This is the type of response I was hoping for. Yes, it’s held in a brokerage account. Can you see any down side to the Roth for my situation?
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Should I start an IRA (individual retirement account)
- Thread starter jaxbusa
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This is the type of response I was hoping for. Yes, it’s held in a brokerage account. Can you see any down side to the Roth for my situation?
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Does your company have a Roth available as well as a 401(k), and does it match one or the other? I switch to funding my 401(k) only AFTER my Roth is maxed out each year. My company matches up to 4% on whichever one I'm currently investing in.
No Roth available and already matching 401.
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I didn't read all the replies, however, the person you're speaking too, is not a Fiduciary if he's trying to sell you other products. Fiduciary has a very specific legal definitions.
I cannot get into specifics online. However, if you want to PM me a phone number I would be open to discussing your options.
When I free up some equity I'm going to throw some money at a robo investor, skipping the IRA.
If your ducking the next tax bracket, then by all means go IRA.
I had always been under the assumption that capital gain tax was outrageous, but it's only 15-20%, access to your funds at anytime.
I'm thinking I'll try Betterment to invest for me.
If your ducking the next tax bracket, then by all means go IRA.
I had always been under the assumption that capital gain tax was outrageous, but it's only 15-20%, access to your funds at anytime.
I'm thinking I'll try Betterment to invest for me.
You absolutely should. Any saving for retirement is key. Exponential growth is the main way normal people (I’m assuming you’re not a millionaire) can live a comfortable life later on.
I myself have a pension, a 457, a 401k and an IRA. Looking to retire at 50 with a 6 figure income.
I myself have a pension, a 457, a 401k and an IRA. Looking to retire at 50 with a 6 figure income.
If that is what he does- he is NOT a fiduciary!
As to IRA I also join the group of asking an "independent financial advisor" who has no ties to investments that his company sells/pushes. In my opinion, IRA s don't do much for me as you are limited in how much you can put in them. Remember the proposed benefit- you pay taxes later when you pull money out! That being said, there is no way in hell the govt is going to lower the tax rates-especially on IRAs..Taxes will only go up.
I contributed to an IRA for about 15 years and my money is stuck!..If your stocks or mutual funds take a dive- you cannot deduct a loss. I also have a 457 plan that is pretty much in the same category..and mutual funds have done relatively well..but again I am sweating the mandatory withdrawal at 70 1/2 for tax reasons. I started buying stocks & bonds years ago ..and cash dividends go directly into money money mkt /CDs...Ally is paying 2.75% and you don't have to dick with the feds.. Franky for me I saw no benefit to a Roth IRA..
I am thinking about buying gold coins..and holding them in my safe...Assuming prices rise..you sell & can avoid taxes if you do it right. (I am told)
Everybody's situation is different..
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Then I would contribute enough in the 401(k) to only meet the match (essentially a 100% return on your contributions). I would put the remainder of what you can afford in a Roth and would completely skip the IRA. If you max out the Roth by year's end, go back to the 401(k) with everything you're able. Any little bit of taxes you can write off now in an IRA or additional contributions to the 401(k) are nothing compared to how much you'll save by withdrawing contributions and interest from your Roth TAX-FREE when you retire.
Example:
You just put $6,000 in a 401(k)
In 30 years at 8% with no further investing you'll have $65,614
Question: Would you rather save the taxes on $6,000 now or on $59,614 later?
Just imagine what that would be like with REAL numbers like the ones it takes to actually retire.
Pay a fee to a financial advisor who has NO self-interest in how you invest, and he'll probably confirm what I've said.
And don't buy gold unless you have tons of money to throw in the trash.
He said no Roth is available. Maybe he means that they don't offer one through his employer or his income (or combined income of him and his spouse) exceed the limit to benefit from the Roth.
In any event, I'm interested in where this thread is heading. I think what the OP is asking is if he has additional cash flow to invest now, where should he put it considering he maxes out on his employer plan already? Good problem to have, but I'm curious as well. We max our employer plans and Roths. I'd love to know what to do with savings or additional monthly cash flow (which is what I think he is asking).
high income is one downside to a Roth IRA.
Filing single? you can't contribute to a Roth IRA if you have income over 137,000
Filing married? You can't contribute to a Roth IRA if you have income over 203,000
Filing single? you can't contribute to a Roth IRA if you have income over 137,000
Filing married? You can't contribute to a Roth IRA if you have income over 203,000
Yeah, you're probably right. I didn't have his numbers to go by. Thankfully, he can fund a Roth outside of his employer whenever he chooses unless he makes some serious coin. If I didn't have one so easily available through work (with some great funds, too, thankfully), I'd be chasing one with Vanguard or whomever.
I certainly don't make enough money to keep me out of a Roth! Wish I had that problem.
Yeah, you're probably right. I didn't have his numbers to go by. Thankfully, he can fund a Roth outside of his employer whenever he chooses unless he makes some serious coin. If I didn't have one so easily available through work (with some great funds, too, thankfully), I'd be chasing one with Vanguard or whomever.
I certainly don't make enough money to keep me out of a Roth! Wish I had that problem.
Spot on. I'd love to be so unfortunate that I don't qualify for a Roth. LOL Maybe someday...
I've often wondered the same myself as far as moving to a Roth and/or doing an IRA . I do 10% to a traditional 401k and the company matches 8%.
Do a 401k for the pre-tax benefit, and open a traditional and/or Roth IRA for the post-tax benefit.
High income earners can contribute to a Roth through a back door conversion. You fund a traditional IRA and immediately convert it to a Roth. Your source of funds for the traditional IRA is after tax income. You don’t qualify for any deductions however.
In for answers on this thread, been wanting to ask you guys for awhile.
I’m 33 years old and I own a restaurant with my brother and father and the land it’s on and we're looking to sell the business and rent the property to set my parents up for retirement.
My question is what would be the best route to go for myself as well as my brother(he’s 32 and in same situation)? I’ve heard people tell me open a Roth IRA and put around $500 a month in it and just let it build. I haven’t talked to an investor and honestly don’t know exactly what a Roth IRA is. Can you guys point me in the right direction?
I’m 33 years old and I own a restaurant with my brother and father and the land it’s on and we're looking to sell the business and rent the property to set my parents up for retirement.
My question is what would be the best route to go for myself as well as my brother(he’s 32 and in same situation)? I’ve heard people tell me open a Roth IRA and put around $500 a month in it and just let it build. I haven’t talked to an investor and honestly don’t know exactly what a Roth IRA is. Can you guys point me in the right direction?
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15-20% for long term capital gains ie her for over a year. Short term capital gains are taxed at normal income. Either way it’s ****ing theft in my eyes.
downside to a Roth and traditional IRA is that you will get hit with a 10% penalty if you pull money out before 59.5 years old. So if you really, really need immediate access to the funds in your brokerage it’s best to keep it there. Otherwise the IRA is a great place to save. For me it’s all about being tax efficient. I don’t want the government taking my money. If they must take it I only want it to happen once, and at a time thats advantageous to me, not to them.
Important to note too, when I go over personal financial plans with clients there is a reason why their IRA’s are touched last for living expenses in retirement. You want that tax advantaged growth to work in your favor as long as possible.
And you can't make deductible IRA contributions either at that income level. Might as well do a back door Roth and save future taxes.
OP, please PM me or one of the other members who have responded who are obviously fee only advisors and set up a phone call. No advisor will be able to give you actual advice on a message board or even a PM. It's part of the rules we are mandated to follow.
I have my own RIA firm. I know at least one other member here does too. Several other members are quite obviously professionals also, based on their replies. You'll be well served by a second opinion, while will be free from any of us.
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