I owe $4,900 in taxes this year because I did too well in my new small construction business.
You're punished for making more money if you're in the wrong bracket.
I’m having a hard time grasping why anybody would buy a house in California right now
The price we pay for rent is $7000 but our house is worth $2.5 million.
If we were to buy that house, our mortgage payment would be like $20k plus we would have to put 20% down
With the economy, the way it is why would anybody want to lock themselves into 30 years of $20,000 a month payments?
When I could rent the same house for $7000 a month and if shit hits the fan, I can just come move somewhere cheaper
@GrassFedBTC@shaguncrypto BINGO! Missing BIG pictures! Many transactions/activities may be tax related. Consult w Sr Tax Advisor vs CLOWS! House is first and investment in USA. Don't know about other countries!
$2,500 rent vs $3,500 mortgage
That’s a $1,000/month difference
Add in:
Property tax
Maintenance
Insurance
Real gap could be $1,500+/month
Invest that at 8% for 30 years is $1M+
Is owning always better?
This is rage bait, correct? But, whatever. Get this.
First, investing money regardless of where you’re investing it is a good thing. So, for anyone putting money in their 401k, good work. Keep it up.
Second, there are tax advantages to using a 401k and, if you understand those advantages and the tax code a little bit, you can make your investments “last longer”.
Third, there are so many ways to plan for distributing money from a retirement plan. From Roth contributions that can come out tax and penalty-free before age 59.5 (not age 65) to things like making Section 72(t) distributions from an IRA. It’s a knowledge game.
Lastly, you can invest outside of a 401k and fully optimize your retirement plan. Personal finance has so many tools at your disposal to create outcomes that work best for the individual. There’s no one size fits all solution.
So, it’s not that 401ks are dumb. It’s that you just don’t know what you’re talking about.
Byeeeeeeeee.
401ks are stupid. "Wow, I can't wait to finally have 600 thousand dollars at age 65 to last me the next 20 years. I'm glad I spent 40 years as a slave."