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You can do what we do in Australia, every employer has to pay 9.5% of your income into a retirement account. It's like a social security tax but it goes into an
by yyy888sss 6y ago
You can do what we do in Australia, every employer has to pay 9.5% of your income into a retirement account. It's like a social security tax but it goes into an account you own instead of the the general pension system. If you have a normal career you will have over a million in it by the time you retire. Obviously you will be a lot better off if you also own your home outright by that point.
- bpodgursky 6y agoThis isn't far from the Social Security reform George W proposed -- letting people invest a portion of their SS into investment accounts (half of social security is paid by employers). The political reception was... poor. Had to ditch it under pressure from AARP and attack ads from Democrats.
- frgtpsswrdlame 6y ago>The political reception was... poor. Had to ditch it under pressure from AARP and attack ads from Democrats. Of course. Let people have defined benefits. Stop trying to turn every single angle on retirement into defined contribution.
- jdhn 6y agoI kind of wish that it had gone through, although there would definitely have to be rules on what you could invest in because you know some goof would be messing around with options & puts, and then have their entire private SS account go to 0, or worse.
- wp381640 6y agoBring back the baby bonus and just pay it into super to kick-start it It's a shame the super system in Australia is being undermined by early access. Spoke to a car dealership recently and their business has been through the roof because of it.
- bfieidhbrjr 6y agoCould you please translate all this? What is super and why would a car dealer be through the roof?
- deleted 6y ago[deleted]
- TapWaterBandit 6y agoSuper = Superannuation. Basically a portion of your pay (9.5% currently) MUST be paid into a superfund to hold the money until you can access it upon retirement. Car dealers are through the roof because the government allowed early access to a portion of it if "in distress" due to Covid-19 and lockdowns. However, many people who weren't in distress took the money (their own retirement money, remember) and bought a new car.
- bfieidhbrjr 6y agoThanks!
- robofanatic 6y agoHow different is it from 401K in US?
- riahi 6y agoBecause most companies give near zero match.
- nodesocket 6y agoOr being self-employed and you get no-match and have to pay the other 1/2 of social security taxes. We should be supporting business, entrepreneurship, and innovation. I suggest we eliminate capital gains taxes for those making under $500k a year. That will incentivize people to invest even more into capital growth engines like (stocks, bonds, real-estate, business, crypto).
- toomuchtodo 6y ago"Section 1202 of the IRC is commonly referred to as the QSBS exemption. If you are a founder, angel investor, or an employee of a successful early stage company, you need to be aware of certain qualifications that could help you protect up to $10 million (or 10 times your cost basis, whichever is greater) from federal taxes. " https://www.svb.com/blogs/svb-private-bank/understanding-qualified-small-business-stock-the-capital-gains-exemption https://www.svb.com/blogs/svb-private-bank/understanding-qua...
- deleted 6y ago[deleted]