Stocks and investing

[Crazy Horse]

Here's a tip: Don't bet on the horses.

 

[Crazy Horse]

Or This:Good Bet

 

[Champane Flight]

After tax

I have an after tax stock account that I was going to use to help with the development of my mountain property. Then I found out the the company matchs 25% of the funds I contribute. There contributions are not taxed at the time of deposit. So when I draw it WHAMMO I get nailed paying that tax. I am at the point that I don't care if the IRS comes for me, I think I will just draw it and do a little "take the money and run" myself. Only difference is that I worked for this.



Of course now I have to wait for the stock prices to come back to not take a beating... ... .....

 

[Pit Bull]

Look in the tax code at what is called a "72T". You can draw from your IRA and only pay normal income tax with no penalties even if you are only 45 years old. There are some restrictions but check it out it might work for you.

 

[lizzyhermit]

IRA Distributions Before Age 59 1/2.

interesting reading:



http://www.smartpros.com/x34436.xml

 

[willyslover]

I just rolled a poop load into self driected IRA's from 401K with NO tax penality. . look at your alternatives very close. . you might not be able to cover the loss on a direct pull out of a 401K

you have penality for removing, you have gains after the sale. you have taxes to pay on income for that removed $ as it's now counted as income for that year.

 

[lizzyhermit]

gonna visit the tax dude very soon !

 

[Pit Bull]

Originally posted by willyslover





you have gains after the sale.

:-laf :-laf :-laf Sorry did you say gains

 

[Karl2500]

I am new to this stock thing. I bought a grand of the company I work for yesterday, My first ever stock purchase. I am up 'bout $140. up in a day. I know it is small time but fun just the same.

 

[willyslover]

YUP I retired also

 

[Sky]

Originally posted by bighammer

Paying off my houses seems like the best investment plan at the moment. .

Hit the nail on the head. I have started to just pay off my vehicles and house. Instead of dumping monthly payments or what ever in your 401k. I am just dumping extra payments in my debts. I just paid off my boat in 2 years saveing me 10% interest over 10 years My payment was $150/ month and I decided to pay $600/ month. Now that I have paid off the boat, I am putting that $600 toward my truck pmt for a total payment of $1196/ month on my truck. When that gets paid off (which will be very soon) I am putting that extra $1196/ month toward my house payments.



If you have debts and are paying 7-10% interest or 15-22% on credit cards it would be a guarenteed 7-22% return on your money wouldnt it?



If the market gets hot again then I will look into getting back in.



Just my . 02cents

 

[lizzyhermit]

Originally posted by willyslover

you have gains after the sale.

willyslover, what do mean by this? as in capital gains (more taxes), or gains (hopeful thinking) from leaving the money invested?



btw, '41 willys are really neat

 

[Pit Bull]

Originally posted by Sky







I am putting that extra $1196/ month toward my house payments.

Depends on the interest rate on your house. Also you might want it paid off just because it makes you feel good. But if you have a 7% interest rate on your house and you are in a higher tax bracket you might be better off with the house payment. Since after the tax affect you might be only paying 5%. Of course now a days it is hard to find an investment that pays 5%. Which makes paying off your house a good idea. As long as you have 6 months of living expense liquid enough for an emergency.

 

[daveshoe]

Speaking of paying off houses

Just refinanced my loan . I had a paid for house after 10 years . sold it bought another and paid it off in four. started buying fix up real estate and renting it . Three years ago I rolled all the rental loans by refinancing all the loans into my paid for house at 7. 5%

The return on investment of all this is about 28% . I don't worry about what the stock market is doing - ever.

I just refinanced the loan for 6. 25% and the payments were so reasonable that I rolled over the 2002 Ram into the loan as well. It will only cost 28. 00 more per month to put the new truck on the loan. Of course I plan to pay more than that- at least 350. 00 more per month . It is very important to know that extra money paid in EARLY in the loan cycle has a huge effect in paying off the loan early. Later, once the principal and interest payments are about the same, you can ease up and enjoy yourself .

I started doing rental real estate because the taxes and social security on earned income is a killer for self employed people. I thought that at least I could avoid some social security , but the taxes are much lower as well. It really is as good as a n IRA because of the tax savings.

I had to keep my mouth shut for a long time when all my buddies were telling me I should sell out and buy stocks . Now I keep it shut to keep them from getting

If anyone is interested in this stuff , post and I can E-mail you. I dont know if you can E-mail me because I had to set high security to get rid of spammers. sorry for the long post

 

[wernergerman]

no stocks,do your own investment!

why invest in things that steady go down,I do it on my own!

Ihave bought real estate in eastern Europe and the walue of it goes up EVERYyear at the rate of some 20%.

And when these small countries will enter The European Community there will be a skie high jump in the prices of the land. now good arable land with the buildingrights and all other stuff is available for $ 1000 a hectare(2. 5 or so acre),not possible do wrong!

Dont hesitate. interested ,send me a private message!

Werner

 

[lizzyhermit]

went to the prophet

well, anyway I spoke with the tax dudette and aside from the 10% penalty and the 20 % witholding a cash out is not taxed any differently than regular income.



she did warn that the lump sum my put you in a higher tax bracket.



she also could not disagree with getting rid of the high interest obligations then investing what would have been the payments.