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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5
votes
3answers
195 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 ...
0
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1answer
54 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 ...
1
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0answers
42 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 ...
0
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3answers
137 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 ...
16
votes
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
votes
1answer
122 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
2k 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
votes
4answers
907 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
73 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
37 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),...
1
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2answers
161 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
255 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
98 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 $...
0
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1answer
35 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
votes
0answers
37 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 ...
1
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3answers
139 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
votes
1answer
49 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
votes
3answers
106 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 ...
1
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2answers
21 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
206 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
votes
1answer
90 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) ...
1
vote
4answers
222 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 ...
1
vote
2answers
67 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 ...
14
votes
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 ...
5
votes
1answer
112 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 ...
0
votes
1answer
73 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
votes
1answer
37 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
votes
2answers
255 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
votes
1answer
83 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 ...
1
vote
6answers
163 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
votes
1answer
325 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
votes
2answers
220 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 ...
4
votes
2answers
155 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 ...
2
votes
1answer
55 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....
18
votes
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 ...
3
votes
3answers
134 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
votes
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
votes
1answer
156 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
votes
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 ...
1
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3answers
110 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
vote
1answer
181 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
votes
3answers
100 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 ...
1
vote
3answers
281 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-...
0
votes
4answers
273 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 ...
0
votes
2answers
251 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
vote
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
vote
1answer
77 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
votes
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
vote
1answer
118 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 ...

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