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#7591 | |||
Supporter
Join Date: Apr 2007
Location: Scott City KS
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Yeah. So the way a Roth works is you put in after tax money. Meaning you. Don’t get to reduce your taxable income by the contribution amount. Also the gains aren’t taxed. That means that once you get to retirement everything that comes out is tax free. There are other benefits and it’s easier to get to if shot hits the fan but the tax breaks are real.
A 401K and Traditional IRA contributions are made pretax. 401K reduces your w-2 wages, IRA you get a tax deduction. Since the money in the fund hasn’t ever been taxed, the distributions are taxable income. Now that’s not all bad. In theory, in retirement, your taxable income should be low so it won’t be a super high tax rate either way. But in most cases Roth is better. Especially if you can afford the taxes. If your employer offers a match on your 401K definitely contribute enough to hit all the match. DO THIS. IT IS FREE MONEY. After that, you should at the very least calculate your tax savings from the 401K and stick that in a Roth. Optimally your employer will offer a 401K with a Roth option but there aren’t a ton of those plans around. Do yourself a favor and get some ****ing money in some ****ing ETF. The details are far less important than getting it the **** in there. Even if it’s Ed Jones, just ****ing do it. Now. Quote:
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Whatever you’re going to do, business is at the heart of it all. Know the numbers. /soapbox. |
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Posts: 57,549
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#7592 |
Banned
Join Date: Jan 2013
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And just like that, this thread returns to it's original intention.
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Posts: 53,803
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#7593 |
TACO SALAD
Join Date: Apr 2008
Location: yes
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I assumed you had a Roth. You could do your trading in a Roth. Ive never done it but my understanding is you can always remove your contributions. So if you put in 6k and it grows to 10k, you can remove the 6k w/o penalty. You may want the extra 4k minus taxes for buying a house now. Just throwing it out there
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Posts: 6,052
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#7594 | |
Mod Team
Join Date: Sep 2011
Location: Valley of the hot as ****
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Quote:
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Posts: 46,015
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#7595 | |
Mod Team
Join Date: Sep 2011
Location: Valley of the hot as ****
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Quote:
I also posted ARTL which I bought the day I posted here and sold the next day for 50% profit. /no big deal |
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Posts: 46,015
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#7596 |
Kind of a mod
Join Date: Aug 2005
Location: Donkey Land
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Posts: 52,210
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#7597 |
Prestige Worldwide
Join Date: Jan 2009
Location: Spring Hill, KS
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Investing megathread extravaganza
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Posts: 18,448
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#7598 |
Mod Team
Join Date: Sep 2011
Location: Valley of the hot as ****
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Posts: 46,015
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#7599 |
Mammoth penis
Join Date: May 2006
Location: Springfield
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This thread is actually better than WallStreetBets because they don't allow talk about SPACs and penny stocks. I've made more from using tips on those the last couple weeks than tips from there for three months. Should have started paying attention sooner.
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Posts: 11,432
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#7600 |
MVP
Join Date: Mar 2019
Location: KC
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Posts: 7,370
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#7601 |
Mammoth penis
Join Date: May 2006
Location: Springfield
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Im hoping some of you with more knowledge on the subject could explain this, as this is the first time I've ever invested in SPACs.
"Yahoo Finance Editor-in-Chief Andy Serwer recently explored the SPAC frenzy and cited Stanford Law Professor Michael Klausner's study “A Sober Look at SPACs,” which found, "SPAC investors that hold shares at the time of a SPAC’s merger see post-merger share prices drop on average by a third or more." https://finance.yahoo.com/news/why-s...192802863.html If this is true, wouldn't we be better off getting out of CCIV and FRX before the mergers? |
Posts: 11,432
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#7602 |
Andy Reid Supporter
Join Date: Apr 2012
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This is critical for your retirement and it really doesn’t cost that much. It’s like that saying “the best time to plant a tree was 20 years ago, but the second best time is today.” Do it now bc time is what helps compound your money to grow.
Put as much in that bitch as you can afford to. It’s really one of the average Joe’s best vehicles to financial freedom. |
Posts: 47,176
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#7603 | |
**** you, you cretin.
Join Date: Jan 2012
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I put in 20% and my employer matches 6%. They’ll match 10% after 10 years of employment, I have 3 more years to go. |
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Posts: 29,782
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#7604 |
Fish are scared of me
Join Date: Nov 2001
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Posts: 40,721
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#7605 |
Prestige Worldwide
Join Date: Jan 2009
Location: Spring Hill, KS
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Posts: 18,448
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