"Taxes Will Go Up"........Money Magazine March 2008
#1
Iro Ridg .308
Thread Starter
"Taxes Will Go Up"........Money Magazine March 2008
Refererence:
"Taxes will go up" - Money Magazine, March 2008
Author - N/A
Boomer's Guide - Trend 3
---------------------
You guys need to start thinking Post-Tax Treatment versus Pre-Tax Treatments
It's about time a national publication sees the big picture.....
For those with an open mind, this financial planning strategy is on me, free of charge and confirmed by a 3rd party source (Money Magazine) although I do have some articles from Forbes regarding this matter as well.
IRS is smart. Rule #1, they are in the business of making money for the government.
Rule #2, they invented the 401(k). If you don't know your IRS tax code, I recommend looking up 401(a) to which the 401(k) is derived from. They want you to sock all your cash in that IRA/401(k) because they would rather tax the bigger piece of the pie and should marginal income tax rates and capital gains tax increase.......you can figure it out. You think taxes are bad now......imagine a hike back up to 40%-70% depending how you file.
Your only options to hedge the likelihood of increased taxes are:
1. Municipal Bonds
(some taxes however still do apply and muni's not so hot right now.....)
2. Roth IRA
(capped contribution limit AND depending how much you make and what your tax filing status is, you may no longer qualify for the Roth. If you can still contribute and you're not......
)
3. Whole Life Insurance
(savings account with benefits. have to be healthy if you want to use it to it's maximum advantage. The younger and healthier you are, the better)
This will be my only post to this thread. Fail to plan. Plan to fail.
*Disclosure: I'm not a CPA / Certified Tax Advisor. Consult your Tax Advisor Professional for further taxation details.
"Taxes will go up" - Money Magazine, March 2008
Author - N/A
Boomer's Guide - Trend 3
---------------------
You guys need to start thinking Post-Tax Treatment versus Pre-Tax Treatments
It's about time a national publication sees the big picture.....
For those with an open mind, this financial planning strategy is on me, free of charge and confirmed by a 3rd party source (Money Magazine) although I do have some articles from Forbes regarding this matter as well.
IRS is smart. Rule #1, they are in the business of making money for the government.
Rule #2, they invented the 401(k). If you don't know your IRS tax code, I recommend looking up 401(a) to which the 401(k) is derived from. They want you to sock all your cash in that IRA/401(k) because they would rather tax the bigger piece of the pie and should marginal income tax rates and capital gains tax increase.......you can figure it out. You think taxes are bad now......imagine a hike back up to 40%-70% depending how you file.
Your only options to hedge the likelihood of increased taxes are:
1. Municipal Bonds
(some taxes however still do apply and muni's not so hot right now.....)
2. Roth IRA
(capped contribution limit AND depending how much you make and what your tax filing status is, you may no longer qualify for the Roth. If you can still contribute and you're not......
![Tomato](https://acurazine.com/forums/images/smilies/tomato.gif)
3. Whole Life Insurance
(savings account with benefits. have to be healthy if you want to use it to it's maximum advantage. The younger and healthier you are, the better)
This will be my only post to this thread. Fail to plan. Plan to fail.
*Disclosure: I'm not a CPA / Certified Tax Advisor. Consult your Tax Advisor Professional for further taxation details.
#2
Burning Brakes
What makes you think they'll not go after Roth proceeds in the future?
I oft wonder if all the "put your money in Roth" articles aren't secretly being pushed by The ManŽ, so they get to grab more overall?
Whole Life? I don't think so.
I oft wonder if all the "put your money in Roth" articles aren't secretly being pushed by The ManŽ, so they get to grab more overall?
Whole Life? I don't think so.
#3
Iro Ridg .308
Thread Starter
...and who says capital gains taxes can't increase?
Had to post.....
You can lead a horse to water, but you can't make em' drink.
Good luck with your financial planning.
Had to post.....
You can lead a horse to water, but you can't make em' drink.
Good luck with your financial planning.
#4
Team Owner
Social Security is underfunded, Medicare is worse, babyboomers are about to retire in huge numbers, the ratio of working/retired is going down, Iraq continues to chew through billions a week in spending, Dubya cut taxes for the rich, the Democrats are about to take over the White House (they already are a majority in the House).
What makes you think taxes are going up?
What makes you think taxes are going up?
#5
I feel the need...
Originally Posted by special-ed
Tax Treatments
It's about time a national publication sees the big picture.....
It's about time a national publication sees the big picture.....
![Captain Obvious](https://acurazine.com/forums/images/smilies/captainobvious.gif)
This will be my only post to this thread.
![Wish](https://acurazine.com/forums/images/smilies/wish.gif)
#7
Team Owner
OP forgot to mention Roth 401k.
Trending Topics
#8
is learning to moonwalk i
Originally Posted by doopstr
OP forgot to mention Roth 401k.
ANd the OP fails to mention a lot of things while beating his chest and a dead horse at the same time.
#11
I feel the need...
Originally Posted by special-ed
You can lead the horse......can't say much for donkeys. Good day.
![rofl](https://acurazine.com/forums/images/smilies/rofl.gif)
#12
Iro Ridg .308
Thread Starter
Originally Posted by Fibonacci
![rofl](https://acurazine.com/forums/images/smilies/rofl.gif)
![Wish](https://acurazine.com/forums/images/smilies/wish.gif)
You're stretching Liberace. Really reaching. May have to assign a new squad captain.
![Yum](https://acurazine.com/forums/images/smilies/yum.gif)
#13
Iro Ridg .308
Thread Starter
Originally Posted by jlukja
Social Security is underfunded, Medicare is worse, babyboomers are about to retire in huge numbers, the ratio of working/retired is going down, Iraq continues to chew through billions a week in spending, Dubya cut taxes for the rich, the Democrats are about to take over the White House (they already are a majority in the House).
What makes you think taxes are going up?
What makes you think taxes are going up?
![Thumbs Up](https://acurazine.com/forums/images/smilies/thumbsup.gif)
#14
Iro Ridg .308
Thread Starter
Originally Posted by moeronn
Never heard of such an animal. Any additional info?
ANd the OP fails to mention a lot of things while beating his chest and a dead horse at the same time.
ANd the OP fails to mention a lot of things while beating his chest and a dead horse at the same time.
#16
Moderator Alumnus
Originally Posted by moeronn
Never heard of such an animal. Any additional info?
ANd the OP fails to mention a lot of things while beating his chest and a dead horse at the same time.
ANd the OP fails to mention a lot of things while beating his chest and a dead horse at the same time.
If your current income is going to be less than your eventual annual 401k withdrawal, then Roth 401K is a good idea. You can also use calculators to predict final amount once you start pulling money out.
- Frank
#17
is learning to moonwalk i
Originally Posted by Fibonacci
![rofl](https://acurazine.com/forums/images/smilies/rofl.gif)
#18
is learning to moonwalk i
Originally Posted by ChodTheWacko
It's basically a 401k where you put money into it post-tax, but can later pull it out tax-free.
If your current income is going to be less than your eventual annual 401k withdrawal, then Roth 401K is a good idea. You can also use calculators to predict final amount once you start pulling money out.
- Frank
If your current income is going to be less than your eventual annual 401k withdrawal, then Roth 401K is a good idea. You can also use calculators to predict final amount once you start pulling money out.
- Frank
Sorry, I hope you're not too confused by the lack of red text.
#19
Team Owner
Only problem with the Roth 401k is that most employers don't yet offer it. I was surprised that mine does.
#20
Iro Ridg .308
Thread Starter
Originally Posted by doopstr
Only problem with the Roth 401k is that most employers don't yet offer it. I was surprised that mine does.
#21
Iro Ridg .308
Thread Starter
Originally Posted by moeronn
Thanks for that, Frank. Something to look into. Maybe helmet-wearing-short-bus-man can set me up with an account.
PM me and I can give you some names of Estate Attorneys and Financial Advisors in your local area whom you could sit-down with. Free of charge because I like you so much.
![Thumbs Up](https://acurazine.com/forums/images/smilies/thumbsup.gif)
#23
Suzuka Master
Originally Posted by fuzzy02CLS
I'm one of the few that think taxes should be raised. I think taxes for everyone should be high. People say I'm nuts.
![Werd](https://acurazine.com/forums/images/smilies/werd.gif)
Your nuts.
#24
Just dial 1911
Join Date: May 2004
Location: San Diego, CA
Age: 49
Posts: 12,144
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Originally Posted by fuzzy02CLS
I'm one of the few that think taxes should be raised. I think taxes for everyone should be high. People say I'm nuts.
#25
Registered but harmless
Join Date: Aug 2005
Location: Los Angeles, CA
Age: 59
Posts: 14,845
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Originally Posted by joerockt
Why? Are you on welfare and medicare? You obviously don't make much money if you think that way...If you did, you'd see that you're getting rapped enough by taxes...
Do we pay a little more now, or do we (and our kids) pay a lot more in the end? The Medicare and Social Security systems are abstract to most people, unlike the local school district or police departments. We may get breaks from reductions in taxes now, but Medicare and Social Security will likely reduce their benefits for us, our kids or grandkids, while many of the less fortunate will face more dire consequences.
Do we pay too much in taxes? It depends on how much you are willing to monetize the infrastructure and gov't spending priorities. California is (again) facing a huge deficit and looking at across-the-board tax cuts; many teachers have received their RIF notices. CalTrans is putting a number of projects on hold and the levies in Central California are not getting money except for "emergency" repairs. I would have been willing to continue to pay the then-existing "car tax" to fund $4 billion towards the budget, but many others disagreed before Gov. Schwarzeneggar reduced it. My priorities include a healthy agricultural system, unaffected by broken levies, for which I am willing to pay additional taxes. I do make (much) more than minimum wage and have never been eligible for Medi-Cal or welfare, but am willing to be taxed an additional percentage point or two to prevent the collapse of the health care system, for example. Have you noticed how many hospitals are filing bankruptcy and the number of doctors leaving the Medi-Cal and Medi-care system due to the low reimbursement rates? We taxpayers ultimately pay a steeper price when those patients enter emergency rooms because preventative care and maintenance became unavailable.
![2 Cents](https://acurazine.com/forums/images/smilies/2cents.gif)
#26
Senior Moderator
iTrader: (2)
Originally Posted by joerockt
Why? Are you on welfare and medicare? You obviously don't make much money if you think that way...If you did, you'd see that you're getting rapped enough by taxes...
![Thumbs Up](https://acurazine.com/forums/images/smilies/thumbsup.gif)
My thinking isn't for my personal or anyone else's gain. It's an overall US picture I see.
#27
Just dial 1911
Join Date: May 2004
Location: San Diego, CA
Age: 49
Posts: 12,144
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Received 1 Like
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1 Post
Originally Posted by fuzzy02CLS
Oh I make enough
My thinking isn't for my personal or anyone else's gain. It's an overall US picture I see.
![Thumbs Up](https://acurazine.com/forums/images/smilies/thumbsup.gif)
My thinking isn't for my personal or anyone else's gain. It's an overall US picture I see.
Do us a favor then and make sure you claim 0 on your W2's. And when you do your returns, do not accept a refund.
There. You're doing your part...
#29
Iro Ridg .308
Thread Starter
Quick thank you to my good friend for an excerpt of this article......you know who you are...
"A 'fiscal hurricane' on the horizon
By Richard Wolf, USA TODAY
WASHINGTON The comptroller general of the United States is explaining over eggs how the nation's finances are going to hell.
"We face a demographic tsunami" that "will never recede," David Walker tells a group of reporters. He runs through a long list of fiscal challenges, led by the imminent retirement of the baby boomers, whose promised Medicare and Social Security benefits will swamp the federal budget in coming decades."
Taxes going up? Wonder if we'll see similar rates from back in the 80's? On top of that, long term care costs and college costs looking to out-pace inflation. Time to start building that security fence around your overall financial plan before you find yourself tapping into income already put aside for specific goals.
![Thumbs Up](https://acurazine.com/forums/images/smilies/thumbsup.gif)
"A 'fiscal hurricane' on the horizon
By Richard Wolf, USA TODAY
WASHINGTON The comptroller general of the United States is explaining over eggs how the nation's finances are going to hell.
"We face a demographic tsunami" that "will never recede," David Walker tells a group of reporters. He runs through a long list of fiscal challenges, led by the imminent retirement of the baby boomers, whose promised Medicare and Social Security benefits will swamp the federal budget in coming decades."
Taxes going up? Wonder if we'll see similar rates from back in the 80's? On top of that, long term care costs and college costs looking to out-pace inflation. Time to start building that security fence around your overall financial plan before you find yourself tapping into income already put aside for specific goals.
#30
Registered but harmless
Join Date: Aug 2005
Location: Los Angeles, CA
Age: 59
Posts: 14,845
Received 1,106 Likes
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Originally Posted by special-ed
Quick thank you to my good friend for an excerpt of this article......you know who you are...
"A 'fiscal hurricane' on the horizon
By Richard Wolf, USA TODAY
WASHINGTON The comptroller general of the United States is explaining over eggs how the nation's finances are going to hell.
![Thumbs Up](https://acurazine.com/forums/images/smilies/thumbsup.gif)
"A 'fiscal hurricane' on the horizon
By Richard Wolf, USA TODAY
WASHINGTON The comptroller general of the United States is explaining over eggs how the nation's finances are going to hell.
![Scratch](https://acurazine.com/forums/images/smilies/scratch.gif)
![Squint](https://acurazine.com/forums/images/smilies/squint.gif)
Why cite an article from November 2005-- http://www.usatoday.com/news/washing...ne-cover_x.htm ??
#31
is learning to moonwalk i
Originally Posted by Will Y.
![rofl](https://acurazine.com/forums/images/smilies/rofl.gif)
I'm wondering who his good friend is?
![Shrug](https://acurazine.com/forums/images/smilies/shrug.gif)
#32
Team Owner
It's the guy from marketing that just quit and gave him his old pile of spin.
#34
Iro Ridg .308
Thread Starter
Originally Posted by Will Y.
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