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

[Bill Effros]

Could be.  It's seductive.  Although I think the people with less will 
catch on to the fact that they will pay more, and the rich will pay less 
if this is enacted.

Bill Effros

Joseph Hadzima wrote:
> Howdy Bill:
>  
> I'm thinking that we'll have a national sales tax for the government to get back income last through the 401K, and IRA programs.  It's so easy to sell too!  Everyone thinks a sales tax will get the "rich", when it will actually touch everyone!  It also won;t sound like we're taxing people on fixed income, but we will.
>
> HADZ (a.k.a. joe)
>  
>
> ----- Original Message ----
> From: Bill Effros <bill at effros.com>
> To: The Rhodes 22 mail list <rhodes22-list at rhodes22.org>
> Sent: Sunday, November 12, 2006 12:17:56 PM
> 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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