#11
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Re: OT: investing Bankroll
[ QUOTE ]
[ QUOTE ] Put it into a roth [/ QUOTE ] I don't know if you are referring to poker winnings but they do not count as earned income for an roth, right? [/ QUOTE ] You can put up to $X in a roth/year (too lazy to look up the number). Whether or not that money comes from your job or not is irrelevant. The point of a roth isn't *just* that it's before-tax money. It's also that it isn't taxed when you take it out. So a person with no job, no income, and no taxes could still invest the yearly limit in a Roth (because whatever he earns won't be taxed if he takes it out after 65). |
#12
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Re: OT: investing Bankroll
[ QUOTE ]
-->Which account type do I choose? I would suggest either a “roth IRA” or an “individual cash” account. A roth IRA is an account for retirement. It has many rules, but the benefits are huge. The advantage of a roth IRA is that your gains are NOT taxed. However, there are a few restrictions: 1. You cannot take out any money you’ve made over and above your deposits until you are 59.5 years old (Exception: If you are purchasing your first house). 2. There is a maximum amount you may deposit per year (this number changes and is currently at $4000). 3. You MUST ONLY deposit what the IRS defines as “earned income.” Poker earnings are unfortunately NOT “earned income.” 4. Sometimes if you make TOO MUCH money ($95k+/year), you may not qualify. If any of those rules are violated, you may face monetary penalties. If you do not qualify for a roth IRA, you should open an individual cash account as it is just a regular account with no restrictions. [/ QUOTE ] That is in the Sticky in BFI forum under the title "Investing 101 for Trout" |
#13
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Re: OT: investing Bankroll
dude, investing in a roth is a great idea, but you will not be able to take it out (until retirement, or some special cases). So it's effectively no longer part of your bankroll.
If you put it into something liquid (e.g. savings, stocks) you can put it back into BR when needed. I'm all for pulling money out of BR for purposes such as Roths, etc, but this is not the same idea as temporarily making interest on unused BR. |
#14
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Re: OT: investing Bankroll
PS Roth is not before-tax money, it's after-tax. Of course, I'm sure you're already reporting your poker income to the IRS so this is not an issue for you [img]/images/graemlins/smile.gif[/img]
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#15
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Re: OT: investing Bankroll
If you want to earn income and have the money in a safe, readily available account then ING or Emigrant or any other online savings account is the way to go. You will be earning about 5%, which is pretty much the going risk-free rate.
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#16
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Re: OT: investing Bankroll
Put it on absolute poker and get 9%? [img]/images/graemlins/smile.gif[/img]
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#17
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Re: OT: investing Bankroll
[ QUOTE ]
[ QUOTE ] -->Which account type do I choose? I would suggest either a “roth IRA” or an “individual cash” account. A roth IRA is an account for retirement. It has many rules, but the benefits are huge. The advantage of a roth IRA is that your gains are NOT taxed. However, there are a few restrictions: 1. You cannot take out any money you’ve made over and above your deposits until you are 59.5 years old (Exception: If you are purchasing your first house). 2. There is a maximum amount you may deposit per year (this number changes and is currently at $4000). 3. You MUST ONLY deposit what the IRS defines as “earned income.” Poker earnings are unfortunately NOT “earned income.” 4. Sometimes if you make TOO MUCH money ($95k+/year), you may not qualify. If any of those rules are violated, you may face monetary penalties. If you do not qualify for a roth IRA, you should open an individual cash account as it is just a regular account with no restrictions. [/ QUOTE ] That is in the Sticky in BFI forum under the title "Investing 101 for Trout" [/ QUOTE ] if you file as a professional u can contribute to a roth ira. If you file as a hobby, you can not |
#18
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Re: OT: investing Bankroll
Thanks man for clearing that up because I was pretty confused.
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#19
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Re: OT: investing Bankroll
[ QUOTE ]
[ QUOTE ] [ QUOTE ] -->Which account type do I choose? I would suggest either a “roth IRA” or an “individual cash” account. A roth IRA is an account for retirement. It has many rules, but the benefits are huge. The advantage of a roth IRA is that your gains are NOT taxed. However, there are a few restrictions: 1. You cannot take out any money you’ve made over and above your deposits until you are 59.5 years old (Exception: If you are purchasing your first house). 2. There is a maximum amount you may deposit per year (this number changes and is currently at $4000). 3. You MUST ONLY deposit what the IRS defines as “earned income.” Poker earnings are unfortunately NOT “earned income.” 4. Sometimes if you make TOO MUCH money ($95k+/year), you may not qualify. If any of those rules are violated, you may face monetary penalties. If you do not qualify for a roth IRA, you should open an individual cash account as it is just a regular account with no restrictions. [/ QUOTE ] That is in the Sticky in BFI forum under the title "Investing 101 for Trout" [/ QUOTE ] if you file as a professional u can contribute to a roth ira. If you file as a hobby, you can not [/ QUOTE ] yeah but cant you just take cash/unclaimed money and put it in ones roth IRA? "money in the bank" if you will... |
#20
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Re: OT: investing Bankroll
iron obv
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