Retirement investing...
- Thread starter Ws6
- Start date
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- Jul 18, 2022
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OP - you need some financial education.
Read the paperwork, you're skeptical because you don't know.
401k, roth ira, HSA are all asset multipliers.
No, you cant retire at 39 with 500k. You're too poor to retire, but to rich to want to keep working
. (I'm in the same boat)
Read the paperwork, you're skeptical because you don't know.
401k, roth ira, HSA are all asset multipliers.
No, you cant retire at 39 with 500k. You're too poor to retire, but to rich to want to keep working
. (I'm in the same boat)Sounds familiar, I always worked hard, did good for myself and family but lived like I might die tomorrow. With that said I did not use loans to purchase things. (except a reasonable mortgage)
Well I lived! Yay ... and lucky for me, many decades back I did not really thinking about it "invested" in a commercial building with a partner. All the time it's been paying me a substantial rent for decades. Now retired at 63 years old for almost 5 years I might be a little concerned if not for that building and the income from it. The time maybe right to sell it, not to live off the money but additional security as I THINK I can match through conservative investing what it brings in. Because after a very healthy life all of a sudden I was thrown a curve ball. Cancer, but my specialists say I will be able to consider myself cured in 6 more months for the next 15 years. Though is makes you wonder, and realize life slowly comes to an end. Because in the same breath there is also that one in 10 chance it comes back ... worse is I am being treated as "unfavorable outcome" However I am in the best of grade (3A) cancer of the "3" grade anyway, so they are treating me as the worst which is good if not a little brutal. They are a little unclear about my situation and treating me as the most severe 3.
Anyway, 5 years into retirement now I do not need to touch my social security income, I bank it and still live what I think my neighbors think a good life, posted cars, boat, motorcycle stuff. . I lucked out by a decision, not knowing at the time what would become my retirement savings so I can feel for those who were not taught as I was not taught. I always worked hard and did good for myself though.
We NEED A NATIONAL mandatory high school curriculum of managing money. It is sicking that we do not have one, in this era. Loans and credit cards and instruments of credit are thrown at our youth on a daily basis. Lucky for my kids, I learned and taught them, One of them REALLY ran with it, the other mostly ran with it and the other... well she will always get by but didnt run with it.
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You'll soon learn the importance of diversifying your investments, whether you self-direct them or use a certified financial planner.
Money at Fidelity is your money. I wouldn't worry about it.
Also: giving up 5% match is like saying to them "I'm willing to work for free for 2 weeks each year".
Also: unless if you plan to kick it before 60, this money can be viewed as layered. You can't touch it until 60--but if you can coast on money outside of 401k until then... then it becomes available. You can pull money from non-advantaged accounts until then, in an unsustainable amount, inside of a plan that will tap that tax advantaged money when you can.
Also: giving up 5% match is like saying to them "I'm willing to work for free for 2 weeks each year".
Also: unless if you plan to kick it before 60, this money can be viewed as layered. You can't touch it until 60--but if you can coast on money outside of 401k until then... then it becomes available. You can pull money from non-advantaged accounts until then, in an unsustainable amount, inside of a plan that will tap that tax advantaged money when you can.
At the risk of criticism and derision, thanks anyway, I put $260,000 into annuities through a local adviser obtained from a list from Dave Ramsey Endorsed Local Providers. I wanted a "set and forget" system. I get $24,500 annually from that plus similar elsewhere plus SS. Not rich, but comfortable with no bills beyond monthly expenses. I'm quite satisfied with the annuities as they will increase annually and outlive me so my heirs receive a decent residual from them.
Even more $ than that, IMHO. With time.
Had I not maxed and had matching 50-100% since 1988, I would be a broke dike dog, flooded and drowning in poverty debt.
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4WD
$50 site donor 2025
This day and time an HVAC or roof can hit you for $10-20k …
I’m going to work longer building up the investment size allot …
(And shorten the need) …
I’m going to work longer building up the investment size allot …
(And shorten the need) …
I've been using Grok3 for health troubleshooting and it has been better than any doctor I've ever seen. Same goes for retirement planning. Grok3, if fed your information accurately, and asked intelligent subsequent questions, will accurately provide a guideline that is likely better than any financial planner.
Another thread here about taking SS early was full of opinions, some accurate for each individual. When I plugged in my numbers and situation, Grok3 was able to tell me everything I needed to know to make the right choice. After a few prompts, I learned that by delaying 5 years, I was leaving 'money on the table', but when accounting for inflation, and the depletion of my savings, the $8000 addl per year by waiting, was in essence, not just worthless. I also had far less cushion in savings.
Another thread here about taking SS early was full of opinions, some accurate for each individual. When I plugged in my numbers and situation, Grok3 was able to tell me everything I needed to know to make the right choice. After a few prompts, I learned that by delaying 5 years, I was leaving 'money on the table', but when accounting for inflation, and the depletion of my savings, the $8000 addl per year by waiting, was in essence, not just worthless. I also had far less cushion in savings.
I am talking very specifically about a clause for Minimum social security. If you make 4 credits a year, for 30 years, then you get the Maximum of the minimum - if that verbiage makes sense. A credit is currently around $1800. So $7200 for 30 years get the maximum of the minimum clause, which I think is more than if they just use the normal calculation in the same scenario.
I believe your correct for people that work full time there whole lives - I think its the best 35 as far back as you worked, adjusted for inflation. Thats the standard calc.
I have a car and home and solar panel loan, no other debt. All excellent fixed rate terms.
Explain that to me like I'm stupid, please. All I know is I paypaypay.
Can I pull however I want from a 401k after 60? 100% on day one, or 1% a year, or anything in between?
Got it, thanks.
One gotcha is that the years of earnings is inflation adjusted but only until age 60. So working after 60 can bump lower pay quarters off—but there might be a point where it isn’t.
Anything you want. However the bug in the formula is that you pay ordinary income tax on it.
Also the magic age is 59.5, why it’s not an even number I don’t know.
Yes. Ignorance drives fear. I will go to those bastards in HR next week.OP - you need some financial education.
Read the paperwork, you're skeptical because you don't know.
401k, roth ira, HSA are all asset multipliers.
No, you cant retire at 39 with 500k. You're too poor to retire, but to rich to want to keep working
Wait...so I pay income tax on my profit from the 401k? So basically it's no tax on the income into it, and whatever my company matches, in exchange for them hoping I off myself or something before 59.5?
My workplace matches my 5% contribution with 200% (Extra 10%), so meeting 15% saving right off the bat!!!
I tell my young cohorts to consider everything when comparing wages and benefits.Yes, you don't pay income tax on the money going in. It's taken off pre-tax. But when you pull it out, it is treated as ordinary income, and taxed as such.
When you take Social Security, there is some interplay on what is taxed that I have yet to get my head wrapped around... but I'm also a couple decades out, so I have not tried too hard to understand it.
I do want to point out, very clearly, that it's your money. If you drop dead, your 401k passes to whoever you designate as your beneficiary. It will not go back to your company. I suppose Fidelity could take it... if you fail to put down someone... but it's your money to dictate where it goes upon your death. Caution: be careful with who you designate, and update as necessary. This beneficiary will be who gets it, regardless of what you put down in a later date in a will.
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