless of whether you manage the funds or not. I assume that this is a money manager who is buying and selling stocks, etc.

However, if the money manager takes your funds and puts them in a pool, e.g. a mutual fund, then you are taxed each year based on the net gains/losses incurred by that fund in each year.

If so, is there a way to manage your own money/investments without paying taxes until you cash out or something similar?

Yes, well sort of … Build a portfolio based on index ETFs and hold without selling. You will have dividends, but no captial gains until you sell.

disclaimer : I am not a tax lawyer or a financial advisor. The advice above is based on personal experience.

[(former)FormerSanDiegan]

[quote=KSMountain]
Remember that? Seems quaint now… Just like all the talk here of depressions, collapse, civil disturbances, etc will seem quaint in 2011. Arraya and partypup will still have electricity and wifi, piggington will still be up (right Rich?) and they’ll still be posting here just fine in 2011. Likely their incomes will be higher too. Just my prediction.
[/quote]

But what about when 2012 hits ? !!!!!

[(former)FormerSanDiegan]

[quote=KSMountain]
Remember that? Seems quaint now… Just like all the talk here of depressions, collapse, civil disturbances, etc will seem quaint in 2011. Arraya and partypup will still have electricity and wifi, piggington will still be up (right Rich?) and they’ll still be posting here just fine in 2011. Likely their incomes will be higher too. Just my prediction.
[/quote]

But what about when 2012 hits ? !!!!!

[(former)FormerSanDiegan]

[quote=KSMountain]
Remember that? Seems quaint now… Just like all the talk here of depressions, collapse, civil disturbances, etc will seem quaint in 2011. Arraya and partypup will still have electricity and wifi, piggington will still be up (right Rich?) and they’ll still be posting here just fine in 2011. Likely their incomes will be higher too. Just my prediction.
[/quote]

But what about when 2012 hits ? !!!!!

[(former)FormerSanDiegan]

[quote=KSMountain]
Remember that? Seems quaint now… Just like all the talk here of depressions, collapse, civil disturbances, etc will seem quaint in 2011. Arraya and partypup will still have electricity and wifi, piggington will still be up (right Rich?) and they’ll still be posting here just fine in 2011. Likely their incomes will be higher too. Just my prediction.
[/quote]

But what about when 2012 hits ? !!!!!

[(former)FormerSanDiegan]

[quote=KSMountain]
Remember that? Seems quaint now… Just like all the talk here of depressions, collapse, civil disturbances, etc will seem quaint in 2011. Arraya and partypup will still have electricity and wifi, piggington will still be up (right Rich?) and they’ll still be posting here just fine in 2011. Likely their incomes will be higher too. Just my prediction.
[/quote]

But what about when 2012 hits ? !!!!!

[(former)FormerSanDiegan]

[quote=barnaby33]jimmeyle, I’d pull out of your 401k. Tax deferral doesn’t mean anything if you lose the money. I know I stopped contributing over a year ago. I’d rather eat 50% in taxes than 100% in losses.

As to where to keep your money, a mattress is a good option at this point.
Josh[/quote]

Extremely Bad Advice

Decisions like this will make you poor.

The 40-50% loss to taxes is guaranteed when liquidating a 401k (assuming you simply pull it out).

If you think you need to be out of dollar-denominated assets here is a better alternative:

1. Put your funds into the cash equivalent or short-term bond or stable value option in the 401k

2. Take a loan out for up to 50% of the 401k balance.

3. Put the loan proceeds into the whatever genius position you would have put the liquidated 401k proceeeds.

This approach avoids the immediate tax hit and allows you to demonstrate that perhaps you are not a genius gold or foreign currency speculator without taking a huge tax hit. If the return you get on the funds invested outside were a good idea they would greatly exceed the loan interest.

[(former)FormerSanDiegan]

[quote=barnaby33]jimmeyle, I’d pull out of your 401k. Tax deferral doesn’t mean anything if you lose the money. I know I stopped contributing over a year ago. I’d rather eat 50% in taxes than 100% in losses.

As to where to keep your money, a mattress is a good option at this point.
Josh[/quote]

Extremely Bad Advice

Decisions like this will make you poor.

The 40-50% loss to taxes is guaranteed when liquidating a 401k (assuming you simply pull it out).

If you think you need to be out of dollar-denominated assets here is a better alternative:

1. Put your funds into the cash equivalent or short-term bond or stable value option in the 401k

2. Take a loan out for up to 50% of the 401k balance.

3. Put the loan proceeds into the whatever genius position you would have put the liquidated 401k proceeeds.

This approach avoids the immediate tax hit and allows you to demonstrate that perhaps you are not a genius gold or foreign currency speculator without taking a huge tax hit. If the return you get on the funds invested outside were a good idea they would greatly exceed the loan interest.

[(former)FormerSanDiegan]

[quote=barnaby33]jimmeyle, I’d pull out of your 401k. Tax deferral doesn’t mean anything if you lose the money. I know I stopped contributing over a year ago. I’d rather eat 50% in taxes than 100% in losses.

As to where to keep your money, a mattress is a good option at this point.
Josh[/quote]

Extremely Bad Advice

Decisions like this will make you poor.

The 40-50% loss to taxes is guaranteed when liquidating a 401k (assuming you simply pull it out).

If you think you need to be out of dollar-denominated assets here is a better alternative:

1. Put your funds into the cash equivalent or short-term bond or stable value option in the 401k

2. Take a loan out for up to 50% of the 401k balance.

3. Put the loan proceeds into the whatever genius position you would have put the liquidated 401k proceeeds.

This approach avoids the immediate tax hit and allows you to demonstrate that perhaps you are not a genius gold or foreign currency speculator without taking a huge tax hit. If the return you get on the funds invested outside were a good idea they would greatly exceed the loan interest.

[(former)FormerSanDiegan]

[quote=barnaby33]jimmeyle, I’d pull out of your 401k. Tax deferral doesn’t mean anything if you lose the money. I know I stopped contributing over a year ago. I’d rather eat 50% in taxes than 100% in losses.

As to where to keep your money, a mattress is a good option at this point.
Josh[/quote]

Extremely Bad Advice

Decisions like this will make you poor.

The 40-50% loss to taxes is guaranteed when liquidating a 401k (assuming you simply pull it out).

If you think you need to be out of dollar-denominated assets here is a better alternative:

1. Put your funds into the cash equivalent or short-term bond or stable value option in the 401k

2. Take a loan out for up to 50% of the 401k balance.

3. Put the loan proceeds into the whatever genius position you would have put the liquidated 401k proceeeds.

This approach avoids the immediate tax hit and allows you to demonstrate that perhaps you are not a genius gold or foreign currency speculator without taking a huge tax hit. If the return you get on the funds invested outside were a good idea they would greatly exceed the loan interest.

[(former)FormerSanDiegan]

[quote=barnaby33]jimmeyle, I’d pull out of your 401k. Tax deferral doesn’t mean anything if you lose the money. I know I stopped contributing over a year ago. I’d rather eat 50% in taxes than 100% in losses.

As to where to keep your money, a mattress is a good option at this point.
Josh[/quote]

Extremely Bad Advice

Decisions like this will make you poor.

The 40-50% loss to taxes is guaranteed when liquidating a 401k (assuming you simply pull it out).

If you think you need to be out of dollar-denominated assets here is a better alternative:

1. Put your funds into the cash equivalent or short-term bond or stable value option in the 401k

2. Take a loan out for up to 50% of the 401k balance.

3. Put the loan proceeds into the whatever genius position you would have put the liquidated 401k proceeeds.

This approach avoids the immediate tax hit and allows you to demonstrate that perhaps you are not a genius gold or foreign currency speculator without taking a huge tax hit. If the return you get on the funds invested outside were a good idea they would greatly exceed the loan interest.

[(former)FormerSanDiegan]

I looked back at old CNN projections from 2006 and found this. Pretty comical …

http://money.cnn.com/popups/2006/biz2/newrules_bestinvest/index.html

CNN projected a 5-year increase of 72% for Panama City, FL from 2006-2011.

[(former)FormerSanDiegan]

I looked back at old CNN projections from 2006 and found this. Pretty comical …

http://money.cnn.com/popups/2006/biz2/newrules_bestinvest/index.html

CNN projected a 5-year increase of 72% for Panama City, FL from 2006-2011.

[(former)FormerSanDiegan]

I looked back at old CNN projections from 2006 and found this. Pretty comical …

http://money.cnn.com/popups/2006/biz2/newrules_bestinvest/index.html

CNN projected a 5-year increase of 72% for Panama City, FL from 2006-2011.

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