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Thread: 401K - What did you learn about the 2008-09 Market Crash?

  1. #21

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    Quote Originally Posted by Ryanferr View Post
    Because you make an instant return via tax savings.
    I can do better outside the grip of the skimmers. It really is tax deferred, not tax free, so your point is invalid.

  2. #22

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    Quote Originally Posted by Atlas Shrugged View Post
    My strategy is to not contribute to a 401k. I take the after tax cash and invest in other things..not stocks, not bonds.

    The only onions I have are in my garden.
    I'm curious as to what exactly do you invest in other than precious metals?
    -"The Golden Rule"
    He who owns the gold, rules!

  3. #23

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    Quote Originally Posted by Creeative2 View Post
    I'm curious as to what exactly do you invest in other than precious metals?
    Guns, investment grade stamps, antique tools, income producing property, nickels, cash, old books and treasury currency. Used to have classic and antique cars, But I think that market is close to being in a bubble.

    You can also look at investment grade art.

    PS gold and silver are insurance, not investments. And cash is a hedge.
    Last edited by Atlas Shrugged; 05-16-2014 at 06:24 AM.

  4. #24

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    Quote Originally Posted by Atlas Shrugged View Post
    I can do better outside the grip of the skimmers. It really is tax deferred, not tax free, so your point is invalid.
    The taxes on principal are deferred, but the capital gains on that increased principal are not. Compound it over several decades and it proves to be a powerful tool. Then when the SP is up 31%....well.....
    The answers are in the data

  5. #25

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    Quote Originally Posted by Ryanferr View Post
    The taxes on principal are deferred, but the capital gains on that increased principal are not. Compound it over several decades and it proves to be a powerful tool. Then when the SP is up 31%....well.....
    Hmm, but you also can't enjoy the tax benefits of a loss; so what happens when the SNP is down 31%? You assume what has been will always be. Normalcy bias.

  6. #26

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    Quote Originally Posted by Ryanferr View Post
    The taxes on principal are deferred, but the capital gains on that increased principal are not. Compound it over several decades and it proves to be a powerful tool. Then when the SP is up 31%....well.....
    The Canadian 401k counterpart is the RRSP (Registered Retirement Savings Plan).

    Principal deposited is tax deferred but ALL withdrawals are taxed; and withdrawals are FORCED starting at age 71.

    Government will tax ALL of your money one way or another.

    We now have the TFSA (Tax Free Savings Account) which allows $5,500 of non-tax deferred deposits per year, but all withdrawals are non-taxed.
    Over-contributions face a 1%/month penalty per month (e.g. I deposit $6,000 in July and pay 5% on $500 or $25).

    RRSPs are good only for people who make a lot of money and will be in a lower tax bracket upon retirement.
    The TFSA (and cash accounts) are for everyone else.
    Last edited by silvercanuck; 05-16-2014 at 09:05 AM.

  7. #27

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    Quote Originally Posted by Atlas Shrugged View Post
    Hmm, but you also can't enjoy the tax benefits of a loss; so what happens when the SNP is down 31%? You assume what has been will always be. Normalcy bias.

    This 100%. No capital gains and no capital loos tax deductions. But still the income tax.
    What's the Frequency, Kenneth?

    432Hz

  8. #28

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    Quote Originally Posted by redraspberry View Post
    This 100%. No capital gains and no capital loos tax deductions. But still the income tax.
    They always get their tax. And fees.

    The fees are insidious, so if we have a couple of down years in the market, the skimmers still get their fees. Every month, every quarter, every year. If the market doesn't go down, but stays steady for the next 10 years, the skimmers still make out. Just like the banking leaches; they always get paid.

  9. #29

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    I make the minimum required to get the full match. It's like a gamble (well, not "like", it IS a gamble) but it also keeps me in good graces with my employer, keeps them from wondering why I'm weird. My REAL retirement has nothing to do with them, or the government. if the 'investing' and/or socialism security comes to anything it'll be gravy but I'm not counting on them.

    (any information in the post related to me owning anything was from a dream I had, not real life)

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