Originally Posted by Newbie1001 (Post 11543565)

I appreciate the help but I'm not loving these assumptions that:
1) I will be taxed in the UK as income, when in fact I may well just drip the money in, during years of low income.

Originally Posted by Newbie1001 (Post 11543585)

So you are saying the period of time where thousands of billions of dollars being printed, while interest rates have kept low has somehow miraculously also had the effect of increasing your mutual funds, how strange.

And that seemingly inevitably has means the next 5 years should be roughly the same?

I didn't say I was a talented investor, I said that I've outperformed the majority of professionally run funds. I've been making more risky investments, and I've been lucky. That doesn't make me more talented, but it's made me more involved and agile. Again, I prefer my chances of acting in my own self interest than their chance of acting in mine.

Originally Posted by Newbie1001 (Post 11543585)

So you are saying the period of time where thousands of billions of dollars being printed, while interest rates have kept low has somehow miraculously also had the effect of increasing your mutual funds, how strange.

And that seemingly inevitably has means the next 5 years should be roughly the same?

Originally Posted by Newbie1001 (Post 11543380)

I'm young and entrepreneurial , from the UK and working in the USA -and I want my "pension" to not be a large lump sum in a bank paying an annuity, but a business I own, or other assets I'm in control of.

I also don't think the stock market will perform particularly well for the next 5 years, something about printing trillions and China stalling makes me a little uncertain.

But I'm paying close to 40% income tax ( single, child free, nice paying job) and my employer has a decent 401K matching policy.

Let's say I stay and work in the US for 5 years, then leave and want to extract my 401K money, pay the 10% early withdrawal fee, but then do what I wish with it by taking it as cash. I'd plan on doing this when I am in the UK.

I want to ask.
1) Assuming the income when I "cash in" is US income, but I am then based in the UK, will I pay UK income tax on this amount?
2) If I think the US stock market will do badly, is there a way to get a 401K which doesn't invest in the market but acts as a bank account paying a pathetic interest rate?
3) Any general advice or thoughts to help?
Thanks.

Originally Posted by Newbie1001 (Post 11543525)

What do you mean by " once you cash in the 401k you have also lost years and years of tax free growths" what is this tax free growth you speak of? Are you saying I will lose the growth I may have gained from when holding the money in a 401k or are you again assuming that I can make less money than a bunch of coked up bankers ( I know how hopeless most hedge fund traders are since I hang out with them ) who've Ive outperformed for the last 5 years myself many times over ?

Originally Posted by Newbie1001 (Post 11543585)

So you are saying the period of time where thousands of billions of dollars being printed, while interest rates have kept low has somehow miraculously also had the effect of increasing your mutual funds, how strange.

And that seemingly inevitably has means the next 5 years should be roughly the same?

I didn't say I was a talented investor, I said that I've outperformed the majority of professionally run funds. I've been making more risky investments, and I've been lucky. That doesn't make me more talented, but it's made me more involved and agile. Again, I prefer my chances of acting in my own self interest than their chance of acting in mine.

Originally Posted by dunroving (Post 11543945)

No, I'd say it means you have been lucky. Luck is no more inevitable than the assumption that S&S will continue to rise, which you so roundly criticised.

Originally Posted by Michael (Post 11544150)

He isn't lucky but probably about average.

Hedge Funds Trail Stocks for Fifth Year With 7.4% Return - Bloomberg

George Soros stated that hedge funds can no longer beat the market with such high fees and investors unwilling to leverage their investment to the hilt. However the big secret is that even when investors were leveraging their investments to the hilt, hedge funds still didn't beat the market and after taxes, likely underperformed the market.

The 20-Year Performance Of Hedge Funds And The S&P 500 Are Almost Identical

Originally Posted by dunroving (Post 11544158)

I was going on his statement that he'd outperformed them "many times over" by making risky investments. I didn't think that reflected an average approach to investments.

Originally Posted by dunroving (Post 11544158)

I was going on his statement that he'd outperformed them "many times over" by making risky investments. I didn't think that reflected an average approach to investments.