Is $1,000 worth something in investments?

[El Guapo]

No this is:


The primary advantage of a 401k or IRA is that the (tax deferred) additional money you pay into your investment *grows* tax free.  Do you understand the exponential function?  If you expect to be fabulously wealthy, you can do a Roth 401k and pay no taxes on withdraw.  If you're arguing against tax managed funds then 

while you might think that your money is at an advantage growing tax free you are going to get nailed on the distribution phase. One way or another, uncle sam is going to get his cut. People that are relying on their 401 k's for retirement are subject to the following risks:
1-CONSTANTLY changing tax brackets
2-market risk
3- fees
4-loss of liquidity( they cannot touch their money until 59 1/2)
5-funding the account in a Low tax bracket, then possibly collecting from a higher one.

[El Guapo]

Much of this is valid and worth factoring in to your decision making regarding retirement investing. However, The Beef feels that most over complicate these decisions and because of that, do little if any thing to aid in developing a retirement income program.

1- Things are different here in Canada with respect to taxation on capital gains. The 8k is a spendable sum and not based on the current value of The Beefs MF. The Beefs MF will double ( in theory 4 more times prior to retirement.)  One also needs to understand The Beef still makes weekly contributions, well in excess of the $12.50 The Beef recommended to a young " aggressive " investor who would receive the 8k monthly referenced above. The Beef will receive far more then 8k monthly.

2- Can you comment further on lost opportunity ?

3- Th plans for the monthly stipend are basic, it will be used to under write the cost of The Beef's living expenses. The Beef looks upon MF as the footing onto which a retirement foundation is built. With a mortgage free home $499,000.00 ( current market value ) a monthly income from The Beefs employer and The Beef's monthly $1200 government pension ( paid to all Canadians over 65 ) things look good. The Beef does not feel that between 65 and death The Beef will scratch the surface of his income fund. When The Beef needs to be cared for, the retirement facility would receive the monthly benefits of the Beefs fund and upon The Beef's passing the fund would be paid out to a beneficiary ( The beef's great nephew ) and would be taxed at the time of pay out.

4- The Beef does not factor this into his plans to any degree and nor should anyone structuring a retirement portfolio. These considerations are for fund managers to deal with and with that in mind, The Beef's MF ( and employer pension fund ) rode out 9/11 very well. Again, the aggressive position ( length of time you are in the market ) offsets these term loses providing that the MF is diversified and maximises the advantages that come from the Canadian and foreign content regulations .

The Beef

you seem like a smart guy and I dont feel like going back and forth. But to answer #2. The taxes and fees that you pay each year due to your mutual funds create a lost opportunity cost. As in you are losing the interest and return that money payed out could have earned you. Good luck!!

[figgs]

i'm sure the 30 y o figgs will be too. 

Believe me, the 30 year old Figgs is going to be in the prime of his life. 

[Hurricane Beef !]

you seem like a smart guy and I dont feel like going back and forth. But to answer #2. The taxes and fees that you pay each year due to your mutual funds create a lost opportunity cost. As in you are losing the interest and return that money payed out could have earned you. Good luck!!

Thanks for the well wishes, bro. You seem to very well versed on financial matter.

The Beef

[davidpaul]

why are you stealing clothes for

[bigdumbbell]

what happened to the guy with 1,000 dollars?

[Tapeworm]

what happened to the guy with 1,000 dollars?

Maybe he's wishing us "the very best of goodbyes."

[dzulboy]

I don't know anything about investing, but I'm expecting to soon receive a check from financial aid that could be worth over a thousand bucks, and I wonder if I could multiply that with a jackpot of an investment. This financial aid check is found money to me. I can do whatever I want with it. And so why not make money with it? It's a decent wad.

get a capital one money ,arket  best thihng you can do wth 1000 it'll give 5%  intrest and you can hit it up whenever you like