Retirement

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Brontoburglar
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Retirement

Post by Brontoburglar »

Retiring already!

No, not really. The one downside to my new situation is that I can't stash money in a retirement fund away tax free. Whatever I put in will have already have had taxes taken out. What's my best bet to do when it comes to opening up a retirement fund? Because the previous job was a nonprofit, I've got a 403b already, and obviously that's not going anywhere. Just trying to figure out how the hell I should proceed now.
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govmentchedda
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Re: Retirement

Post by govmentchedda »

Roth IRA, right?
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brian
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Re: Retirement

Post by brian »

govmentchedda wrote:Roth IRA, right?
Not necessarily, but probably.

My understanding is that he can still contribute earnings to a "traditional" IRA which would offset his taxable income in the same way that an employee-sponsored plan would. As young as he is, that may be the way to go but frankly a lot it depends on specifics with your income and tax situation that you (understandably) wouldn't want to share with the whole group. hdo -- if he's still around -- might be the best person to ask, at least as far as the tax implications go.

ETA: The issue with the Roth IRAs from what I've read are that they sound great in theory but that the large majority of people would benefit more from tax savings now rather than when they retire -- either because you're not going to have as much tax liability as you think to begin with or because laws might become more tax-friendly to retirees in the future (or at the very least you can always re-locate to a state that has retiree-friendly tax laws.)
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Tom 1860
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Re: Retirement

Post by Tom 1860 »

Any money that goes through Roth in Miami is going to be dirty money. Funding the IRA will not help you long term, it might give you some links on the East coast or the old country, but long term, you are blowing your money...
Last edited by Tom 1860 on Mon Aug 26, 2013 11:00 am, edited 1 time in total.
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Keg
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Re: Retirement

Post by Keg »

I thought this thread was going to be about Tracy McGrady announcing his retirement.
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A_B
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Re: Retirement

Post by A_B »

I thought bronto had reached his level of cynicism.
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DC47
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Re: Retirement

Post by DC47 »

brian wrote:
govmentchedda wrote:Roth IRA, right?
...ETA: The issue with the Roth IRAs from what I've read are that they sound great in theory but that the large majority of people would benefit more from tax savings now rather than when they retire -- either because you're not going to have as much tax liability as you think to begin with or because laws might become more tax-friendly to retirees in the future (or at the very least you can always re-locate to a state that has retiree-friendly tax laws.)
One thing to consider is a viewpoint on the future tax rates. It's quite possible that factors like the national debt, underfunded entitlement programs, and bad demographics will yield significantly higher rates in the future. If you believe that there's a good chance that current rates are the lowest we'll see in, say, the next 50-80 years and you are now in a low-rate marginal category, the Roth alternative makes more sense.
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brian
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Re: Retirement

Post by brian »

Yeah, that's a fair point and one I should have elucidated more clearly. I personally think Bronto's still too young to be worrying about tax-free income when he's 65 and should be trying to max out his tax savings right now, but it's not an unreasonable opinion. Once you start getting into your mid-to-late 30s is a better time to start looking at an event horizon for your potential future tax situation. (And unless the laws change you can always convert a traditional IRA to a Roth IRA later if necessary.)
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sancarlos
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Re: Retirement

Post by sancarlos »

DC47 wrote:
brian wrote:
govmentchedda wrote:Roth IRA, right?
...ETA: The issue with the Roth IRAs from what I've read are that they sound great in theory but that the large majority of people would benefit more from tax savings now rather than when they retire -- either because you're not going to have as much tax liability as you think to begin with or because laws might become more tax-friendly to retirees in the future (or at the very least you can always re-locate to a state that has retiree-friendly tax laws.)
One thing to consider is a viewpoint on the future tax rates. It's quite possible that factors like the national debt, underfunded entitlement programs, and bad demographics will yield significantly higher rates in the future. If you believe that there's a good chance that current rates are the lowest we'll see in, say, the next 50-80 years and you are now in a low-rate marginal category, the Roth alternative makes more sense.
I agree with Brian. Everyone's situation is different, but I would think you'd likely be withdrawing this at a time when you aren't earning other income (i.e. retired), so you probably wouldn't need the tax break then, as you'd be in a lower-income tax bracket. Since a traditional IRA lets you take the tax break now instead of upon withdrawal, I'd guess that might work for more people.
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wlu_lax6
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Re: Retirement

Post by wlu_lax6 »

Roth v. Traditional Calc
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rass
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Re: Retirement

Post by rass »

My dad is more or less retiring. He is a college professor, and today will be his last day of full-time teaching (has a summer school course, and may teach one course part-time in the fall). He just sent an email out this morning letting us (family) know. My wife is worried that he did it in such a (seemingly) perfunctory manner, but he's not the type that would make a big deal about something like this, and there would have been little reason for him to discuss it with us.

Still a little jarring, as he's been working there pretty much as long as I can remember. We moved to DE when I was 3 or 4 for this job.

My parents happen to be coming up here this weekend anyway. I told him I'd buy him a beer.
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howard
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Re: Retirement

Post by howard »

What is his field?
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rass
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Re: Retirement

Post by rass »

microbiology
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howard
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Re: Retirement

Post by howard »

Ah. Calls to mind one of the few poems about microbiology, and one of the few poems I can recite in whole.

On The Antiquity of Microbes
by Strickland Gilliland

Adam
Had 'em.
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The Sybian
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Re: Retirement

Post by The Sybian »

rass wrote:microbiology
So he can probably teach you all about the fermentation process! Good that you are seeing him, to ease your wife's concerns. My father announced the number of days until his pension vested and he could retire starting 7 years out. The only surprise is he hung around an extra year or two because he had too many people he needed to "get back at and make their life hell." Amazing how much he has mellowed out after 10 years of retirement.
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A_B
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Re: Retirement

Post by A_B »

Dammit Pruitt, do you even read The Swamp?
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brian
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Re: Retirement

Post by brian »

A_B wrote: Fri Jun 29, 2018 2:33 pm Dammit Pruitt, do you even read The Swamp?
(Almost) speaking of which, I had someone tag me on Facebook during the East Coast playings of the show because they knew I knew someone on the show last night and they were mocking the butchered pronunciation of the answer "Mackinac Bridge" wondering if it was Pruitt but it turns out it was the champion/guy who won, but I still thought for a couple of hours that WATFO that two different Swampers would mess up a Michigan-related answer on Jeopardy.
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Pruitt
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Re: Retirement

Post by Pruitt »

A_B wrote: Fri Jun 29, 2018 2:33 pm Dammit Pruitt, do you even read The Swamp?
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However, one thing it sucks at is finance-related things. My understanding of how these things work is maybe at grade 8 level. Different minds work differently.

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