tag:blogger.com,1999:blog-14245531.post8611902674205866502..comments2023-11-18T01:21:55.631-05:00Comments on My Open Wallet: How to Save for RetirementMadame Xhttp://www.blogger.com/profile/11536189690094235926noreply@blogger.comBlogger15125tag:blogger.com,1999:blog-14245531.post-582421342007000042007-05-12T19:09:00.000-04:002007-05-12T19:09:00.000-04:00Some good tips here. I definitely suggest pursuing...Some good tips here. I definitely suggest pursuing the <A HREF="http://www.investortrip.com/which-roth-ira-account-is-best-for-your-retirement/" REL="nofollow">roth IRA accounts</A> because they are so easy to setup and invest in.<BR/><BR/>Pension plans are also good choices because many are mandatory, and you already earned it through hard work and dedication to the business.<BR/><BR/>I think people mistake the benefits of the 401k. It's only powerful if your company matches contributions. That way you earn twice the money when you max out on your part.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-23817720935758875642007-04-04T21:28:00.000-04:002007-04-04T21:28:00.000-04:00here's a link tohere's a link to <A HREF="http://www.wealthbuildinglessons.com/2007/03/28/ben-steins-basic-rules-of-retirement" REL="nofollow"/>Adventures In Money Makinghttps://www.blogger.com/profile/13626547145630159461noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-19776778699204030422007-04-04T21:24:00.000-04:002007-04-04T21:24:00.000-04:00I just started a Roth IRA in January. it is my ne...I just started a Roth IRA in January. it is my new best friend! lol<BR/>-Zachary<BR/>http://www.seemegetrich.com/zacharyfruhlinghttps://www.blogger.com/profile/16883625425421411114noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-54838907314856744312007-04-04T07:44:00.000-04:002007-04-04T07:44:00.000-04:00If your company allows it (some cap the percentage...If your company allows it (some cap the percentage you can contribute, based on your salary and the participation of lower-paid employees), the 2007 401(k) limit is $15,500. <BR/><BR/>Another quick and dirty retirement plan estimator: www.fidelity.com/myplanAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-87664146201801978082007-04-03T12:20:00.000-04:002007-04-03T12:20:00.000-04:00For those Canadians who read this, there are very ...For those Canadians who read this, there are very similar retirement options.<BR/><BR/>RRSP's: Registered Retirement Savings Plan. These are plans that you set up with a bank/other financial institution that all money you put in is not taxed (so you get a refund). You can use almost anything as part of your RRSP's, such as stocks, bonds, mutual funds etc.<BR/><BR/>Canadian Pension Plan: all employees have to contribute to this, but if you're around my age (28) don't expect to get much out of this when you're ready to retire..as all the baby boomers will have used up much of the fund.<BR/><BR/>Old age security: this depends on your income after retirement and is a sliding scale up to a certain amount. (~ $60,000)<BR/><BR/>and of course, any pension plans that you may have with your employer.<BR/><BR/>I am NOT a financial pro, check all of these for yourself!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-38586153634443969622007-04-03T11:03:00.000-04:002007-04-03T11:03:00.000-04:00I am one of the lucky pension-having people. In m...I am one of the lucky pension-having people. In my case, both my employer and I make a contribution. The part I contribute is tax-deferred, like with a 401k. The payments I get later will all be taxed.<BR/><BR/>If I leave early, I can withdraw my contributions, but not my employer's, so I like to include my contributions in my net worth calculation.<BR/><BR/>One note about IRAs--you can invest this money anywhere you want, so, for example, you can find index funds with the lowest fees. With your employer (the 401k), you can usually find something acceptable, but you might be able to find something better on your own (the IRA). However, you employer may also have been able to negotiate lower fees for the products it does provide.<BR/><BR/>Another thing about IRAs is that you can withdraw the amount you put in (but not the gains) at any time with no penalty. And if you retire early, you can make substantial, equal withdrawals over several years (based on a formula) to start getting the money at any age without paying penalties. So overall they are just a lot more flexible that 401k's, though smaller.<BR/><BR/>Finally, another option is to invest on your own. This is sort of like using a Roth except that a) there are no restrictions at all and b) you are taxed on the growth, but the capital gains are taxed at capital gains rates, which are much lower than income rates. Every time you sell one thing to buy something new, you pay the taxes on the gains you've got so far, so that's fewer taxes you'll be paying in the future (when I really think rates will go up).<BR/><BR/>My strategy: I have a good pension, then max out a Roth IRA (because I think taxes are going nowhere but up) and then contribute to a Roth 403(b) (it's like a 401k, only for nonprofits). (I am one of those people who could never contribute the max to a 401k because, you know, I like to eat and live indoors--so far I contribute only a token amount to my 403b, but it's a start.)<BR/><BR/>Madame X, you might want to talk to personnel to find out if they offer Roth 401k's and, if not, to say you would like them to. The more interest they hear, the more likely they are to offer one. This worked at my employer, who just started offering one this year, although we were allowed to starting last year.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-50691066377792082902007-04-03T10:10:00.000-04:002007-04-03T10:10:00.000-04:00Retirement, my favorite subject! Well, I was defi...Retirement, my favorite subject! <BR/>Well, I was definitely NOT expecting him to not know about a Roth... Hope you set him straight. <BR/><BR/>So the question is: why don't we have more conversations like this "in-person"?? When I find friends who share my finance junkie attitude, I cling to them like a dingy in a vast ocean.fin_indiehttps://www.blogger.com/profile/16850607432747269260noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-55654939695464373142007-04-03T09:19:00.000-04:002007-04-03T09:19:00.000-04:00Anon 4/02/2007 6:48 PM:15% is not the maximum perc...Anon 4/02/2007 6:48 PM:<BR/><BR/>15% is not the maximum percentage contribution allowed. That was a common limit at one point (up to a few years ago), but no longer. Now most plans will let you contribute 50% or more of your salary, as long as you don't exceed the legal maximum contribution of $15,000 a year (higher for folks over 50 who can make the catch-up contribution). (Yes, some companies may still limit your contribution to 15% of pay, but this is uncommon now.)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-61078959100004591702007-04-02T23:32:00.000-04:002007-04-02T23:32:00.000-04:00One additional point, Traditional IRA's may not be...One additional point, Traditional IRA's may not be deductible on your current year taxes based on 401K particpation + AGI limits. Still a useful savings tool though.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-65833249043413288722007-04-02T22:36:00.000-04:002007-04-02T22:36:00.000-04:00If you have a pension do/should you include it in ...If you have a pension do/should you include it in calculating your networth?Katrinahttps://www.blogger.com/profile/13279812491211605833noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-63452028200027900092007-04-02T18:48:00.000-04:002007-04-02T18:48:00.000-04:00As to how to answer your co-workers about your lev...As to how to answer your co-workers about your level of contribution, you can say that you contribute maximum percentage allowed (which is 15%). You can say this without having to reveal or hint what your actual salary is.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-4196999880981683032007-04-02T18:13:00.000-04:002007-04-02T18:13:00.000-04:00Excellent advice here!I wish that there was more e...Excellent advice here!<BR/><BR/>I wish that there was more education out there. I, too, am amazed at times to realize that things I think are basic (like IRAs) are not general knowledge.<BR/><BR/><A HREF="http://www.loanshak.com" REL="nofollow">LoanShak</A>mirandahttps://www.blogger.com/profile/03789803440939980928noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-5927202439893634082007-04-02T17:01:00.000-04:002007-04-02T17:01:00.000-04:00You left out a newer Roth 401(k) option.http://www...You left out a newer Roth 401(k) option.<BR/><BR/>http://www.smartmoney.com/retirement/401k/index.cfm?story=which401k050609Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-14245531.post-90082260555996212522007-04-02T16:50:00.000-04:002007-04-02T16:50:00.000-04:00Sing it, sister.An addendum to Amy's comment: tra...Sing it, sister.<BR/><BR/>An addendum to Amy's comment: traditional IRA's are convertible to Roth in 2010, the same year in which the income restriction on the Roth goes away. If you want to contribute to a Roth but are shut out, dump all of your IRA money into a traditional IRA and convert it in a couple of years.frugal zeitgeisthttps://www.blogger.com/profile/17804781758510341558noreply@blogger.comtag:blogger.com,1999:blog-14245531.post-36647235723911268172007-04-02T16:18:00.000-04:002007-04-02T16:18:00.000-04:00Two small comments:1. A neat "are you on track to ...Two small comments:<BR/><BR/>1. A neat "are you on track to retire early" calculator is <A HREF="http://cgi.money.cnn.com/tools/retireyoung/index.html" REL="nofollow">here</A>.<BR/><BR/>2. Don't forget Traditional IRAs, another retirement vehicle for those with an AGI over the Roth IRA limit who want to contribute more than $15K/year to tax-advantaged accounts. Contributions to the Traditional IRAs are not taxed now (they're a deduction when you do your taxes) but they are taxed when you withdraw the funds in retirement. Contribution to traditional and roth IRAs COMBINED is capped at $4,000/year in 2007.Amy K.https://www.blogger.com/profile/10979615306528968897noreply@blogger.com