What long-term investments should everyone make to be more comfy

property

when to do ROTH over traditional IRA contribution:
>your income is low enough to put you in a low tax bracket and your 401k, if you have it, is complete shit and there's no match; if there is a match max that out first
>your income is high enough to not qualify for traditional IRA tax deduction if you already have an employer 401k ($61k AFTER 401k deduction so up to $79k annual income), but still low enough to be below the ROTH IRA income limit

>>1670781

Just buy AMZN

Assuming you will even live to 50 is very arrogant. Do you even have faith in Allah anon. Spend your money on the poor and the orphans.

Bitcoin and Monero. Totally serious. Maybe Alphabet and Amazon too, just in case they completely take over the world with their ai.

I'm 24, I have a girlfriend and a daughter. I make $35,000 per year and will be jumping to $42K by next year. I don't get a 401K and my job does not have any retirement plans.

Here's my plan

>$300/month into Roth IRA, invested in the dividend aristocrat funds. All dividends reinvested, will scout for second holdings when my dividend income is close to $10K/year. I will increase to maximum roth contribution when I can afford it ($5.5K/year)
>Next year I will be buying property, hopefully a 2/2 single family home or a condo in a nice up and coming area. This will be for us to live for the next 5-10 years and eventually rent out.
>Once the first property is paid off or we start renting it, we'll buy a second property to live in. Our rental income should cover living expenses.
>We will retire tax free from social security and rental income, and hopefully not have to touch our Roth IRA's so that our kids can have lifelong, tax-free income

I'm sure I'll run into some hiccups and need to adjust, but this is the overall plan.

>>1671574
FINALLY SOME TRUTH ON /BIZ/

>>1671359

This. We don't qualify for a Roth, so we have to put it in a common brokerage account and accrue dividends and interest taxes annually.

Be sure never to have all of your retirement plan savings in IRAs no matter what your "advisor" tells you. When you're in your 50s a 401K allows penalty free withdrawals, while IRAs do not allow it until 59.5.

Start early and keep at it. And NEVER use debt outside of a mortgage. Even then, pay off the mortgage by age 45.

>>1671639
Yeah I max a traditional IRA because the best I can do is claim a standard deduction on my taxes, resulting in terribly high taxes. Soon my income will exceed that $79k point and then I'll switch over to a ROTH.

ROTH IRA's will also allow me to do a ladder should I retire early

File: 1481102085753.png (57KB, 226x244px) Image search: [Google]

57KB, 226x244px

>>1670781
Sugar, guns, bullets and gasoline

>>1671958

As your income increases the amount you can contribute tax-free to either phases out. By the time you're upper middle class you can't take advance of either except as a rollover from a 401K. So in those cases it just makes sense to max out your 401K, max out your HSA, and then any extra cash goes into a common brokerage account. Investing in munis and other tax-exmpt bonds can help, but even here there are limits that can trigger the AMT and still screw you.

AMT sucks ass, fwiw. In 2012 we were hit with the AMT and paid an effective tax rate of 19%. Mitt Romney made 100x our income and paid an effective rate of 13.4%. The AMT is really meant to screw the upper middle class.

>>1672020
the limit is $117k for ROTH filing single and $180k joint
at that level of income I don't see the point in worrying over a piddly 5.5k

>>1672168

Every bit counts when you're trying to maximize tax efficiency. But yeah, I guess that's why they have the rolloff. They think you don't deserve it, and in fact deserve to pay more.

But that's what I always walk into when someone says "Dude, you're an idiot for not doing a Roth or traditional IRA!" Everyone is in different circumstances and what works for you may not work for me. And likewise Trump.

>>1671592
You mean your wife's son?