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

[Bill Effros]

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
> __________________________________________________
> Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
>
>