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Re: Ways to Build Wealth ?

Posted: Wed Jan 23, 2019 8:17 am
by shaz
JMJ Farms wrote:I’ve got it figured like this.
1) My ‘real’ job pays the bills
2) Cows pay their own way
3) Cows have allowed me to buy things, (farm, equipment) that otherwise I couldn’t have justified owning.
4) Cows provide a way to get some money up in a hurry if the need arises.
5) Cows give me a justifiable reason to ‘leave the house’ at any time (when their is a little friction at home there’s always a fence that needs fixed)
6) I THINK that at the very worse, the cows are a savings account.
7) If I were to liquidate tomorrow , I would realize a profit over what I’ve put in, not accounting for labor of course!
8) I don’t know of one piece of equipment that I own that would bring more than 10% less than what I payed for it. Most is worth more than I payed for it. Equipment has been a better investment than the cows. But I don’t buy new equipment. It was all bought used and it’s all been fixed or improved and well taken care of.
9) No matter whether it’s land, equipment, cows, housing, or a gallon of milk.....the money is made when you buy it and it’s of no real value unless you sell it


Run around on the side by side for a couple hours drinking beer "checking on the herd". One of my favs for sure

Re: Ways to Build Wealth ?

Posted: Thu Jan 24, 2019 7:40 pm
by JMJ Farms
shaz wrote:
Wed Jan 23, 2019 8:17 am
JMJ Farms wrote:I’ve got it figured like this.
1) My ‘real’ job pays the bills
2) Cows pay their own way
3) Cows have allowed me to buy things, (farm, equipment) that otherwise I couldn’t have justified owning.
4) Cows provide a way to get some money up in a hurry if the need arises.
5) Cows give me a justifiable reason to ‘leave the house’ at any time (when their is a little friction at home there’s always a fence that needs fixed)
6) I THINK that at the very worse, the cows are a savings account.
7) If I were to liquidate tomorrow , I would realize a profit over what I’ve put in, not accounting for labor of course!
8) I don’t know of one piece of equipment that I own that would bring more than 10% less than what I payed for it. Most is worth more than I payed for it. Equipment has been a better investment than the cows. But I don’t buy new equipment. It was all bought used and it’s all been fixed or improved and well taken care of.
9) No matter whether it’s land, equipment, cows, housing, or a gallon of milk.....the money is made when you buy it and it’s of no real value unless you sell it
Run around on the side by side for a couple hours drinking beer "checking on the herd". One of my favs for sure
That’s right. Sometimes you just need something that ‘knocks your tractor out of gear’

I don’t know where that little smiley face with sun glasses thing come from. I didn’t post it and it doesn’t show up on the edit screen. Supposed to be an 8 with a ). But I just figured out that if you put the 8 and ) together it makes this feller
8)

Re: Ways to Build Wealth ?

Posted: Tue Jan 29, 2019 9:41 am
by Jthurler
Feed inventory. So that when cows or heifers hit rock bottom you can increase your herd or improve your genetic base. Or sell feed

Re: Ways to Build Wealth ?

Posted: Tue Jan 29, 2019 1:40 pm
by 1982vett
JMJ Farms wrote:
Tue Jan 22, 2019 8:06 pm

7) If I were to liquidate tomorrow , I would realize a profit over what I’ve put in, not accounting for labor of course!
That right their is the kick in the seat of the pants.... few take that into account and pass it off as lifestyle choice.

I could say my “investment” (rough value of assets costs used to raise cattle not including value of land) earned in the neighborhood of 7.5% but my salary check is in the mail.... All I can say is i feel I’m running an extremely expensive one member fitness center.

Re: Ways to Build Wealth ?

Posted: Tue Jan 29, 2019 2:37 pm
by midTN_Brangusman
Steve, I've been thinking about putting together a pot load of bull calves, cutting and back grounding them and turn em loose this spring when grass gets growing. Could put them in a video sale. What do you think?

Re: Ways to Build Wealth ?

Posted: Tue Jan 29, 2019 7:55 pm
by JMJ Farms
1982vett wrote:
Tue Jan 29, 2019 1:40 pm
JMJ Farms wrote:
Tue Jan 22, 2019 8:06 pm

7) If I were to liquidate tomorrow , I would realize a profit over what I’ve put in, not accounting for labor of course!
That right their is the kick in the seat of the pants.... few take that into account and pass it off as lifestyle choice.

I could say my “investment” (rough value of assets costs used to raise cattle not including value of land) earned in the neighborhood of 7.5% but my salary check is in the mail.... All I can say is i feel I’m running an extremely expensive one member fitness center.
Yep. I here you Vette. I personally feel cattle are worse than a crack addiction. The only ones that will ever really benefit are the ones that cash the check when I die :lol2:

Re: Ways to Build Wealth ?

Posted: Sun Feb 10, 2019 9:18 am
by Brute 23
If you are not paying taxes in some form or fashion you not actually making money which makes it hard to accumulate wealth. At the end of the day, there is no way to legally avoid taxes.

Re: Ways to Build Wealth ?

Posted: Sun Feb 10, 2019 9:27 am
by Caustic Burno
JMJ Farms wrote:
Tue Jan 29, 2019 7:55 pm
1982vett wrote:
Tue Jan 29, 2019 1:40 pm
JMJ Farms wrote:
Tue Jan 22, 2019 8:06 pm

7) If I were to liquidate tomorrow , I would realize a profit over what I’ve put in, not accounting for labor of course!
That right their is the kick in the seat of the pants.... few take that into account and pass it off as lifestyle choice.

I could say my “investment” (rough value of assets costs used to raise cattle not including value of land) earned in the neighborhood of 7.5% but my salary check is in the mail.... All I can say is i feel I’m running an extremely expensive one member fitness center.
Yep. I here you Vette. I personally feel cattle are worse than a crack addiction. The only ones that will ever really benefit are the ones that cash the check when I die :lol2:
I figure my cattle will be running through the barn bout the time the last shovel of dirt lands on me.
Equipment sale will be the next week.

Re: Ways to Build Wealth ?

Posted: Sun Feb 10, 2019 3:32 pm
by TennesseeTuxedo
Brute 23 wrote:
Sun Feb 10, 2019 9:18 am
If you are not paying taxes in some form or fashion you not actually making money which makes it hard to accumulate wealth. At the end of the day, there is no way to legally avoid taxes.
Self directed Roth IRA.

Re: Ways to Build Wealth ?

Posted: Sun Feb 10, 2019 5:12 pm
by sstterry
Caustic Burno wrote:
Sun Feb 10, 2019 9:27 am

I figure my cattle will be running through the barn bout the time the last shovel of dirt lands on me.
Equipment sale will be the next week.
A former neighbor passed away a few years ago. He had invented a process to purify ceramics in his barn using old farm parts. Salt of the earth guy that got really rich really quick. He bought about 3 contiguous farms and several businesses (which he knew nothing about running). He had a son-in-law that convinced him to get cute and try and avoid taxes through various trusts and shell corporations. After several years, his estate was liquidated a few months ago at an IRS tax sale. His farm, which was his pride and joy, brought less than 1/2 of its appraised value. His 4 kids got nothing.

He never asked my advice on much other than some smaller legal matters which I always handled free of charge. If I had known and had he asked I would have directed him to a legitimate tax advisor and told him to forget the trusts and scams and just pay the be nice taxes. The tax penalties and interest took everything.

Re: Ways to Build Wealth ?

Posted: Sun Feb 10, 2019 7:58 pm
by Brute 23
TennesseeTuxedo wrote:
Sun Feb 10, 2019 3:32 pm
Brute 23 wrote:
Sun Feb 10, 2019 9:18 am
If you are not paying taxes in some form or fashion you not actually making money which makes it hard to accumulate wealth. At the end of the day, there is no way to legally avoid taxes.
Self directed Roth IRA.
You will still pay taxes at some point but it is the closest thing because you can defer some of the taxes on one end or the other.

Re: Ways to Build Wealth ?

Posted: Sun Feb 10, 2019 8:08 pm
by TennesseeTuxedo
Brute 23 wrote:
Sun Feb 10, 2019 7:58 pm
TennesseeTuxedo wrote:
Sun Feb 10, 2019 3:32 pm
Brute 23 wrote:
Sun Feb 10, 2019 9:18 am
If you are not paying taxes in some form or fashion you not actually making money which makes it hard to accumulate wealth. At the end of the day, there is no way to legally avoid taxes.
Self directed Roth IRA.
You will still pay taxes at some point but it is the closest thing because you can defer some of the taxes on one end or the other.
Wrong.

Re: Ways to Build Wealth ?

Posted: Mon Feb 11, 2019 10:43 pm
by Brute 23
TennesseeTuxedo wrote:
Sun Feb 10, 2019 8:08 pm
Brute 23 wrote:
Sun Feb 10, 2019 7:58 pm
TennesseeTuxedo wrote:
Sun Feb 10, 2019 3:32 pm


Self directed Roth IRA.
You will still pay taxes at some point but it is the closest thing because you can defer some of the taxes on one end or the other.
Wrong.
:lol: The floor is yours... please enlighten us all

Re: Ways to Build Wealth ?

Posted: Tue Feb 12, 2019 5:32 am
by TennesseeTuxedo
Use you Google machine.

Re: Ways to Build Wealth ?

Posted: Tue Feb 12, 2019 6:03 am
by Bright Raven
I am retired and am currently using several retirement investments as follows:

1. A Federal Civil Service Retirement Annuity. It is taxed at the federal level. However, some states exclude federal annuity payouts from taxable income based on a formula. Kentucky is one of those states.

2. Thrift Savings Plan. It is a federal savings investment that functions under the statues of a 401K. It is taxed at the Federal level and the state level in Kentucky.

3. ROTH IRA. There was no tax deferral when investments were made but the greater benefit is that withdrawals are not taxed.

4. Traditional IRA. The investments were tax deferred but withdrawals are taxed as income.

Going to Brute's statement on a Roth IRA. There is no deferral of taxes when investments are made. There is no income tax on payouts at retirement. I think that is what TT means.