Questions tagged [retirement]

This tag should be used for any questions related to retirement or post-retirement, such as planning or saving for retirement, or asking about benefits or issues after retirement.

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4answers
197 views

Why contribute monthly to an IRA rather than a brokerage account?

Hypothetically, if I had a long term investment in mind (let's use FNCMX) that I believed would perform well enough annually to allow me to retire at an early age, (call it 40 years old) what ...
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2answers
64 views

What incentives are there to move IRA money into a 401k?

I have both a traditional 401k with my employer and a traditional IRA I opened a few years ago. I opened the IRA since I didn't yet realize you could submit after-tax dollars to a 401k. Is there an ...
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11answers
2k views

How should I save for a down payment on a house while also maxing out my retirement savings? Is that not feasible at my income level?

I see questions and answers like this one that make a very good point: Keep in mind it is easy to get a loan for a car, or for a house, or to pay for college; but very hard to get a loan for your ...
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1answer
84 views

Can I use a gap year to convert traditional 401k money into a roth IRA to virtually avoid taxes?

My employer offers a 401(k) plan. I decide to leave the company to take a year off. During this year, I make no income. Using various types of tax deductions (mortgage interest, tuition, etc...), is ...
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1answer
71 views

Insurance product for retirement

I am new in finance. If I want to propose an insurance product for retired people, and I am supposed to take on financial risks in the hope of profit. Can someone give me some informative tips of what ...
0
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1answer
22 views

Filing Form 5500EZ and Plan Characteristics Codes for Line 8

I recently shutdown my individual 401(K) plan at E*Trade. There was also a Roth 401(K) plan also. I plan to file form 5500EZ twice, once for each plan. On line 8, I need to put in one or more ...
5
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2answers
235 views

How do I invest in retirement if I'm planning to leave the US?

I'm completely new to investing and know very little about it. I'm about to graduate from college and take a software engineering job that pays very well, leaving me some slack for investing in my ...
2
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1answer
78 views

Shutting Down my Solo 401(K) plan

I recently shutdown my individual 401(K) plan at E*Trade. There was also a Roth 401(K) plan also. I plan to file form 5500EZ just once to cover both plans. Is that okay? I just spoke to E*Trade and ...
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6answers
134 views

Should I reduce my 401k contribution to pay of car/house payments earlier?

It’s a little more complicated than the question (at least I think so). Basic Info: I’m 36 I have about $398K in 401k+Roth savings, 15% contribution per paycheck I have a mortgage worth $175K I have ...
4
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1answer
322 views

Why would anyone choose 403b over 457b?

Some employers offer both 403b and 457b as retirement plans. I looked at them, and it seems they are very similar, except that 457b does not have early withdrawal penalty. It seems 457b is better than ...
6
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2answers
218 views

Can I tax-deduct income for Traditional IRA during the time I am not covered by new employer's 401(k)?

The IRS states that Traditional IRA tax-deduction eligibly includes Retirement plan at work: Your deduction may be limited if you (or your spouse, if you are married) are covered by a retirement plan ...
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2answers
152 views

what percent of my investments can I take out annually if I want it to still grow after beating inflation and taxes annually?

I'm interested in learning how much money one might have to save and invest if they are aiming to live purely off of the capital gains from their investments while still allowing their money to grow ...
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1answer
52 views

CPP example clarification

Can someone explain https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/payroll-deductions-contributions/canada-pension-plan-cpp/cpp-contribution-rates-maximums-exemptions....
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6answers
9k views

Can a small family retire early with 1.2M + a part time job?

Given: Married couple age 40 with one child under 5 $800K combined 401k $400K combined savings/investments No debt 90K average yearly expenses, includes mortgage Is it possible to retire now with ...
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3answers
130 views

How are tax rates for Roth and Traditional IRAs determined?

I know Roths are all the rage since they were introduced, but I'm not necessarily seeing how or why they are the way to go. As most of you probably know (but FYI for those who don't), the difference ...
11
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1answer
2k views

Moving a 401k balance to multiple FDIC-insured IRAs to protect my funds against being wiped out by a market crash?

My wife and I are living on our Social Security benefits. I've been very pleased with the growth of my Fidelity 401k in my former employer's retirement plan. As far as I know, I can leave my balance ...
0
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1answer
152 views

Retirement savings by age, what does it include?

I have been reading a various retirement articles say how much you should have saved for retirement as a multiple of your income by age. For instance, this page says: 1x salary by age 30 3x salary by ...
22
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1answer
2k views

Social security letter urges to apply now

I'll turn 70 in about 4 months. I just got a letter from the SSA saying What You Should Do: You should contact us right away to apply for your retirement benefits. You need to complete an ...
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3answers
109 views

Where should we invest substantial proceeds after downsizing in California?

Need to learn where to invest substantial proceeds after downsizing from a California house we bought new 21 years ago, to a smaller California house. Should I stick with mutual funds for income and ...
1
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1answer
170 views

What happens if you stop paying IRA and move to another country long before your retire?

I know this might depend on the bank, but as a general rule, what happens if you are under 50 and you have saved money into an Individual Retirement Account since you are 20, but then decide to move ...
2
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3answers
95 views

How to maximize retirement equity in Canada

I live in Canada. I am mortgage-free/debt-free, have maxed out my RRSP contributions, and have some extra cash outside my RRSPs. I don't have a company pension plan - my only retirement income will be ...
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3answers
167 views

401(k) which is better, more traditional or less ROTH

My company matches my 401(k) contributions, 4% to my 5%, so I'm contributing at least 5%. So I ran some numbers. If I switch from traditional contributions of 5% to ROTH contributions of 5%, my take-...
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4answers
270 views

If everyone expects index funds to increase in value in the future, wouldn't future returns be zero? [duplicate]

Suppose everyone expects Apple to increase its earnings by 20% next year. Due to the general expectation, the current stock price will incorporate this information. For example, if subsequently Apple ...
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2answers
245 views

Should I live in someone else's property for free or should I house hack?

I'm in my mid twenties and my financial goal is to be able to retire early with probably an average workers' income as passive income. I have an opportunity to manage a property, including renting out ...
1
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1answer
30 views

NY State retirement withdrawal and management

My wife worked for ~4 yrs at a school in NY. She was entitled to a retirement package. It states that she as a contribution balance of $4,477. She does not want to go back to work as we are raising ...
1
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1answer
61 views

Calculating a combined savings percentage when saving pre- and after-tax money

This seems like a really simple and obvious question, but I can't find any previous questions on this site that directly address it. Perhaps it's so simple that people find it trivial. Almost all ...
0
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1answer
105 views

How much expenditure for children [closed]

I've been reading about 4% rule and about saving well and so on. My current savings rate is decent I think. However, we do plan on having a kid in the near future. I am not really sure what our ...
1
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1answer
87 views

How/when to shift from stock to bonds

I recently got a stable job and started investing. Since I am in Europe and the majority of decent blogs are US-targeted I've made many mistakes along the way but I think I have stock or stock-ETF ...
1
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2answers
79 views

Should I start an IRA account now?

I am interested in opening an IRA account for retirement but have been holding off due to the current swings of the market. I don't want to put say $3000 in an IRA account this year and then loss on ...
1
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1answer
121 views

How would the financial situation be, if a person not only lives quite long, but also has Alzheimer's disease?

If we live to 85, and set aside some money to live to 85, that's all good. But what might worry us, is what if we live to 95 or 105, and therefore need more money to live on, and also, with things ...
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2answers
101 views

When we retire and take out the 401(k) and IRA money to buy a house, are we subject to a big portion of tax?

Say, when we get to the age of 65 or 67, and retire, and we take out most of the 401(k) and IRA money, if luckily they can grow to $1,000,000 to buy a second house, all at once, will we be subject to ...
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0answers
14 views

Traditional IRA and SEP IRA at the same time

I am self employed through my LLC and I am also employed by a company via W2 What would be my contribution limits to SEP IRA and Traditional IRA? Are my SEP IRA contribution limits separate from my ...
0
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1answer
81 views

The 50% 401K matching and 100% 401K matching can make the total contribution to $29,250 and $39,000, respectively?

Since there is a max for our contribution of $19,500, so (1) if a company matches 50%, that means the total max out at $29,250? On the other hand, (2) if a company matches 100% but only for 4.5%, ...
3
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0answers
52 views

Switching from spousal benefit to my own and then back to spousal

I started collecting SS at 66 (my full retirement age), my wife started collecting SS (spousal benefit) at 66 (her full retirement age). If my wife switches to her own benefit at 70, and then I pass ...
1
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2answers
52 views

Contributing to a target fund after the date of the fund

If I contribute to a target fund that's targeting 2040 as a retirement date, but I don't end up retiring until 2043 what will happen after 2040? Will I still be able to contribute to the same plan ...
2
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2answers
156 views

When is a 401(k) better than a pension?

There are tons of comparisons between 401(k) and pensions, with the most obvious being the concept of "defined contribution" vs. "defined benefit". This makes them a sort of apples to oranges ...
0
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1answer
70 views

Do I meet stimulus check eligibility standards?

My last year to file an income tax form was 2017, as my CPA informed I no longer made enough (retired) to make filing necessary. My only income now is my monthly Social Security disability check for $...
1
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2answers
94 views

Does it matter if one company matches 100% of your 401k contribution vs another company matches only 50%?

Let's say the base salary is $150k, if company A matches 100% of your 401k contribution, but up to 4.5% of your pay. So it is $6750 per year. If company B matches 50% of your 401k contribution, but ...
17
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12answers
4k views

How can I offset the risk of a market crash when making a retirement plan?

Most retirement plans in America today are built upon investment portfolios - whether it's a 401K or some other scheme similar to it, they're built upon the idea that stocks will, over time, increase ...
0
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0answers
31 views

drawdown pension limit

I have 2 small pensions & 1 annuity. I was recently contacted by one pension provider to see if I wished to take a lump sum. So I was sent a lifetime allowance form which I completed for my three ...
0
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1answer
64 views

Are funds in 403b accounts and Social Security secure in the event of a depression?

Are funds in 403b accounts in the event of a national depression, such as in the 1920s, secure, or are they lost? And since a depression involves the whole nation, Social Security will end, correct?
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0answers
24 views

How do I record roll over of IRA and CMA into the purchase of service credits on my federal income tax?

I work for the a county government with its own retirement system. I served about 10 years in the military. A couple of years ago I found out my dad had put money in an IRA and a UTMA CMA for me. I ...
2
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3answers
381 views

Are Social Security payments threatened by the Coronavirus crisis?

I would like to know if it is likely that the United States government may have to reduce Social Security payments for the remainder of this year to help fund economic stimulus packages to help bail ...
24
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9answers
10k views

401(K) Very high negative rate of return

I am 26 yo and have total $27.5k contributed to my 401(K). I have chosen 2045 Blackrock target date fund and my 2020 first quarter rate of return is -37% due to the current market blood bath. I have ...
0
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0answers
26 views

Taxable brokerage account for retirement?

I'm looking at investing in a taxable brokerage account with the purpose of saving for retirement, as my traditional retirement account options are not available. I'm not quite sure where to start ...
2
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3answers
360 views

My retirement savings are waning due coronovirus crisis. What should I do?

My AFORE already lost a chunk of money in my retirement savings, i'm not sure what to do, i'm afraid if leave the rest of my money i will lose even more and it's gonna take a while to recover those ...
1
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1answer
140 views

Limited retirement options?

My employer offers no retirement plan; my income is in the phase out for a RothIRA, so I will be unable to contribute this year (any contributions this year are from remove of excess contributions in ...
26
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13answers
16k views

Best way to invest $300,000 inheritance for a couple intending to retire in 10 years

My wife and I are getting older and have a target to retire in 10 years. We just inherited $300,000 from a family inheritance (from liquidated property). So this money will come shortly and I'd like ...
1
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3answers
231 views

Should I use Backdoor Roth

I recently got a new job that doesn't have a 401k. I rolled my previous 401k of $30k into a traditional IRA. I plan on contributing $12,000 to retirement this year but I know I can only contribute $...
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2answers
72 views

Withholding taxes when removing an excess contribution?

I am attempting to remove an excess contribution made to my 2019 Roth IRA account before 2020 tax deadline. While removing the contribution, Vanguard asks for whether federal and state taxes should ...

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