I think this actually gets to a good point -- you have to make money to pay taxes. It's more important that we teach people to make money than haggle over who pays what after they made it!
By disclosing how he made it, Mitt can teach the 99.99% of US citizens how to accumulate a huge nesting egg.
That's pretty funny, @Value Hiker
Thank you for that Value Hiker. I am as unhappy with Congress as you are. I understand that they have legislated in such a way that protects them and only them from being prosecuted for insider trading. It is a disgrace, and nothing short of "throwing the bums out" will satisfy me, and I make no distinction between the parties.
Re: Romney's IRA account
Value Hiker
1/24/2012 10:56:31 PM
Fred, thanks for the information. I understand you can roll over your pension to your IRA. Company prefers employees to take lump sum. but employee usually won't do it, because the lump sum is not a good deal. Only if your company is running into some serious trouble on funding the pension,(which happened quite a lot after 2008 financial crisis), you shall not rollover. Mitt is a smart guy, and he shall know it.
With $100M IRA, Mitt will definitely be the top 0.01% on retirement saving. By disclosing how he made it, Mitt can teach the 99.99% of US citizens how to accumulate a huge nesting egg.
Another interesting piece of information is: our Congressional representives had a far better return on their investment than the general public, does it ring a bell?
http://insidertrading.procon.org/view.answers.php?questionID=001034
Please read the following Value Hiker. There are many ways to increase an IRA without earning 25% annually. Romney and others have had many pensions over the years as they moved from job to job. There are also deferred compensation plans that end up in IRAs. Even I took a distribution from the UCLA pension when I left in 1973 and was able to maintain its tax sheltered status. There are plenty of things to criticize about each of the participants in government, I'm certain you will find something else.
*******
Defined benefit plans — commonly referred to as traditional pension plans — have been offered in the workplace since the late nineteenth century.
Unlike today's more common defined contribution plans, such as 401(k), 403(b), and profit-sharing plans, traditional pensions pay employees a specific monthly benefit at retirement — without any required yearly contribution or investment decisions on the employee's part.
Taking the Money from a Pension
When an employee retires, there are a number of ways pension benefits are disbursed to them. Most defined-benefit pension plans provide two types of payouts to the employees:
- Lump sum payout The lump sum payout has been popular the last several years. About half of workers with pensions now have the lump sum option and the majority use this. If the company allows a lump-sum distribution, consider taking it and rolling into a IRA. This money can continue to grow tax deferred. Call your pension provider-they will make a check payable to your IRA custodian and send to you.
William Howard Taft was the first president to introduce automobiles to the White House garage. In Canada, it was the prime minister, Sir Wilfrid Laurier, who brogught automobiles to the office of the PM. His wife, Lady Laurier, actually got a speeding ticket in Ottawa for going 25 miles per hour in her horseless carriage. She was an enthusiastic motorist.
My understanding is that President Taft got an appropriation for automobiles to relieve the horses of the strain of carrying about his 350 pounds. I have long been sympathetic to friends of animals.
Now, there have been Lincolns, Cadillacs, Pierces, and Packards in the White House garage. I know of no Hudsons. But I can assure all of you that there has never been a Nash Metropolitan there.
George Romney temporaily saved Rambler at the expense of Packard, Hudson, and Nash. I'd say on balance that his record was negative as an automobile executive. Eventually, American motors had to be sold to Renault. When that venture tanked, Chrysler bought what was left in order to acquire the Jeep brand, which I believe was bought by AMC after George Romney had departed the company (subject to correction by anyone who knows better). Chrysler then tanked twice -- the first time it was bought by Daimler-Benz AG, and after DBAG set it free the pieces were scooped up by Fiat, which owns it now.
If anyone doesn't remember the joke back in the 1970s when one could still buy a new Fiat in the US, it was said that the name was the acronym for "Fix it again, Tony."
Fred,
This is one of the greatest of Marvin's columns. He truly has risen to the heights. In answer to your question, I have unearthed no evidence that President Obama has ever even sat in a Hudson or a Packard, let alone driven one.
Accordingly, as the owner of two Packards, and occasional driver of a Hudson Hornet (which really was a kick-a** car in its day) I offer myself as a candidate for president.
Cheers,
Ted.
Re: Romney's IRA account
Value Hiker
1/24/2012 4:13:08 PM
You are right, people can rollover 401k money to IRA account. But the 401K plan started much later (1987?) than the IRA. It also has a cap on the contribution.
2006 $15,000
2005 $14,000
2004 $13,000
2003 $12,000
2002 $11,000
2001 $10,500
2000 $10,500
1999 $10,000
1998 $10,000
1997 $ 9,500
1996 $ 9,500
1995 $ 9,240
1994 $ 9,240
1993 $ 8,994
1992 $ 8,728
1991 $ 8,475
1990 $ 7,979
1989 $ 7,627
1988 $ 7,313
1987 $ 7,000
Furthermore, I doubt Bain Capitol provided 401K in the 80s, or 90s, because the total 401K asset of Bain Capital this year is 6.9M, a far cry for the 100M IRA account.
Scathing.
I really enjoyed Achilles' Wheel, though. I love a good pun.
I certainly want to thank you Marvin, for your in depth analysis of the credentials of Mitt Romney, and your attention to factors so important to our decision about who should lead us on for the next four years.
I wonder if you would be so kind as to direct me to a similar analysis that you have made about the president's credentials, after all he will be participating in the next election. Perhaps a discussion of his pastor, the Reverand Wright, or his friend, campaign worker and bomb maker Bill Ayers.
These are only two of dozens of questions that have been raised but not answered. Like how did he do in school? Who paid for his house in Chicago? Why his brother is still living in a hut on $10 income. And, I'm certain you can find others that will hold our interest.
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