[Rhodes22-list] Tax Advice? 401k's

[Philip]

Bill,

    Then you are talking about operating in a consistent deficit, right?  We
spend in deficit now, giving "targeted" tax breaks which have to be paid
later.  I assume that is what you mean.

Philip


 -----Original Message-----
From: 	rhodes22-list-bounces at rhodes22.org
[mailto:rhodes22-list-bounces at rhodes22.org]  On Behalf Of Bill Effros
Sent:	Sunday, November 12, 2006 12:18 PM
To:	The Rhodes 22 mail list
Subject:	Re: [Rhodes22-list] Tax Advice? 401k's

Rummy,

Slim, of course, must contribute both sides of his 401K.

I, too, put aside as much money as possible for reinvestment while
others bought Hummers.  This is central to any retirement strategy.

By not having money in 401ks I was able to make investments, using money
that had never been taxed, in things that never will be taxed.

My security comes from investments that are not subject to future taxes.

I believe the huge debt that has been incurred will be paid by all
segments of the society, not just the young.  Inflation and increased
taxes on 401k distributions will force older people to pay for some of
the things they awarded themselves at earlier times.

(Philip--this is what I mean when I say taxes are always about
redistributing wealth.  The young will take this back from the old.)

Bill Effros

R22RumRunner at aol.com wrote:
> Bill,
> One aspect of the 401k that you have forgotten is that many employers
match
> their employee contributions up to a certain percentage. This to me is
free
> money. This also happens to be one of the few ways that many people,
including
> my wife and I, are able to accumulate a small fortune over a long period
of
> time. I am not a financial wiz, nor do I want to be one. I have found
better
> ways to use my time. Drinking and sailing come to mind.
> We have been putting the maximum amount allowed by law into the 401k for
the
> past twenty one years. It was hard when we saw friends and co-workers
> driving fancy vehicles, buying new homes and we drove used vehicles and
had  modest
> living quarters. Many of these people today have no savings, still owe on
a
> second or third mortgage and have car loans that would choke a horse.
> We look at our current nest egg and other investments and we're looking at
a
> good chunk of change. Odds are that we will never spend the principal and
it
> will only continue to grow.
> I am strongly in favor of 401k's, especially for a long term investment.
> It's called security.
>
> Rummy
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