When the bough breaks.. stock market, housing, collector car

There's another boat that I pray that no one will miss...

 

I took out a small loan from my 401(k) so I can pay myself back at 7.5% interest on top of the normal 10% taken from my check.

 

A little earlier this year I moved a good chunk of my old 401K (I moved to an IRA to get away from my former company's limited and lame investment options) and did a ROTH conversion while the market is tanked. When it comes back, because it always has, it will do so tax free to me!

 

I've been VERY tempted to do this. Interesting that you followed through

 

In this political climate, I figured I'd dodge as many taxes as I can. Being retired, my income is quite low so we don't get much of a tax bite. On top of that, my financial advisor found a very nice gas drilling investment that gives me an 80% tax write off for every dollar I invest. If I put $10K in, I get an $8K deduction in income the first year. Once it starts producing, I get to deduct a sizeable depletion percentage from that new income.

 

I’d like to know more about the gas drilling investment. You can PM if you’d like or ignore me if it’s something that you can’t share for whatever reason.

 

I will PM you.

 

We are doing Roth conversions each year now sinceI retired. We should be able to do a couple more yet at the lower tax rate.

 

The downturn is coming, just a bit slower in Florida in that so many folks from high tax, cost of living and high crime states are still moving here at a rate of 850 per day. Cash buyers aren’t affected by mortgage rates but that cash influx is already slowing and the bidding wars for homes higher than listing price are now few and far between but home prices are holding steady for now. I’ve seen this before and given many factors coming together in a perfect storm, we’re on the precipice of a substantial downturn. I sold one of my places six months ago for $625k. A year ago it would have gone at $700k. Now he might get $600k.