I would be interested in hearing opinions on the use of tax deferred instruments as an investment strategy. While I believe it has worked for us, I wonder that I rarely see this as a subject of discussion.
Edited to add... I missed the thread in "Fund for Retirement Income"... which I believe gets into this... but... for simplicity, the way it worked for us... Since receiving SS in 1998, our planned withdrawals from IRAs, took care of any excess needs... keeping us tax free.
Before that, since 1989 when we retired our "investments" were all in tax deferred, insurance, IBonds and EE Bonds, a LTC policy, and an annuity. These accounts have provided tax deferred compound interest.
And Yes... We realize that withdrawals will be subjected to taxes. In the meantime, the initial investments have risen from five to seven times the original amount.
As we feel safe for the long term... at 83, who knows? ... and realizing that had we invested with more risk, in retrospect, we might have earned more, we feel safe, and have never worried much about money. In the meantime had we needed that money, it would have been there.
Naive, I suppose, but it makes me wonder if anyone else has done this?
Edited to add... I missed the thread in "Fund for Retirement Income"... which I believe gets into this... but... for simplicity, the way it worked for us... Since receiving SS in 1998, our planned withdrawals from IRAs, took care of any excess needs... keeping us tax free.
Before that, since 1989 when we retired our "investments" were all in tax deferred, insurance, IBonds and EE Bonds, a LTC policy, and an annuity. These accounts have provided tax deferred compound interest.
And Yes... We realize that withdrawals will be subjected to taxes. In the meantime, the initial investments have risen from five to seven times the original amount.
As we feel safe for the long term... at 83, who knows? ... and realizing that had we invested with more risk, in retrospect, we might have earned more, we feel safe, and have never worried much about money. In the meantime had we needed that money, it would have been there.
Naive, I suppose, but it makes me wonder if anyone else has done this?
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