StreetScooby 5 #1 August 17, 2012 This article made me laugh. It's a good question. How does someone who has spent their entire life in public service, never making more than $200K salary, become a multimillionaire? He hasn't released his tax returns either. How Did Harry Reid Get Rich? Granted, one can only assume that if there were real issues here, the IRS would be all over it, just like they would with Mitt's tax returns. But, Reid's does seem to push the smell test.We are all engines of karma Quote Share this post Link to post Share on other sites
matthewcline 0 #2 August 17, 2012 QuoteThis article made me laugh. It's a good question. How does someone who has spent their entire life in public service, never making more than $200K salary, become a multimillionaire? He hasn't released his tax returns either. How Did Harry Reid Get Rich? Granted, one can only assume that if there were real issues here, the IRS would be all over it, just like they would with Mitt's tax returns. But, Reid's does seem to push the smell test. He, along with Boehner, Pelosi and many other Republicans and Democrats, made some kind of list not to long ago showing how they played the Markets with their insider trading knowledge. It was such a accurate list that the insider trading law passed quickly as a measure to control the issue. I am sure some one has it at the ready here. MattAn Instructors first concern is student safety. So, start being safe, first!!! Quote Share this post Link to post Share on other sites
StreetScooby 5 #3 August 17, 2012 Quote they played the Markets with their insider trading knowledge. That's right, it wasn't illegal for them to do that. Outrageous.We are all engines of karma Quote Share this post Link to post Share on other sites
jgoose71 0 #4 August 17, 2012 After reading that article, all I can say is "wow". And the people of Nevada still keep voting for him. What does that say about the process and the intelligence of the people of Nevada? But then again, the entire nation voted for Obama...... "There is an art, it says, or, rather, a knack to flying. The knack lies in learning how to throw yourself at the ground and miss." Life, the Universe, and Everything Quote Share this post Link to post Share on other sites
SkyDekker 1,122 #5 August 17, 2012 I am sure Harry Reid was the only politician doing that. SPecially while it was legal for them to do so. Quote Share this post Link to post Share on other sites
matthewcline 0 #6 August 17, 2012 QuoteI am sure Harry Reid was the only politician doing that. SPecially while it was legal for them to do so. Nope, it was a pretty equally shady deal by both sides of the Cookedtiicans Isle. MattAn Instructors first concern is student safety. So, start being safe, first!!! Quote Share this post Link to post Share on other sites
kelpdiver 2 #7 August 17, 2012 QuoteThis article made me laugh. It's a good question. How does someone who has spent their entire life in public service, never making more than $200K salary, become a multimillionaire? He hasn't released his tax returns either. How Did Harry Reid Get Rich? Granted, one can only assume that if there were real issues here, the IRS would be all over it, just like they would with Mitt's tax returns. But, Reid's does seem to push the smell test. paragraph 2 Quote But, surprise, he does, if he’s our Senate majority leader, whose net worth is between 3 and 10 million dollars, according to OpenSecrets.org. When Harry Reid entered the Nevada legislature in 1982, his net worth was listed as between $1 million and $1.5 million “or more,” according to the Las Vegas Review-Journal. So, since inquiring minds inquire, let’s try to figure out how Reid’s career in public service ended up being so lucrative. He hasn’t released his tax returns, which makes this an imperfect science, but looking at a few of his investments helps to show how he amassed his wealth. In 30 years, he went from 1-1.5M to 3-10M, if these ranges are accepted as ball park accurate. Any level of competent investment over that time frame should result in an increase of at least 4x, and that's conservative due to the lost last decade. Given how well investors did in the later 80s and 90s, this is unduly conservative. His fortune should exceed 10M by now. If he started with that million in 1982 and never invested another dime, typical expected result in 2012 (at 7%) is 8.1M. It's funny, I saw another article with the same leading title - it writes: "Reid has been earning that 193 grand for a few years, but when he first entered the Senate in 1987, I think the Senate salary was about $125,000.00 per year. In order to build up $4.6 million dollars over the past 43 years, Reid would have had to sock aside – out of various government salaries – nearly $107,000.00 per year. " This particular author is either financial retarded, or merely dishonest. If he shoved his 107k into a mattress or a bank security deposit box, then yes, it would take 43 years to amass 4.6M. But if he invested it at 7% (after tax) returns for the time frame, he would have 29.4M dollars. He only had to save 17k/year for those 43 years to get to 4.6M. Quote Share this post Link to post Share on other sites
StreetScooby 5 #8 August 17, 2012 Thank you for the substantive feedback. We are all engines of karma Quote Share this post Link to post Share on other sites
StreetScooby 5 #9 August 18, 2012 Quote But if he invested it at 7% (after tax) returns for the time frame, Too bad we can't all do that...We are all engines of karma Quote Share this post Link to post Share on other sites
jcd11235 0 #10 August 18, 2012 QuoteQuote But if he invested it at 7% (after tax) returns for the time frame, Too bad we can't all do that... Try the stock market.Math tutoring available. Only $6! per hour! First lesson: Factorials! Quote Share this post Link to post Share on other sites
kelpdiver 2 #11 August 18, 2012 QuoteQuote But if he invested it at 7% (after tax) returns for the time frame, Too bad we can't all do that... I hope you're doing it - the IRA and 401k can do better than 7% while hiding in the tax deferred state. On only one year did I exceed (or come close to) his current salary and I expect to retire with multiple millions....from saving ~15% per year. People say they can't save 10% ... most of them are lying. Anyone that had a million in assets in 1982 should be living well at this point. Those people enjoyed the best 15 year stretch ever (?). Quote Share this post Link to post Share on other sites
yourmomma 0 #12 August 18, 2012 I have mined 113 bitcoin. fuck the market. Quote Share this post Link to post Share on other sites
Gravitymaster 0 #13 August 18, 2012 So you support opting out of SS? Quote Share this post Link to post Share on other sites
headoverheels 291 #14 August 18, 2012 Quote I hope you're doing it - the IRA and 401k can do better than 7% while hiding in the tax deferred state. Deferred isn't quite as much of a win as it appears, since it all will be taxed as ordinary income at payout. Pay the taxes up front and invest long term, and you pay the lower capital gains rate. In my case, retirement tax bracket will not be that much lower than what I make now. Quote Share this post Link to post Share on other sites
jclalor 12 #15 August 18, 2012 Mitt want's to cut his taxes while raising the middle class's, what does Harry want to do? You can't see only a slight difference? Quote Share this post Link to post Share on other sites
jcd11235 0 #16 August 18, 2012 QuoteQuote I hope you're doing it - the IRA and 401k can do better than 7% while hiding in the tax deferred state. Deferred isn't quite as much of a win as it appears, since it all will be taxed as ordinary income at payout. Pay the taxes up front and invest long term, and you pay the lower capital gains rate. In my case, retirement tax bracket will not be that much lower than what I make now. Use Roth IRA and Roth 401k (where available), and you can avoid the capital gains tax when you withdrawal the funds. You do have to pay into the funds after taxes, though.Math tutoring available. Only $6! per hour! First lesson: Factorials! Quote Share this post Link to post Share on other sites
kelpdiver 2 #17 August 18, 2012 QuoteQuote I hope you're doing it - the IRA and 401k can do better than 7% while hiding in the tax deferred state. Deferred isn't quite as much of a win as it appears, since it all will be taxed as ordinary income at payout. Pay the taxes up front and invest long term, and you pay the lower capital gains rate. In my case, retirement tax bracket will not be that much lower than what I make now. The difference however is that any money that would go into your 401k is taxed at your top marginal rate. But in deferral, you're instead paying your blended rate, which can be substantially lower, either because of the amount, or by doing a two year cycle of greater and lesser. A significant portion of companies offer the roth 401k, which unlike the roth ira, does not have an income limit. You can use that to escape the back end taxes...but you have to trust that they won't alter the tax arrangement. I split contributions between the two as a tax diversification move - the intent would be to withdraw up to one of the lower brackets, then pull from the tax free account. BTW, you make a presumption that the capital gains tax rate will remain lower than income. You know that's not a given....it's discussed both nationally and in this forum as unfair tax treatment. Quote Share this post Link to post Share on other sites
