retirement, good or sucks

[Captain Ahab]

That's almost FREE money with interest rates like that. I'd say pay the minimum on those loans and maximize what you can put into your savings. It doesn't take a very good financial planner to help you top those kinds of returns.

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I think the biggest benefit of a Roth is the ability to make a large tax free withdrawal to purchase something. Like maybe an RV so you can tour the country, etc. Or you can balance your traditional withdrawals with a Roth to manage your tax bracket. A Roth alone is not a great plan, IMHO. Limits on contributions are too low to put away meaningful amounts of retirement funds, plus the matching monies one receives are generally headed for a traditional IRA or 401k. At least, I know my Roth doesn't get the match.

Two things to think about: 1. Why take a large withdrawal out of an asset that can pay you tax-free income the rest of your life and pass tax-free to your heirs? 2. Most 401k plans have a ROTH 401k option now days. You can do both a Roth IRA and a ROTH 401k if you want to do so.

 

[guywhofishes]

I was torn between ROTH 401k and traditional 401k, so I’ve been shoveling 12% into each.

 

[AR-15]

Wait till the Democrats get control, they will use our 401K's for the Freeloaders, they need it worst then we do

 

[Sluggo]

I was torn between ROTH 401k and traditional 401k, so I’ve been shoveling 12% into each.

Doesn't 24% of 1 mill exceed the annual limits?

 

[guywhofishes]

Doesn't 24% of 1 mill exceed the annual limits?

hush

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Wait till the Democrats get control, they will use our 401K's for the Freeloaders, they need it worst then we do

that is a genuine concern of mine - I could well be a total fool

 

[Bfishn]

Wait till the Democrats get control, they will use our 401K's for the Freeloaders, they need it worst then we do

That's definitely a concern especially for us younger guys. Eventually Dems run out of other peoples money, and have to go searching elsewhere.

 

[3Roosters]

I wouldn't doubt it if the good ole Congress starts taxing ROTH withdrawals AND also Life Insurance proceeds at some point in the future. Wouldn't doubt it one bit.

 

[Captain Ahab]

I wouldn't doubt it if the good ole Congress starts taxing ROTH withdrawals AND also Life Insurance proceeds at some point in the future. Wouldn't doubt it one bit.

Previous stuff would likely be grandfathered.

 

[Zogman]

Previous stuff would likely be grandfathered.

You have more faith than I. If and when the Dem rats have the House, Senate, and Pres. They will be after everything the worker bees have. They will be lined up on shore collecting our Walleyes.

 

[Captain Ahab]

You have more faith than I. If and when the Dem rats have the House, Senate, and Pres. They will be after everything the worker bees have. They will be lined up on shore collecting our Walleyes.

That’s been the precedent set for basically every law change in history regarding a related subject.(Grandfathering)

 

[PrairieGhost]

They will be lined up on shore collecting our Walleyes.

Note to self, need more anchors.

 

[LBrandt]

Will need large treble hooks for casting from boat to shore.

 

[grizzly]

I retired at 60 and am now 63, wish i would have done it at 55 while body was in better shape,its just wore out from to many years from abuse but i can still fish lol. Let my wife quit last year when she hit 50 and now we can both go on good trips. spent most the summer up at LOTW with the camper and great fishing and now in the process of buying a seasonal place up there,Cant wait

 

[Allen]

Two things to think about: 1. Why take a large withdrawal out of an asset that can pay you tax-free income the rest of your life and pass tax-free to your heirs? 2. Most 401k plans have a ROTH 401k option now days. You can do both a Roth IRA and a ROTH 401k if you want to do so.

Right, that's why I'm a proponent of having both. I am much less worried about passing money on to my heirs tax free than I am about my own financial security in retirement. Current death tax laws allow for plenty of inheritance before significant taxes kick in.

 

[Timbuk-2]

Last time I checked the limit on Roth contributions was 6000/year.
However you can roll over a traditional IRA into a ROTH, but you have to pay the taxes.

 

[Allen]

Timbuk,

There are limit differences between a Roth IRA and a Roth 401k. I think they are $6k and $19k, respectively. There are "catch-up" contributions a person can make after age 50 to go along with those limits, I think they are $1k and $6k, respectively.

Why there are such differences though is not something I know.

 

[Bfishn]

Roth 401k is just like your normal 401k from your employer and has all the same contribution limits. Its just a choice of paying taxes now or later.

Roth IRA has much lower limits and also has income limits, but also has benefits the others don't like withdrawing principle without penalty & no required withdrawals at 70.5

 

[3Roosters]

If your employer offers both 401k traditional and 401k ROTH and you choose ROTH, the Company Match monies goes into your traditional 401K. YOUR contributions are after tax(ROTH). Company match monies go into your pretax bucket.

 

[BrokenBackJack]

This is why we pay our Edward Jones Investment person and our tax guy to know all this stuff!

 

[db-2]

I have enjoy the comments made on here and do commend those who did focus on retirement at a younger age. It has paid off for you. We did not focus until our age of 60. There was no 401 until later in life and the salary was such that the goal was at times just to get to the end of the month with some cash left over. Same with kids as no birth control and what came, came and they did come.

So i enter into the 60 years of age and decided it was time to think about getting old. Goal at 66 was to pay all debt off and put enough into savings to retire on. Income was such to enable that to happen. Get some kind of birth control.
From 66 to today at 73 our net worth did double with that by paying debt and increasing cash. I do encourage all to complete a financial statment each year to tract your progress and establish goals from that.
We went longer at work than most but my employer these last years, for the most part, let me come and go as please as long as the work was done. I did enjoy those years and will miss the work.

Yes the mind is slower and so is my movement.
Today we went for a trip in the wife's car. Wanted to turn to AM from FM. 10 minutes of pushing buttons it did not happen until I got home to read book. So for the moment now I know how and decided that was enough book learning for the day on the car. As I look at the dash, 75% of the buttons I do not know what they do and I am sure that will not change into the future. Also slower. At one time had a riding mower, now a walk behind. Takes 4.5 hours to mow my yard and neighbors each week but I still get it done. So hopefully nothing comes up and I can do that for a number of more years.

Today, as I drove I felt and had that feeling in my chest of all is well, happiness and pride, thinking about the things to do this summer. Got at least 300 trees to plant by hand, four food plots to plant, shed hunting in the bad lands with shed hunting in western Sas. for mule deer this spring and northern Sas. for ten days in April. Getting the bike out to go see Miss Kitty in Dodge Kansas. Taking my 97 Dodge out again and beating up on the Fords and Chevys.
It felt good. Might good.

I did pass a car with what I sought was plenty of space. As I met the oncoming vehicle I was given the finger. His Christmas just isn't going that well or as good as mind. Had nothing to do with being old I am sure of (there was all kind of space).

Again I did enjoy and for the young, listen to what has been said on here, it will make the old age easier but remember to enjoy the youth also and not all goals can be achieve. Stop and smell the flowers now and then and understand that sometimes thing get in the way of what you plan. db-2

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By the way, the wife still is not with child yet so what we do does work as I knew it would. db