UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: bacon Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Re: IRA's and Pessimism Date: 10/25/1997 12:45 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
>It seems to me that most of us are pessimists, even the bulls. We all assume we will be in the 28% or lower brackets when we retire. It is quite clear to me that, to maintain that, I will have to make some lousy investment decisions before that, or greatly increase my charitable giving. If not, it looks extremely likely that Fools should consider that their ordinary income tax bracket may be quite a bit higher than it is now, [snip]
>
Depends on what you're doing with the money. One idea I've been kicking around for a bit is based on how I used poker to buy my college textbooks--I took my stake out of the game as soon as I had a usefully sized profit, and I played the rest of the night/until I had my book money on the profits.

My tentative idea is further based on the premise that Foolish investing has an excellent chance of getting me $1,000,000+ by the time I retire. I may then take the $1,000,000 itself and sock it into a good money fund (Vanguard, Fidelity) that pays 4.5%-5% and live quite comfortably on the interest forever (or until I die), never touching the principal, and not being over the 28% tax bracket--sometimes even down in the 15% bracket. I'd leave the '+' in the market for more money making.

That gets perhaps a bit conservative, but it also "guarantees" a useful nest egg for my daughter, and she can learn from me, or learn on her own, to make that grow even further.

Eric Hines

Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Tax Strategies

TMFPMarti-Feeling Good
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement