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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: Oblomov who wrote (613)	12/15/2000 12:45:57 PM
From: ahhaha	Read Replies (1) \| Respond to of 24758

Darleen said it, "IRA's tied into the market on speculative companies are high risk. It is good to know we are a nation of all winners without risk who love debt." Although she is looking at what goes into an IRA she is also pointing out what brought about the existence of the IRA in the first place. IRA was invented to distract any significant reduction of taxes on capital. It was a peanut thrown to the people to keep them down and it has succeeded. Mostly it has succeeded in promoting the belief that we can all be winners without risk. You put some money into your IRA and borrow to buy with the rest of it, so you get it all now. The idea is built on the assumption that deferred taxes will be taxed at a rate lower than they would have been. The reasoning is built on an extrapolation of current circumstances into the distant future. It's also built on the assumption that what will build up in IRA won't amount to much and that you will still be poor when IRA matures. What happens if the yield on investment at maturity puts you in a higher tax rate than the average capital gain tax had it been paid during the interim? Outside of these speculations on what will happen in the future there is the factor of "free and clear". Deferred taxes are encumbrances. If you pay the tax as you go, you won't miss one damn dime downstream. And, after all, how valuable is yesterday's theoretical gain vs the coming struggle with the government? IRA came from government. Who trusts government? It is government's function to find a way to steal your money and give it to the deserving. It's a holy mission. Do you really think you will refute it?