Investment Tips Thread

[ChemEngrMBA]

Today I looked up the performance of Exchange Traded Funds for the past five years in order to gauge their performance for the future, hopefully.  No guarantees in life.
DJI - Dow Jones Industrials 72.54%
SPY - Standard & Poor 500  101.56%
QQQ - Nasdaq Index  146.89%
BRK-B - Berkshire Hathaway fund 150.73%
I am heavily invested in QQQ and BRK-B, but also money market accounts, in case I'm wrong.
SEP/IRAs are the way to go, as well as Roth IRAs.

I just put my five grandchildren into Roth IRAs at Fidelity Investments.  Something to remember Grampa Too Much Fun by.

[libertybele]

Today I looked up the performance of Exchange Traded Funds for the past five years in order to gauge their performance for the future, hopefully.  No guarantees in life.
DJI - Dow Jones Industrials 72.54%
SPY - Standard & Poor 500  101.56%
QQQ - Nasdaq Index  146.89%
BRK-B - Berkshire Hathaway fund 150.73%
I am heavily invested in QQQ and BRK-B, but also money market accounts, in case I'm wrong.
SEP/IRAs are the way to go, as well as Roth IRAs.

I just put my five grandchildren into Roth IRAs at Fidelity Investments.  Something to remember Grampa Too Much Fun by.

Roth IRA's are the way to go IIMHO...and watch out for the tax man; he is a destroyer. Gold is something to buy and hold onto as well.

You are correct, there are no guarantees in life.

[IsailedawayfromFR]

Roth IRA's are the way to go IIMHO...and watch out for the tax man; he is a destroyer. Gold is something to buy and hold onto as well.

You are correct, there are no guarantees in life.

I have little confidence that the government will keep their end of the bargain on not taxing Roth withdrawals again.

Think what they did with Social Security which is now double taxed when finally are able to draw it out.

As long as tax rates remain somewhat low, IRAs are the way to go to amass wealth as one has more assets to grow more as they are untaxed until withdrawn.

All bets off if tax rates increase greatly, so I have been withdrawing above my RMD every year since I retired 10 years ago.

Also, the government greedily sees big pots of untaxed income waiting to be taxed in 401ks and IRAs, so they will eventually come for them.

More safety exists in keeping further distance of the govt from your money by having little in your IRA

[ChemEngrMBA]

I have little confidence that the government will keep their end of the bargain on not taxing Roth withdrawals again.


As long as tax rates remain somewhat low, IRAs are the way to go to amass wealth as one has more assets to grow more as they are untaxed until withdrawn.

All bets off if tax rates increase greatly, so I have been withdrawing above my RMD every year since I retired 10 years ago.

Also, the government greedily sees big pots of untaxed income waiting to be taxed in 401ks and IRAs, so they will eventually come for them.

More safety exists in keeping further distance of the govt from your money by having little in your IRA

Oh ye of little faith.  Biden is gone and so are his worthless, reprehensible handlers.
Trump reduced taxes for the lowest income brackets with smaller relative percentages for higher tax brackets
This kind of favoritism for lower income taxpayers is what the criminal Democrats call "tax cuts for the rich."

Roth IRAs have been around for decades and considering the fact that much more revenue could be obtained in other ways,
congress is unlikely to reverse the non-tax position of Roths.  Since I retired, my portfolio has grown even as I have spent more every year.
So I'm giving it away faster now.  Can't take it with me yanno.  Brand new Kia for special granddaughter.  Boy is she happy.

[IsailedawayfromFR]

  Since I retired, my portfolio has grown even as I have spent more every year.
So I'm giving it away faster now.  Can't take it with me yanno.  Brand new Kia for special granddaughter.  Boy is she happy.

I have found the same, can't spend it fast enough as it continues to grow.
In doing my taxes for last year, found the biggest expense category was gifting.
Doing the 529s for the 7 grandkids is the biggest draw, but haven't pulled the lever on giving cars as yet.

I want them to have some skin in the game prior to doing that, and am looking at ways to make that happen.

And yes, I have little faith in the government's promises as I remember what it did in double taxing Social Security benefits.

[catfish1957]

Under complicated it...  They'll become trust babies.

I kind of figure that with age comes financial wisdom.  That wisdom will be well worth it down the road in the wealth preservation.