Retirement

[rjakapeanut]

thanks guys. def gonna do some research and start putting money away.

 

[edinatlanta]

Originally Posted by rjakapeanut

thanks guys. def gonna do some research and start putting money away.

Just remember, the biggest/most typical complaint dudes have is I should have started sooner/put more in sooner.

 

[otc]

Originally Posted by rjakapeanut

thanks guys. def gonna do some research and start putting money away.

Do it in the other order.

If you have money just sitting in the roth (even if it isn't yet invested), you will be more inclined to add more money and actually do something with it once you do the research. It is much easier to add money to an account and move investments around when you actually have an account ready and waiting.

 

[w.mj]

Originally Posted by edinatlanta

I may be wrong but IIRC there has never been a retrograb of accounts and I doubt that any politicians want to permanently piss off dudes who will then vote against them every time.
If a group of politicians does a "retrograb", I suspect that being voted against will be the least of its worries.

 

[eg1]

I probably could retire in 7 years or so, but I doubt I will (especially given the relative youth of my children). The biggest determinant will be my health -- as long as it is good, I won't necessarily feel compelled to retire. After that it's a matter of trade-offs all 'round. For one thing I worry about the health consequences (stress) of just suddenly stopping work all at once. Ideally I would like to gear down more gradually. For another, you don't know how long you are going to live, so you are either gambling that your money won't run out on the one hand, or that you won't keel over two weeks into retirement on the other!

 

[the shah]

did i completely pull it out of thin air that roth isn't a risk-free investment (i.e. you could lose it all) ?
i have to go in person to switch over to roth, i suppose i'm in no rush given the 'pennies' in there now

 

[otc]

Originally Posted by shahanshah

did i completely pull it out of thin air that roth isn't a risk-free investment (i.e. you could lose it all) ?
i have to go in person to switch over to roth, i suppose i'm in no rush given the 'pennies' in there now

You can hold many different types of assets in a roth. You could hold things that are essentially risk-free but most people would prefer to actually make some returns...

 

[Pilot]

My dad has been putting money in a Roth IRA and a mutual fund for me since I was young. After i turned 18, he told me that it was up to me to start putting money in them.

So, now at 23 i have some leftover cash to put into them each month. Maybe $150-200. I don't really have much in the way of a savings account. (just about all of it is going to go towards the taxes I'm having to pay in this year)

Haven't checked lately, but my IRA probably has a little <15k in it and mutual fund is under 10k.

So should I build up my actual savings account first and then start putting money into my Roth in the next year or two? Since i'm somewhat ahead of the game with what i have in there right now.

 

[thinman]

Originally Posted by Pilot

My dad has been putting money in a Roth IRA and a mutual fund for me since I was young. After i turned 18, he told me that it was up to me to start putting money in them.

So, now at 23 i have some leftover cash to put into them each month. Maybe $150-200. I don't really have much in the way of a savings account. (just about all of it is going to go towards the taxes I'm having to pay in this year)

Haven't checked lately, but my IRA probably has a little <15k in it and mutual fund is under 10k.

So should I build up my actual savings account first and then start putting money into my Roth in the next year or two? Since i'm somewhat ahead of the game with what i have in there right now.

You should always have an emergency fund equal to approximately 6 months pay, then fund your retirement to the hilt. The 6 month figure is flexible, depending on your job stability and your risk tolerance. The point is, you need a cushion in case of unemployment while you look for a new job.

 

[Connemara]

Originally Posted by Piobaire

I distinctly remember some talk about screwing over Roth holders and making it taxable upon withdrawal. It's going to be very attractive for Dem politicians to staunch some red ink that way.
Right, 'cause only Dem politicians would consider that.

And I agree with thinman. Here should be your savings priority: Pay of all high-interest debt (credit cards, etc.)--->Liquid (savings account) 6-month supply of savings, minimum--->Retirement savings. At least that's how I'm going about it.

 

[Piobaire]

Originally Posted by Connemara

Right, 'cause only Dem politicians would consider that.

Dear lad, you say the cutest things.

 

[IUtoSLU]

I hope to work until I die because I really enjoy what I do. Maybe that will change in 20-35 years and I will have to reassess.

 

[Connemara]

Opened a Roth IRA today.

 

[Biggskip]

Originally Posted by Connemara

Here should be your savings priority:

Pay of all high-interest debt (credit cards, etc.)--->Liquid (savings account) 6-month supply of savings, minimum--->Retirement savings. At least that's how I'm going about it.

You're not going to go wrong with that approach.

Originally Posted by Connemara

Opened a Roth IRA today.

Actually, you may want to consider making contributions to a Regular IRA. If you're income is small enough (I forget the limit) you could make contributions to a Regular IRA that are tax deductible today. That would enable you to increase your IRA contributions by the amount of your current tax rate.

If you make more than the limit, however, you're better off with the Roth IRA.

 

[Piobaire]

Originally Posted by Biggskip

You're not going to go wrong with that approach.



Actually, you may want to consider making contributions to a Regular IRA. If you're income is small enough (I forget the limit) you could make contributions to a Regular IRA that are tax deductible today. That would enable you to increase your IRA contributions by the amount of your current tax rate.

If you make more than the limit, however, you're better off with the Roth IRA.

Trad IRA deductibility and the ability to utilize a Roth fade out at about the same AGI.