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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2answers
138 views

How to choose between Roth IRA and Traditional IRA

I have been contributing to Roth IRA for several years now. At this point my income have jumped up so I cannot contribute to Roth IRA anymore, unless I use the backdoor. Currently, my tax rate is 24%. ...
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9answers
3k views

My ignorance keeps me awake at night (specifics below) [closed]

I feel like a financial idiot, and I'm worried that I might be overlooking opportunities and making big mistakes that I will regret later. So, I'm looking for a sanity check on my finances from people ...
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0answers
158 views

How Long Will Lump Sum Last if you Withdraw 5% each year? [closed]

If I gave a Trust Company $800,000 to invest at 5% annually compounded interest, how long before the balance of the account goes to Zero if I withdraw 5% every year? I can find compounding interest ...
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3answers
173 views

Is it reasonable to expect the return on my savings will match or exceed inflation?

I am doing some modeling on retirement savings. Variations on the rate of return for savings during retirement (this is, after one has retired) as well as the inflation rate yield very different ...
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1answer
31 views

Should I increase my regular 457(b) contributions or start a Roth 457(b)?

I am 28 years old and fortunately in a position where I am able to max out my Roth IRA contributions each year. I am also now contributing a similar amount (~$6,000/year) to my employer-sponsored 457(...
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1answer
64 views

Distribution of funds between pre-tax and ROTH for a under 30 years old

What is the usual contribution percentage for an under 30 years? I am trying to change mine but I am not sure how much what I should change it to. equal distribution between ROTH and pre-tax or more ...
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2answers
114 views

Would like to keep paying our parents after retiring from our small business

Several years ago me and my brothers bought the company that our dad and mom started. We agreed to pay them a monthly amount until we had bought out the company. At that time they both continued ...
4
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2answers
479 views

Post Tax Traditional IRA vs Normal Mutual Funds Account

I am setting up a Traditional IRA account and this will have my post tax contributions. Traditional IRA does not have any income limit but the contribution limit is $6000 (married filling jointly). If ...
1
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1answer
54 views

Can I withdraw my contributions from a Roth IRA early without penalty even if they were rolled over from a Roth401k?

I understand that both Roth 401k and Roth IRA accounts allow withdrawing contributions prior to age 59/12 without penalties. But today I heard someone say that I should NOT roll over my Roth 401k to a ...
4
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0answers
66 views

Social Security, expat, and small side business

I plan to retire soon. I am an American and I expect to get about half my retirement income from Social Security. I have not reached full retirement age. (I'll be 63.) I own a tiny side business that ...
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0answers
44 views

Should retiree take insurance from employer or should he/she take from external insurance organization?

My dad is retired bank official in India. I want to know if he should go for health insurance provided by his employer or he should go for other insurance organizations, given say the cover is exactly ...
4
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0answers
141 views

Pre-qualification screening for apartment rentals on apps like Zumper. How honest should I be?

I'm looking to move from one - expensive - rental apartment to another, similar priced. Now my circumstances are that I am semi-retired, starting a business and with more than enough money in the bank ...
21
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8answers
9k views

Safe-ish investment options for a young, well-compensated couple

I'm definitely late in learning this stuff and have gone through the top questions on this site like I'm 23 and was given $50k. What should I do? Oversimplify it for me: the correct order of ...
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7answers
3k views

What can we do when we are stuck in a conservative 401(k)?

Right now, I am working as a software contractor and my agency allows 401(k), but only in conservative investments, such as Vanguard Target Retirement 2030, 2035, or S&P 500 index fund, or at most ...
2
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2answers
395 views

When the government starts to print money, buy a house to double or triple your money?

It seems it is so obvious, but is it true? When the government starts to do "quantitative easing" or print money, then the price of a house can go from $1.2 million to $1.5 million easily, ...
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3answers
431 views

The correct order of investing - UK edition

This excellent question asks what the consensus priority order of investments should be. The answers seem to have settled on roughly the following: Emergency fund. 401(k) up to employer match. Pays ...
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6answers
5k views

Is there a case against having an IRA?

I am in the United States and I earn an income in the range of $200k/year. I am single with no kids and generally keep my overhead expenses low (car is paid off, my housing cost is very reasonable, ...
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3answers
147 views

Mid risk inflation hedge for parents retirement with 10/15% of total?

My parents are very conservative and uneducated about money, and they’re keeping most of what will be their retirement (in 3/4 years) in CD. I convinced them this is detrimental due to inflation, but ...
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0answers
35 views

Starting/acquiring a business to minimize RMDs

Suppose an individual is 72 years of age and would like to minimize RMDs from a traditional 401k plan. They are willing to continue working in order to qualify for the still-working exception, as ...
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0answers
41 views

Strategies for Asset Allocation Considering Different Kinds of Tax Advantaged Accounts

What are some strategies for asset allocation across taxable and tax-advantaged accounts? I have: A Defined Benefit Pension Plan (not really relevant to this question) A pre-tax supplemental ...
23
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11answers
6k views

What is so good about IRAs?

I still don't get what is good about IRAs. For example, in a traditional IRA when you deposit you won't have to pay tax but when you withdraw you still have to pay taxes. So you only benefit if you ...
0
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2answers
55 views

What options, if any, exist for a penalty-free transfer/rollover of a TIAA 403(b)?

My previous employer was a university with a TIAA 403b. Now that it's been over a year since I left, I am interested in transferring some or all of those funds to Vanguard, with whom I've had a Roth ...
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1answer
60 views

Retirement Limits and Options

I know there are limits on retirement contributions, both pre-tax and after-tax; but I had a couple questions to make sure I understand how they apply precisely and manage them. Background: I have two ...
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0answers
65 views

Has there been any studies or economic theories regarding HSA and whether to save/spend

HSA have triple tax advantage: Pre-tax contributions Tax-free growth Tax-free withdrawals for medical expenses If one planned to only use this money for medical expenses after retirement (62), is it ...
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1answer
66 views

Can rolling over a Defined Contribution Plan to a Roth IRA make investment earnings tax-free while avoiding Roth contribution limits?

My employer offers a Defined Contribution Plan (DCP) where I can contribute after-tax earnings. Investment earnings grow tax-deferred. There is an option to roll over DCP (after-tax) contributions to ...
4
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1answer
419 views

401K Loan - Company switched providers and rules

My company (a large health co) merged with a larger Pharm Co. In this process, we basically got all the Pharm Co benefits. When with the health co, I took out a 401k loan which had the provisions that ...
5
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1answer
79 views

Social Security vs SSI: cash gifts, free rent, etc. (USA)

I understand the social security administration may reduce SSI benefits if the recipient receives cash gifts, free rent, etc. What about normal social security benefits or retirement benefits? Are ...
5
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3answers
211 views

How do I Value a Defined Benefit Plan

Background My "side hustle" for a while has been the US Navy Reserve. I think I've stopped having fun, and I'm ready to quit and devote that time to my main job, my family, etc. However, one ...
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1answer
80 views

If I don't plan to sell the stock until age 60 or 65 in USA, is it exactly the same in a regular account vs an IRA or 401k account?

With the limitations of how much money we can put in IRA, Roth IRA, or 401(k) account, I just thought, what if we plan to buy the stock and know we won't sell it until age 60 or 65, when our income ...
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0answers
50 views

401k or Roth IRA for non treaty countries

This might be a bit complicated, so pretty please bear with me a little. I am currently living in USA on a E2 visa. My employer offers both 401k and Roth IRA. I do not plan to neither retire nor ...
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3answers
151 views

When To Use High Dividend Funds

I recently heard that one way to retire is to accumulate enough wealth and then invest in a high dividend portfolio. That way, you can live off the dividends and not have to sell your stocks. So you ...
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2answers
2k views

Type of account for investing surplus funds when planning to retiring early?

How do people retire early? Say that their debts (including house) are paid in full, they have ample money already saved in IRAs, 401ks, etc., they are expecting a pension, and have earned enough SS ...
2
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1answer
131 views

How does 401k loan default after you left your job?

I'm trying to find some basic answers here but having a very hard time. I have a job currently and I'm about to lose it. I have pulled out a 401k loan and paying it back through the payroll deduction. ...
7
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4answers
3k views

Mid twenties, no debt, maxed out all contributions to "common sense" stuff, what can I do to maximize the value of my money now?

I'm in my mid twenties living in the US, in a relatively inexpensive city (my rent is 930 a month). I max out 401(k), 80% going to Roth 401(k), 20% traditional 401k (I expect I'm going to have to pay ...
6
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4answers
1k views

How should I split my contributions to Roth IRA and Roth 401k?

I am in my early 20s and currently contribute ~18% of my income to my retirement accounts, 7% to company sponsored Roth 401(k) (Popular Investment Company) and 11% into my Roth IRA (A "Big 3"...
2
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1answer
90 views

Backdoor Roth vs Mega backdoor Roth contributions

I heard about Backdoor Roth IRA, and Mega backdoor Roth contributions. Are they one and the same? Or are they different? I ask because I know some folks who work for a big tech company in the US that ...
2
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0answers
44 views

Income taxes - Changing state of residence before moving out of the US

I'm an European citizen working for in the US with a 2 year contract; I was and will be a non resident alien for 2020 and 2021, but RA in 2022; I have to contribute to a retirement fund (it's a 401(a),...
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2answers
171 views

why would a mortgage lender be asking someone a year away from retirement about their pre-retirement income?

My 69yo mother is looking to buy a new house (and sell her current one). Based on what she's expecting to get for her current house, how much she still owes on her current house and how much a new ...
2
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1answer
267 views

Can a Non-Working Spouse with Only Social Security Income Contribute to an IRA?

In the United States, if a man over 50 retires and has only Social Security income---yet his wife continues to work an earns income in excess of $14,000 can the couple still contribute $14,000 ($7,000 ...
2
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2answers
123 views

How to convert annual rate to monthly rate for personal investment?

If we have an annual rate of return of 7% for our stock investment, how much is the monthly rate? First of all, why might we want to use monthly rate: that's because we may do monthly contribution of $...
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1answer
40 views

Computed 401K RoR differs from broker's information

I have a 401k through Fidelity and have recently started being more active in the market. I was haphazardly selecting funds that seemed to do well but apparently wasn't the most advantageous due to ...
16
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5answers
5k views

When I retire, should I really pull money out of my brokerage account first when all my investments are long term?

Preparing to retire and I've looked at a lot of info on the internet and it all says the same thing: pull money out of your high taxed brokerage account first so you leave all that tax deferred money ...
2
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0answers
41 views

What is the point of a retirement plan contribution limits (with after tax dollars)? [duplicate]

Based on the 2021 numbers: 401(k) elective deferrals are limited to 19,500. Limits here make sense as savings offer obvious advantages: pre-tax contributions in case of regular 401(k); non-taxed ...
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3answers
159 views

What might contribute to income during retirement?

I am reading about the differences between Roth and traditional 401k. The big deciding factor seems to be relative tax % between now and retirement. An example from this article: Imagine Sally and ...
3
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1answer
57 views

Protect "Riesterrente"-retirement account from downside of liquidation

My mom has a german retirement portfolio called "Riester-Rente". Portfolio is mix of bonds and an international fund (DE0008491051). Long explanation: As part of legal compliance, they need ...
2
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3answers
133 views

Should I rollover my Fidelity 401(k) to a Vanguard IRA?

I'm leaving a job where I have a Fidelity 401(k). I plan to rollover my Fidelity 401(k) into an IRA after I leave the job. I like Fidelity. But most of my portfolio is invested in Vanguard ETFs, and I ...
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2answers
28 views

can I move a rollover IRA account with bought stocks, mutual funds from one company to another?

Somebody told me I can move my rollover IRA account from one financial company to another. I am wondering can I do this with existing investments? I have bought some stocks and mutual funds in my ...
1
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2answers
232 views

Is buying stocks to retire, instead of buying several houses, equally feasible?

Short question is: if we invest in solid companies' stocks and buy some put options or inverse-index ETF, does it allow us to "let other people run the business for us", and so we can travel,...
2
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1answer
94 views

Roth 401(K) and a traditional IRA

If an individual has net earnings from self-employment of $3000 and he contributes $3000 to a Roth 401(K) can he also contribute to a traditional IRA? That is, does the contribution to the Roth 401(K) ...
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4answers
236 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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