Investments

[Policy Limits]

Generally cars even exotic ones end up being depreciating assists. What about assets that move in the other direction? Are you a fan of the market? Is it best to purchase real estate in a down economy and to subsequently flip? Do you play it safe with a lower but fixed rate with no risk in a CD? Are insurance policies utilized as retirement vehicles? IRA or 401(k) or SEP?

I realize a proper portfolio consists of diversity. But what % is invested the most in a particular vehicle(pun intended :) )?

[Granger73]

Real estate--Real estate--Real estate--Real estate--Real estate--Real estate

[Policy Limits]

Agreed. I own both Residential & Commercial.

[KRATEDISEASE]

strip clubs are a great return on investment

[Troublemaker]

strip clubs are a great return on investment

Even if they don't make any money.

[VRYALT3R3D]

Stocks in emerging markets + Gold and Silver.

QE has created inflated asset bubbles so as an example I personally believe US Treasurys are in the "junk" status. There will be another very painful housing correction coming in the near future when QE ends.

[KRATEDISEASE]

Even if they don't make any money.

the only ones that make money are the ones that are not owned by men.

candy stores owned by fat people also tend not to be profitable...

[Policy Limits]

We had a lucrative string of them in RI; mostly due to a prostitution law that actually only precluded paying for inter course outdoors (seriously). The law was changed a few years back to criminalize indoor prostitution too so the strip club scene has drastically changed. At one when you try to change a 100 dollar bill, instead of giving u 100 singles they give you 50 two dollar bills...pretty crafty...lol

[Policy Limits]

So when folks brag about high risk stuff in the market that yielded 20-30% return I smile and explain statutory prejudgment interest. The rate is 12% per year and runs from the date of the tort not the date of the filing of the case. So typically a statute of limitations is 3 years; if you sit on a claim for that amount of time you build up 36% interest. Pull the trigger, sue and then it takes another three years or more to move through discovery and pre trial procedure. Now you're up to 70% or more. By the time a binding arbitration or trial comes, you might even have 100% interest built up and added to the value of the award or Judgment. Pretty good considering most high yield savings accounts pay less than 1%....per year. Lol

[KRATEDISEASE]

Look Mr Policy Limits..... OK, we got it, you are successful, own lots of cool un-obtainable cars, real estate etc

do you have to rub it in our faces ?? next are you going to start a thread on the fact that you have a gorgeous smokin hot wife also ?? ( titled "Hot or not ?")

and then are you going to start a thread on how good looking, smart and gifted your kids are ?? ( titled "kids gifted and talented or dopes ?") I hired a tutor for my son so that hopefully he can get into reform school...... and we would be proud if they would kindly accept him into detention !!--- that's how bad it is

my friggen life is miserable enough without you reminding me how much yours isn't !!!

have some mercy on us degenerate losers .....

Whew !! I feel better now.

[KRATEDISEASE]

Policy, if you keep this bragging up I promise I will open up the window in my bedroom and jump and end it all !!

OK, I live in my moms basement but you get the idea....

[Policy Limits]

LOL. Just makin conversation.

[plumcrazy]

cash, bonds & CD's IMO

[KRATEDISEASE]

lots single dollar bills ( from the wife) , a record collection, star wars collectables.( most of the star wars stuff is still in the box )

[Granger73]

The difference between being rich and being wealthy....real estate can make you wealthy

[Policy Limits]

Agreed. Now with respect to retirement accounts, i think the tax deduction up front is great but when the vehicle is subsequently looked to and it's then taxed as income, it makes me think who cares whether you pay taxes on it later or now? Makes me think its just a way FA's can get rich for selling product. Ever see the Wolf of Wall Street? Lol

[Back In Black]

Firearms, parts and ammo.

[KRATEDISEASE]

Agreed. Now with respect to retirement accounts, i think the tax deduction up front is great but when the vehicle is subsequently looked to and it's then taxed as income, it makes me think who cares whether you pay taxes on it later or now? Makes me think its just a way FA's can get rich for selling product. Ever see the Wolf of Wall Street? Lol

The interest and capital gains are not taxed while in the retirement plan. This is a great advantage . No yearly tax bill for capital gains or dividends. WOW---, YUP!!. Additionally, although you will be responsible for income taxes on the way out ( redemption), when you retire, you most likely will be in a much lower income tax bracket because you are no longer working or only working P/T. Additional point being that you can even buy personal real estate with your 401K plan (but have to do a document to do so). so the real question is.... would you rather buy real estate with after tax dollars where uncle sam already took his 40% share to pay for his government employees or would you rather buy real estate with uncle sam putting up his half or 40% until you are 59 years old. And by then, you can use the rental income to pay uncle sam back on the way out. Additionally, if you keep working past 59 and say until 75 or 80 pushing paperwork part time, you can then leave that much more to your good looking gifted children, all of it accrued friggen tax free. OMG how friggen cool


Another great investment is a 529 education plan. Not because you will make that much more money as opposed to outside investments (which in itself is excellent on its own), but because it removes the money from your estate for estate tax purposes. High worth individuals need to reduce the estate tax bill, and 529's do not count in one's estate.

Any other questions about finance, strippers, gardening, penis enlargement, etc, just ask. i am here to help.

and NO, there is NO sex in the champaine room despite what anyone tells you....at least not for the patrons..... heh heh

[johniew398]

Of course, normally investments depend upon the stage of your life or career. I just retired last July and we have all our investments and holdings split up into three buckets recommended by most financial advisors. Stocks, mutuals, CD's cash. That's about it but we have 3/4's of it managed by professionals for an annual fee.

[KRATEDISEASE]

Of course, normally investments depend upon the stage of your life or career. I just retired last July and we have all our investments and holdings split up into three buckets recommended by most financial advisors. Stocks, mutuals, CD's cash. That's about it but we have 3/4's of it managed by professionals for an annual fee.

be careful of "financial advisors" . They are not any better than home improvement contractors.

[Policy Limits]

Been on the fence for the past year on 529's, even more so than retirement account funding. With the former, and I know the money grows tax free, but what if in 18 years the kid is smart and gets a scholarship? Just sayin. Is the money then hit with a penalty to the tune of 50 cents on the dollar?

[KRATEDISEASE]

Been on the fence for the past year on 529's, even more so than retirement account funding. With the former, and I know the money grows tax free, but what if in 18 years the kid is smart and gets a scholarship? Just sayin. Is the money then hit with a penalty to the tune of 50 cents on the dollar?

No, not true. If your good looking, talented, and gifted kids get a scholarship, some states allow you to withdrawal matching amounts equal to the scholarship 100% tax free. ( some states only, for example Ohio, but not all)

But who cares, because Otherwise you can withdraw the cost basis of what you contributed tax free and the remaining capital gains that have accrued gets taxed at the current rate ( remember you never paid taxes on the capital gains and dividends as of yet anyway while it was growing) plus 10%. But remember the 10% penalty on the capital gains portion is still a deal since even the capital gains/dividends have been snowballing and perpetually reinvesting themselves tax free the entire time) And as a bonus, the money stays out of your estate but you control it at all times. Additionally, if you have multiple kids you can transfer funds between kids freely. So if you set up for one older kid who gets a scholarship and you have a younger kids that you still have not set up yet you just transfer the funds to the younger kid with no penalties. Win, Win,win,win.

But wait , there's more !!

You can pre fund up to five years in advance at one time. That means for each kid you can AT ONE TIME dump in up to $28G ( $14G for each parent) for each year up to 5 years in advance ( $28K x 5years ),so at one time and in one shot you can add $140K....

and you ask.... Krate-brain-disease, why would I want to do that ? I don't get it ? whats up with that ? splain' it to me papi ? Good thing you asked...

If you pre fund when the market is down you can wait for market drops and dump/fund in all at once instead of contributing each year and being subject to a possible market high. If you do and the market bounces back, you get all the gains with no tax.

each state offers different plans. NO need to invest in your states plan unless your state gives you a tax deduction for the contribution, but remember that you only get a state tax deduction if you live in the state that you have chosen to keep your 529 with, so for example, if you are contributing in New York $28G ( one year max contribution for husband and spouse- one parent only max allowed is $14G) the max deduction on your state tax return is $10G max regardless how much more you have already contributed. So in New York your MAX refund is around $800 or 8% on the $10G which is the state tax rate. Remember, not all states give you that deduction if you use the plan for your state. And some states 529 investment plans suck big time. You are better to find the best plan with the lowest expenses and bypass that state deduction if your state plan sucks , since if your state has a lousy plan you will loose more than the $800 that you get back as a tax refund thru poor fund performance. Most states cap off the contributions once the account balance reaches around $350K, but each state varies on its cap, with some lower. But once you reach the cap and you can no longer contribute, your balance can still grow, but you just cannot contribute any more to that state plan. BUT you have the freedom to open another plan in a different state for the same child that already maxed out the plan cap in the plan that peaked and does not allow any more contributions.

My two kids 8 and 11 are all paid up and maxed out way over the caps due to accrued capital gains. I pre funded 5years at once when the markets were down. If they both get full scholarships, I am buying a brand new Veyron ,or possibly two new Aventadors instead , (one for the wife and one for the girlfriend.)

If they do not get scholarships, you will surely know ...........because I will still be driving my 1997 Viper gts !!!

[Policy Limits]

Now THAT'S a post!

[Granger73]

If you have a "self directed" IRA you can own and manage real estate in your retirement account. There are some limitations, but a great way to build some wealth. Additionally no FICA taxes in RE income. I'm always amazed at the number of doctors that rent office space instead of owning their own property. There is NOTHING better than being your own tenant in a commercial property. An ideal situation. Leasehold improvements, a license to steal.