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Old 02-09-2015, 09:32 AM
 
18,719 posts, read 13,497,174 times
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Quote:
Originally Posted by arrieros81 View Post
Aren't you gambling with the fluctuations of the share prices of the investments in the Roth?

Unless you were selling the shares that make up the distribution at a higher price than the share price that you were buying back into, I don't see how this works. This reminds me of that last thread where someone was saying to pay a tax bill by selling investments instead of keeping cash on hand.


You are correct you are subject to market fluctuation and the OP is such a great trader taking any money out of the Roth would seem harmful
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Old 02-09-2015, 01:32 PM
 
2,292 posts, read 1,545,614 times
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Quote:
Originally Posted by arrieros81 View Post
Aren't you gambling with the fluctuations of the share prices of the investments in the Roth?

Unless you were selling the shares that make up the distribution at a higher price than the share price that you were buying back into, I don't see how this works. This reminds me of that last thread where someone was saying to pay a tax bill by selling investments instead of keeping cash on hand.
It's much more complex than that. lol.
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Old 02-09-2015, 01:37 PM
 
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Quote:
Originally Posted by Burkmere View Post
It's much more complex than that. lol.
Lol isn't complex. You aren't hiding any super comped scenario that would require a high level of understanding or skill.
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Old 02-09-2015, 01:39 PM
 
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Quote:
Originally Posted by arrieros81 View Post
What are those reasons and issues? If you clarify those maybe it would be clear what the advantages are. Give us an example where you'd withdraw $200000 from the Roth, contribute $6500 to the Roth, and come out ahead than if you had only withdrawn $193500 from the Roth and used the $6500 cash you had.
Go back and read Brad's explanations. Just because you don't understand why doesn't mean there's not good reasons why a professional like Brad might make a case for it ( my case almost exactly re: liquidity). If you don't understand it, that's not my fault.

I asked a simple question and he answered it. Thank you, Brad. For most folks, Prob best to keep it simple and never think about these issues that could maximize your net worth.

I'm not your financial advisor. I don't know folks' situation, preferences, tolerance for risk, etc. You can withdraw tax free at 59.5 and if u qualify you can still contribute. That's all I want to know. In my case, I can use this to good advantage.
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Old 02-09-2015, 02:02 PM
 
18,719 posts, read 13,497,174 times
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Quote:
Originally Posted by Burkmere View Post
Go back and read Brad's explanations. Just because you don't understand why doesn't mean there's not good reasons why a professional like Brad might make a case for it ( my case almost exactly re: liquidity). If you don't understand it, that's not my fault.

I asked a simple question and he answered it. Thank you, Brad. For most folks, Prob best to keep it simple and never think about these issues that could maximize your net worth.

I'm not your financial advisor. I don't know folks' situation, preferences, tolerance for risk, etc. You can withdraw tax free at 59.5 and if u qualify you can still contribute. That's all I want to know. In my case, I can use this to good advantage.

You can withdraw your contributions tax and penalty free at any time. Brad's reply doesn't explain a scenario that actually makes sense.

You clearly cant describe your scenario and I question your expertise if you didn't know the answer to your original question before posting here.
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Old 02-09-2015, 02:04 PM
 
18,719 posts, read 13,497,174 times
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How complicated is this? Based on the below and a brief view of prior post I will strongly question your background in this business and your overall understanding.

Quote:
Originally Posted by Burkmere View Post
I opened up a Roth IRA many years ago. I haven't contributed to it all the past 10 years or so. I'm 60 and am still working but may retire within a year or so. I'm considering putting in the 6500 I can now put in because I'm over 50 and haven't dontributed for quite a while (catch up). However, does this "new " amount have to be in the Roth IRA for five up years before it can be withdrawn or can I withdraw any amount from the IRA before the five years are up since the IRA Acct itself has been opened for more than five years (plus I'm over 59.5 now, etc.) Thanks.
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Old 02-09-2015, 02:14 PM
 
1,212 posts, read 1,852,393 times
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Quote:
Originally Posted by Burkmere View Post
Go back and read Brad's explanations. Just because you don't understand why doesn't mean there's not good reasons why a professional like Brad might make a case for it ( my case almost exactly re: liquidity). If you don't understand it, that's not my fault.

I asked a simple question and he answered it. Thank you, Brad. For most folks, Prob best to keep it simple and never think about these issues that could maximize your net worth.

I'm not your financial advisor. I don't know folks' situation, preferences, tolerance for risk, etc. You can withdraw tax free at 59.5 and if u qualify you can still contribute. That's all I want to know. In my case, I can use this to good advantage.
I'm reading post #18. He's saying you have liquidity problems, is that right? So then, you're taking the distribution from the taxable account, incurring taxable gains (hopefully), taking another distribution from the Roth tax free to pay the taxable gains on the taxable account, then using whatever proceeds are left over to put back into the Roth???

I don't think many people would intentionally structure their finances where they have to be in a position to sell investments to meet short term obligations. I think that's crazy risky, not to mention a huge waste of time, but whatever works for you.

Last edited by arrieros81; 02-09-2015 at 02:26 PM..
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Old 02-09-2015, 05:10 PM
 
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Quote:
Originally Posted by arrieros81 View Post
I'm reading post #18. He's saying you have liquidity problems, is that right? So then, you're taking the distribution from the taxable account, incurring taxable gains (hopefully), taking another distribution from the Roth tax free to pay the taxable gains on the taxable account, then using whatever proceeds are left over to put back into the Roth???

I don't think many people would intentionally structure their finances where they have to be in a position to sell investments to meet short term obligations. I think that's crazy risky, not to mention a huge waste of time, but whatever works for you.
It's not a liquidity problem. It allows you to have more liquidity if you need it and for a variety of reasons. For the record, I would never do what your are implying.
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Old 02-09-2015, 05:21 PM
 
2,292 posts, read 1,545,614 times
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Quote:
Originally Posted by arrieros81 View Post
I'm reading post #18. He's saying you have liquidity problems, is that right? So then, you're taking the distribution from the taxable account, incurring taxable gains (hopefully), taking another distribution from the Roth tax free to pay the taxable gains on the taxable account, then using whatever proceeds are left over to put back into the Roth???

I don't think many people would intentionally structure their finances where they have to be in a position to sell investments to meet short term obligations. I think that's crazy risky, not to mention a huge waste of time, but whatever works for you.
Could be something as simple as not wanting to liquidate equities you own in a personal account and having to pay taxes on the gains at the present time. Maybe you'd rather withddraw from the Roth that has increased significatly over time, etc. Could be many reasons.
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Old 02-09-2015, 05:26 PM
 
2,292 posts, read 1,545,614 times
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Quote:
Originally Posted by Lowexpectations View Post
How complicated is this? Based on the below and a brief view of prior post I will strongly question your background in this business and your overall understanding.
Go ahead and question it. You apparently have trouble comprehending Brad's message. You may want to visit a financial planner with some expertise regarding strategies. There's nothing wrong with admiting that you don't have full knowledge of all the strategies for maximizing your wealth.
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