Saving for retirement at a young age.

Did you buy bitcoin at 4,000?

 

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Bitcoin ATM's charge a high fee, can be anywhere from 5-15%. I paid 5% for mine.

I am in the process of opening up accounts on Coinbase and Kraken so I can link my them to my bank account and trade cryptocurrencies that way because the fees are much less.

 

Nicehash site got hacked and 4600 ($65,000,000)bitcoins stolen. Seems hackers go after the trading sites and jack you can do. Now I read bitcoin to start trading on Chicago exchange

 

Don't ever let someone else manage your money,buy real estate and buy a large safe and buy silver and gold..neither of the three will ever be worth 0.

 

Just been researching and have not found an answer to this;

If one were to invest into ETF's, say $5k per year. Would the invester still pay tax on that $5k for that year prior? Or will it lower the adjusted gross income- the same way business expenses and per diem does?

I understand taxs will be paid ultimately on the capital gains and etc- just trying to figure out if I invest 5k this year, 2017, will that lower my tax bill for 2017 a bit- [or will I be paying taxs on that 5k this year, and again on my capital gains later]

And business truckers on here that are inclined in this type of investing ? Thanks in advance if you could spare a moment

 

Depends on what type of account you plan to put the money into. Is this an IRA?

 

If it is invested inside a traditional IRA account, and you qualify for an IRA deduction, the money invested can be deducted from your taxable income. Going forward, no taxes are due on interest, gains, or dividends until the money is withdrawn, generally after age 59.5, when any withdrawals are taxed at your income tax rate that is applicable then.

If the money is invested inside a Roth IRA, and you qualify for a Roth IRA, the money invested is NOT tax deductable. Going forward, all interest, capital gains and dividends and the original sums invested REMAIN TAX FREE when withdrawn.

On the open market, outside of a retirement shelter structure, no tax benefit exists. The funds invested are taxable, and relized capital gains, interest, and dividends received are taxable under either capital gains or income tax rates, as applicable.

In other words, put the money in a Roth. You'll save tens of thousands in taxes later.

 

I don't regret not saving for retirement since I did. I regret going belly up and losing it all at 50. It was protected but there was the little problem of food and shelter. That penality sure kicked us while we were down. I would recommend only minimal retirement savings and instead just save. 3 months pay should be the first goal. That's just cash on hand to cover emergencies.

 

The problem is that there is never enough cash around to do IRAs, 401ks and such. Being frugal, you have to be born with, becoming one is such a pain.