Forum Replies Created
-
AuthorPosts
-
patientrenter
ParticipantIt is interesting how many Armageddon-believers post here, Chris. But there are also more middle-of-the-road types, such as sdr, SDR, Rusty, and many more less vocal people.
Until a few years ago, I used to get frustrated with people who had extreme views that didn’t seem to be based on facts. Then I began to realize that they provided more opportunity for me to make money. Now I’m happy to see this behavior because I occasionally take advantage of it.
Patient renter in OC
ParticipantIt is interesting how many Armageddon-believers post here, Chris. But there are also more middle-of-the-road types, such as sdr, SDR, Rusty, and many more less vocal people.
Until a few years ago, I used to get frustrated with people who had extreme views that didn’t seem to be based on facts. Then I began to realize that they provided more opportunity for me to make money. Now I’m happy to see this behavior because I occasionally take advantage of it.
Patient renter in OC
ParticipantIt is interesting how many Armageddon-believers post here, Chris. But there are also more middle-of-the-road types, such as sdr, SDR, Rusty, and many more less vocal people.
Until a few years ago, I used to get frustrated with people who had extreme views that didn’t seem to be based on facts. Then I began to realize that they provided more opportunity for me to make money. Now I’m happy to see this behavior because I occasionally take advantage of it.
Patient renter in OC
Participant“Have you ever met someone in their 70ies now who have remotely complained about contributing too much on a retirement account and are now getting taxed up the ars now? Just curious.”
flu, no, I haven’t met anyone in the situation you describe. (I’m in no way claiming that they don’t exist. I just don’t know any.) If a person has accumulated money in a tax-deferred retirement accounts for 20 years, then I would think they’d have done very well compared to someone who had paid taxes every year on bonds or many mutual funds (with high turnover and/or high income).
Perhaps your parents’ friends would have done much better to pay taxes on their source income and invest in funds that were taxed annually. But I wonder if their current opinions are biased by the immediate negative of current taxes on past gains, and they are losing sight of the large tax benefits they reaped years ago.
This reminds me of homeowners who bought in 1987 or 1996, whose homes went up by $1 million, and who complain sincerely about the financial burden of their home, because the prices have gone down by $100,000 in the last year. All they see is the $100,000 loss, forgetting the prior $1 million gain and the huge net benefit.
Patient renter in OC
Participant“Have you ever met someone in their 70ies now who have remotely complained about contributing too much on a retirement account and are now getting taxed up the ars now? Just curious.”
flu, no, I haven’t met anyone in the situation you describe. (I’m in no way claiming that they don’t exist. I just don’t know any.) If a person has accumulated money in a tax-deferred retirement accounts for 20 years, then I would think they’d have done very well compared to someone who had paid taxes every year on bonds or many mutual funds (with high turnover and/or high income).
Perhaps your parents’ friends would have done much better to pay taxes on their source income and invest in funds that were taxed annually. But I wonder if their current opinions are biased by the immediate negative of current taxes on past gains, and they are losing sight of the large tax benefits they reaped years ago.
This reminds me of homeowners who bought in 1987 or 1996, whose homes went up by $1 million, and who complain sincerely about the financial burden of their home, because the prices have gone down by $100,000 in the last year. All they see is the $100,000 loss, forgetting the prior $1 million gain and the huge net benefit.
Patient renter in OC
Participant“Have you ever met someone in their 70ies now who have remotely complained about contributing too much on a retirement account and are now getting taxed up the ars now? Just curious.”
flu, no, I haven’t met anyone in the situation you describe. (I’m in no way claiming that they don’t exist. I just don’t know any.) If a person has accumulated money in a tax-deferred retirement accounts for 20 years, then I would think they’d have done very well compared to someone who had paid taxes every year on bonds or many mutual funds (with high turnover and/or high income).
Perhaps your parents’ friends would have done much better to pay taxes on their source income and invest in funds that were taxed annually. But I wonder if their current opinions are biased by the immediate negative of current taxes on past gains, and they are losing sight of the large tax benefits they reaped years ago.
This reminds me of homeowners who bought in 1987 or 1996, whose homes went up by $1 million, and who complain sincerely about the financial burden of their home, because the prices have gone down by $100,000 in the last year. All they see is the $100,000 loss, forgetting the prior $1 million gain and the huge net benefit.
Patient renter in OC
Participant“Have you ever met someone in their 70ies now who have remotely complained about contributing too much on a retirement account and are now getting taxed up the ars now? Just curious.”
flu, no, I haven’t met anyone in the situation you describe. (I’m in no way claiming that they don’t exist. I just don’t know any.) If a person has accumulated money in a tax-deferred retirement accounts for 20 years, then I would think they’d have done very well compared to someone who had paid taxes every year on bonds or many mutual funds (with high turnover and/or high income).
Perhaps your parents’ friends would have done much better to pay taxes on their source income and invest in funds that were taxed annually. But I wonder if their current opinions are biased by the immediate negative of current taxes on past gains, and they are losing sight of the large tax benefits they reaped years ago.
This reminds me of homeowners who bought in 1987 or 1996, whose homes went up by $1 million, and who complain sincerely about the financial burden of their home, because the prices have gone down by $100,000 in the last year. All they see is the $100,000 loss, forgetting the prior $1 million gain and the huge net benefit.
Patient renter in OC
Participant“Have you ever met someone in their 70ies now who have remotely complained about contributing too much on a retirement account and are now getting taxed up the ars now? Just curious.”
flu, no, I haven’t met anyone in the situation you describe. (I’m in no way claiming that they don’t exist. I just don’t know any.) If a person has accumulated money in a tax-deferred retirement accounts for 20 years, then I would think they’d have done very well compared to someone who had paid taxes every year on bonds or many mutual funds (with high turnover and/or high income).
Perhaps your parents’ friends would have done much better to pay taxes on their source income and invest in funds that were taxed annually. But I wonder if their current opinions are biased by the immediate negative of current taxes on past gains, and they are losing sight of the large tax benefits they reaped years ago.
This reminds me of homeowners who bought in 1987 or 1996, whose homes went up by $1 million, and who complain sincerely about the financial burden of their home, because the prices have gone down by $100,000 in the last year. All they see is the $100,000 loss, forgetting the prior $1 million gain and the huge net benefit.
Patient renter in OC
Participantflu, I have to admit that, of my various friends, the ones who have, or know others who have, $1-2 million in free cash to buy a home in So Ca are all Asian. All the others have the money, er, ‘tied up’ right now.
To the extent the stereotype is true, it’s probably just a result of history: For generations in many Asian countries, there was enough instability and poverty to make people feel they needed to hoard as much as possible in the safest possible asset. Now, very recently, many of those counties are producing very wealthy people, and they still carry some of that earlier baggage.
Patient renter in OC
Participantflu, I have to admit that, of my various friends, the ones who have, or know others who have, $1-2 million in free cash to buy a home in So Ca are all Asian. All the others have the money, er, ‘tied up’ right now.
To the extent the stereotype is true, it’s probably just a result of history: For generations in many Asian countries, there was enough instability and poverty to make people feel they needed to hoard as much as possible in the safest possible asset. Now, very recently, many of those counties are producing very wealthy people, and they still carry some of that earlier baggage.
Patient renter in OC
Participantflu, I have to admit that, of my various friends, the ones who have, or know others who have, $1-2 million in free cash to buy a home in So Ca are all Asian. All the others have the money, er, ‘tied up’ right now.
To the extent the stereotype is true, it’s probably just a result of history: For generations in many Asian countries, there was enough instability and poverty to make people feel they needed to hoard as much as possible in the safest possible asset. Now, very recently, many of those counties are producing very wealthy people, and they still carry some of that earlier baggage.
Patient renter in OC
Participantflu, I have to admit that, of my various friends, the ones who have, or know others who have, $1-2 million in free cash to buy a home in So Ca are all Asian. All the others have the money, er, ‘tied up’ right now.
To the extent the stereotype is true, it’s probably just a result of history: For generations in many Asian countries, there was enough instability and poverty to make people feel they needed to hoard as much as possible in the safest possible asset. Now, very recently, many of those counties are producing very wealthy people, and they still carry some of that earlier baggage.
Patient renter in OC
Participantflu, I have to admit that, of my various friends, the ones who have, or know others who have, $1-2 million in free cash to buy a home in So Ca are all Asian. All the others have the money, er, ‘tied up’ right now.
To the extent the stereotype is true, it’s probably just a result of history: For generations in many Asian countries, there was enough instability and poverty to make people feel they needed to hoard as much as possible in the safest possible asset. Now, very recently, many of those counties are producing very wealthy people, and they still carry some of that earlier baggage.
Patient renter in OC
ParticipantI agree with NYCLurker, and I have been involved in the industry of managing retirement and other long-term funds for 20 years – and, no, I’m not a blind believer in the endless high growth of equity values.
If you want to avoid the risk of investing in equities, you usually can choose a more conservative 401k option that has a more stable value. Personally, I would suggest that you invest at least some in some equity funds, especially if you are young. You need to form a strategy for the next 30-50 years before you come up with tactical adjustments for the next 1-5 years. Any very long-term strategy for a young person almost certainly should invove some diversified investment in equities. This board has more than its share of extremely rsk-adverse people focused on what investments will do over the next 5-10 years, who may not provide the best advice for someone looking to get the best return over a very long period, like 30-50 years.
If you think that the next 5-10 years will be times of excessive prices for equities, then just plan to allocate your 401k money to the fixed/stable accounts for that period, but try to maximize what you contribute to all these tax-favored accounts.
Best of luck,
Patient renter in OC -
AuthorPosts
