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  #31  
Old 06-13-2018, 02:24 PM
PattonWasRight PattonWasRight is offline
 
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Quote:
Originally Posted by lennnorment View Post
Here is an often overlooked, unmentioned, fact between selling the "collection" and cashing in that 401K. Most will pay taxes of 25-30% on that 401K. You will not have a choice with the required reporting. What tax rate do you think someone will experience when selling a rifle 20 years after buying it?? And yes, I do know that, legally, you should report any and all gains from the sale of goods. How often do you think that actually happens? Even if you were challenged on it, how in hades would anyone be able to prove what you paid for something? Even if they could, you could have storage fees, upkeep and maintenance, etc to write against any gains. Heck, this is a hobby any way. Try buying a set of golf clubs, a boat, etc. hold them 20 years, sell them and see what kind of "gain" you end up with.
Solid input, I'd agree, really overlooked.
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  #32  
Old 06-13-2018, 02:26 PM
PattonWasRight PattonWasRight is offline
 
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Originally Posted by lapriester View Post
The money I do make on them will go toward that once in a lifetime Elk hunt while I can still do it.
Yep, good feeling to turn these into once-in-a-lifetime experiences you can enjoy even further / guilt free knowing you didn't dip into the piggy bank.

Like you say, don't wait too long ...

A couple of advil only goes so far these days!
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  #33  
Old 06-13-2018, 04:17 PM
Johnho Johnho is offline
 
Join Date: Nov 2009
Location: Volusia County, Florida
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Quote:
Originally Posted by lennnorment View Post
Here is an often overlooked, unmentioned, fact between selling the "collection" and cashing in that 401K. Most will pay taxes of 25-30% on that 401K. You will not have a choice with the required reporting. What tax rate do you think someone will experience when selling a rifle 20 years after buying it?? And yes, I do know that, legally, you should report any and all gains from the sale of goods. How often do you think that actually happens? Even if you were challenged on it, how in hades would anyone be able to prove what you paid for something? Even if they could, you could have storage fees, upkeep and maintenance, etc to write against any gains. Heck, this is a hobby any way. Try buying a set of golf clubs, a boat, etc. hold them 20 years, sell them and see what kind of "gain" you end up with.
Boy is this ever true. I found out too late. Should have put my money in a Roth IRA rather than max out my 401k every year. Only put money in a 401k to get the employer match and then go Roth. If no matching then Roth all the way. Making the RMD each year now taxes my SS payment. Yes I would have paid taxes on the money but it would grow tax free, that is the benefit.
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  #34  
Old 06-13-2018, 04:42 PM
Chev454ls Chev454ls is offline
 
Join Date: Apr 2013
Location: Rochester, MN
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Quote:
Originally Posted by Johnho View Post
Boy is this ever true. I found out too late. Should have put my money in a Roth IRA rather than max out my 401k every year. Only put money in a 401k to get the employer match and then go Roth. If no matching then Roth all the way. Making the RMD each year now taxes my SS payment. Yes I would have paid taxes on the money but it would grow tax free, that is the benefit.
That definitely is the intended benefit, but the reason you typically want to put-off paying taxes is that it is generally assumed that you will be in a lower tax bracket when you finally do cash-in that 401K.
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  #35  
Old 06-13-2018, 05:00 PM
Johnho Johnho is offline
 
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Your right Chevy and I am in a lower bracket slightly. But when I look at how much more taxes I pay on just the SS and what it does to my tax rate I find I am paying just about the amount I saved on taxes when I put it in vs what I it's costing me out of my SS. Is it exact, no. To me I'd rather had payed the taxes then on the money I put in and let it grow tax free so when I take it out my SS would not be taxed. I feel I'd be way further ahead with the Roth. Of course I could have lost it all too in the big crash. But the markets did come back. In short, it's whatever people feel comfortable with as we can't predict the future. You know what they say " a bird in the hand is better than two in the bush". And of course this is all hindsight.

Edit somewhat: don't forget that RMD also counts as income when you take it out. That too adds to your taxable income. Just info for those that may be too young to care right now and they should know. The Roth doesn't add to income.

Last edited by Johnho; 06-16-2018 at 07:36 PM.
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  #36  
Old 06-15-2018, 05:33 PM
Smf834 Smf834 is online now
 
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Diversification is the key. You can’t predict future, ie your income level, tax level, etc..., its easier to diversify and cast a wide net, and keep buying that lottery ticket every monday, hoping for the payout
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  #37  
Old 06-16-2018, 03:41 PM
Mississippi Kid Mississippi Kid is offline
 
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Location: Mississippi
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If only I had a time machine and a few thousand dollars.

I doubt if there were anything short of a million rifles imported of any model that prices would drop more than a few dollars . The only thing that will drop those prices is lack of demand. As long as somebody will pay inflated prices based on fear of never finding another as nice as the rifle they are looking at and fueled by whatever panic is being generated , the prices will stay high and even go higher.

The good 'ol days of cheap surplus are gone but the memories linger on .
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  #38  
Old 06-16-2018, 07:05 PM
abeal abeal is offline
 
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Location: Ohio
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Best thing for your relatives is to sell your firearms and put the money in a Roth IRA for them to inherit. I was looking whether I could open a Roth IRA for my granddaughter but she needs earned income to have an IRA in her name. I figured it would be great if you could compound growth over 60 years. I haven't found another good alternative although I looked at universal gift to minors, trust funds, and of course college funds. I want to leave her a retirement fund, not something she can spend in her twenties.

I have found I can gain more by selling my collection, putting the money in a brokerage account, and buy stocks. Not going to haggle over $50 because the sooner I get the money in the market, the sooner I can increase the money.

Last edited by abeal; 06-16-2018 at 07:07 PM.
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