[macintologist]

A lot of us are young here and are working full time. Are you planning for retirement this early and if so, how? Did you set up an IRA, 401k? Did you sign up for the optional pension plan?

I'm wondering because I want to be smart about this and plan for retirement under the assumption that Social Security won't be around to supplement my retirement savings.

(Please don't turn this thread into a debate on SS)

[Dork.]

Pension plans are going away. Most companies don't offer them to new hires anymore. The ones that do are probably more union-driven than emplyer-driven. You probably don't want one anyway, since you;re not going to work in the same place for your whole career.

More companies are offering 401k's. Any money you put in is pre-tax money that you don't pay Federal or State income tax on. And it just sits in your account until you retire. Most 401k plans have simple tiered mutual funds, like a "Retire in 30 years" fund, which is actively managed to be 100% stock now, when you can afford the risk, and then as time goes on, shifts into more conservative investments.

As a general rule, if you work for a company that offers a 401k, put in as much as they let you. Especially when you're young and have few expenses. The longer your money has to sit there, the more potential it has to grow. And you'd just blow it on a Intel Powerbook which will be obsolete in five years anyway. If you still want to put more money towards retirement after looking at 401k's, then look at IRA's.

Remember that the more you put in now, the less you'll have to put in later. Many of my co-workers need to max out their contributions now in order to retire on time, even as they pay for their kids' college or other expenses. If you aggressively put money in now, you may find it much easier when you're 40 or 45.

Another rule of thumb is that even an idiot money manager can put you r money in conservative investments and get a 5% return. So think about how much you might want to spend in a year when you retire, and multiply that by 20. That's how much you need to save. scary, huh?

[production_coordinator]

I trust fully in Social Security...

...but seriously 401K...

[TubaMuffins]

I have an IRA set up, my dad set it up for me a few years ago, and I will be starting a 401k this new year.

[BRussell]

One of the things I want to do this year is start a Roth IRA in addition to the 401k (actually 403b) that I currently have. I talked to a retirement advisor recently and he suggested that it's a good idea to diversify not only in your portfolio but also in your investment vehicles.

[ghporter]

IRA-changing over to Roth at the begining of the year. My wife has a 401K that may or may not be up for conversion to something else, or her IRA may go into it-again waiting for our annual money manager meeting to decide.

Oh, and I'm training for a new career, which will give us both the chance to do a lot more to prepare for retirement.

[Railroader]

First thing. Start a Roth IRA. THEN, contribute to a work based 401k.

At 24 I started putting 15% in my work's non-matching 401k.

At 30 I started fully funding a Roth.

At 32 I started a 529 plan for my daughter.

At 34 I started a 529 for my son.

And a VERY important thing to remember, they have student loans, they don't have retirement loans.

[KeriVit]

I have been putting $ into a non-matching 401K for 7 years (since age 25). START EARLY! Anyway, I am leaving that job and won't be contributing for a couple years... Rollover to a Roth or leave it?

(is railroader - kilbey? excuse my naivete) And do you have any thoughts?

[rickey939]

1 post at a time.

[BRussell]

Originally Posted by Railroader

And a VERY important thing to remember, then have student loans, they don't have retirement loans.

Could you explain this?

[Railroader]

Originally Posted by KeriVit

I have been putting $ into a non-matching 401K for 7 years (since age 25). START EARLY! Anyway, I am leaving that job and won't be contributing for a couple years... Rollover to a Roth or leave it?

(is railroader - kilbey? excuse my naivete) And do you have any thoughts?

My thoughts on retirement, don't count on an employer for a pension, and don't EVER count on the government. Count on yourself and invest for your retirement.

Personally, I'll never really "retire". I'll probably work until I am 100% unable to provide any kind of service to anyone. But if I can be self-sufficient, then I will work for free at a volunteer clinic or a Church.

EDIT: Oh, you mean about your IRA situation? I am not sure. I usually follow my advisor's advice after discussing it with a few friends who know more than I do. I would think converting to a Roth would be better than leaving it with your old employer, but I am certainly to expert.

Yup, Railroader=Kilbey. I have asked some people repeatedly to stop calling me Kilbey, but I guess that just shows their inability to show even slightest common courtesy to a request. It confuse quite a few people around here.

[Railroader]

Originally Posted by BRussell

Could you explain this?

I meant to say "They have student loans, but they don't have retirement loans". I fixed my previous post.

What that means is, don't focus so much on saving for your children's college fund that you neglect your own retirement. If you don't have enough to pay cash for college, you can borrow money. If you don't have enough to retire when you are no longer able to work you can't borrow money.

[chris_h]

55% of my paycheck goes to my 401k, which I can borrow against if i need lots of money quick.

If you have the option, everyone should put _something_ in their 401k... even 5 or 10% adds up quicker than you'd think.

[chris_h]

anyone have any opinions on any particular mutual funds to allocate to in a 401k?

I've got mine split evenly to 10, across different industries... makes me feel safer, but i don't get that great of a return (but decent, i suppose)

[Railroader]

Originally Posted by chris_h

55% of my paycheck goes to my 401k, which I can borrow against if i need lots of money quick.

If you have the option, everyone should put _something_ in their 401k... even 5 or 10% adds up quicker than you'd think.

The maximum you can put in a 401k is $14,000. And you can only get a loan once a year right?

[Railroader]

Originally Posted by chris_h

anyone have any opinions on any particular mutual funds to allocate to in a 401k?

I've got mine split evenly to 10, across different industries... makes me feel safer, but i don't get that great of a return (but decent, i suppose)

Mutual funds are already somewhat diversified. If you split up your funds too much you risk going under the minimum fund balance and have to pay maintenance fees.

The guys at Fidelity told me that to go beyond 3-4 different mutual funds is redundant. YMMV.

I myself am only in a single dividend growth fund and I have been doing very well.

[Scotttheking]

Scott's nifty little spreadsheet says that for him to retire in 40 years, he'll need to contribute $14792.97 to his retirement account each year from now until then in order to reach his target account balance, assuming 8% average growth per year. The target is enough to, assuming 3% inflation per year, give me a good amount per year of interest on the account during retirement.

I'm currently poorly diversified among 3 mutual funds and 1 fixed income security, but I'll be doing a lot more diversifying later once I get a job and such.
I'll edit this post later with more info. Probably.

[screamingFit]

My employer has profit sharing and almost all of it has to go to "something". The only thing I'd let them put it into is a retirement account. When I quit/get fired, it get it minus 20% for taxes.

Anyway, I plan on being dead before I retire so screw the 401k and crap - I'll use my money while I'm still alive, thank you.

[Athens]

I've been putting 2 payments a month (one off each cheque) into RRSP's, one for savings, two for tax reasons.

[ghporter]

Originally Posted by Railroader

What that means is, don't focus so much on saving for your children's college fund that you neglect your own retirement.

+1,000,000™

Part of "standing on your own feet" as an adult is paying for what you get, including student loans. Sallie Mae is not a nice girl to have around all the time, but she's sure helpful to both students and parents.

And paying for your children's education for them does not do them any favors; it often tells them that everything is free, (and/or worthless) rather than that someone else is paying for what they get. I'm in college now (again) and you can easily see who's at least contributing to their own education and who is on a free ride from mom and dad: the free ride kids are not there physically (and when they are, they're not there mentally) much of the time.

And on top of this, college costs can (as Railroader points out) drain your capital to the point where you have to work well beyond when you want to shift gears and do something less lucrative but more rewarding. Helping the kids is one thing. Giving them a completely free ride is something else altogether. My son paid for his entire first semester in college (10 hours) himself out of his summer job income, and he actually values his educational experience-and he's doing well at it too. Valuing the education and succeeding with it are directly related.

[RAILhead]

Simple! Follow these steps in order to invest AT LEAST 15% of your income into retirement. 15% is the "magic percentage" you'll need to ensure your money actually makes money over the years:

1. If you're company has a 401k match, invest up to their match.
2. Invest into Roth IRAs to their maximum ($4000 per year until 2008).
3. Go back to your 401k and invest whatever % is left.


Example:

Let's say you make $40,000 per year. 15% of that is $6000, so you need to invest $6000 per year.

1. Your company matches 4%, so you invest 4% of your $6000 ($240), leaving $5760.
2. You invest your max into Roth IRAS ($4000) so you have $1760 left.
3. You go back to your 401k and invest the remainder.

These are basic guidelines that any decent money manager will recommend. Some will say to invest more aggressively and not go back to 401k — but you can do that once you start having more of your money making money on its own.

If your company has no 401k, then do the Roth first and then invest the rest in INDEX funds. Remember: this is RETIREMENT for 20 to 60 YEARS down the road — there's no need to be so aggressive with it.

[Goldfinger]

I don't even have a job yet so I don't really worry about retirement. And anyway, the government pays my pension. No worries here.

[Athens]

Originally Posted by Goldfinger

I don't even have a job yet so I don't really worry about retirement. And anyway, the government pays my pension. No worries here.

Should always have a secondary fund and not totally rely on Pension. Got a question about those 401K's do they count as a Tax deduction? I ask because one of the advantages of Investing in RRSP's in Canada anyways is to nock yourself into a lower Tax level. Example I make 33 000 in a year and the Tax braket is 15% for 28 000 or less and %19% for 28001 - 35 000, by investing 5000 into RRSP's not only do I 5000 put towards my savings, my taxable income is now 28000 putting me into the lower Tax level.

Those arnt the exact numbers but you get the idea.

[Goldfinger]

Originally Posted by Athens

Should always have a secondary fund and not totally rely on Pension.

Yeah I know, but being a student it's not something I worry about right now

[KeriVit]

Thanks RRoader. I'll try to talk to some peeps. For the interim, I'll leave it... but look for a nice steady investment, while I caN'T invest. Perhaps I'll try to throw $50/mo. at it anyway, better than nothing.

Again young ens... START EARLY. Just got out 23 yo driver to give 5% before he gets his first check- he'll never know the difference, but reap the rewards.

[zerostar]

Originally Posted by Goldfinger

Yeah I know, but being a student it's not something I worry about right now

The more you "worry" about it now the less you will have to later, even $50 a month NOW can equal years more retirement for you (if thats what your in to) or more coke and hookers when your 70 haha

I plan to retire at around 45 from "work" and pursue my real passions. I have been saving for retirement since age 17 when I had my first job, back then it was almost 70% saved now I am to around 35% of our families total gross, I am not sure what the total we have saved is since it is spread around many places right now.

[BRussell]

Originally Posted by ghporter

Part of "standing on your own feet" as an adult is paying for what you get, including student loans. Sallie Mae is not a nice girl to have around all the time, but she's sure helpful to both students and parents.

I definitely agree that one should deal with one's retirement before the kids' college. In the end, you're screwing over your kids anyway if you don't have good retirement plans, because if you don't, guess what, grandpa is coming to live with you!

But I don't want my kids to pay for their college or to go into massive debt, if possible anyway. I work at a university, and I see so many students working full time to pay for their education, and they just don't put the same energy into classes. They're essentially part-time students, compared to focusing all of their energy on college. And starting out with a decade of debt just sucks.

[saddino]

If you're self-employed, then definitely look into into opening a SEP-IRA (25% of your compensation can be contributed up to $42K/yr for 2005). Another option is a Keogh Plan (harder to set up and maintain, but larger contribution limits if you're really rolling in it).

Also, since it hasn't been mentioned here: if you're single and you make more than $110K/yr you can't open (or contribute to an existing) Roth IRA.

[SuvsareRetarded]

I'm planning to get a degree, then get a job, then worry about it.

[zerostar]

Quick question, what kind of account/investment would you advise setting up for my niece Id like something I can contribute to monthly/annually whatever, she is only 1 year old so we have plenty of time for it to grow. Not looking for a 529 since the parents have that, Id like her to have access to cash should she need it (buy a car in 17 years, etc.)

[macroy]

Originally Posted by ghporter

+1,000,000™

Part of "standing on your own feet" as an adult is paying for what you get, including student loans. Sallie Mae is not a nice girl to have around all the time, but she's sure helpful to both students and parents.

And paying for your children's education for them does not do them any favors; it often tells them that everything is free, (and/or worthless) rather than that someone else is paying for what they get. I'm in college now (again) and you can easily see who's at least contributing to their own education and who is on a free ride from mom and dad: the free ride kids are not there physically (and when they are, they're not there mentally) much of the time.

And on top of this, college costs can (as Railroader points out) drain your capital to the point where you have to work well beyond when you want to shift gears and do something less lucrative but more rewarding. Helping the kids is one thing. Giving them a completely free ride is something else altogether. My son paid for his entire first semester in college (10 hours) himself out of his summer job income, and he actually values his educational experience-and he's doing well at it too. Valuing the education and succeeding with it are directly related.

Gh-

While you have a VERY valid point about making sure kids learn responsibility... I can't agree that it's an ABSOLUTE that if you pay for their education, they'll be spoiled.

I had my education paid for - AS WELL as my car paid for (including insurance etc...), and while this is going to be a bit biased - I think I'm fairly grounded. .

I do think it has a lot to do with how you raise them. While my parents provided for me way more than the average, they were also very involved to ensure that my grades were what they needed to be. I can't say it's an asian thing or not - but growing up, many of my asian friends were the same way. The parents basically expected you to do well in school. This means that they perferred you (among other things) NOT work and concentrate on school. I think it may be a simple difference in philosphy, works better on some, but not on all (and there are definitely drawbacks too...). Those kids you at your school probably had more parenting problems than simply having their education paid for.

The day after my son was born, I started a college savings account. I fully expect for his college education to be paid for either by me, or a scholarship. But I personally don't think he should lose a chance at higher education (if he deserves it) simply because he couldn't afford it. Just my .02.

[RAILhead]

Originally Posted by zerostar

Quick question, what kind of account/investment would you advise setting up for my niece Id like something I can contribute to monthly/annually whatever, she is only 1 year old so we have plenty of time for it to grow. Not looking for a 529 since the parents have that, Id like her to have access to cash should she need it (buy a car in 17 years, etc.)

Setup and ESA and contribute to it monthly. If you plan properly, by the time she's 18, her college could be pretty much paid in full — and you can make sure she can't use the loot for anything BUT college with an ESA, too.

[KeriVit]

My parents have been buying Savings bonds for my lil bro (17 yo) his whole life. Seems to be working. They pay $75 for $100. Seems to be working...

[wallinbl]

Originally Posted by zerostar

Quick question, what kind of account/investment would you advise setting up for my niece Id like something I can contribute to monthly/annually whatever, she is only 1 year old so we have plenty of time for it to grow. Not looking for a 529 since the parents have that, Id like her to have access to cash should she need it (buy a car in 17 years, etc.)

I-series bonds

http://www.publicdebt.treas.gov/sav/sbiinvst.htm

[wallinbl]

Originally Posted by chris_h

55% of my paycheck goes to my 401k, which I can borrow against if i need lots of money quick.

There's a $14K limit each year. That would leave you with $11K for yourself. How exactly can you live on that?

[wallinbl]

Originally Posted by KeriVit

Thanks RRoader. I'll try to talk to some peeps. For the interim, I'll leave it... but look for a nice steady investment, while I caN'T invest. Perhaps I'll try to throw $50/mo. at it anyway, better than nothing.

Even if nothing else, open a savings acount with INGDirect or HSBC. You can get 3.5-4%, which is better than your local bank will give you.

[Dork.]

Here's something I never quite understood about a Roth IRA:

The concept as I understand it, is you are putting after-tax money into the account, and when you are eligible to withdraw the money, you can withdraw all of it without paying taxes, including your investment gains. A traditional IRA (and a 401k) goes to the account before you pay income tax on it, but when you're eligible to take money out, you are taxed on all the money you take out.

So, for a given amount of net income that you wish to invest for retirement, you will be putting less in the Roth IRA vs. a traditional IRA. This means that given the same return over the years, the traditional IRA will be worth more in absolute dollar value than the traditional IRA. But there's that tax thing, and that's supposed to make the Roth IRA better, right?

Now, when you're putting money into either retirement account, you are in your prime earning years. But when you are drawing from those accounts, you will likely be able to live on less money because your house is paid for, your kids are out of the house, you don't need to save for retirement anymore, etc. In any case, I imagine that in retirement you will be in a lower tax bracket, and be able to manage your income (and thus, the taxes you pay) a little better than when you're in our prime earning years.

So, why exactly is it better to save with after-tax money? It seems to me like it would be better to defer the taxes as much as possible.

[Scotttheking]

Dork,

Many of us take the approach that we know what taxes are now, and expect them to be the same or higher in the future, and we'd like to know that what we have is what we have. In addition, many of us are in a lower bracket now, and expect to move up at some point. You can open a traditional IRA later.

A huge advantage of the Roth IRA is that money never has to be withdrawn from it. With a traditional IRA, you have to start making withdrawls at age 70.5. That's a huge negative for those who will have a lot saved up, or who will have a lot in the IRA and don't want to take out the required amount.

For me, I use a Roth now because I end up paying zero in taxes , so it makes perfect sense to have a Roth for me.

--Scott

[BRussell]

I was just talking to a retirement advisor about the Roth last week. From what I understand, a Roth is much better for getting the money out once you retire. Even if you don't want to take it out, you don't have to, and leave it to your kids. You can't do that with a regular IRA - you've got to take it out whether you like it or not.

The other benefit is diversification. Lots of things might happen in the future - taxes might go up a lot, or they might go up on income vs. investment differently. What happens if taxes skyrocket right before you retire? Then you're going to be happy you were in the Roth. So, for the same reason that you diversify because you don't know which stocks are going to do better, you diversify your vehicles because you can't predict what's going to happen in the future with taxes.

Remember also that Roths are much more limited as to how much you can put it, so you're not likely to have more money in a Roth than in other pre-tax retirement accounts. I wouldn't want to put all my retirement money in a Roth.

[Railroader]

Originally Posted by RAILhead

Simple! Follow these steps in order to invest AT LEAST 15% of your income into retirement. 15% is the "magic percentage" you'll need to ensure your money actually makes money over the years:

1. If you're company has a 401k match, invest up to their match.
2. Invest into Roth IRAs to their maximum ($4000 per year until 2008).
3. Go back to your 401k and invest whatever % is left.


Example:

Let's say you make $40,000 per year. 15% of that is $6000, so you need to invest $6000 per year.

1. Your company matches 4%, so you invest 4% of your $6000 ($240), leaving $5760.
2. You invest your max into Roth IRAS ($4000) so you have $1760 left.
3. You go back to your 401k and invest the remainder.

These are basic guidelines that any decent money manager will recommend. Some will say to invest more aggressively and not go back to 401k — but you can do that once you start having more of your money making money on its own.

If your company has no 401k, then do the Roth first and then invest the rest in INDEX funds. Remember: this is RETIREMENT for 20 to 60 YEARS down the road — there's no need to be so aggressive with it.

This is one of the best posts I have seen in the Lounge. Very basic, but EXCELLENT, financial advice.

[macintologist]

I just applied for a Roth IRA with my bank (Wells Fargo) online. I should get the Roth IRA starter package in the mail this week. I opened the account with a 100 deposit which is the minimum I could put in. I'm seriously a broke college student but I thought it would be a good idea to start this baby early on.

[Scotttheking]

Originally Posted by BRussell

Remember also that Roths are much more limited as to how much you can put it, so you're not likely to have more money in a Roth than in other pre-tax retirement accounts. I wouldn't want to put all my retirement money in a Roth.

I'm not sure what you mean by this, could you clarify your post?

[Athens]

There is so much that can be done to save money, there is no reason why any one is poor when they are at the age of 60.

For example just saving a single dollar a day nets you

5 Years ($1825) at 5% = $2017 at 7.5% $2120 at 10% $2228
10 Years ($3650) at 5% = $4591 at 7.5% $5164 at 10% $5817
30 Years ($10950) at 5% = $24250 at 7.5% $37741 at 10% 60040
60 Years (21900) at 5% = $129058 at 7.5% $368160 at 10% 1.1 Million

In that example if you save $1 a day when your kid is born, and they take over when they are old enough they will have a decent amount of money off that and thats not a RRSP or 401k but just a regular savings account or brokerage account. Save $3.00 a day and tripple everything there.

Another way to save money is to lower your insurance costs. You can significantly lower your insurance premiums for house or car insurance by increasing your deductible. If you have a low deductible on your insurance and you have small claims, it will most likely increase future premiums. My Cars deductible is currently 500, the standard is 300. By increase it to 500 I was able to save $30.00 a month on insurance. Stay claim free for 5 years thats a savings of $1800.00 and I only end up paying a extra $200.00 out of pocket if I ever need to make a claim. And chances are even for 600-800 worth of damage I wont claim it since I would have to pay 500 out of pocket anyways its not worth higher premiums. Insurance is really for the larger claims so a higher deductable is worth the long term savings.

Cost cutting measures

Quit Smoking (Daily Estimated Savings $5.00 at 7.5% over 30 Years $188,704)
Pack a lunch insead of eating out (Daily Estimated Savings $2.00 at 7.5% over 30 Years $75,482)

Cut down on coffee shops (Daily Estimated Savings $3.00 at 7.5% over 30 Years $113,222)

Cut down on liquor purchases (Daily Estimated Savings $1.00 at 7.5% over 30 Years $37,741)

Extra phone services, do u really need call waiting (Daily Estimated Savings $18,870)

Long Distance rates/VOIP (Daily Estimated Savings $0.75 at 7.5% over 30 Years $23,806)

Cell Phones (Daily Estimated Savings $1.00 at 7.5% over 30 Years $37,741)

cablevision (Daily Estimated Savings $1.00 at 7.5% over 30 Years $37,741)

Turn down the heat, turn off lights and TV when not in use (Daily Estimated Savings $1.00at 7.5% over 30 Years 37,741)

Make food from scratch over pre-package (Daily Estimated Savings $0.50 at 7.5% over 30 Years $18,870)

Fix it yourself (Daily Estimated Savings $0.50 at 7.5% over 30 Years $18,870)

Save on fuel (Daily Estimated Savings $0.25 at 7.5% over 30 Years $9,435)

There was a couple other items on the list I was reading from but over all daily savings from these small cuts = $17.65 or $666,125 after 30 years at 7.5%

Now the part I dont know how well it works for your 401Ks and your income tax but based on Canadian income tax and using RRSPS

Accumulated savings outside RRSPs net of tax (30%) on interest = $446,853
Accumulated savings outside RRSPs net of tax (30%) on capital gains = $544,220
Accumulated savings + RRSP tax savings inside RRSPs pretax = $865,962

Over 30 years if done right, just saving $17.65 from your daily spending, $1.00 here, $1.00 there nets you $865,962 of welth .

[Athens]

This should apply for 401k's but I dont know enough about them but anyways money savings tip....

RRSPs are the best tax-saving method available to the average taxpayer in Canada.
Use the previous example, and assume that your marginal tax rate (the rate of tax you will pay on the next dollar you earn) is 30%.

You make total mortgage payments of $221,697 over 25 years. Assume you pay off your mortgage over a shorter period, and invest the savings in RRSPs during the balance of the 25 years. You also invest the tax savings in your RRSP. Your total take-home pay over 25 years will be approximately the same in all 4 scenarios below. The monthly amount invested = amount saved using shorter term divided by # of months investing in RRSPs.

Note: When you withdraw funds from your RRSP the amount withdrawn will be taxed as income at your marginal tax rate. Theoretically, this will be when you are not earning employment income, so you will be in a lower tax bracket.

Chart is located here http://www.taxtips.ca/save_money.htm#RRSPsBest

By paying off your mortgage in 10 years and investing the savings in RRSPs, even though you have used the same amount of money over the 25 years, you are ahead by $148,195 at a 5% RRSP return, and by $218,203 at a 10% return.

[wallinbl]

Originally Posted by Scotttheking

I'm not sure what you mean by this, could you clarify your post?

(i don't remember the exact numbers, and I'm too lazy to look it up).

I think you can put $4000 in a Roth per year (this year, some years it was $2500). You can put $14000 in your 401(k) (this year, some years it was $10,500). So, you can put 2.5 times as much into your 401(k).


The other statement people make regarding pretax vs post tax is that after taxes, you have less money. So, if you're at 28%, then you have 28% less money to put into your Roth because you paid taxes on it, where you wouldn't have on your 401(k).


I've always wondered why people prefer to pay taxes on the front end. I make a ton of money right now, more than I'll need in retirement. I obviously can't predict tax rates, but I will surely have a lower income in retirement than I do right now.

[RAILhead]

Originally Posted by Scotttheking

Dork,

Many of us take the approach that we know what taxes are now, and expect them to be the same or higher in the future, and we'd like to know that what we have is what we have. In addition, many of us are in a lower bracket now, and expect to move up at some point. You can open a traditional IRA later.

A huge advantage of the Roth IRA is that money never has to be withdrawn from it. With a traditional IRA, you have to start making withdrawls at age 70.5. That's a huge negative for those who will have a lot saved up, or who will have a lot in the IRA and don't want to take out the required amount.

For me, I use a Roth now because I end up paying zero in taxes , so it makes perfect sense to have a Roth for me.

--Scott

Hear hear. Another cool thing about the Roth is that you CAN take out what you put it each year *without penalty.*

[RAILhead]

Originally Posted by wallinbl

...but I will surely have a lower income in retirement than I do right now.

Why do you say that? I plan on giving myself a "pay increase" after retirement — I don't want less, I want more.

[Sky Captain]

I got mine the old fashioned way.
I inherited it.

[wallinbl]

Originally Posted by RAILhead

Why do you say that? I plan on giving myself a "pay increase" after retirement — I don't want less, I want more.

I plan on having an expense reduction. I have a mortgage and two kids right now - I intend to remain in this house and pay it off. Once the kids are through college, they'll be on their own (I hope).

[wallinbl]

Originally Posted by Sky Captain

I got mine the old fashioned way.
I inherited it.

I have a large one coming, but I plan as if it won't happen. If it does, then great; if it doesn't, then I'm fine.