f*****b
发帖数: 1649 | 1 Can we use Roth IRA to buy house / pay mortgage as a saving account? Any tax
advantage here?
I can't see much benefit of it. Anyone can cast some lights on it? thanks. | K****D
发帖数: 30533 | 2 You can use the principal of Roth for ANY purpose, not just buying house.
If you have a Roth IRA that loses money since inception, basically you
can just cash everything out without any penalty.
With that said, there is absolutely no benefit to do so. Being a Roth fan,
you know I hate that idea. The benefit of keeping a large balance in Roth
exceeds the benefit of buying a house 1-2 years earlier (for now, maybe 5
years earlier) by large margin.
tax
【在 f*****b 的大作中提到】
: Can we use Roth IRA to buy house / pay mortgage as a saving account? Any tax
: advantage here?
: I can't see much benefit of it. Anyone can cast some lights on it? thanks.
| f*****b
发帖数: 1649 | 3 Thanks for the input.
It seems my intuition was good. I just feel that there are so many options
out there for cash investment right now, the benefit ROTH provides (tax free
gain upfront) is so diminishing and uncertain in the long run...
With that thought, I may give up my IRA quota for 2008... Is that good?
【在 K****D 的大作中提到】
: You can use the principal of Roth for ANY purpose, not just buying house.
: If you have a Roth IRA that loses money since inception, basically you
: can just cash everything out without any penalty.
: With that said, there is absolutely no benefit to do so. Being a Roth fan,
: you know I hate that idea. The benefit of keeping a large balance in Roth
: exceeds the benefit of buying a house 1-2 years earlier (for now, maybe 5
: years earlier) by large margin.
:
: tax
| K****D
发帖数: 30533 | 4 Looks like you completely missed my point, hehe.
Keywords: "I am a Roth fan." With that said, you should know my answer to
your last question is "no".
401k matching first, Roth next. Most people agrees on these two, although
what's the 3rd in the list is up for debate.
Also, Roth does not provide tax free gain upfront.
free
【在 f*****b 的大作中提到】
: Thanks for the input.
: It seems my intuition was good. I just feel that there are so many options
: out there for cash investment right now, the benefit ROTH provides (tax free
: gain upfront) is so diminishing and uncertain in the long run...
: With that thought, I may give up my IRA quota for 2008... Is that good?
| x*o
发帖数: 1037 | 5
? 不是免税吗？
【在 K****D 的大作中提到】
: Looks like you completely missed my point, hehe.
: Keywords: "I am a Roth fan." With that said, you should know my answer to
: your last question is "no".
: 401k matching first, Roth next. Most people agrees on these two, although
: what's the 3rd in the list is up for debate.
: Also, Roth does not provide tax free gain upfront.
:
: free
| f*****b
发帖数: 1649 | 6 well, that is what I am confused about. Thanks for the light.
It is true that keeping a fat ROTH account could be much better than buying
a big house in the past 2-5 years. But will this be true for the next 5-10,
and then 20-30 years? This is what I am more interested about... And I don't
have answer of it... -.-
【在 K****D 的大作中提到】
: Looks like you completely missed my point, hehe.
: Keywords: "I am a Roth fan." With that said, you should know my answer to
: your last question is "no".
: 401k matching first, Roth next. Most people agrees on these two, although
: what's the 3rd in the list is up for debate.
: Also, Roth does not provide tax free gain upfront.
:
: free
| b*********e
发帖数: 2642 | 7 ...the past 2-5 years?
ROTH is a lifetime thing. You should not expect anything within 10 years.
The true power of ROTH is after 30 years. It is very important to feed
your ROTH fat and keep it fat. Sooner, better.
buying
,
't
【在 f*****b 的大作中提到】
: well, that is what I am confused about. Thanks for the light.
: It is true that keeping a fat ROTH account could be much better than buying
: a big house in the past 2-5 years. But will this be true for the next 5-10,
: and then 20-30 years? This is what I am more interested about... And I don't
: have answer of it... -.-
| f*****b
发帖数: 1649 | 8 Keep Roth fat means not withdraw the principle. Then (investment wise) it
becomes a similar idea as 401K, which depends on the appreciation and
dividend of capital.
Here is my view: I don't think we will have much appreciation in the near
future, and we will have to face high inflation sooner or later. And that
will certainly eliminates decades of gains. Besides, I don't know where I
will be in 30 years -- most likely not here. So, why IRA? Maybe I can put
money in a normal saving/trading accou | f****t
发帖数: 1063 | 9 why roth is good?
the only real factor can make it good: after the 30 years, the tax rate may
be higher. Even this is true, for most retirees, the income would be less,
and therefore, the actual tax rate may be less.
【在 K****D 的大作中提到】
: You can use the principal of Roth for ANY purpose, not just buying house.
: If you have a Roth IRA that loses money since inception, basically you
: can just cash everything out without any penalty.
: With that said, there is absolutely no benefit to do so. Being a Roth fan,
: you know I hate that idea. The benefit of keeping a large balance in Roth
: exceeds the benefit of buying a house 1-2 years earlier (for now, maybe 5
: years earlier) by large margin.
:
: tax
| K****D
发帖数: 30533 | 10 Because the average mid-class Chinese will have a huge combined
balance of retirement accounts. Chinese save too much.
My computation shows a higher income than now.
may
【在 f****t 的大作中提到】
: why roth is good?
: the only real factor can make it good: after the 30 years, the tax rate may
: be higher. Even this is true, for most retirees, the income would be less,
: and therefore, the actual tax rate may be less.
| K****D
发帖数: 30533 | 11 tax free at the tail (when you cash out after retirement), not upfront.
【在 x*o 的大作中提到】
:
: ? 不是免税吗？
| K****D
发帖数: 30533 | 12 People keep Roth fat for pure tax purposes. It has nothing to do with
investment strategies.
If you are not in USA after retirement, Roth's tax advantage is still valid.
However, there will be some hassle to cash out. A bunch of paperwork is
expected to be mailed forward and backward between China and USA.
The basic rule being: the bigger Roth is, the better tax advantage it has.
In that sense, if you leave USA too early, you may lose your chance to
make Roth bigger and thus lose some of the adv
【在 f*****b 的大作中提到】
: Keep Roth fat means not withdraw the principle. Then (investment wise) it
: becomes a similar idea as 401K, which depends on the appreciation and
: dividend of capital.
: Here is my view: I don't think we will have much appreciation in the near
: future, and we will have to face high inflation sooner or later. And that
: will certainly eliminates decades of gains. Besides, I don't know where I
: will be in 30 years -- most likely not here. So, why IRA? Maybe I can put
: money in a normal saving/trading accou
| f****t
发帖数: 1063 | 13 so you mean we all will have higher income during the retirement?
that is in my dream :)
【在 K****D 的大作中提到】
: Because the average mid-class Chinese will have a huge combined
: balance of retirement accounts. Chinese save too much.
: My computation shows a higher income than now.
:
: may
| i*****e
发帖数: 159 | 14 the tax advantage you were talking about is the purely based on the
assumption
that tax rate during retirement will be higher than now? is there any other
thought?
valid.
【在 K****D 的大作中提到】
: People keep Roth fat for pure tax purposes. It has nothing to do with
: investment strategies.
: If you are not in USA after retirement, Roth's tax advantage is still valid.
: However, there will be some hassle to cash out. A bunch of paperwork is
: expected to be mailed forward and backward between China and USA.
: The basic rule being: the bigger Roth is, the better tax advantage it has.
: In that sense, if you leave USA too early, you may lose your chance to
: make Roth bigger and thus lose some of the adv
|
|
