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

[Bill Effros]

No.  The town I live in, Greenwich, CT. had a pay-as-you-go policy for 
many many years.  Our Town has a budget larger than the budget of the 
Government of Afghanistan.

You just can't imagine the range of services offered by our Town, from a 
library with 20,000 CDs, to a school system that could educate Downs 
Syndrome kids within the district, to a town owned nursing home--all at 
the lowest tax rates imaginable:  Million dollar homes were paying $1500 
a year in property taxes.

Then somebody decided to kill the goose that was laying the golden eggs 
to get out all the gold at once.  They started borrowing, and our tax 
rates have been soaring while services declined ever since.

I'm a pay-as-you-go hawk.

Bill Effros

Philip wrote:
> 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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>>
>>
>>     
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