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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.
You said it wasn't a liquidity issue so why would you point to brad's example? Even still it doesn't make sense and that's not because of my lack of understanding. You still have yet to be able and articulate what you are doing, why and the benefit of it. If I learn something I have no problem admitting it, you have just failed to communicate at all what you are doing or what you think the benefit is.
You've also talked about what a great trader you are but taking out money from your Roth would not be of benefit in that case. You've also posted threads about investment advice although you tout how great you are at trading. You aren't making sense and it's not my knowledge or comprehension that's the issue
What really the OP doing is protecting the market gain associated with 6500/year. If he was to put it in a regular broker account and say, double it in one year, he would pay tax on his gain. If he were to put it in Roth and double the money, he wouldn't pay tax on the gain. Whether he can make substantial gain in trading this way is not the question. But theoretically, one can clearly come ahead by doing what he is doing if you can beat the market.
What really the OP doing is protecting the market gain associated with 6500/year. If he was to put it in a regular broker account and say, double it in one year, he would pay tax on his gain. If he were to put it in Roth and double the money, he wouldn't pay tax on the gain. Whether he can make substantial gain in trading this way is not the question. But theoretically, one can clearly come ahead by doing what he is doing if you can beat the market.
Without a liquidity concern and tax protection why would you withdrawal any money from the Roth instead of doubling it every year and adding 6500 every year? What's the benefit of contributing and withdrawing? What you are describing is not protecting a market gain anymore than simply selling in the Roth and leaving it in cash in the Roth.
What really the OP doing is protecting the market gain associated with 6500/year. If he was to put it in a regular broker account and say, double it in one year, he would pay tax on his gain. If he were to put it in Roth and double the money, he wouldn't pay tax on the gain. Whether he can make substantial gain in trading this way is not the question. But theoretically, one can clearly come ahead by doing what he is doing if you can beat the market.
That's not the whole scenario,
He's not just contributing to the Roth, he's proposing withdrawing from the Roth, then contributing.
If he was just contributing, then his gains would be protected from taxes. But when he says he's making withdrawals and contributions to improve his liquidity, or for various other reasons for which the benefits aren't clear, that's what we're trying to figure out.
This is unbelievable that this is still being discussed. Everybody likes to blow their own horn about how great they are. The OP asked a question and clearly indicated he just wanted the question answered and that he wasn't looking for financial advice. I have no clue why he's asking the question and Im too busy servicing clients who pay me to discuss this and other topics further that I don't really care why he's asking the question. Just move on.
This is unbelievable that this is still being discussed. Everybody likes to blow their own horn about how great they are. The OP asked a question and clearly indicated he just wanted the question answered and that he wasn't looking for financial advice. I have no clue why he's asking the question and Im too busy servicing clients who pay me to discuss this and other topics further that I don't really care why he's asking the question. Just move on.
Well I answered the question in post 7. If you don't have the time to waste you don't have to keep posting
Well I answered the question in post 7. If you don't have the time to waste you don't have to keep posting
Actually, you didn't. I asked about contributing and withdrawing. I'm done posting . Thanks, Brad.
Funny how most of the rest of you don't even understand this. LOL. Hopefully, you don't actually have clients or friends you are advising.
Have fun paying taxes in your taxable account but it probably doesn't even affect you because most of you probably don't even invest in a taxable account. My money is in the market in taxable accounts AND Three deferred
Comp accounts plus a Roth. I don't think it's very bright to keep much in cash nor is it very bright to sell in a taxable account if it's not necessary. Just my opinion. Now I've other things to do than discuss this with you since my original question was just a clarification. Good luck to all of you!!
Actually, you didn't. I asked about contributing and withdrawing. I'm done posting . Thanks, Brad.
Funny how most of the rest of you don't even understand this. LOL. Hopefully, you don't actually have clients or friends you are advising.
Have fun paying taxes in your taxable account but it probably doesn't even affect you because most of you probably don't even invest in a taxable account. My money is in the market in taxable accounts AND Three deferred
Comp accounts plus a Roth. I don't think it's very bright to keep much in cash nor is it very bright to sell in a taxable account if it's not necessary. Just my opinion. Now I've other things to do than discuss this with you since my original question was just a clarification. Good luck to all of you!!
You're done posting but were never capable of articulating your strategy
I don't think you even understand what your supposed strategy was or is. You can keep repeating that we don't understand but you haven't even stated what you were trying to do.
Post #7 does answer your question, if you have earned income below the limit you can contribute.
If he's boasting how well he does as a trader then he may be invested too heavily in risky investments for his retirement plans. His strategy for using long term investments to pay for daily living expenses may work now when the market is up but will fall apart when the market crashes.
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