Investment BS Thread - Stocks/Futures/Mutual Funds/Bonds/Commodities/Options/ETFs/401ks/Etc

I personally think it's inevitable to change the tax laws
For one thing there is the underground illegal economy that is not currently taxed at income level because it's not reported usually?

I have looked into studies of the fair tax and benefits it could have on national prosperity by eliminating income and investment tax burdens on individuals and corporations
It seems like a good idea

That is one reason why I don't see a ROTH as the bees knees most seem to

 

I am not anti-government at all. I was in the military, and it was the best thing I ever did. I just believe strongly in the limitations designated by the Constitution. It’s a slippery slope that we have to watch, that’s why it was written. It still and always should apply.

 

"Shall not be infringed" is in place and isn't exactly ambiguous, yet it's constantly and increasingly infringed.

 

You’re right. It’s our fault for letting that happen. Vote accordingly!

 

So I guess what @GQ7227 is saying (and hopefully he'll correct me if I'm wrong ) is that you can't count on the rules about ROTH that are in place now, being the same when we're ready to retire.
That's actually sort of the argument for a ROTH. The idea that taxes will likely be higher when we retire so it's better to pay our taxes on that money now rather than later.
The possibility exists I suppose that they could decide to change the rules and tax our ROTHs which would result in double taxation of that money and eliminate its benefit.

 

Income also comes into play I think?

 

Do you think regular brokerage accounts could be affected? That’s what I have. I pay taxes on dividends and capital gains every year. The government would have to literally steal my money for me to be affected. It’s not a retirement account. Maybe I’m paranoid but I don’t trust retirement accounts.

 

There was actually a proposal for a wealth tax that would do exactly that. I have no idea about the likelyhood of that ever happening, but the mere fact that it's been proposed is scary in itself.

 

Is it just basically a promise to not be taxed in the future?

If the fair tax is adopted in the future then there is no income or investment tax
And the ROTH people already paid the tax decades ago
This is a reason why I think the ROTH could've been a scheme to get people's money now and sold with a future promise
But who knows what the future is it has not happened yet!

 

as of Friday with personal and 401k I was down about 10k maybe 12.

I’m not retiring for another 20 years (hopefully 20, that would be retire at 50 ). Not going to fret at the moment.

 

just to highlight this is gross income. A lot of billionaires technically make a gross income of like 100k per year because they know how to shelter it.

wait. Nope i have that backwards. Had a few beers I’m thinking net income. But, the point still stands, the rich people technically don’t make much according to the irs. Everything is sheltered in companies and charities.

 

I have no problem with billionaires, they did great, I’m aspiring to be like them.

 

Yes, I’m too tired to look up the IRS code right now, but pretty sure it’s based on adjusted Gross income.

 

I don’t have a problem. Just an example of the fact that income isn’t always income. Or net worth isn’t always income. Something like that. Like I said I’ve had a few beers tonight. Probably not the best time to give financial advice.

 

Warren Buffett is a prime example of that

 

Yea a few beers for me too. I just don’t get the attack on billionaires. I appreciate their ingenuity on the tax codes, can’t hate on them. We all look to pay the lowest taxes, at least we should!

Edit: I wasn’t saying you were attacking billionaires, just a general statement for all the people who are.

 

I dunno. Kinda annoys me when someone who makes a boat load more than me pays less than I do toward welfare programs and support of the country. But then they also end up running things like the gates foundation.

wasn’t necessarily an attack or anything just pointing out that paper/reality can be different for income when it comes to Roth limits.

 

Wow I just read through most of that and my head hurts
What a confusing cluster mess
The rest of the tax code is just like that

 

Looks like OP just got his ban raised back up for creating a dup acct