shut up DOW, high valuations = high returns
tax is managable when you buy or sell. you dont have to contribute if your taxbracket is low. similarly you dont have to withdraw if tax rate is high. you can control it. you can time it. theoretically you can make it 0% if you pull small amounts yearly and have no job. you can convert it to a roth during cyclical lows. you can keep it and pass it to your heir, give it to the one who doesnt make $$ and taxes will be low for them. basically what i am saying is its controlled.
you dont have to experience it to learn from it. you can study history. its good to learn from mistakes. better to learn from the mistakes of others. its actually kind of funny. im currently watching the buffett annual meetings during hte 2000. a friend of mine invited to the annual meeting this year, but i dissuaded partly cuz i like to plan things out and i didnt want to stay at a motel, everything was booked. and i was sort of hoping to go during a downturn. but i also gotta factor that these people may die at any time. so im going to go next year no matter what. in the meantime im just watching the recorded down years. its actually funny when they mention certain industries or companies since we know what happens in the future.
https://buffett.cnbc.com/2001-berkshire-hathaway-annual-meeting/
WARREN BUFFETT: Well, if everything else is equal, I mean, everything else is equal, except the amount of experience you have, I think the experience is probably useful. But it isn’t going to be equal. And I don’t think that — I don’t think that the —
I think it’s way more important what you’ve thought about for two years than what you’ve practiced for 10 years. If you’re — if the direction — if there’s a divergence in techniques applied, I would rather be with the one that I’m philosophically in sync with.
If I’m philosophically in sync with both and one’s had 10 years of experience, the chances are they will know a little bit more about more businesses if they’ve been around for 10 years, looking at them, than if they’ve been around for two years.
But the biggest thing is that, you know, basically they’ve got their head screwed on right in the first place, in terms of how they value businesses and how they look at stocks.
You cannot keep retirement funds in your account indefinitely. You generally have to start taking withdrawals from your IRA, SIMPLE IRA, SEP IRA, or retirement plan account when you reach age 70½. Roth IRAs do not require withdrawals until after the death of the owner.
Your required minimum distribution is the minimum amount you must withdraw from your account each year.
- You can withdraw more than the minimum required amount.
- Your withdrawals will be included in your taxable income except for any part that was taxed before (your basis) or that can be received tax-free (such as qualified distributions from designated Roth accounts).
Calculating the required minimum distribution
The required minimum distribution for any year is the account balance as of the end of the immediately preceding calendar year divided by a distribution period from the IRS’s “Uniform Lifetime Table.” A separate table is used if the sole beneficiary is the owner’s spouse who is ten or more years younger than the owner.
You’re absolutely right, the trend is your friend!!!
Need to add to list
#6 Overnight Hedge Fund/Tech founder Billionaire.
Although those days may be over…
https://www.theatlantic.com/magazine/archive/2018/06/the-birth-of-a-new-american-aristocracy/559130/
Seems relevant to this topic.