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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2
votes
1answer
28 views

Does electing to file a joint return abroad (US citizen with retired alien) eliminate tax due on alien's Soc Sec benefits?

My husband and I are retiring in France. Both of us have US Social Security benefits due us. I am a US citizen, spouse is a non-resident alien. If we elect to file a joint 1040 so that he is treated ...
2
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1answer
71 views

Contribute to non-deductible IRA or something else?

I already have a traditional IRA (rollover from former employer's 401(k)) and my current employer doesn't offer a retirement plan, so I'd been funding a Roth IRA up to the maximum allowed each year ...
1
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1answer
184 views

Contributing to a IRA with a large income?

I recently started a job that pays $150K per year on paper(i.e. my offer letter says my yearly salary will be this) in NYC. In reality, after taxes and all the deductions, I will probably take home ...
9
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9answers
4k views

Roth vs Traditional Investing assuming same tax bracket in retirement

I've done a little (simplified) math to determine the difference in investing in a Roth account and a Traditional retirement account. I'm assuming that I will be in the same tax bracket in retirement ...
1
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0answers
45 views

Transfer from US 401k fund to Australian Superannuation fund

I worked in the USA for a number of years and have now relocated to Australia. I have balances in both US 401k fund (+ IRAs) and Australian superannuation fund. It seems that the Australian ...
-2
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1answer
281 views

Can you retire when owning 3 or 4 houses, and what if you still have to pay mortgage on some of them?

I did some calculations before, and found out if a person own 3 or 4 houses, townhouses, or condos, then the person can probably retire. That's including living in one house, and getting rent from 2 ...
1
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1answer
73 views

Are the low earning spouse's earnings basically irrelevant for Social Security retirement benefit purposes?

Spouse A is in their mid-sixties and was the lower earner by far. Spouse B is five years younger and had a very good salary, but only from the past twenty years. (The previous years' income was zero.) ...
30
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6answers
5k views

“One should save about 15% of their income for retirement.” What assumptions are implicit in that statement?

I read a lot of websites that say, "I've run the numbers, and you should be saving around X% of your income for retirement in order to be safe, and have fruitful golden years." With X% being a number ...
3
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1answer
77 views

Do Social Security retirement benefits count when calculating financial aid?

Youngest child is starting college; parent is unemployed. Will the FAFSA consider the following, or will they be ignored for financial aid calculations? Retirement benefits (social security) ...
3
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2answers
88 views

How to decide whether to start drawing Social Security first, or start drawing down from IRAs?

Spouse A is in their mid-sixties and was the lower earner by far. Spouse B is five years younger. They recently became unemployed. Is there a rule of thumb or some other method, that will help them ...
1
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4answers
130 views

Any suggestions for low risk retirement investment with a return better than CDs?

I'm retired. I don't trust the stock market at my age. I probably won't live long enough to recover losses from a down-turn. And the concept of living in the hope of a recovery is less appealing that ...
2
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0answers
228 views

Saving diligently, but the amount of retirement fund seems too much

I recently achieved 100 million KRW (South Korean Won, about 86,000 USD) after a bit less than 5 years of work. I'm somewhat proud of myself for being diligent, but I'm afraid if this is not enough. ...
0
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1answer
191 views

Source of funds for formation of IRA-owned LLC

I've been reading the excellent book The Self Directed IRA Handbook by Mat Sorensen. My understanding is that I can achieve personal control of the checkbook for my retirement investments by forming ...
10
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2answers
1k views

529 vs IRA for kids education and future scholarship

I have young kids going in preschool. I have already started investing in 529. However, many of my friends mention that if I invest single penny in 529 plan for my kids, they will miss out on any ...
2
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3answers
228 views

Estimating nest egg and inflation

First a couple paragraphs for me to lay out my understanding and then my actual question. It is often reported that one can estimate how much they need for retirement by taking their current expenses ...
1
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1answer
215 views

Saving question - I do not know where to start

I just finished my degree and I have been working in Malaysia for 3 months. Let's say that every month I have a salary of $2,550 and my expenses are: $300 taxes $500 to parent $300 toward ...
6
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3answers
1k views

Father retired a little early doesn't need 401k but should he move it to Roth IRA?

My father recently retired at 63. He has some money in his 401k (the provider is ADP) and they keep emailing him with an advertisement telling him the ramifications of withdrawing any money out early ...
28
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8answers
6k views

50% portfolio in single stock, JPM - appropriate for 80 year old?

I've recently taken a look at my 80-year old mother's finances, run by a money manager at Morgan-Stanley. Half of her $3.5M portfolio is in a single stock, namely JPM = J.P. Morgan. This seems to ...
1
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1answer
103 views

Retirement Plan Returns Formula

My income after tax is $48,060 and I'm contributing 6% of my income into my retirement account. My estimated income increase is 2.6% per year, which I hope to include in my retirement account. The ...
1
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3answers
109 views

What are some long term and low risk investment options for someone closer to retirement?

I started late. I’m 50 and have about $200k in savings, no debt and a small mortgage with $200k/year in salary. I have $300k in 401k. I’d like to put that $200k somewhere other than the bank. I don't ...
24
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10answers
3k views

Any experience with maxing out 401(k)?

I'm 23 right now, and I'm currently contributing about 6% of my salary to a 401(k) with an employer that matches 20% of my contribution up to 6%. Based on various calculators, continuing at this rate ...
0
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2answers
207 views

401k Taxes (USA) — Traditional vs Roth (not IRA)

Good afternoon, Looking for the 401k tax pros out there. I have four primary 401k tax related questions: 1) Income Tax Bracket at Retirement: When retiring and "cashing out" on a trad 401k: I ...
3
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2answers
202 views

If I'm 25 and work 10 years to cover the 40 credits required to qualify for Social Security, will my payments be indexed to inflation when I retire?

If I'm 25 and work for the next 10 years to cover the 40 credits required to qualify for Social Security, will my payments be indexed to inflation when I retire?
34
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3answers
9k views

How safe is the 4% rule if U.S. returns trend towards World returns?

I keep hearing about the 4% rule. I know it's based on historic returns, but aren't those returns based on U.S. stocks, at a time when the U.S. was ascending to the peak of "world superpower" ...
2
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3answers
241 views

Are the fees on this 401k plan too much?

My employer uses a relatively new company called "Human Interest" for our 401(k)s. I have 401(k) accounts with Fidelity and TransAmerica from former employers, and I'm trying to decide which is best. ...
0
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0answers
171 views

Am I on the right track? Feedback welcome!

Here's my situation: 43 y/o, married w/ two kids under 10. I'm in a defined benefit program and I have a formula where I can retire at 60 with 2% of my highest salary times the number of service ...
0
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1answer
220 views

How long would it take someone born in 1940 to save 25 times their annual salary?

Assume the person starts working at 25 and earns the average salary for whatever year it is at the time (changing every year). Assume that they save 20% of every pay cheque and invest it in an account ...
1
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2answers
113 views

Is the math wrong on these future value and draw-down calculations?

Let's say I plan on retiring in 10 years, have some IRAs (401(k) rollovers), a conservatively invested taxable account and plan on contributing 15% to my 401(k) until I retire. I'm using round ...
1
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2answers
969 views

Take Social Security at 65 or spend retirement savings

What is better? To retire at 65 1/2 and spend nothing but retirement savings until reaching age 70. At 70 take social security for both me and my wife and get the maximum benefit. I would spend $...
1
vote
2answers
97 views

Traditional IRA with No Deduction Allowed

Martha is a W-2 employee, lives in the U.S., and works for a company that doesn't offer a 401(k). She is maxing out her traditional IRA every year 2010-2019 but she is not qualified to take any ...
52
votes
7answers
8k views

What is the best asset allocation for a retirement portfolio, and why?

Based on financial conversations I've had with trusted family members, I believe that asset allocation is one of the more critical things to "get right" during retirement savings. Based on an ...
2
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0answers
57 views

What to do if company is not honoring vesting schedule in Pension Protection Act?

Let's say someone works for a company that lets employees contribute to a 401k, and the employer offers a match. Based on my read of the 2006 Pension Protection Act (beginning on p. 2 of the linked ...
3
votes
3answers
164 views

alternative to reverse/Balloon mortgage

Hypothetically, suppose a person who is close to retirement, who has comfortable savings that will last his/her lifetime( if need not to pay monthly mortgage) and is close to retirement and has 2 or 3 ...
1
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3answers
256 views

Reasons to invest in 401k vs pay off loan in 1 year?

I have ~$70k across 401k and Roth IRA. I have federal student loan at $17k with 3.8%. Thus, my NW is $53k. If I choose to invest $19k into my 401k and assume the average rate of return of 7%, my 401k ...
2
votes
4answers
368 views

What to do w/ extra money in bank account?

I'm privileged/blessed. I'm 38, I have a healthy emergency fund, I max out my IRAs (mine and my wife's), and I am making a good bit of money above that every year now. What should I do with that extra ...
6
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4answers
606 views

Where to save for retirement

TLDR: Given the option to save for retirement in Europe, USA or Japan where is the ideal place to save up money and why? So I'm somewhat of a global citizen who has been moving around the world ...
0
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0answers
43 views

One RA vs multiple RA's (investments in general as well)

I am young and trying to work out how I want to get a retirement annuity sorted. My question is, is it better to put 9 in to one RA, or 3 3 3 in to 3 different RA's? (here I just use the numbers to ...
6
votes
1answer
122 views

Is selling in IRA and then buying similar stock in regular account a wash sale?

Suppose I buy 10 shares of XXXX at $300 in my IRA account on Jan 2nd for total $3,007. XXXX drops to $250 on Jan 10th and I then buy 10 shares in my taxable account for a cost of $2,507. On Jan ...
3
votes
3answers
287 views

How to maximize my retirement money?

I am 69 years old, have $200,000 in a savings account, and $1000 a month in social Security. I have $30,000 in car debt. I rent, but really would like to own some type of housing. Really worried about ...
2
votes
2answers
152 views

What compounding frequency should I choose for this retirement calculator if I invest not in bonds, but in S&P500

I am trying to use a retirement savings/investment calculator using this: https://www.getsmarteraboutmoney.ca/calculators/compound-interest-calculator/ I chose initial investment of $1500, monthly ...
2
votes
2answers
7k views

Is this claim fraudulent: “I Can't Believe This $16,728 Social Security Bonus Was So Easy”? [duplicate]

When I browse the Motley Fool Website, I see an advertisement that says "I Can't Believe This $16,728 Social Security Bonus Was So Easy", and it seems a fraud. Does any one on this forum have ...
5
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2answers
288 views

When is paying into a UK pension bad tax planning? (LTA)

UK Pensions are great for the tax breaks that they give as you pay into them (up to 45%), and as the pension generates value, but if you exceed the lifetime allowance (LTA = £1,055,000 in 2019-2020) ...
36
votes
6answers
9k views

How risky is real estate?

I have a friend who plans to retire by putting all of his money in local real estate. He makes a huge return on investment on the property he has now - something like 25%. Fundamentally, I think ...
3
votes
1answer
112 views

Medicare and living in Mexico

If a US citizen moves to Mexico, can he/she live in a town near the border, maintain his/her coverage of Medicare and come to the US for medical care? He/she would want his medical care to be paid for ...
4
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1answer
538 views

Investing in a Roth IRA with a Personal Loan?

Okay this might be a dumb question but here it goes. Does it at all make sense to invest in a Roth IRA contributing the max by taking out a loan? So say I take out a $6k loan at the beginning of the ...
1
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2answers
88 views

Put savings in Shares or Superannuation

I am 25 and live in Australia. As such my employer must pay 9.5% of my wage into a superannuation retirement account. I have and continue to save and currently have 18k in a savings account earning ...
10
votes
1answer
925 views

Are UK pensions taxed twice?

I, like many, have a workplace pension. I pay taxes through PAYE and file a self assessment covering all other income. My understanding is that your personal pension pot is 25% tax free then you pay ...
1
vote
1answer
292 views

How can a stay-at-home parent save for retirement?

With my wife transitioning to a stay-at-home mom role, how can we save so she can retire? She won’t be able to contribute to her 401k and I don’t think we qualify for a Roth IRA based on my income. ...
4
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4answers
605 views

Those retiring early - what other steps can I take to ensure retirement at 50?

I want to retire early (am 40 - want to retire by 50). For those who have done it in and around that time (without inheriting a ton of money from someone) what steps or things can I do to help make ...
1
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0answers
52 views

How much money do I lose when I move from defined benefit pension plan to a hybrid pension plan

I am moving from a company with a defined benefit pension plan to one with a hybrid pension plan(DB + DC). I understand that the defined benefit pension plan uses a set formula to calculate the ...

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