Ways to Build Wealth ?

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TennesseeTuxedo
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Re: Ways to Build Wealth ?

Post by TennesseeTuxedo » Tue Feb 12, 2019 6:38 am

You deposit after tax dollars in your Roth IRA and the earnings are not taxed as they compound or upon withdrawal. A self directed Roth IRA is a little more sophisticated and requires special handling but the upside is tremendous. Again, the earnings are not taxed.


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Re: Ways to Build Wealth ?

Post by Brute 23 » Tue Feb 12, 2019 8:23 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.

Going back to the original comment. I said there is no way to legally avoid taxes. (TRUE)

TT said a self directed Roth IRA. You DO NOT avoid taxes with ANY IRA. You can pay them on the front... you can pay them on the back... you can pay them in the middle... but you will pay taxes. Which way is the most beneficial will depend on your situation and a little bit of luck.

I said it is the closest thing to avoiding taxes (also TRUE) because it is. If you break down the amount you pay in taxes over the whole investment, including its growth, its the lowest tax rate you will ever see... better than capital gains.

I stand by every thing I said and don't see what TT comment has to do with any thing being discussed... once again. :tiphat:
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Re: Ways to Build Wealth ?

Post by TennesseeTuxedo » Tue Feb 12, 2019 9:37 pm

Stand wherever you please. Not my job to educate you.
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Re: Ways to Build Wealth ?

Post by Brute 23 » Tue Feb 12, 2019 10:14 pm

TennesseeTuxedo wrote:
Tue Feb 12, 2019 9:37 pm
Stand wherever you please. Not my job to educate you.
Don't worry about that... your comments don't get close to educating any one.
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Re: Ways to Build Wealth ?

Post by Brookhill Angus » Tue Feb 12, 2019 10:36 pm

Why are you guys focused on a piddly little Roth IRA?

I would think you would want to incorporate your operation, preferably an S-Corp versus an LLC. Then I would focus on funding a SEP IRA. You can put $56k in for 2019. Let your accountant explain this to you, but it’s a no brainer if you have the income to fully fund it. Don’t forget 179 deductions on equipment.

I personally would invest 100% of the SEP in Vanguard Total World Stock Index Fund Investor Shares (VTWSX). I would stay away from fixed income like the plague. Once rates rise you will get creamed unless the duration is low in the portfolio. You might be somewhat safe in T-bills.

Equities are probably going to get creamed as well soon, but you can at least dollar cost average into them monthly to be on the safe side.

These are a few ideas, along with raw land and passive income from rental property.

My suggestions are solely my opinions and NOT direct, investment advice. Speak to your accountant or financial advisor first.
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Re: Ways to Build Wealth ?

Post by Brute 23 » Tue Feb 12, 2019 10:47 pm

I had a SEP the first 7 years. At the time it was tough but my brother convinced me to pour the coals to it. I'm glad he did.
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Re: Ways to Build Wealth ?

Post by TennesseeTuxedo » Wed Feb 13, 2019 6:40 am

Brookhill Angus wrote:
Tue Feb 12, 2019 10:36 pm
Why are you guys focused on a piddly little Roth IRA?

I would think you would want to incorporate your operation, preferably an S-Corp versus an LLC. Then I would focus on funding a SEP IRA. You can put $56k in for 2019. Let your accountant explain this to you, but it’s a no brainer if you have the income to fully fund it. Don’t forget 179 deductions on equipment.

I personally would invest 100% of the SEP in Vanguard Total World Stock Index Fund Investor Shares (VTWSX). I would stay away from fixed income like the plague. Once rates rise you will get creamed unless the duration is low in the portfolio. You might be somewhat safe in T-bills.

Equities are probably going to get creamed as well soon, but you can at least dollar cost average into them monthly to be on the safe side.

These are a few ideas, along with raw land and passive income from rental property.

My suggestions are solely my opinions and NOT direct, investment advice. Speak to your accountant or financial advisor first.
I’m talking about a self directed Roth IRA. I find nothing “piddley” about growing wealth that is tax free particularly when you learn how to use it to flip properties using other people’s money. Too complicated to lay out here but you know how to reach me.
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Re: Ways to Build Wealth ?

Post by True Grit Farms » Wed Feb 13, 2019 7:14 am

I'm good just being a poor redneck with a few toys, traveling the country hunting, fishing and seeing the sights. The government will bailout the rich again....or maybe this time take "tax" their investments to keep from loosing the country. Some of our new leadership sees this as a good idea, and the fact is, the poor can't bail anyone out.
If we'd of know this we'd of picked our own cotton.

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Re: Ways to Build Wealth ?

Post by callmefence » Wed Feb 13, 2019 7:20 am

I ve got everything tied up in scrap iron.
If it ain't tight , It ain't right.




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Re: Ways to Build Wealth ?

Post by Bright Raven » Wed Feb 13, 2019 7:22 am

Brute 23 wrote:
Tue Feb 12, 2019 8:23 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.

Going back to the original comment. I said there is no way to legally avoid taxes. (TRUE)

TT said a self directed Roth IRA. You DO NOT avoid taxes with ANY IRA. You can pay them on the front... you can pay them on the back... you can pay them in the middle... but you will pay taxes. Which way is the most beneficial will depend on your situation and a little bit of luck.

I said it is the closest thing to avoiding taxes (also TRUE) because it is. If you break down the amount you pay in taxes over the whole investment, including its growth, its the lowest tax rate you will ever see... better than capital gains.

I stand by every thing I said and don't see what TT comment has to do with any thing being discussed... once again. :tiphat:
You guys are being hardheaded.

Brute is saying IRAs are taxed either on withdrawal or principle, the money going in, is subject to income tax.

TT is making the point that Roth IRAs earn, grow, appreciate, AND those earning are forever and always tax exempt. Since the earnings are not THE PRINCIPLE , the earnings are never subject to federal income tax.
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Re: Ways to Build Wealth ?

Post by TennesseeTuxedo » Wed Feb 13, 2019 7:26 am

Bingo, give the Bright bird some seed.
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Re: Ways to Build Wealth ?

Post by Caustic Burno » Wed Feb 13, 2019 7:52 am

True Grit Farms wrote:
Wed Feb 13, 2019 7:14 am
I'm good just being a poor redneck with a few toys, traveling the country hunting, fishing and seeing the sights. The government will bailout the rich again....or maybe this time take "tax" their investments to keep from loosing the country. Some of our new leadership sees this as a good idea, and the fact is, the poor can't bail anyone out.
You sound like a redneck version of OAC.
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Re: Ways to Build Wealth ?

Post by 1982vett » Wed Feb 13, 2019 7:54 am

pretty good place to start if you don’t have a plan...

https://www.bogleheads.org/forum/index.php

Not for everyone as it is a no nonsense place....LadyGeek will shut it down. ;-)

Check it out when this place is slow.
Aug 7, 2019 22:51GMT -5 the illustrious potentate said:
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Re: Ways to Build Wealth ?

Post by Dave » Wed Feb 13, 2019 8:58 am

Want to build wealth? Get some lumber and nails. Build a house. Sell it for more than you paid for the lumber and nails. You just "built" wealth.

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Re: Ways to Build Wealth ?

Post by Stocker Steve » Wed Feb 13, 2019 9:34 am

callmefence wrote:
Wed Feb 13, 2019 7:20 am
I ve got everything tied up in scrap iron.
Does this count as precious metal in your area?
Stocker Steve

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