How much do you Save for retirement?

Discussion in 'Financial Forum' started by Anonymous, Aug 8, 2007 at 5:39 PM.

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  1. Anonymous

    Anonymous Guest



    You don't have enough. You need to sell your home immediately and move into a trailer. Also, your kids will need to go to the local community college so that you can save more.
     

  2. Anonymous

    Anonymous Guest

    As he said, the Roth IRA has income limits. But you can add after tax dollars to your 401k. It grows tax deferred and protected from liability and lawsuits.

    You can invest in tax smart etf's or index funds and very little action occurs during the year. So no dividend taxes and short term gains to pay each year. Only a long term cap gain tax when you ultimately sell it way down the road.
     
  3. Put your retirement money into a 401K before taxes, not an IRA after tax. Compounding interest will far exceed after tax IRA, despite paying the tax upon maturity/withdrawal.

    Anyone telling you differently is flat out wrong. The only way this could backfire...if way down the road, the IRS raises the tax percentage taken to 75%, upon maturity. Highy unlikely.
     
  4. Anonymous

    Anonymous Guest

    ILA....the truth detector catches Hairy yet again.
     
  5. Anonymous

    Anonymous Guest

    I don't think you can do an IRA and a 401k at the same time. But you can do a Roth IRA and a 401k at the same time.

    I'm sure you would recommend a Roth over an unmatched pre-tax 401k up to the maximum first? Then put the remainder in your 401k. Roth's are by far the #1 retirement investment vehicle right now. Tax free growth and can always pull out your contributions with no penalties. Also, no required minimum distributions ever, and your beneficiaries don't ever have to take distributions ever, too. It can be passed on from generation to generation creating immense tax free wealth.

    The only reason to do an after tax IRA is that you can roll it over into a Roth, especially in 2010 (no $100k income limits).
     
  6. Anonymous

    Anonymous Guest

    You can certainly fund a 401K, a Trad'l IRA, and a Roth IRA simultaneously but there are income parameters to consider with the Roth.....high income singles and folks that are married will have contribution opportunities phased out beyond certain income levels. IE: If you are married and filing a joint return, you will be phased out and unable to contribute to a Roth at $165,000+
     
  7. Hillarious, Curly. Astoundingly funny. I suppose that you have your money in an IRA. How many times do I have to explain to you how compounding interest rates actually work, hmmm?

    Just when I thought you were catching on...and now this.

    Compounding before tax is taken will absolutely slaughter post taxation compounding. Even if the taxation rate laws spiral upward in 25 years. Stick to "shorting it" on your stock picks...but you better find a new financial advisor.

    What a dumb mofo you are.

    Do you need an example?
     
  8. If a fincial advisor has told you that Roth IRA's are the number one retirement investment vehicle, you need to find a new advisor. He's an idiot. Get out your calculator, and run it both ways at 6% or 5% or 4%. It doesn't matter what the return is. The 401K will slaughter the IRA, even if you have to pay a whopping 35% in 25 years.
     
  9. It's called having a business degree, Curly. And yeah, I fuck around with mutual funds with the little stuff............only because my employer matches 6%.

    But my "big pile" is in safe stuff. Gambling in the market with one's real money can be disasterous. You'll find that out the hard way. Remember, you so called "rich Republicans" pay 450 billlion per year tax money to fund the national debt.

    You can thank the GOP administrations for this massive run-up 3fold higher than the Dem administrations since 1946.

    Who'd a thunk it, huh Curly?
     
  10. #50 It's All Good!, Apr 16, 2008 at 1:18 AM
    Last edited by a moderator: Apr 16, 2008 at 1:21 AM

    You are a little too confident there Hairy...take another look.


    "Roth IRAs have many advantages over 401(k)s, including the ability to withdraw contributions (not earnings) any time without penalty. And in terms of estate planning, the Roth has an interesting benefit that allows your dependents to withdraw money from the account tax free."

    "Which type of account you should emphasize — after you've gotten the maximum contribution from your company on your 401(k) — really depends on a number of assumptions no one knows the answers to. One of the top factors is what you expect your marginal tax rate to be in the future.

    Here's why: If your tax rate in the future is about the same as it is now, the 401(k) has a slight advantage. If you invest $4,000 a year over 38 years at an 8% annual return, and your marginal tax rate remains at 25%, the money would be worth about $700,000 in a 401(k) and about $661,000 in a Roth. However, if your tax rate rises in the future, the answer changes. Assume the tax rate rises from 25% to 35%. Then, your 401(k) would be worth $626,021 — less than the $661,000 value of your Roth.

    While there's no way to know for sure which will be better for you, the Roth or the 401(k), both are a huge help in building your retirement fund. Assuming taxes stay steady at 25%, a taxable retirement account would have only $524,000 in it, which is 25% less than the 401(k) and 20% less than the Roth."


    http://www.usatoday.com/money/perfi/columnist/krantz/2005-11-25-retirement-accounts_x.htm
     
  11. #51 thehairyfiddler, Apr 17, 2008 at 12:23 AM
    Last edited by a moderator: Apr 17, 2008 at 12:33 AM
    xx
     
  12. Anonymous

    Anonymous Guest





    WHo are you people that even qualify for a Roth IRA?
    Dont misunderstand me but 165k was a while back for some of us.
     
  13. Anonymous

    Anonymous Guest

    Lick deez nuts Mr. "some of us". Most pharma reps make below $116,500, big shot.
     
  14. Anonymous

    Anonymous Guest

    WOW! This person really got it right the past 18 months. Congrats to you!!! I did not invest in CDs or Gold the past 18 months, nor is it my long term strategy, but I did see this recession coming last February and went to 80% cash for most of 2008. I jumped back in on 11/20 (DOW 7500), made a quick 12% in two days, got back out for Dec/Jan and just got back in for the long haul last week at 7500 again. I plan on riding it out from here as I'm just 31, have 185K in retirement savings, and am completely debt free except for my mortgage. I plan to have it paid off in 4-5 years. I have been preaching for years the following, and perhaps it will take this recession/mini depression to make people finally listen to me. Live well below your means, pay cash, and SAVE! If you follow this formula, it doesn't really matter whether you follow this posters strategy of CD's/Gold, or mine of a well diversified portfolio of funds/stocks/bonds, you will win. Pick up a copy of Dave Ramsey's book, the total money makeover. I hate to read, and could not put it down. You'll get a lot out of it, and it will change your financial life forever. Good luck.
     
  15. Anonymous

    Anonymous Guest


    Yep,
    Thats one of the reasons I got out of pharma. And I have a wife that chips in 60k.
    Broke 250k last year.
    Lick dees nuts bagel boy.
     
  16. Anonymous

    Anonymous Guest

    Congrats. You are a milionaire at age 41.

    Your advisors should do a plan for you considering all the expenses you want/expect based on the standard of living you want at retirement.

    They will come up with an amount. Be wary: they will use all sorts of assumptions in the calculations that will increase the amount you need at retirement b/c they get paid on a % of your account.

    If you invest that $650k until you retire, you will have at least $3 million so relax- you are all set for the good life.
     
  17. Anonymous

    Anonymous Guest

    I agree. Everyone assumes the guy is lying. There are many people who make that kind of money and have that amount in savings. Isn't that why people get into medical sales?

    There are way too many negative people on this site.
     
  18. Anonymous

    Anonymous Guest

    don't pay for the entirety of your children's college. Make them contribute. THey will value their degree more, not choose an unncecessarily expensive college, strive for higher grades since it's THEIR money they are spending.

    My friends Dad paid nothing for their kids college. The result: one went to West Point, the other a Ph.D in chemistry, and the other a medical device rep.

    My parents couldn't afford to pay (6 kids). The result: I got a full academic scholarship. Now 5 out of the 6 now have Masters degrees.
     
  19. Anonymous

    Anonymous Guest

    My goal is to die destitute and live my last year completely on the gobblement's dime to fuck them out of all the money they stole from me during my lifetime.
     
  20. Anonymous

    Anonymous Guest

    WOW.... I am the original poster of this message and I can't believe the level of BS that gets put up here.. WHY would I lie it correct. Maybe I should also have mentioned I have been in Med devices for 20 years now (almost 44- almost 3 years since I posted this) and am a Director. When I posted this I was with Medtronic. I now work for a start-up and haven't made less than 225K in 10 years.

    I asked the original questions because- like many of us- I wonder what is really enough to save for someone in my financial state. Everything you ready says- SAVE MORE!! I think i have it pretty squared away now. I work with an advisor and today my savings is pushing $ 850K even after the downturn we all wnet through.

    My House has fallen in value- but I still have equity- and am not planning to sell it for many years. I also don't have any other payments- so yes my "all in " housepayment is almost $ 6000 a month with taxes and insurance and I make it every month - no sweat.

    I can't decide to laugh at some of the BS comments people make on this site or just write it off as a place for very unhappy people to vent....

    I'll check back in another 3 years and see what crap's been slung at the wall then.

    Later!