Tax "advantages" of an IRA

[SpidermanTuba]

disappear in bad economies.


I had a small brokerage account that I had set up as an ordinary, non-IRA account. I took an $800 realized loss on it in 2008 - which sucks - but unlike an IRA - I was able to write the losses down on my taxes.

 

[Jon]

Depends on what your IRA is invested in. Mine are invested in bank CD's, so there is little risk involved. You wrote down an $800 loss, I had a gain.

Also, writing down the losses is all great fun for tax savings this year, but it will bite you in the ass when you cash in.

 

[SpidermanTuba]

Mine are invested in bank CD's, so there is little risk involved.

I'm only 31. Why would I put my retirement savings in CD's?

Also, writing down the losses is all great fun for tax savings this year, but it will bite you in the ass when you cash in.

The loss was from Fannie Mae. I seriously doubt they are coming back any time soon.

 

[Burp]

Mine are invested in bank CD's, so there is little risk involved.

I'm only 31. Why would I put my retirement savings in CD's?

Also, writing down the losses is all great fun for tax savings this year, but it will bite you in the ass when you cash in.

The loss was from Fannie Mae. I seriously doubt they are coming back any time soon.

You move it to CD's because they are safe.

Must be nice to be able to lose $800.00 and not worry about it.

 

[SpidermanTuba]

Mine are invested in bank CD's, so there is little risk involved.

I'm only 31. Why would I put my retirement savings in CD's?

Also, writing down the losses is all great fun for tax savings this year, but it will bite you in the ass when you cash in.

The loss was from Fannie Mae. I seriously doubt they are coming back any time soon.

You move it to CD's because they are safe.

Must be nice to be able to lose $800.00 and not worry about it.

What's the point of worrying? its gone. I'm just happy to get 15% of it back in less taxes.

I'll start moving my retirement money to CD's and treasuries when I start hitting 40 or 45.

 

[Burp]

I'm only 31. Why would I put my retirement savings in CD's?

The loss was from Fannie Mae. I seriously doubt they are coming back any time soon.

You move it to CD's because they are safe.

Must be nice to be able to lose $800.00 and not worry about it.

What's the point of worrying? its gone. I'm just happy to get 15% of it back in less taxes.

I'll start moving my retirement money to CD's and treasuries when I start hitting 40 or 45.

Let's see. Don't move you money to something safe while the market is tanking.

But your good news is that you get 15% back (less taxes).

You will ignore what the market does for 9 years (or more) and then start moving your money around.

Yep. A sound investment strategy.

Betting on a BO handout no doubt.

 

[SpidermanTuba]

You move it to CD's because they are safe.

Must be nice to be able to lose $800.00 and not worry about it.

What's the point of worrying? its gone. I'm just happy to get 15% of it back in less taxes.

I'll start moving my retirement money to CD's and treasuries when I start hitting 40 or 45.

Let's see. Don't move you money to something safe while the market is tanking.

The market has already tanked moron. You're suggesting I sell NOW? what are you, a fucking moron?

But your good news is that you get 15% back (less taxes).

you suggest I should have held onto my FNM stock? YOU're an idiot

 

[Burp]

What's the point of worrying? its gone. I'm just happy to get 15% of it back in less taxes.

I'll start moving my retirement money to CD's and treasuries when I start hitting 40 or 45.

Let's see. Don't move you money to something safe while the market is tanking.

The market has already tanked moron. You're suggesting I sell NOW? what are you, a fucking moron?


you suggest I should have held onto my FNM stock? YOU're an idiot

Right. That's it.

Where did I say to take what money you have left and move it. I think the phrase I used was, "while the market is tanking."

English is your first language right?

As to your FNM stock, apparently you weren't watching the market.

 

[SpidermanTuba]

Let's see. Don't move you money to something safe while the market is tanking.


Right. That's it.

Where did I say to take what money you have left and move it. I think the phrase I used was, "while the market is tanking."

English is your first language right?

As to your FNM stock, apparently you weren't watching the market.

Shouldn't you be out making money off the market?

 

[Skull Pilot]

The only IRA anyone should bother with is a Roth IRA.

There really is no long term benefit to tax deferred retirement accounts. the one exception being an account with an employer match. In which case you should contribute just enough to get the maximum match. Then fund a Roth , if eligible and invest the rest in a diversified portfolio.

The reason being, is that the government will recoup all those deferred taxes in the first few years of retirement and traditional IRAs and other tax deferred accounts are subject to required minimum withdrawal rules based on your age. you have to take out a mandated amount every year or you are penalized. This is just a way for the government to squeeze out of you every last penny of taxes that it can before your croak. And all that money is taxed as regular income which is generally a higher rate than long term capital gains.

 

[Burp]

Shouldn't you be out making money off the market?

Actually I am. I am in a Prudential product that guarantees minimum 7%, and my cash value is determined by the highest point of the market, regardless of how much it tanks the next day, week, or month.

I've been in it for quite a while and have made over 27K since I started. Even while the market is dropping.

So I'm good, but thanks for asking.