Jim's Nasdaq100 Special as a basket. Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Jim's Nasdaq100 Special as a basket.

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: James F. Hopkins who wrote (80)	2/27/1999 11:14:00 PM
From: Monty Lenard	Read Replies (2) of 2103

and pay the debt off with dollars that are worth less. That one theory is used extensively in what I do. The whole idea is to postpone taxes as long as one can believing they will be paid in the future with a dollar that is worth less. They did come up with what they hoped would be a way to stop people from postponing paying taxes with future dollars. The ROTH IRA. <g> It is really amazing how many people jumped on that one not realizing what they were doing. There are a few situations (very few IMHO) where it is a wise decision to convert regular IRA's to Roths and pay the taxes now. My problem is ...I don't trust them not to change the rules. Right now they are saying the Roths will never be taxed. SS was not taxed at one point in time but they changed their minds. Just like you don't fight the Feds (interest rates) in the market...neither should one believe what they say. The Roth is kinda like a front end loaded mutual fund. Kinda like paying a commission which means you have less dollars to invest. Now one can make the math work out and if the market continues at the rate that is has in the past few years everything will be hunky dorri but if we go into a bear market for an extended period of time all of a sudden the Roths will not look good at all. No way I will take 28% or whatever marginal tax bracket multiplied times my retirement savings and just give it to them on the front end(advance it to them) thinking they won't figure out a way to screw me out of it later. They should have seen the light when many of them converted to Roths in the spring/summer of 1998 and then realized they were going to pay taxes on phantom income....what they converted was worth a whole lot less in October. But to save them the gov't said .... hey we will let you change your mind, revoke that election and reelect at a later date. Hell if I am a rat that gets caught in a trap like that and they let me out once you can bet I won't nibble on that cheeze again. That was an example of what a protracted bear market would mean to those that opted to convert. Monty

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next