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Investment Analysis Clubs / Macro Economic Trends and Risks
|Subject: Re: Do you have >$3.4M in your IRA?||Date: 2/24/2014 4:12 PM|
|Author: wasmick||Number: 445408 of 514627|
If you look at how the cap is figured (and thus what it would generate) it is based on the current historically low interest rates. Yes today the cap is $3.4 mil, but let interest rates get back to normal, the cap could easily be $1 mil.
I saw how it was figured and the assumptions thereof, where do your calculations put rates in order for it to fall to $40K?
What would that then generate, $40k? Which is what, the average income for the US (at least according to 2012 data).
Middle class enough for you?
Yup. Although - as previously stated in this thread - with a (likely) paid off house, Medicare, maybe a pension and/or Social Security, sure, middle class. Probably upper middle class.
Be careful of unintended consequences. So lets assume normal rates and a $1 mil cap. A young person starting out happens to buy the next Apple, Netflix, of Tesla and is soon at the cap limit. So now they have to invest outside of a tax deferred account. Ok, no big deal, but now they are paying taxes, at a high rate. Is that a good thing?
I don't know, is that actually how this proposed cap is suposed to work? If so please post the link. I'll gladldy read through it and then respond.
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