Retirement Investments

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Twystyd
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Retirement Investments

Postby Twystyd » Thu Aug 21, 2008 8:48 am

Anyone involved with Insurance investment concepts and have any knowledge or web content I can dig at. Essentially I have been using Roth IRA's for years as my principle retirement nest egg (also have a 401k) and I have a few friends trying to get me to go into insurance investing instead. Essentially it seems you borrow against polices exploiting tax loopholes but I don't fully understand the concepts. Also it seems to be more of a pain in the ass as you deal w/ brokers etc. Is it really worth going through a company like World Financial that specializes in insurance investments? Do the gains calculate higher then Roth's with the same risk? Feel free to PM me or reply with any details you may have. As much as I trust my sources I don't want to be sold on something as important as retirement savings unless I'm really sure so the more advice the better.
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Postby Zeratulx » Thu Aug 21, 2008 9:53 am

Holy shit, a serious post from Twyst?!?!?

On a more serious note I use my firms Roth 401k, have my savings, and am working on some other investments that I am looking into. If you find any info let me know twyst as I have heard about that as well.
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Postby Amit » Thu Aug 21, 2008 4:57 pm

ive looked into it some. assuming you are talking about money after you max out your roth ira and 401 and that you own a house then next thing you want to do if you want real wealth is to buy more property to leverage your money.

example:

you got 10k.

option 1: invest 10k at 8% per year in the market
option 2: invest 10k in 200k worth of real estate at a lower rate of return but your growth will be on 200k instead of 10k. also if you can rent the place its a no brainer. when you get set to retire you can sell and get 500k of each property tax free if you have it listed as your residence 2 of the last 5 years.

so the big plan is buy as many as you can while the real estate market is low now. wait 20-30 yaers and sell them off every 2 years banking 500k tax free each time.

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Postby barbos » Thu Aug 21, 2008 5:09 pm

Investing in insurance is good for the insurance companies. I would pass.

Like Amit said, max out your roth and 401k first before doing anything else.

Investing in real estate is usually a good way to go, but if you don't know what you are doing, you can get yourself stuck in a bad situation, especially if you invest with borrowed money.

You can also do better than 8% in the market.

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Postby barbos » Thu Aug 21, 2008 5:17 pm

I would also recommend getting out of debt before investing in other stuff as well, if you aren't already. :bigups:

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Postby Amit » Thu Aug 21, 2008 7:16 pm

depends on your interest rrate on your debt. i have 180k at 1.8% from school and im letting that ride out. i also have 850k at 7.25% in a commerical loan from buying my practice and i want to wipe that out sooner

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barbos
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Postby barbos » Thu Aug 21, 2008 7:23 pm

debt is debt. You used someone elses money because you couldn't pay your own bill :onfire:

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Postby Amit » Thu Aug 21, 2008 7:39 pm

no its really not. think of it this way, you can pay off 200k now or put it in the market and according to you do better than 8 % and only costs you 1.8%. its a no brainer

paying off debt may help you get rich, but if you want to be really rich you need to leverage what you got

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Postby barbos » Thu Aug 21, 2008 8:35 pm

You could also make horrible decisions or have bad luck and lose money... Not only are you out of money you don't really have, but you still owe someone the money that you lost. Now you have to catch up just to break even.


I understand your point, and you can make it work.

But, IMO, if you aren't careful, or don't know WTF you are doing, it can put you in much worse situations than just losing your money. I prefer to play with money that's actually mine.

:bigups:

Whatever you do, just don't do something stupid like this:
http://tinyurl.com/64o7a3

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Twystyd
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Postby Twystyd » Fri Aug 22, 2008 6:40 am

I bought my place in 2k3 for about 10k more then what the place 2 spots down sold for a few months ago but thats the way it is right now in northern California. If you want to buy and rent theres plenty of states were housing is still pretty solid (i.e. Texas) in regard to wealth gathering. Anyways I'll try to dig up some information on insurance Zera. Ive been told it's what a lot of the law makers rest their accounts so I'm curious if nothing else.
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Postby Amit » Fri Aug 22, 2008 12:25 pm

when you are talkign retirement investments you cant even look at 1-3 years gains or losses. have to look at the 20 year or 30 year picture or youll go crazy

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Postby Augomatic » Sat Aug 23, 2008 8:52 am

20 - 30 years is pretty hard to look at.

Real Estate is a risk, no matter how you cut it. With rising energy costs, increasing climate concerns, increased amount of people not having children, and the fact that younger generations don't seem to want to leave the city, it might actually be a bad choice to invest in Suburbia, since Suburbia as we now know it might cease to exist.

On the other hand, increased telecommuting, remote offices, more home based businesses, and larger immigrant families might mean Suburbia continues or even thrives.

My point is that the second you see someone say "it's a no brainer", you are probably in trouble.
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barbos
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Postby barbos » Sat Aug 23, 2008 8:57 am

Depends on the region...

Real estate is still doing pretty well where I live, and Suburbia is thriving. Bigger, more lucrative homes on less acreage, and they continue to sell. :bigups:

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Postby Amit » Mon Aug 25, 2008 9:59 am

yeah well ANYTHING is a risk. even a savings account is only insured up to 100k so if you want 0% risk put the money under your mattress.

you have to look at how things have done over the last 30, 50, 70, 100 years.

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Postby barbos » Mon Aug 25, 2008 4:42 pm

Amit wrote:so if you want 0% risk put the money under your mattress.


Sadly, when you consider inflation, you are actually losing money with that :huh:


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