Now that those responsible for the financial meltdown are firmly in
charge and have paid their cronies nearly a trillion dollars, the
stock market voted today and the USA lost, DOW down nearly 500
points. Few of us who invested in IRA and related plans will be able
to retire on what we put in because the Dems rigged the system and are
in position to continue to do so. The market is not likely to recover
in such a crony environment because nobody in their right mind would
invest.
So, what should we do? How do we get the tax break of an IRA and some
growth in value? The answer, small companies should spend money on
"expendables" that build value in the company and do not get taxed.
In my case, it will be tooling that is expensive but has a limited
lifetime and is used to make stuff. This also builds capability in a
company so builds value that way. Generally such tooling is made
overseas but so what, let the Dems worry about that, they caused the
problem. DO NOT hire any new people but outsource instead because you
can expect to be punished by Obama for hiring people.
A way that I will build value is via intellectual property, ie,
patents. This always costs a lot so I have generally done it only
when absolutely necessary but a portfolio of patents is valueable and
is a better value than making stuff. You will not get taxed on the
money you spend on patents either but only when you sell your business
at a profit later.
Making money on "investments" is going to require a little more
creativity now that the crooks are in charge.