BTC vs Gold vs Stocks/Equities

[painfree23]

Thanks for that summary.

So what's the advantage of backdoor ROTH if you still have to pay tax at 65 when you withdraw?

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Thats the key...is if you convert it your IRA to a ROTH IRA ("BACKDOOR ROTH"), you won't pay taxes on it when you withdraw because it is a ROTH. You can't just open up a roth because you earn too much, so this is a way around the system -- it works because you already paid taxes on the income you are using to open up the IRA and you are not using a tax deduction for it.

You cannot use your IRA tax deducted account and convert it into a ROTH so you never have to pay taxes on it. Uncle Sam is smarter than that. lol

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[DoubleBogey]

Thanks for that summary.

So what's the advantage of backdoor ROTH if you still have to pay tax at 65 when you withdraw?

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When you convert - you pay tax on the traditional (contribution or any earnings between the conversion time frame), once in a Roth then any earnings made while in the Roth are tax free and when you pullout at the non-penalty age.

 

[painfree23]

When you convert - you pay tax on the traditional (contribution or any earnings between the conversion time frame), once in a Roth then any earnings made while in the Roth are tax free and when you pullout at the non-penalty age.

not if you used post-tax dollars to open the IRA and did not accept a tax deduction for the IRA

 

[DoubleBogey]

not if you used post-tax dollars to open the IRA and did not accept a tax deduction for the IRA

Correct but any gains made in the IRA prior to converting are taxable

 

[painfree23]

Correct but any gains made in the IRA prior to converting are taxable

yes

 

[emd123]

Doing the backdoor Roth generally only makes sense for people at our income level, if you've already maximized your other more traditional tax deferred avenues. It's a way to turn your retirement savings up to 11.

 

[DOctorJay]

Correct but any gains made in the IRA prior to converting are taxable

That's why you park the money in a fund that doesn't fluctuate and convert it like in a week.

January 1 I transfer $11k (5500 for both me and wife) into IRAs and then a few days later convert to Roths. See post I linked before for steps. You also need to fill out a special tax form when you do this. Simple.

Max out your tax advantaged accounts
Then do backdoor Roth
Then do taxable account
That total here annually should be at least 20% of your gross, if you can do more great

Then whatever (529s, pay down debts, etc)


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[Blitz2006]

Doing the backdoor Roth generally only makes sense for people at our income level, if you've already maximized your other more traditional tax deferred avenues. It's a way to turn your retirement savings up to 11.

oh gotcha.

So you can have 2 accounts, traditional IRA AND backdoor Roth...interesting.

 

[DOctorJay]

oh gotcha.

So you can have 2 accounts, traditional IRA AND backdoor Roth...interesting.

You can have the 2 accounts but can't keep any money in the traditional IRA if you want to do the backdoor Roth conversion.


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[emd123]

You can have the 2 accounts but can't keep any money in the traditional IRA if you want to do the backdoor Roth conversion.


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Yes. The traditional IRA is only a holding tank for the money you eventually transfer entirely to the Roth IRA.

 

[epidural man]

If I had access to buy and sell cryptocurrencies, I might take a small amount and just fool around with it.

Robinhood allows bitcoin trading now - no transaction fees, just like stocks.

Also what is crazy is that option trading is also free.

 

[hyperalgesia]

Robinhood allows bitcoin trading now - no transaction fees, just like stocks.

Also what is crazy is that option trading is also free.

At this point, I don't think I'd touch cryptos with a 10 foot pole. I can't believe someone would still pay 8k for a "bitcoin". I'm curious to know who is propping this stuff up and why...

 

[epidural man]

At this point, I don't think I'd touch cryptos with a 10 foot pole. I can't believe someone would still pay 8k for a "bitcoin". I'm curious to know who is propping this stuff up and why...

You can buy any fraction.

I bought 5$ of bitcoin a few hours ago and have now made 8 cents.

 

[hyperalgesia]

Crypto meet DOJ

I think these cryptos are being propped up artificially by something. Will be interesting to see what comes of this.

U.S. Launches Criminal Probe into Bitcoin Price Manipulation

 

[Blitz2006]

I still think oil is a good bet for 2018

WTI Crude Oil Price Charts | Oilprice.com

Anyone following oil prices?

 

[drusso]

Anyone following oil prices?

Signs of recession are everywhere...

 

[DODOCSS]

FANG

 

[powermd]

WDC is my play of the season, both stock and July expiry calls. It seems to be teetering on a breakout right now, provided geopolitics doesn't somehow tank the market.

I have a ton of VZ and long dated calls. Almost 5% dividend and 5G will be huge.

I got into some Stellar Lumens, but that's a loooong way from paying off, if it ever does.

I bought a bunch of AGFS (Agritech play) because they're growing and have good, but easy to understand technology. Who knows if it will take off.

 

[RNtoMD87]

I definitely wouldn't buy gold. Its so inflated right now. Silver would be a much better option.