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Old 08-12-2011, 07:00 PM
 
30,538 posts, read 35,785,151 times
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Quote:
Originally Posted by newenglandgirl View Post
Boomers are spending huge in leisure, retirement communities, healthcare and travel. They may not be buying their first fridge but they are still buying fridges. I do not get why their purchasing/demand is not figuring in big enough. Plus, even though boomers are not needing schools we sure are paying the hikes in property taxes to keep those schools open. I have not seen studies on it but I would like to see the percentage of the property tax burden that older retirees are carrying.

As for the beach conversation, if there are beach businesses that the bus takers use that is certainly a plus. Then you have social balances like, if the bus takers do not get to the beach what kinds of negative social things happen when there are few summer leisure opportunities available esp among young adults. Every economic issue has a balance point with at least one social issue.
Depending on the local seniors are paying the same property taxes and not requiring the same level of services and that is good for gov't. Some local govt's give fee/tax advantages to developers of senior communities for that reason. In other communities seniors as indicated in the one link get property tax reductions so it is probably a wash. As has been discussed in the forum before many seniors are enjoying a leisurely life and spending more in doing so. However there overall income is often a lower percentage of their working income so their spending/savings/investing rate is probably lower. As has been discussed before as we are getting older we are cutting back on leisure activities as physical change requires. We are early in the boomer retirement cycle so that is not the factor it will be in 20 years plus. The recently started forum on financial situations has some telling survey information and probably reflects financial changes for many people in retirement. As far as the beach goes I will let that go. The Great Recession has moved the curve of when the Boomer contribution would begin to tail off. Now would be a good time for Robyn to talk about asset growth with fixed incomes moving forward and what that will do to Boomers and ability to add to aggegate demand at the rate anticipated a few years ago.
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Old 08-12-2011, 07:44 PM
 
Location: SoCal desert
8,092 posts, read 13,528,011 times
Reputation: 14891
Quote:
Originally Posted by TuborgP View Post
Hold or Fold? Which did you do?
Back to the topic ...

I sold about 7% of my portfolio in the last week of July.
Held the cash until today and said to hell with watching the roller coaster.

Paid off my mortgage
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Old 08-14-2011, 09:00 AM
 
Location: Lexington, SC
4,281 posts, read 10,990,423 times
Reputation: 3721
As we aged we became more conservative in our investments. While not going the scaredy cat CD, Bond route, we did invest in major company mutual funds, still have small stock market position ($100K) in blue chip stocks, and we rid ourselves of all debt including a mortgage.

My advice is get rid of all debt, move investments to less risky vehicles even if you may have to pay some taxes. One way we did this was sell stocks and invest the money in Mutual Funds as declared IRA's. Yes we had to pay tax on the stock sale profits but the IRA's were tax deductible so the "tax sting" was not as bad.

While I consider our financial position secure, some may say it is to risky for them. Heck some say sell all, buy gold, arm yourself, and move to the hills....LOL

I say if you have the right mix of solid (not some promised to be magic or dying company stock), overall secure financial vehicles as I believe we should have as we age....then hold.
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Old 08-14-2011, 09:05 AM
 
75,964 posts, read 75,388,252 times
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huh, im not sure what your saying about the iras? im not following what you did with them or didnt do with them and the taxes . are you saying you sold equities in a taxable account and re-bought less risky assets in the ira or sold the ira and re-bought in the taxable account?
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Old 08-14-2011, 09:20 AM
 
Location: Lexington, SC
4,281 posts, read 10,990,423 times
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Quote:
Originally Posted by mathjak107 View Post
huh, im not sure what your saying about the iras? im not following what you did with them or didnt do with them and the taxes . are you saying you sold equities in a taxable account and re-bought less risky assets in the ira or sold the ira and re-bought in the taxable account?
Understand from the get go that I am not a CPA nor financial advisor. What I did was looked at and advised on by my CPA. It worked for us, but it might not for others.

I am throwing this out for information only.

For the last several years I have been selling some stock (which I had made a profit on over the years) and using the money to purchase mutual funds which are declared IRA's.

IRA donations are tax deductable.

I had to pay capital gains on the stock sale profit but I got the IRA tax deduction.

Yes it cost me money to do so but my overall goal was to get the money out of the stock market and into a more secure vehicle. Yes there is risk in mutual funds.

There are limits/rules/etc. (earned income, IRA deposit amounts, etc.) to the above so have your CPA look at it.
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Old 08-14-2011, 09:25 AM
 
75,964 posts, read 75,388,252 times
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got it.. i just posted not to long ago on the forums here about just this.

folks who were required to take rmd's would typically take the rmd's and then increase their income by it. sometimes they would have social security taxed or college deductions phased out if they were taking classes and end up making charitable contributions anyway .

the tax code allows these contributions to come directly from the ira, they dont count as taxable income and they do count towards your required distributions.
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Old 08-14-2011, 09:50 AM
 
Location: Lexington, SC
4,281 posts, read 10,990,423 times
Reputation: 3721
Quote:
Originally Posted by mathjak107 View Post
got it.. i just posted not to long ago on the forums here about just this.

folks who were required to take rmd's would typically take the rmd's and then increase their income by it. sometimes they would have social security taxed or college deductions phased out if they were taking classes and end up making charitable contributions anyway .

the tax code allows these contributions to come directly from the ira, they dont count as taxable income and they do count towards your required distributions.
I will soon have to take RMD and as I understand it, one can no longer contribute to an IRA once RMD's start. Contributions heck....I am going to blow the money on wine...women...and song....LOL
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Old 08-14-2011, 10:26 AM
 
Location: Around the UK!
156 posts, read 115,127 times
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Hold. But looked at the long term risks of various investments in various locations.

One has to look at some worst case scenarios over the next twenty years and consider how to minimize these risks.

Investments in certain small business looks quite attractive.
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Old 08-14-2011, 11:52 AM
 
75,964 posts, read 75,388,252 times
Reputation: 53261
Quote:
Originally Posted by accufitgolf View Post
I will soon have to take RMD and as I understand it, one can no longer contribute to an IRA once RMD's start. Contributions heck....I am going to blow the money on wine...women...and song....LOL

glad to see your not just going to waste the money...

if i ever get to old for that plan ill give up singing..
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Old 08-14-2011, 03:27 PM
 
Location: Lexington, SC
4,281 posts, read 10,990,423 times
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Quote:
Originally Posted by PatMil View Post
Hold. But looked at the long term risks of various investments in various locations.

One has to look at some worst case scenarios over the next twenty years and consider how to minimize these risks.

Investments in certain small business looks quite attractive.

Define small business.

Thanks
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