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Author: sykesix Big gold star, 5000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Re: Strategy comparison S&P500 vs. IUL [rev 1] Date: 4/8/2013 5:57 PM
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Heaven help you if you prove to be exceptionally adroit on the accumulation side inside your IRA. Apparently that is verboten.

Verboten according to who? As I understand the proposal, you would be required to take distributions down to $3MM. You'd get to keep the money, but the money would not longer compound tax free until withdrawal. So you'd lose the tax advantage designed for lower and middle income people--which you obviously aren't if you have that much money. In other words, the government doesn't seem interesting in subsidizing retirements for rich people. Let me ask this: Why do you, Catherine Coy, believe that rich people need your tax dollars more than you do?

And you'd have to be not only exceptionally adroit you'd almost have to be magical to get $3MM in an IRA. IRAs were created in 1974 and the contribution limit was $1500/year, which was raised to $2000 in the 1980s, and up to $5000/year in the 2000s. Those are not big amounts. I realize you personally will never be convinced to crack a spreadsheet or use a calculator, but you have to have fargin' amazing returns to get to $3MM, with contribution limits that low. That was by design.
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