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Rons Rants and Raves On Momey and Financial Issues

1 October, 2016



Helping you keep more of your money in your own pocket

Recently I was a guest on a radio show and I was asked 2 very important questions and I
think the answers should be repeated here, so here they are.
Question 1.  What is the biggest mistake most seniors make?Answer:  A lot of seniors are so intent in keeping their nest egg in tact that they forget to
look at the big picture.  Many times people have opportunities, especially between the
ages of 60 and 70, where they could be getting money out of their IRA’s tax free.  They
end up waiting till 70 ½ before they will start taking that money out and then they end up
paying taxes on that money.  In essence because they didn’t take the money out when
they could have done it tax free, they end up giving as much as a 1/3 of it to the
government.  Just because you take the money out, that doesn’t mean you have to
spend the money.  You can always get it out and then reinvest it somewhere else.
Question 2.  Should people always be contributing the maximum amount to their
401k’s?
Answer:  Many times the answer is no, many times the answer is yes.  For people who
are not actually paying any taxes anyway because of child credits, itemized deductions
etc., those people definitely should not be contributing anymore then the amount they
have to in order to get the full match from their employer,  I’m not saying don’t put money
away for retirement, I’m saying take the difference and put it into a Roth IRA.  If you are
not paying any income taxes in the first place, what good is it doing you to put pre-tax
dollars into a retirement account.  All your doing is taking currently tax free money and
turning it into account that you will have to pay taxes on someday in the future.

2 Big Common Tax / Investing
Mistakes

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JUST FOR FUNWhy executives
make more money:
Engineers and
scientists will never
make as much money
as business executives
will. Now, for the first
time we have a rigid
Mathematical proof that
explains why this is in
fact true.
Postulate 1: Knowledge
is power.
Postulate 2: Time is
money.
As every Engineer
knows, Work / Time =
Power
Since Knowledge =
Power, and Time =
Money, we have Work /
Money = Knowledge
Solving for Money, we
get: Work / Knowledge
= Money Thus, as
Knowledge approaches
zero,
Money approaches
infinity, regardless of
the amount of work
done.
Conclusion: The less
you know, the more you
make



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