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Old 01-30-2016, 06:33 AM
 
Location: NC
6,555 posts, read 7,981,951 times
Reputation: 13460

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mathjak107 brings the point home, that no matter how much you have saved, the only way it will be of use to you is if you can keep others from taking it away. While I believe that taxation is important, it is especially difficult for those who don't have access or knowledge of how to use all the tax 'loopholes' to allow them to keep more money for themselves. If you live amongst people who discuss these matters all the time you will at least know what to look out for. But if your environment is more middle class, chances are you (meaning me) are missing out on plugging these leaks in your savings during your retirement years.
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Old 01-30-2016, 07:02 AM
 
71,589 posts, read 71,751,865 times
Reputation: 49194
this why good financial planning generally requires a knowledgeable adviser and is a lot more complex then buy some index funds and have a NICE LIFE .
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Old 01-30-2016, 07:26 AM
 
Location: NC
6,555 posts, read 7,981,951 times
Reputation: 13460
Yes indeed. But finding that knowledgable advisor is not always easy. My IRA is with Fidelity which is good for building retirement funds, but they are not that helpful on the tax aspects, since I guess that is not their job.
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Old 01-30-2016, 08:21 AM
 
33,046 posts, read 22,062,610 times
Reputation: 8970
Quote:
Originally Posted by KittyAtlanta View Post
----------------------------------------------


I have earned. Other than that, I did what your sister did, but my misfortune was that my paid-for house, in which I was going to live until they carried me out, ended up sitting in a blighted area. Worth virtually nothing. I had to move. You never know what is going to happen.

How can a house be worth virtually nothing? Every house I've seen that you can live in as a homeowner, you can make rental income with.

I've known several people who bought a house in order to live in it for free by renting out rooms at a profit.
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Old 01-30-2016, 08:25 AM
 
71,589 posts, read 71,751,865 times
Reputation: 49194
Quote:
Originally Posted by luv4horses View Post
Yes indeed. But finding that knowledgable advisor is not always easy. My IRA is with Fidelity which is good for building retirement funds, but they are not that helpful on the tax aspects, since I guess that is not their job.
i suggest you visit the web site of the retirement planning tax master himself ed slott and seek out an ed slott trained tax adviser in your area .

ed is local to us but you can't see ed himself . no one see's the all and powerful ed . ha ha ha

https://www.irahelp.com/

Last edited by mathjak107; 01-30-2016 at 08:42 AM..
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Old 01-30-2016, 08:28 AM
 
33,046 posts, read 22,062,610 times
Reputation: 8970
Quote:
Originally Posted by JohnCurtisEstes View Post
I did it and I am now 54. I have never made more than $50K/year.


My dad taught us at a young age the rule about COMPOUND INTEREST etc.... and he also drilled these 3 rules into our heads:


1. Save 10% of your income EVERY YEAR, no matter how much you make.

2. NEVER finance a depreciating asset (cars etc..)
3. LIVE BELOW YOUR MEANS!!


The book "The Millionaire Next Door" goes into all of these things I just assumed were common sense.


I buy a car (for cash) a year or 2 old and keep it for 10 years then do it all over again.


When I bought my house I always took the monthly payment and divided it by 12 and included that extra amount each month w/ my normal payment.


The house was paid off in 24 years instead of 30.


With each pay raise I got I did NOT go out and buy a better car or a bigger house (like some people), my lifestyle stayed the same. Nice trips each year and good whiskey in the liquor cabinet. Some things you do NOT skimp on!

The bottom two income quintiles do not save 1% of their income. Hard to imagine how the average person making minimum wage is going to save 10% of their income.
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Old 01-30-2016, 08:31 AM
 
71,589 posts, read 71,751,865 times
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they can't save nor live , they exist and that is why if they don't want to commit financial suicide they need to do something about their income and not wait. they need to find a way , not find an excuse .
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Old 01-30-2016, 11:18 AM
 
7,925 posts, read 5,042,332 times
Reputation: 13577
Quote:
Originally Posted by luv4horses View Post
mathjak107 brings the point home, that no matter how much you have saved, the only way it will be of use to you is if you can keep others from taking it away. While I believe that taxation is important, it is especially difficult for those who don't have access or knowledge of how to use all the tax 'loopholes' to allow them to keep more money for themselves. If you live amongst people who discuss these matters all the time you will at least know what to look out for. But if your environment is more middle class, chances are you (meaning me) are missing out on plugging these leaks in your savings during your retirement years.
Brilliantly put!

One of the reasons that I was so distraught in recent weeks, with the seemingly unrelenting stock market losses, was that there was nobody with whom to commiserate. Instead, when I piped up to share my frustration at work, I was met with gleefully sadistic taunts of, "Well, it must be nice to be able to lose all that money!" This goes beyond finding good tax-advisors or accountants or whatnot. It's about psychological support from a suitable peer-group.

I work amongst engineers. Many have PhDs, and most are t least somewhat true to the engineering stereotype of frugality. But they have families, stay-at-home spouses, 2-3 kids (or more; it's a conservative area) to raise, Millennials who boomeranged back home, investment-houses that have gone sour, elderly parents that require live-in care, McMansions with landscaping costs, new cars, a boat. I've spent a lifetime living like Freemkt (probably) and earning/saving like Mathjak or Sportyandmisty (probably; I don't mean to insult people or to use them as cartoonish stereotypes). This means, for me, one foot in the dollar-store/Goodwill/bargain-bin aisle, and another foot in the, ahem, opposite camp - completely bypassing (again not to make idle insinuations about people) the middle-class.

This means dearth of capacity to commiserate, to get together socially for exchanging ideas on investment - or just idle banter. It's important to be around a peer-group, even if no actionable knowledge is exchanged, just for the moral support. Am I peeved that I'm ignorant of clever and abstruse tax-loopholes, of which the mythical "wealthy" can take advantage? Yes, at least a little bit. But what really irritates me is that I don't have anyone to whom to vent, about $XYZ losses on a crushing day in the market.

Likes flocks to like, right? Where should I flock?
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Old 01-30-2016, 12:06 PM
 
Location: SoCal
13,229 posts, read 6,331,374 times
Reputation: 9849
Quote:
Originally Posted by freemkt View Post
The bottom two income quintiles do not save 1% of their income. Hard to imagine how the average person making minimum wage is going to save 10% of their income.
But don't you get earned income credit?
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Old 01-30-2016, 12:25 PM
 
Location: SoCal
13,229 posts, read 6,331,374 times
Reputation: 9849
Quote:
Originally Posted by ohio_peasant View Post
Brilliantly put!

One of the reasons that I was so distraught in recent weeks, with the seemingly unrelenting stock market losses, was that there was nobody with whom to commiserate. Instead, when I piped up to share my frustration at work, I was met with gleefully sadistic taunts of, "Well, it must be nice to be able to lose all that money!" This goes beyond finding good tax-advisors or accountants or whatnot. It's about psychological support from a suitable peer-group.

I work amongst engineers. Many have PhDs, and most are t least somewhat true to the engineering stereotype of frugality. But they have families, stay-at-home spouses, 2-3 kids (or more; it's a conservative area) to raise, Millennials who boomeranged back home, investment-houses that have gone sour, elderly parents that require live-in care, McMansions with landscaping costs, new cars, a boat. I've spent a lifetime living like Freemkt (probably) and earning/saving like Mathjak or Sportyandmisty (probably; I don't mean to insult people or to use them as cartoonish stereotypes). This means, for me, one foot in the dollar-store/Goodwill/bargain-bin aisle, and another foot in the, ahem, opposite camp - completely bypassing (again not to make idle insinuations about people) the middle-class.

This means dearth of capacity to commiserate, to get together socially for exchanging ideas on investment - or just idle banter. It's important to be around a peer-group, even if no actionable knowledge is exchanged, just for the moral support. Am I peeved that I'm ignorant of clever and abstruse tax-loopholes, of which the mythical "wealthy" can take advantage? Yes, at least a little bit. But what really irritates me is that I don't have anyone to whom to vent, about $XYZ losses on a crushing day in the market.

Likes flocks to like, right? Where should I flock?
Isn't that why you have the Internet? What do you mean by no one to vent?
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