Retirement plans?

Everything this man said is 100% true.

 

Being Cortez is a job in itself

 

Tell me about it.

 

yes. It’s a decent gig. Not as much as I want to be making but we get by just fine in Los Angeles with my lady not working currently.

 

This ^^^^^

 

If you have a 401k plan available to you, that's where you should start.

 

1099. no benefits. But my lady landed a job with La county so we’ll both get full benefits when we’re married

 

Then do either a ROTH or a IRA. Advantage of the ROTH is when you draw it out it is tax free (under todays laws) but you pay tax on it now. While an IRA is pre-tax. So for the same impact you can contribute more to an IRA but when it is drawn out you owe tax. Most things I see claim the ROTH is better though they all start from the false assumption that both have the same contribution. Otherwise it is closer to a wash. Though I like the idea of a mix so you can impact your tax bracket later.

 

@cortezmachine

Here's some answers for you. My mom worked for the IRS in Taxpayer service for 25 years helping people minimize their taxes they would owe.
I learned a LOT from watching her manage my parents' money.

Max out contributions to your 401K. If you are under 50, the maximum contribution you can make is $19,500 for 2020. It may change in '21.
Since they make the rules, here's a link to the IRS: https://www.irs.gov/retirement-plan...k-and-profit-sharing-plan-contribution-limits

Here's the current rules regarding withdrawls. In "Finance Speak" these are called distributions. These rules change over time, depending on the changes Congress implement.
Again, since they make the rules, here's the IRS link: https://www.irs.gov/retirement-plan...uide-plan-sponsors-general-distribution-rules

All of the above happens pre-tax. The benefit is that it reduces your taxable income down by whatever you contribute. Example: If you make $99,500 and you contribute $19,500 to your 401K, your taxable income (just based on these two items) becomes $80,000.
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Here's the information on a regular IRA (Individual Retirement Account).
Again from the IRS: https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-contributions

Again there are rule on withdrawls. Since they make the rules, check out the IRS link: https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras-distributions-withdrawals.

Monies contributed here also have the potential to reduce your tax liability, depending on some factors. Using the above example, your take home for the year was $80,000. Deducting the maximum IRA contribution of $6,000 you have successfully reduced your taxable income to $74,000.
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Keep in mind that the above puts the money into savings, but out of reach until you retire. There are some penalties (read they take a % of your money) if you take withdrawls early.
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For an investment mix in your 401K someone already mentioned index funds. This is 1000% percent correct. I would also add that you need the lowest "management fee" index funds you can find within your 401K plan. The 401K funds charge you to keep your money with them. This percentage eats away at your growth over time. If you can get Fund #1 at a 0.25% management fee and another identical fund for 0.15% management fee, why would you voluntarily concede that extra money?? Don't do it.
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These are basic on how to put your money IN to savings.

Your next lesson/education should be about WHERE to invest.

If you want to read on it, I would reccommend "The Big Investment Lie"
TL/DR: Don't pay someone to manage your money. They can't beat index funds with low load fees over the timeframe of your life.

 

Sorry, see above, buying gold when I can.

Don’t say you weren’t warned. That’s the US money supply. Strap in for that line to go vertical again here shortly as if the damage done already isn’t bad enough. USD at a 3-yr low as I type this.

 

And just where do you plan to use that gold when it's time to buy groceries or pay for fuel? Last time I checked no one accepts gold as payment for good...

I'll second that with when shit hits the fan people aren't going to be after your gold. They'll be after your food and water. Good luck with that.

 

Don’t worry, I’m buying guns too.

Do I personally see a Mad Max future and the collapse of fiat money coming? No. So the purpose of gold is to keep your money parked in something that will appreciate in value as the currency the value it is calculated in implodes. So then when the currency value is halved, and your gold value in that currency has doubled (or more), you can cash in your gold for its current value in cash. It’s not rocket science bro. It also is not debatable that the value of the US Dollar is at the lowest it has been in 3 years. That means your dollars aren’t going as far any more as you have gotten used to.

 

Ok...

Again when the illusion that is our currency collapses exactly who is going to be in line to give you another imaginary curreny for your gold?

 

You do understand the appeal of gold right? Like the psychology of gold that hasn’t changed in 5000 years? PLENTY of people will be in line to buy your gold. Gold is the historical store of value (as in, store of purchasing power) and monetary risk hedge. Shit goes haywire, people want gold. Not sure why the mention of imaginary currency to make it sound like I’m a loon, you’re using internet troll tactics. I didn’t say the US Dollar is going away, I said it’s value is. The US Dollar is still going to exist in 5, 10, and 50 years, but what it means in practice/value is going to change. And again, it already is. See post above about current 3-yr low and still falling.

 

No I don't. Just like I'm not swayed by shiny little rocks either. You can keep your gold. I'll take a bag of rice.

 

Well I guess you’re just smarter than everyone else man. You’re missing the point that it doesn’t have to make sense to you, it just has to be true.

And it’s a lost art nowadays, but you can be right, just like I can be right. You want to put your store of value in a different commodity, rice, which is a long-term store of value to you as you can keep rice for some years, a google search says up to 30 years if conditions are perfect. And you are likely talking about using that store of value for smaller amounts of money. I choose to store my value in a longer term commodity like gold. When I settle some day, post-military, I’ll do some commodity banking in other commodities too, like rice, ammo, solar and wind equipment. But for now, for me and for you, it ain’t easy to store large sums of cash in rice. I most definitely agree that you want commodities and not fiat money when the shit hits the fan.

 

Looking at monetary supply without context makes no sense to me.

What I do know for sure is that gold is worth almost exactly what it was 10 years ago. Most of the rest of that 10 years it was worth less. Betting on economic failure seems like a bad long term plan when traditional investing has paid off for, literally, generations.

 

I'm smart enough to realize that there are really only two things that have any real value to the existence of a living creature. Food and Water. Everything else is shit we can live without. If we are standing amongst a group of starving people, you holding nuggets of gold and me holding a chicken in each hand I know who has the object of greater value. Chances are I can talk them into killing you and giving me the gold in trade for the second chicken.

 

Less than value when you add in lost opportunity, even something as simple as bonds have outperformed it.
If you want post-apocalyptic value, buy liquor, or ammo. (for trade or to take).