http://moneyland.time.com/2012/01/20/romneys-ira-big-and-possibly-misdirected/
Financial Planning
The Lessons of Mitt Romney’s IRA
By Dan Kadlec
January 20, 2012
*** begin quote ***
Mitt Romney’s IRA account is valued at tens of millions of dollars.
Mitt Romney may have made the classic IRA mistake: holding low-tax investments inside a tax-favored account. His IRA strategy isn’t clear, of course. Romney continues to guard his personal finances. But details are trickling out, and even if it turns out that Romney’s traditional IRA is built right for him, the securities he holds in it serve as a valuable reminder that not all investments belong in a tax-favored account.
Romney’s IRA is valued at between $20.7 million and $101.6 million, according to The Wall Street Journal. That’s an extremely wide range that the Journal found in Romney’s latest financial disclosure report, filed in August. His IRA produced income between $1.5 million and $8.5 million last year.
*** end quote ***
He has a tax liability of 3½M$ when he turns 70.
This was a “mistake” made twenty years ago.
Interesting to know what was the thinking going on at that time.
When the Congress first created IRAs, I was skeptical of the whole idea on betting what future politicians and bureaucrats were going to do.
I went in on it, but I’m always concerned that the “rules” will change in the future.
Recently, I advised someone to FOREGO participating in their company’s 401k because of the restricted investment choices and the high fees of those choices. I recommended nickels, bullion silver, or other such commodities.
Remember that Social Security was NEVER supposed to be subject to taxation. Then Congress changed the rules.
Who knows what these criminals will do in the future?
# – # – # – # – #
Reinke Faces Life 