Retirement Planning
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Retirement Planning
I can understand, me too. I have a couple of 401ks that I will be rolling over probably to a Roth to generate $500 month then feed it into an IUL before the tax law changes. This way I can grandfather my money into a no tax status. I will share with you as I go along so you can see my journey. [ more ]
Thank you Maria, I am starting pretty late. Like most people I was not taught about money growing up. So I'm still learning a lot right now, I have had my 401 for a few years now and it is doing well but I have recently started investing in other avenues and wasn't sure if I should keep everything together or leave them in different accounts. Im just not trying to work till I'm 70, I have things to do. Haha. [ more ]
I would NOT place my money into M1, I have personal reason for it but it is up to you on how you want to diversity your money. It all depends on your goals, your age and when you want to retire. It would be great to get advise on this. Strategize a bit on what are your short and long term goals money wise. Then you can start planning and deciding how you can place in non taxable vehicles for the long term. [ more ]
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Retirement Planning
As to putting money into an IRA monthly, if you don't have the money to fund it up front, do that. If you can fund it right away, do it. If you are worried about the market going down, invest it in something else. If you are getting 0.1% in your bank account, or 0.1% in your IRA but not getting taxed, the IRA still wins. But if you look at a REIT, they pay interest and they are at least not corrolated well to the market in general. Make money as early as possible in your IRA if you can... [ more ]
For certain high-net-worth individuals, life insurance is a way to pass on more millions to decendants without paying taxes. But financially insurance as an investment is reliably a good deal for your insurance agent, for you, not. Term life is a bet that you will die. If you "win" your family gets the money so they can survive without you. The other kind of life insurance which amasses value is a poor investment. It is better to buy term life while your family needs your income, and once... [ more ]
The following context really helped me to frame how I view life insurance vs. retirement: Life insurance is way to ensure security for your family in the eventuality of your dying. Retirement savings is a way to ensure security for yourself in the eventuality that you stop working (i.e. your primary income stream stops). Thinking about it in this context, life insurance is obviously not a a great investment vehicle for yourself, but perhaps a great one for your family when you are gone. [ more ]
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Retirement Planning
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Retirement Planning
@Riva951ie : Wow, that is so cool how things worked out in your favor albeit challenging. Hope this year bring more fruitfulness. [ more ]
@Nef I first bought a single family home (all 3 are). Honestly I was more forced to buy this since I did not qualify for much and having a truck payment did not help out either. However, my agent did recommend this area and the house value has gone up almost 300%! So in short, I qualified for so little and that was in my price range. This was in 2011 when I got the house for 83K =) [ more ]
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you both touch on a point: invest in 401K as much as your employer matches is the general advice. Tend to agree, however there are additional options to continue on 401k without matching. Something else mentioned is the idea of taxable retirement income vs non taxable (Roth). So thinking this is my action plan: In my circumstances I am past the beginning steps: 2k emergency fund, 8 month expenses liquid savings, no student, car or CC debt, no debt at all till I buy a home. 401K up to... [ more ]
Hello @Trevor , I was in the same predicament as you mentioned above on this thread. After doing some googling and reading a slight page of Dave Ramseys book, he pretty much mentioned the same thing that @Maykel said. Max out 401K. After that, invest in IRA (I would say ROTH) so when you pull out in the future, its already taxed. I personally am doing this now. Just started it. I would not want to get taxed from only pulling out from 401K. You mentioned real estate, I would recommend this... [ more ]
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Retirement Planning
@Landon Martin Thank you for responding. I was also thinking about putting the additional 6% into a ROTH IRA so I can pull that out tax free 35 - 40 years from now. That way when I withdraw, I will only get taxed on the 401K and not the ROTH IRA. [ more ]
@Riva951ie I would say it depends on your personal goals and involvement with your investments. Personally I only put enough into my 401k to get the match because I am not a huge fan of the investment options that are available to me in my 401k, and I have other goals with my investments that I wont be able to achieve if I have my money tied up until retirement age. When it comes down to saving for retirement though I currently prefer putting my money in the ROTH IRA because I am still in a... [ more ]
@landon Martin Would you recommend only matching what your company offers in the 401k? My company only matches 1%. I have this set to 7%. OR do you think I should only do 1% match and put the other 6% in a ROTH IRA? Or out the 6% into stocks? Or? Thanks in advance! [ more ]
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Retirement Planning
@Landon Martin Great tips! Traditional investing can be a great way to build some wealth over time, but like you said, your money is sort of trapped until you are of retirement age. Not a bad way to get to a million though! [ more ]
Can't answer this question with 100% certainty because I am far from retirement and far from having a million dollars, but the strategy I am currently using to hopefully get me there is to max out my Roth IRA (love the idea of not having to pay taxes on it later), contributing only to my 401k the amount that gets me the full employer match (got to get the free money), and then putting the rest of the money that is meant for investing into other accounts where I have more control over my... [ more ]
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