What Retirement Plan is best for a Fastlaner.

[MKHB]

What are you using for your retirement plan? SEP...401K...Simple IRA

 

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[jon.a]

None of the above. I don't like accounts that are specifically reported to the IRS on an annual basis.

 

[jon.a]

None of the above. I don't like accounts that are specifically reported to the IRS on an annual basis.

Also, the "self-dealing" rules count those out for me. I usually have some personal gain from my deals.

 

[jon.a]

Also, the "self-dealing" rules count those out for me. I usually have some personal gain from my deals.

Also also, there's that unrelated income thing.

 

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[MKHB]

Also also, there's that unrelated income thing.

UBIT and self dealing, your getting in over my head with tax jargon; is it your real estate holdings that would trigger these tax no-nos?

 

[jon.a]

UBIT and self dealing, your getting in over my head with tax jargon; is it your real estate holdings that would trigger these tax no-nos?

In our case yes.
Anyways, to your original question, I'd add a 4th option. Your own small business (or businesses). Many here are doing that. You should be able to balance growth vs income to provide some measure of shelter. Real state does have a few advantages tax wise. But, it takes a while to get to the hands off mode. We're a ways from there so far. A few more years to go.

 

[Get Right]

I invest in me.

When I think other CEO's can do better than me....I will open a 401k.

 

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[PureA]

what's a retirement plan?

 

[Kak]

Open a managed brokerage and funnel as much cash money as possibly can to it and LEAVE IT ALONE. The more money you are feeding it, the more aggressive you should ask them to get. That is my simple plan and it works for me.

Admittedly... The real plan is to never stop building.

 

[socaldude]

The best retirement account is a checking or savings account with tons of cash in it. Preferably from a business.

Then if you want to get fancy, invest in munis, bonds, stocks, funds etc. Live off the income.

 

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[theag]

We never recommend buying or selling Berkshire. Among the various propositions offered to you, if you invested in a very low cost index fund -- where you don't put the money in at one time, but average in over 10 years -- you'll do better than 90% of people who start investing at the same time.

If you like spending 6-8 hours per week working on investments, do it. If you don't, then dollar-cost average into index funds. This accomplishes diversification across assets and time, two very important things.

Just pick a broad index like the S&P 500. Don't put your money in all at once; do it over a period of time. I recommend John Bogle's books -- any investor in funds should read them. They have all you need to know.

Vanguard. Reliable, low cost. If you're not professional, you are thus an amateur. [F]orget it and go back to work.

My advice … could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.) I believe the trust’s long-term results from this policy will be superior to those attained by most investors – whether pension funds, institutions or individuals – who employ high-fee managers.

I like this article:
http://wallstreetplayboys.com/how-to-invest-as-a-bachelor/

 

[jon.a]

Oh, and I forgot the capital controls and wealth confiscation things.

 

[biophase]

Combo of real estate and IRAs.

 

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[Trivium iz rC]

People who own IRA's & 401k pay the highest amounts of taxes. If your at the point were your business is making some good profits & cash flows. Go talk to a tax attorney & asset protection lawyer.

I use Domestic & Foreign Trusts/Corporations. I live through my corporations.

The richest man that North America has every seen alway said "Own Nothing, Control Everything". I've taken his advice & it's worked well for me.

 

[eliquid]

retirement plan?

Answer: minn or ek ( its in old norse )

 

[MKHB]

People who own IRA's & 401k pay the highest amounts of taxes. If your at the point were your business is making some good profits & cash flows. Go talk to a tax attorney & asset protection lawyer.

I use Domestic & Foreign Trusts/Corporations. I live through my corporations.

The richest man that North America has every seen alway said "Own Nothing, Control Everything". I've taken his advice & it's worked well for me.

Don't you still have to shelter earned income from tax liability,even with a trust or corp?

 

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[Trivium iz rC]

Don't you still have to shelter earned income from tax liability,even with a trust or corp?

I'm not a tax lawyer or asset protection lawyer so you should see a professional for any advice you are seeking. It depends on what type of corporation & trust you use.

For most of the people & mentors I have talk to, there foreign/domestic trusts & corporations are set up as "pass-through" entities. With the trust owning everything.

Long story short just like an S-Corp profits are passed to it's shareholders wether they are distributed or not. The profits are taxed based on the shareholders personal income tax brackets.

Most wealthy people live in states with No Corporate Income Tax & No Dividend/Capital Gains/Interest Tax. So that eliminates most of the states tax burden.

If a person on the federal tax level makes less then 36k in earned income (aka salary/paycheck). They would fall in the "Qualified Capital Gains & Qualified Dividends" category for stock/assets that have been held for 1 year or longer. Basically paying 0% on those profits wether they are distributed or kept in the corporations bank account.

So lets make a super simple example:

Bill Gates owns Cascade Investments LLC which has elected a S-Corp tax election. Cascade Investments owns (Bill Gates) 200m shares of Microsoft Inc.

Cascade Investments has earned income of $200m+ of dividends from Microsoft Inc. Out of that 200m Bill Gates pays himself 36k because he "manages the investment portfolio once ever quarter". At the end of the year Cascade Investments shows a profit of 199M. Those profits, since the LLC has elected an S-Corp taxation are passed through to Bill Gates tax return (Even if the 199M is kept in Cascades bank account). Since Bill only had earned income of 36k & has held Microsoft stock for long then 1 Year. That would put his profits into "Qualified Dividends" tax brackets which are taxed at 0-24%.

Since the IRS tax code says. If you make less then $36.8k in earned income any profits or dividends are taxed at 0%. $199M stays in the LLC bank account & is further invested in different asset classe. Compounded over 30+ years you can see how it would grow rapidly.

Hope this helps

https://www.wellsfargoadvisors.com/...al-articles/investing/dividend-income-tax.htm

 

[Trivium iz rC]

Then it can get more complex if you wanted to have foreign corps & trusts. I'm not too familiar with all the different countries but @GlobalWealth will be able to help you with good information. Also look up Andrew Henderson from NomadCapitalist (his website)

 

[Kevin88660]

MJ talks about him receiveing 40-50k monthly from his investment. I assume he did so via a high yield investment vehicle.

Typically it is a portfolio of divident stocks and corporate bonds.

That’s what I plan for myself once I have the money.

 

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