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Old 04-06-2013, 12:04 PM
 
Location: Littleton, CO
20,894 posts, read 13,617,490 times
Reputation: 3949

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Quote:
Originally Posted by HappyTexan View Post
You'd be surprised at what compounding can do over the years.
30 years of 401K contributions, putting in the max and making sound investments can easily get to that number once retired.
This is not talking about 401Ks. It is talking about IRAs.

Assuming the same average return rate as this proposal (i.e. 6.8%), max contributions of $5000 a year into an IRA will give you a total IRA value after 30 years of $455,645.

 
Old 04-06-2013, 12:05 PM
 
Location: Littleton, CO
20,894 posts, read 13,617,490 times
Reputation: 3949
Quote:
Originally Posted by HappyTexan View Post
There is no tax avoidance with IRA/401K. You either take it out and pay tax or you die and it gets taxed in your estate.
Insert "duh" here.
 
Old 04-06-2013, 12:06 PM
 
Location: Too far from home.
8,743 posts, read 5,762,849 times
Reputation: 2361
Quote:
Originally Posted by florida.bob View Post


Quote:
Some details, made public Friday, drew a fierce response from liberals
What??!?!?!

Hellooooooooo liberals!!!! Welcome to Obamaworld!!!! HAHAHAHAH
 
Old 04-06-2013, 12:07 PM
 
Location: Littleton, CO
20,894 posts, read 13,617,490 times
Reputation: 3949
Quote:
Originally Posted by pghquest View Post
Why would they want to do that? The more that sits in the account, the more the government would collect due to an estate tax
They would have to wait until you die. Present dollars are worth more to them than future dollars.

Quote:
Originally Posted by pghquest
And why would they limit the ability of the lower and middle income to create wealth?
A net worth of more than $3M is not middle class.
 
Old 04-06-2013, 12:08 PM
 
Location: Great State of Texas
86,093 posts, read 72,326,058 times
Reputation: 27564
Quote:
Originally Posted by HistorianDude View Post
This is not talking about 401Ks. It is talking about IRAs.

Assuming the same average return rate as this proposal (i.e. 6.8%), max contributions of $5000 a year into an IRA will give you a total IRA value after 30 years of $455,645.
Good Lord...1000 shares of AAPL bought in 2009 at $97 and sold at $600 3 years later is just one simple transaction blows your 6.8% out of the water.
 
Old 04-06-2013, 12:10 PM
 
Location: Beautiful Northwest Houston
5,061 posts, read 4,904,482 times
Reputation: 4164
Angry Leave IRA's alone

Quote:
Originally Posted by the mask View Post
If you think that Obama will only target the wealthy's IRA. You have no idea how socialists operate.
Believe me your retirement and mine will be next!


Obama budget to take aim at wealthy IRAs - The Hill's On The Money
The article says that many people wonder how an IRA can grow beyond $3 million, even though (I'm guessing their thinking) you can only contribute X amount of dollars per year. The answer is easy it's called investing. You can trade stocks, bonds, ETF's ect. within an IRA without any tax consequences until you withdraw the funds, at which time the money is taxed at the rates of ordinary income. This means the value of holding within your IRA can inflate to many times the value of the sum of all the cash contributions.

If they are passing this law to punish people for successful investing then they are on the wrong track, the money will be withdrawn eventually because at a certain age you are required to start withdrawing money from your IRA based on a formula that takes into account your average life expectancy. If you die with funds remaining then your Aires are required to withdraw money annually regardless of their age.

Leave IRA's alone they are a great way to attain an independent retirement without Government subsidy.

[SIZE=-3][/SIZE]
 
Old 04-06-2013, 12:10 PM
 
69,372 posts, read 55,371,954 times
Reputation: 9358
Quote:
Originally Posted by eRayP View Post
this thread is interesting Ok, 1031 tax exchanges is the exchange of property but can you explain how it is beneficial to the rich to use them. Not to attack rich (i'm not one of those types), but to understand.
Sure, I'll give you a very real world example, one I did myself several years ago..

Buy a $4,000,000 property, have investors put up $800,000 borrow the other $3,200,000 to buy the property on a 15 year loan. You have a tenant sign a 15 year lease, and use 100% of ALL revenues to cover debt.. Note, NO YEARLY PROFITS = NO TAXES DUE..

In 15 years when the property is paid for, you have a choice between selling this proprty and paying taxes, or roll them over into a $20,000,000 property, thereby increasing your monthly income, growing your wealth, (i.e. you just went from $0 wealth, to $20,000,000 in wealth, and paid $0 in taxes while doing so) or I can reborrow against that property and spend (or more accurately, reinvest) the $3,300,000 TAX FREE, since borrowed money isnt taxed. All of this without spending A DIME in taxes.

Borrowed money isnt taxed, so when you borrow against your property, you dont pay taxes
Rolling wealth over into a 1031 tax exchange, thereby growing your wealth, isnt taxed

ONLY INCOME is taxed, and because you're rich (since we're discussing the rich), you dont need the income, so you just keep reinvesting money to grow your wealth, without paying taxes.
 
Old 04-06-2013, 12:10 PM
 
Location: Littleton, CO
20,894 posts, read 13,617,490 times
Reputation: 3949
Quote:
Originally Posted by pghquest View Post
Isnt the estate tax rate higher than the tax rate one would pay when taking money out of their IRA?
Not in this case. The Estate tax doesn't really kick in until after the $5M non-taxable gift limit.
 
Old 04-06-2013, 12:11 PM
 
Location: Great State of Texas
86,093 posts, read 72,326,058 times
Reputation: 27564
Quote:
Originally Posted by HistorianDude View Post
They would have to wait until you die. Present dollars are worth more to them than future dollars.


A net worth of more than $3M is not middle class.
Gee are they rich then ?
Your talking about people who worked for 30+ years and saved here.
You think they are the 1% you cry about ?
 
Old 04-06-2013, 12:12 PM
 
69,372 posts, read 55,371,954 times
Reputation: 9358
Quote:
Originally Posted by HistorianDude View Post
They would have to wait until you die. Present dollars are worth more to them than future dollars.
If they limit your income (which is what you said) then the money wouldnt come till the future.
Quote:
Originally Posted by HistorianDude View Post
A net worth of more than $3M is not middle class.
And this is where you show your ignorance

Middle class is not defined by wealth, middle class is INCOME..

Wealth and income is not the same.. I've known very wealth individuals who have no income, and I've known people with fabulous incomes, that were poor..

Learn the difference.
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