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Personal savings rate? - Page 4

post #46 of 59
shit on a regular old savings account, you're lucky if you see 15bps. High yield, 100bps give or take.

2 year cd, maybe 1.5%
post #47 of 59
Thread Starter 
Quote:
Originally Posted by Piobaire View Post

You can't even use a Roth after a married couple's AGI exceeds 175k or so. Additionally, IRAs have to be funded with post tax dollars. It's really fucked.

Wrong.

Backdoor Roth IRA
post #48 of 59
Quote:
Originally Posted by Quadcammer View Post

shit on a regular old savings account, you're lucky if you see 15bps. High yield, 100bps give or take.
2 year cd, maybe 1.5%

I dropped a chunk of change 5 years ago into a 10-year 5% CD. I wish I had done more.
post #49 of 59
Quote:
Originally Posted by norcaltransplant View Post

Quote:
Originally Posted by Piobaire View Post

You can't even use a Roth after a married couple's AGI exceeds 175k or so. Additionally, IRAs have to be funded with post tax dollars. It's really fucked.

Wrong.

Backdoor Roth IRA


No idea what this is. Please share.
post #50 of 59
Quote:
Originally Posted by Piobaire View Post

No idea what this is. Please share.

Since they removed the income limits on roth IRA conversions, you can technically still get one every year.

Basically you max out a traditional IRA and then pay the taxes and convert it to a Roth. Of course if you are also at the point where you lose the traditional IRA tax benefits, you are paying a hefty tax bill up front to avoid ever paying taxes again.
post #51 of 59
Quote:
Originally Posted by otc View Post

Quote:
Originally Posted by Piobaire View Post

No idea what this is. Please share.

Since they removed the income limits on roth IRA conversions, you can technically still get one every year.

Basically you max out a traditional IRA and then pay the taxes and convert it to a Roth. Of course if you are also at the point where you lose the traditional IRA tax benefits, you are paying a hefty tax bill up front to avoid ever paying taxes again.

Oh yeah, that sucks. Pay in with post tax dollars then pay more money to convert to Roth?

Been thinking about buying some sort of annuity lately but just something about annuities I don't like.
post #52 of 59
Quote:
Originally Posted by thenanyu View Post

I dropped a chunk of change 5 years ago into a 10-year 5% CD. I wish I had done more.

yeah, no joke.

I remember i got a 5.60% rate on a Wamu CD right before jpm acquired them. 3 days later, rate dropped to like 3%
post #53 of 59
In Australia right now you get about 4.5% on a pretty normal savings account. Goes up to about 5.5% for special accounts if you don't withdraw. House prices are still crazy high here now with a pretty ordinary house in an ordinary suburb costing at least $550K. Saving for a house, but it's tough enough to save to get a deposit on one let alone thinking about the mortgage repayments when I take out the loan.
post #54 of 59
Quote:
Originally Posted by blahman View Post

In Australia right now you get about 4.5% on a pretty normal savings account. Goes up to about 5.5% for special accounts if you don't withdraw. House prices are still crazy high here now with a pretty ordinary house in an ordinary suburb costing at least $550K. Saving for a house, but it's tough enough to save to get a deposit on one let alone thinking about the mortgage repayments when I take out the loan.

Are those accounts government insured?
post #55 of 59
Thread Starter 
Quote:
Originally Posted by Piobaire View Post

Oh yeah, that sucks. Pay in with post tax dollars then pay more money to convert to Roth?
Been thinking about buying some sort of annuity lately but just something about annuities I don't like.

You cannot avoid paying taxes on any retirement contributions beyond the 17k alloted for 401k/403b employee contributions or 49k SEP contributions. For people in the 33% & 35% marginal tax brackets, contributing an extra 5k to a traditional IRA and then converting it to a Roth IRA makes a minuscule impact on front-end tax liability, but permits tax free growth on the basis. Just make sure to fill out form 8606 and keep it in a safe place.
post #56 of 59
Quote:
Originally Posted by thenanyu View Post

Are those accounts government insured?

Yes.
post #57 of 59
Quote:
Originally Posted by norcaltransplant View Post

Quote:
Originally Posted by Piobaire View Post

Oh yeah, that sucks. Pay in with post tax dollars then pay more money to convert to Roth?
Been thinking about buying some sort of annuity lately but just something about annuities I don't like.

You cannot avoid paying taxes on any retirement contributions beyond the 17k alloted for 401k/403b employee contributions or 49k SEP contributions. For people in the 33% & 35% marginal tax brackets, contributing an extra 5k to a traditional IRA and then converting it to a Roth IRA makes a minuscule impact on front-end tax liability, but permits tax free growth on the basis. Just make sure to fill out form 8606 and keep it in a safe place.

Thanks. I will talk to my tax CPA about this. My main thing in the last two years has been the deferred comp.

Married couple can make this 10k?
post #58 of 59
Might be strange but, but as a savings/ investment I try to buy some physical silver each paycheck. Adds up quickly, plus has possible potential for great % gains. especially in these very uncertain times. Not to mention rates suck for someone like me with little income. Oh yeah, it keeps up or beats inflation at the least.satisfied.gif

oh yeah, I also contribute 7% to my 401k, as I have plenty of time to let that go up and down.
post #59 of 59
I would be hesitant to consider something like that when you can turn about 3% in interest payments from a reasonably stable bond fund like PIMCO total returns.
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