Selling IS, new car <$20000
03-28-2008, 02:56 PM
#22
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Gotta throw something out here:
If you're really a car fan, don't do something like that as it'll only cost you more down the road. I thought I'd be OK with a brand new comfy Accord but that Accord lasted months before I was shopping for another car.
If you're really a car fan, don't do something like that as it'll only cost you more down the road. I thought I'd be OK with a brand new comfy Accord but that Accord lasted months before I was shopping for another car.
03-28-2008, 03:15 PM
#23
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Originally Posted by y2ks2k,Mar 28 2008, 12:39 PM
crap? Ira's are limited on the top? I didn know that. Im currently maxing my both my wife and I's 401K benifit ($15K each person).
03-28-2008, 03:22 PM
#24
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Originally Posted by rai,Mar 28 2008, 12:50 PM
here let me go off topic
Max out the 401Ks don't worry about the IRAs. Just save and invest outside a IRA (in a non-tax shelter) all you pay for is the capital gains and dividends and the capital gains are currently 15% max (for a long term holding) and dividends (I think are also like 15% max).
Point is when you retire the tax shelter is going to be taxed as income so you don't pay the tax now but you do when you take the money out (uncle sam likes to get paid) now the theory is when you retire you will be in a lower tax bracket.
But the secret is you can keep the 401K or IRAs growing (tax shelter) if you have investments not in a tax shelter, say when you retire you can spend that first or part that and part the 401K and the money outside a tax shelter is almost tax free (just tax on capital gains).
There is a new rule for 09 (I believe) where you can convert a IRA to a ROTH (even if you are outside the tax bracket currently but you have to pay Full tax when you convert which is not a great idea if you are in a high tax bracket currently).
Also you can do what is called a non-deductible IRA even now (even if you are outside the income limit) check this out. It's like an IRA except you pay full tax on it now but since it's tax-paid money you don't have to pay as income tax when you withdrawl like you do with a regular IRA or 401K.
Max out the 401Ks don't worry about the IRAs. Just save and invest outside a IRA (in a non-tax shelter) all you pay for is the capital gains and dividends and the capital gains are currently 15% max (for a long term holding) and dividends (I think are also like 15% max).
Point is when you retire the tax shelter is going to be taxed as income so you don't pay the tax now but you do when you take the money out (uncle sam likes to get paid) now the theory is when you retire you will be in a lower tax bracket.
But the secret is you can keep the 401K or IRAs growing (tax shelter) if you have investments not in a tax shelter, say when you retire you can spend that first or part that and part the 401K and the money outside a tax shelter is almost tax free (just tax on capital gains).
There is a new rule for 09 (I believe) where you can convert a IRA to a ROTH (even if you are outside the tax bracket currently but you have to pay Full tax when you convert which is not a great idea if you are in a high tax bracket currently).
Also you can do what is called a non-deductible IRA even now (even if you are outside the income limit) check this out. It's like an IRA except you pay full tax on it now but since it's tax-paid money you don't have to pay as income tax when you withdrawl like you do with a regular IRA or 401K.
Rai went with one line of thought, which is that your tax bracket will be lower in retirement and hence roth accounts are attractive.... I go with another: we can't even come close to paying for what we spend now as a nation, so taxes MUST go up in the future (or cut spending, which, thus far in the history of the US, has proven politically impossible - don't get me started). Depending on which theory you subscribe to, it may impact your decision to do the roth conversion or not. (would you rather pay today's rates or tomorrows?)
FWIW, I say if you're saving 40k a year between your 401k's and your employer matches plus 5 or 10 grand a year in addtl savings, at your age....f&ck it, go get the M3, man. Live a little. You're already being more responsible than 99% of the population...you could die tomorrow.
03-28-2008, 03:31 PM
#26
RSX Type S would be the way I'd go, if I really need a gas sipping car, used eg/ek civic.
03-28-2008, 04:19 PM
#28
Mazda3 (pref. with leather). *Very* nice car, decent gas mileage. My wife has an '05. It basically forced me to sell my '95 240SX and get the S.
03-28-2008, 08:53 PM
#29
MINI!!
Of the ones you listed: Civic.
Of the ones you listed: Civic.
