How the hell are we supposed to retire?

here's another possibility for some: my old company had both conventional and Roth 401(k)s available. Since I'm over 50 I could "catch up" contribute to the tune of like $24K/yr, as long as it wasn't above a certain percentage of my salary (it wasn't). Even the youngsters could contribute up to like $18K/yr, which was like 3x the max of a std. Roth IRA. I wasn't always able to contribute the max, but that was a rockin' deal.

we merged with another company recently, and inherited their plans, so bye bye Roth 401(k) contributions; I'll miss you.
 
I recall reading that financial advisors usually reco traditional over roth IRAs, but we never had a choice in our 401Ks so I never looked into it thoroughly.
 
rick81721 said:
I recall reading that financial advisors usually reco traditional over roth IRAs, but we never had a choice in our 401Ks so I never looked into it thoroughly.
Click to expand...

Probably because you can lower your taxable income by contributing to a traditional IRA, however you pay later. My present employer allows both, so I split contributions between the 2 because I'm getting hosed on taxes now, maxing them both out every year.
 
w_b said:
maximum untaxed gain is the way to go- this is the mindset needed.

Mr. Roth early and often.
Click to expand...

wait until you see the WONDERFUL changes to the tax system that this well-thought out and best-in-class crafted bill has. Mr. Roth might get a bit of an ass-kicking. That remains to be seen though...

i've so far had 5 hours or training on it. can't wait to see what congress finally publishes. honestly, i think congress can't wait to see what they publish either since most don't even know what's in it!
 
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Monkey Soup said:
Probably because you can lower your taxable income by contributing to a traditional IRA, however you pay later. My present employer allows both, so I split contributions between the 2 because I'm getting hosed on taxes now, maxing them both out every year.
Click to expand...

pre-tax 401k isn't tax exempt in NJ - and only pay tax on the gain on w/d. They will allow the w/d of the contributed amount before they start fully taxing, as income, the gain.

if the tax bracket in retirement is not less than the tax bracket while working, it is a wash - if the gain isn't taxed.
then if you move to a state with different rules.....most likely you'll live in a state with no income tax - it is just what old people do!
Wait till ya get a bill for personal property tax!

as an example
Invest $1000 pre-tax, investment doubles at withdraw, taxed at 30%
(1000 * 2) * .7 #traditional IRA
is the same as
taxed at 30%, investment doubles, withdraws are tax free
(1000 * .7) * 2 #Roth IRA

what can change is the tax rate - and if you share @gtluke's assessment, then yes, ya lose
If the tax rate in retirement is less than the tax rate while working, you win.

employer match must be taken into account - free $$!!
 
I finally remembered my wallet password! It looks like I lost over $1300 because I decided to take 10% discount on giftcards, lol.

IMG_0002.jpg
 
clarkenstein said:
wait until you see the WONDERFUL changes to the tax system that this well-thought out and best-in-class crafted bill has. Mr. Roth might get a bit of an ass-kicking. That remains to be seen though...

i've so far had 5 hours or training on it. can't wait to see what congress finally publishes. honestly, i think congress can't wait to see what they publish either since most don't even know what's in it!
Click to expand...

^^^ need dislike button ^^^

....yet those self-serving schlocks will sign it off anyway.

Momma learnt me good; never sign something without reading and unnerstandin it first....
 
fidodie said:
pre-tax 401k isn't tax exempt in NJ - and only pay tax on the gain on w/d. They will allow the w/d of the contributed amount before they start fully taxing, as income, the gain.

if the tax bracket in retirement is not less than the tax bracket while working, it is a wash - if the gain isn't taxed.
then if you move to a state with different rules.....most likely you'll live in a state with no income tax - it is just what old people do!
Wait till ya get a bill for personal property tax!

as an example
Invest $1000 pre-tax, investment doubles at withdraw, taxed at 30%
(1000 * 2) * .7 #traditional IRA
is the same as
taxed at 30%, investment doubles, withdraws are tax free
(1000 * .7) * 2 #Roth IRA

what can change is the tax rate - and if you share @gtluke's assessment, then yes, ya lose
If the tax rate in retirement is less than the tax rate while working, you win.

employer match must be taken into account - free $$!!
Click to expand...

Traditional makes sense for us - our tax bracket is lower now that we are retired. And in FY2018 we will be Florida residents so bye-bye NJ income tax. Even if tax reform includes reductions in state income tax and property tax deductions, it will be good timing to ditch this NJ house with ridiculous property taxes.
 
Sorry, this escalated into me exposing way too much information and me coming off way too much of a dick.
I hid most of the bitcoin talk and I'll start another thread.
 
gtluke said:
Sorry, this escalated into me exposing way too much information and me coming off way too much of a dick.
I hid most of the bitcoin talk and I'll start another thread.
Click to expand...

Can you move it to the other thread? There was some good stuff in there
 
buy some nice safe stocks and rest easy my friends. Here are a few of my favorite and best performing stocks ; CLX , RTN, PSX , APO, SQM, WM . Always do your own research so you know what you are buying
 
I figured it might fit here,
but if you can, pre-pay some/all of your property taxes and make your charitable donations now before the new year.
Get the credit for it this year, because it's gone for next year.

Amirite @clarkenstein ?
 
jmanic said:
I figured it might fit here,
but if you can, pre-pay some/all of your property taxes and make your charitable donations now before the new year.
Get the credit for it this year, because it's gone for next year.

Amirite @clarkenstein ?
Click to expand...

if you itemize i would definitely look into this. find a tax calculator based on the new plan and see what the difference will be in your taxes and the amount of property taxes that will be disallowed.

charitable donations are definitely going to be affected too. pushing contributions this year could be helpful (generally speaking). that said, you could 'bunch' your donations next year so you still get a tax benefit. the charitable donations changes have my gears turning when it comes to JORBA.
 
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