- Jan 9, 2010
- Los Gatos, CA
Well said.The issue is nobody knows what the future tax rates will be. I know someone that retired 9 years ago and he makes more in retirement than he ever would’ve guessed investing in various businesses. He has a very sizable RMD to take every year but just chalks it up as a good problem to have.
I err on the conservative side and postpone paying taxes as long as possible.
I love the "good problem to have" point of view. I love paying taxes as it simply means I am making money.
I also believe in diversification, even though I am terrible at it.
- Housing - ya gotta have a place to live, regardless
- Retirement accounts - fairly conservative so $$ will be there
- More risky investment - mostly index funds, a few individual stocks
- CA double tax free municipal tax bond fund - smaller but stable return and helps offset tax burden
- Cash - cash is king
- Invest in yourself - learn learn learn
- Invest in others - put a kid through college or help someone less lucky than you