risk in finance

[james.hendrickson]

I risked my life and took a job in a conflict zone. I got paid $250,000 for the year. It damaged my lungs and it was hard on my marriage. I'd do it again in a heartbeat.

[kork13]

I risked my life and took a job in a conflict zone. I got paid $250,000 for the year. It damaged my lungs and it was hard on my marriage. I'd do it again in a heartbeat.

Lol... Sounds like my day job, just not not making that money. I've already got the dates for my next deployment (next spring).

[JBinKC]

I have taken many financial risks but by far the largest one was in the late 1990s when I had to pay a 100% income tax rate equivalent to my gross income of my job for 4 consecutive years where I had to sell my condominium and a separate parcel of land to move into a rental home of mine and also had to borrow from my 401 K to invest in the stock market when I converted my regular IRA to a Roth to survive.

I think owning a business would be even a higher risk because you have even more potential negative variables that can go against you

[disneysteve]

I have taken many financial risks but by far the largest one was in the late 1990s when I had to pay a 100% income tax rate equivalent to my gross income of my job for 4 consecutive years

What does that mean? How did you possibly have to pay 100% income tax?

[LivingAlmostLarge]

We are definitely doing it. I need to figure out the FSA and i need to figure out our medical/dental before March 2021. I can't wait it's very exciting. My DH is nearly jumping out of his skin. We have to get the office shed we are building up and running before then. Ideally it'll be done by end of November. UGH. We also need to spend money on making the house as comfortable as possible while we still can. I already have $11k and $4k earmarked for 2021 January contributions to Roth IRA and ESA.

My biggest thought is using savings to live on in January and Feb 2021. But I need to figure out how to max out our 401k for 2021 in 2 months and i still need to do the Roth IRA and ESA. It's hard to plan all these moving parts right now.

[JBinKC]

What does that mean? How did you possibly have to pay 100% income tax?

Let me word this differently I actually had to pay more income taxes than what I grossed from my job for 4 consecutive years due to a Roth IRA conversion I made in 1997 where I had to add 144K to my adjusted gross income for 4 consecutive years where I received no income/cash flow benefit from it other than tax free income when I retired. So I had negative cash flow over those years. What prompted me to perform the move was the elimination of capital gains taxes on a sale of a home which was enacted at the same time. Note from this move I also gained 576 K of income where I won't pay any taxes on that income right before I get to my retirement age if I use the equal installment method of withdrawal which I will start doing this starting this year.