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Well what have we got here! More words of wisdom from the Fresh Prince of Conshohocken! It seems all we have to do is follow his prescription fo financial success and we'll all end up as 92 year old millionaires!
Well, yes. Statistically, there has never been a 30 year holding period in US history where the market hasn't returned at least 8% annually. If a person who is age 21 and does nothing but invest the Roth IRA limit, $5,500 a year, directly into an S&P 500 index fund, by the time they are 65 they should have a net worth of approximately $2,125,780.90, all 100% tax free. At a 2.25% dividend, that's around a $47,000 income. If a husband and wife were to do that together, they'd have $94,000 in tax-free income, which would be like a $145,000 annual salary because they aren't paying 30-36% income taxes on it. Granted, inflation should roughly halve the money by then, but that's still like having a $70,000/year salary, which is well-above median income. And if they were smart, they'd have no mortgage by the time they're 65 and no kids left, so an above-median salary income with only utility bills and property taxes is a darn good plan.
If they also decide to set up a 401(k), a DRIP or DSSP or invest elsewhere, they will have many, many more millions. That amounts to less than $106/week. People spend more than half of that a week on cigarettes.
I'm also not counting social security, which may or may not exist. If benefits still exist, they'd be quite wealthy.
You need a plan.
Quote:
Originally Posted by TheEmissary
Been there and done that! I retired at 51 and have accumulated enough money that I can write out a check for a new car or even a new house if I had to. I started investing at 24 and while I'm not a millionaire, I'm more than halfway there. Trust me, I'm not at all jealous of rich people!
That's good you found success. I'm a bit wary of the latter statement.
Quote:
Originally Posted by TheEmissary
I am acutely aware that there's a lot of people in this world who are not as fortunate in the financial sense as I am. I went to very good schools where I learned math ...from simple arithmetic to differential equations and I can tell you that under the current NC tax system, I pay more than I used to ...with not a relatively high retirement income! This is true for a vast number of North Carolinians who aren't high income folks, who have been bamboozled by the RWNJ NC legislature that they are somehow better off than they were a few years back. They and I aren't!
I find my NC political ideas mirror this clip from HBO's "The Newsroom". I'm feeling more like Jeff Daniel's character every day!
If you are offended by a few choice curse words avoid watching this clip!
That's a very commonly shared video. It's also political BS.
If you are paying more in taxes in the current NC system, it is because you are actively consuming more. Taxes have been shifted away from income-based to USE-BASED. If you are being taxed more heavily in a use-tax-based system, it is because you are consciously using more of the system. That is by your choice - you are choosing to pay more, whereas with income taxes you do not choose to pay them.
That is the main difference. CHOICE is freedom. Forced taxation is enslavement. NC is moving away from enslavement and toward freedom of choice - there is a lot of room for improvement, but they are headed in the right direction. That is a huge difference in principles. Many buy into the great con, where every person who has ever attained wealth did it by walking all over the innocent poor, and their wealth needs to be confiscated. That, my friend, is exactly what the Soviets and the Nazi's believed...well, except the guys up top who were above the law.
Well, yes. Statistically, there has never been a 30 year holding period in US history where the market hasn't returned at least 8% annually. If a person who is age 21 and does nothing but invest the Roth IRA limit, $5,500 a year, directly into an S&P 500 index fund, by the time they are 65 they should have a net worth of approximately $2,125,780.90, all 100% tax free. At a 2.25% dividend, that's around a $47,000 income. If a husband and wife were to do that together, they'd have $94,000 in tax-free income, which would be like a $145,000 annual salary because they aren't paying 30-36% income taxes on it. Granted, inflation should roughly halve the money by then, but that's still like having a $70,000/year salary, which is well-above median income. And if they were smart, they'd have no mortgage by the time they're 65 and no kids left, so an above-median salary income with only utility bills and property taxes is a darn good plan.
If they also decide to set up a 401(k), a DRIP or DSSP or invest elsewhere, they will have many, many more millions. That amounts to less than $106/week. People spend more than half of that a week on cigarettes.
I'm also not counting social security, which may or may not exist. If benefits still exist, they'd be quite wealthy.
You need a plan.
That's good you found success. I'm a bit wary of the latter statement.
That's a very commonly shared video. It's also political BS.
If you are paying more in taxes in the current NC system, it is because you are actively consuming more. Taxes have been shifted away from income-based to USE-BASED. If you are being taxed more heavily in a use-tax-based system, it is because you are consciously using more of the system. That is by your choice - you are choosing to pay more, whereas with income taxes you do not choose to pay them.
That is the main difference. CHOICE is freedom. Forced taxation is enslavement. NC is moving away from enslavement and toward freedom of choice - there is a lot of room for improvement, but they are headed in the right direction. That is a huge difference in principles. Many buy into the great con, where every person who has ever attained wealth did it by walking all over the innocent poor, and their wealth needs to be confiscated. That, my friend, is exactly what the Soviets and the Nazi's believed...well, except the guys up top who were above the law.
You still don't get it! I'm not using more!!! I'm getting taxed on things I wasn't getting taxed on before 2013 and it is a greater amount than the decrease in income taxes! What part of that don't you understand?
Life tends to get in the way of your idealized investment numbers. Sickness, children and early death tend to trip up those rosy projections!
Location: The place where the road & the sky collide
23,814 posts, read 34,678,989 times
Reputation: 10256
Quote:
Originally Posted by ChocoTaco369
That's unfortunate. Some people learn too late. Others never learn. This is why a positive attitude and self-investment is such an important principle to learn young. Time is the #1 contributor to wealth and success.
You still don't get it! I'm not using more!!! I'm getting taxed on things I wasn't getting taxed on before 2013 and it is a greater amount than the decrease in income taxes! What part of that don't you understand?
Life tends to get in the way of your idealized investment numbers. Sickness, children and early death tend to trip up those rosy projections!
These are all use-taxes. States are expanding their sales tax bases nationwide. Are you watching what's happening with the economy?
Retail is dying. Goods and services are being overwhelmingly purchased online at the expense of brick-and-mortar stores. This means people are purchasing their goods largely out of state where they avoid sales taxes. State governments are, as a result, seeing huge drops in revenues. Of course they have to expand their sales tax base.
Sales tax was also traditionally charged on goods, not services. As I'm sure you're aware, America has lost its manufacturing zeal. We are now a service-based economy. Governments have to expand their sales tax to include these services or the revenues dry up.
What you don't seem to understand is use-taxes are the most fair tax. You seem to just want to complain with little understanding as to why. NC is making great strides with their tax code - they are reducing forced taxation on things like income, and instead broadening use-tax because it is a fair tax - people only pay on goods and services they purchase, many of them luxuries.
This also increases the pool of people who can contribute to the system. We have the lowest labor participation rate since the mid-1970's nationwide. Not a lot of people have income these days. However, everybody purchases things. It's also a nifty trick that states like NC, FL and TX can use to their advantage because it disproportionately siphons revenue from tourists - a good thing for residents.
Again, if you don't want to pay taxes, simply purchase less things. That's your choice.
Location: The place where the road & the sky collide
23,814 posts, read 34,678,989 times
Reputation: 10256
Quote:
Originally Posted by ChocoTaco369
These are all use-taxes. States are expanding their sales tax bases nationwide. Are you watching what's happening with the economy?
Retail is dying. Goods and services are being overwhelmingly purchased online at the expense of brick-and-mortar stores. This means people are purchasing their goods largely out of state where they avoid sales taxes. State governments are, as a result, seeing huge drops in revenues. Of course they have to expand their sales tax base.
Sales tax was also traditionally charged on goods, not services. As I'm sure you're aware, America has lost its manufacturing zeal. We are now a service-based economy. Governments have to expand their sales tax to include these services or the revenues dry up.
What you don't seem to understand is use-taxes are the most fair tax. You seem to just want to complain with little understanding as to why. NC is making great strides with their tax code - they are reducing forced taxation on things like income, and instead broadening use-tax because it is a fair tax - people only pay on goods and services they purchase, many of them luxuries.
This also increases the pool of people who can contribute to the system. We have the lowest labor participation rate since the mid-1970's nationwide. Not a lot of people have income these days. However, everybody purchases things. It's also a nifty trick that states like NC, FL and TX can use to their advantage because it disproportionately siphons revenue from tourists - a good thing for residents.
Again, if you don't want to pay taxes, simply purchase less things. That's your choice.
If you actually believe this rubbish, you wouldn't have lambasted the soda tax in Philadelphia. It seems to me that you are just trolling.
I sometimes wonder if Godwin's law applies in the NC city data forum. The odds that a thread will turn into bashing the Legislature approaches 1 the longer it lasts.
I'm sure glad Tennessee recently passed a constitutional amendment preventing a personal income tax. Escape is not far away if/when the Democrats take over the leg and statehouse again to raise income taxes back to Bev Purdue levels. (And I highly doubt they'll remove any of the expanded sales taxes that the GOP levied.)
I sometimes wonder if Godwin's law applies in the NC city data forum. The odds that a thread will turn into bashing the Legislature approaches 1 the longer it lasts.
I'm sure glad Tennessee recently passed a constitutional amendment preventing a personal income tax. Escape is not far away if/when the Democrats take over the leg and statehouse again to raise income taxes back to Bev Purdue levels. (And I highly doubt they'll remove any of the expanded sales taxes that the GOP levied.)
Escape to where? Most working and middle class people are paying more in their baseline effective tax rate since the new tax laws have become effective. You keep believing that the GOP has your best interest in mind instead of the corporate swindlers. What's even more psychotic is that you can show people the numbers, stats, etc..FACTS, they still don't believe it....the GOP (and Trump) could sell sht to a pig.
I just filed my taxes last week (yeah I'm a procrastinator). I'm getting refunds now from NC, but I was oweing under Purdue. Those are enough facts for me. I don't buy much stuff so I doubt the sales tax impact makes up for a swing of $1000 or more in income taxes.
I just filed my taxes last week (yeah I'm a procrastinator). I'm getting refunds now from NC, but I was oweing under Purdue. Those are enough facts for me. I don't buy much stuff so I doubt the sales tax impact makes up for a swing of $1000 or more in income taxes.
Owing* Perdue*
So basically; if something doesn't affect you; it isn't happening. Got it.
This awful election season is exposing the true colors of the native people in the more rural areas. While this place has a lot of transplants, the rural areas outside of the cities are full of people who absolutely hate northerners and figure them to be a threat to the political sway of the state.
The last 2 months have been eye-opening. An otherwise friendly, easy-going area has become quite hostile to people who are obviously not from around here. That's sad. We're leaving because of it, in fact.
Last edited by SalisburyHill; 08-21-2016 at 08:19 PM..
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