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PBS Frontline : The Retirement Gamble, sorta Must See (2 Viewers)
- Thread starter Smack Tripper
- Start date
culdeus
Footballguy
There is no reason to shoebox the receipts. CVS and most places (even walmart and target) will mark stuff as medical on your statement, btw some people launder money through this by getting gift cards and crap at the same time they do an RX. It will still show as a medical expense on the card statement for the entire charge. Seems risky, but people here with minimal medical expenses and the company match on the HSA do it to fund their gambling habit.
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Doctor Detroit
Please remove your headgear
You wanna unpack this? I'd like to see the breakout.Sand said:So I'm looking at my stuff today and realize that I have 9 account types that I'm working with. And none of them can be combined with each other.
Sand
Footballguy
Traditional IRAYou wanna unpack this? I'd like to see the breakout.Sand said:So I'm looking at my stuff today and realize that I have 9 account types that I'm working with. And none of them can be combined with each other.
Roth IRA
Inherited IRA
401k (my work)
457b (wife's work)
529 account
Custodial account for kid 1
Custodial account for kid 2
Standard taxable investment account (play account)
Most of these are pretty small and have been setup at different times (the traditional IRA and 529 are pretty old). Three came over when my father passed.
Doctor Detroit
Please remove your headgear
Is there a time element for distribution on an inherited IRA or can you leave it there for an unlimited amount of time? Can you roll it over into anything existing or does it have to stay in the bequeathed account until withdrawal? I know nothing at all about these vehicles.
Sand
Footballguy
It's a weird one. You have some options. You can cash it out, but obviously there is a tax hit there. You can't combine it with anything else - not allowed. You cannot just let it sit unless you were the spouse of the deceased - the rules are different for spouses. The rules are also different if the deceased was taking RMDs or not. If they were of the age for RMDs you have to continue according to the schedule of the deceased (I think, that wasn't my situation). If not it is based on the age of the beneficiary. I'll need to start taking RMDs next year according to some IRS schedule based on my age (the IRS really whacks you if you don't).
Be very careful as to the premiums you use your HSA to pay for. It can only be used for COBRA, premiums while unemployed, long term care and non-Medicare supplements while on Medicare. Regular health insurance premiums can't be paid by an HSA.
Yeah, the rules on inherited IRAs are among the more complex out there. Really need to consult a tax adviser who knows what they are doing to avoid a nasty surprise/minimize tax hit. A lot of variables involved.
Sand
Footballguy
Actually for me it's pretty simple. I has it set up as a "stretch" IRA, which is the default method of doing it. I have to take RMDs starting next year until I am 83 (my IRS mortality date), unless I take out more and expend the monies before then. Just gotta keep up with the percentages each year.
Doctor Detroit
Please remove your headgear
Reading Ric Edelman's book: The Truth about Retirement Plans and IRAs
I think his philosophies are the most agreeable with my own approach to investing so I like his podcast and his books. Some of it is very basic but mastering the basics of investing is important IMO, I always learn something new. Edelman always presents some nice pro-investing statistics rather than anecdotal information that investment types are known for. He tries to guide folks to his firm, and rightfully so, but he's not over-the-top with it IMO. As long as you understand his business and objective, I think people can be comfortable with it. He offers a lot of good information for free, or at least for the cost of a paperback book.
Have to reread a Random Walk Down Wall Street, still probably the best investment book I've ever read. Think I read it like ten years ago.
Bought an energy fund for my IRA. I think energy stocks will be meh for the next three to six months, but should pick up nicely thereafter. For long-term investment I think it's a nice time to look at the sector.
I think his philosophies are the most agreeable with my own approach to investing so I like his podcast and his books. Some of it is very basic but mastering the basics of investing is important IMO, I always learn something new. Edelman always presents some nice pro-investing statistics rather than anecdotal information that investment types are known for. He tries to guide folks to his firm, and rightfully so, but he's not over-the-top with it IMO. As long as you understand his business and objective, I think people can be comfortable with it. He offers a lot of good information for free, or at least for the cost of a paperback book.
Have to reread a Random Walk Down Wall Street, still probably the best investment book I've ever read. Think I read it like ten years ago.
Bought an energy fund for my IRA. I think energy stocks will be meh for the next three to six months, but should pick up nicely thereafter. For long-term investment I think it's a nice time to look at the sector.
phatdawg
Footballguy
Does anyone have any other suggestions for good books for novice investors who want to learn? I want to be better educated about my money, rather than blindly listening to my financial advisor. I may still listen to him, but I want to have an informed opinion of my own.
Doctor Detroit
Please remove your headgear
Any Edelman book is good, they are for beginners to intermediate level folks but anyone can learn new things from his books. The Truth about Money and the Truth about Retirement Plans and IRAs are his best two sellers. He pushes people to financial advisors a lot, but if you go in knowing this then it's not an issue. I actually think most people need a financial advisor at some point in their lives, but many of us will need them later in life, not early or mid-career.
The Millionaire Next Door is a popular choice, as are books by both Dave Ramsey and Suzie Orman but I find both of them somewhat pushy. They both serve their purpose for people terrible with money management though.
But honestly the best book is A Random Walk Down Wall Street because it deals with explaining markets, market behavior, and portfolio management. I read it ten years ago but a lot of people still say it's among the best and most unbiased books out there. If you really want to learn how things work and understand the particulars of the investment world, I recommend this one the most.
Balco
Footballguy
http://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Larimore/dp/1118921283/ref=sr_1_1?ie=UTF8&qid=1419072941&sr=8-1&keywords=Bogleheads+guide&pebp=1419072960120
Bogleheads Guide to Investing, Changed the way I invested, highly recommend,
KCitons
Footballguy
Does anyone know when 401k contributions start for the year? I need to increase my wife's contribution's to max out her TSP at work. Only reason I'm concerned, is if she hits the max before the end of 2015, employer matching money stops. [SIZE=13.63636302948px]Her first payday of the new year is January 2nd, I'm guessing this would be when the increase should start. But, I would need to make the adjustment now, since her time goes in on Dec 26th?[/SIZE]
I may be over thinking things.
I may be over thinking things.
Tom Hagen
Footballguy
Check date is the determining factor so if she is getting paid January 2nd that would be the first contribution for 2015 even though the wages were earned in 2014.Does anyone know when 401k contributions start for the year? I need to increase my wife's contribution's to max out her TSP at work. Only reason I'm concerned, is if she hits the max before the end of 2015, employer matching money stops. [SIZE=13.63636302948px]Her first payday of the new year is January 2nd, I'm guessing this would be when the increase should start. But, I would need to make the adjustment now, since her time goes in on Dec 26th?[/SIZE]
I may be over thinking things.
KCitons
Footballguy
Thanks. This applies to a good chunk of the population that gets paid every other week. Next payday is January 2nd.Check date is the determining factor so if she is getting paid January 2nd that would be the first contribution for 2015 even though the wages were earned in 2014.Does anyone know when 401k contributions start for the year? I need to increase my wife's contribution's to max out her TSP at work. Only reason I'm concerned, is if she hits the max before the end of 2015, employer matching money stops. [SIZE=13.63636302948px]Her first payday of the new year is January 2nd, I'm guessing this would be when the increase should start. But, I would need to make the adjustment now, since her time goes in on Dec 26th?[/SIZE]
I may be over thinking things.
Buddy Ball 2K3
Footballguy
Tossed about $5K into Betterment since January of 2012 and thus far its over 24.3%. Betterment invests in dividend stocks and then reinvests the dividends for you. I make an automatic monthly deposit and just sit back and let them do the work. Very easy way to invest for those not too savvy investors.
wilked
Footballguy
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Buddy Ball 2K3
Footballguy
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Buddy Ball 2K3
Footballguy
We are not eligible for roth ira's or 401k's. I mostly purchase mutual funds etc. on my own.
Dentist
***Official FBG Dentist***
Buddy Ball 2K3
Footballguy
Buddy Ball 2K3
Footballguy
Buddy Ball 2K3
Footballguy
Tom Hagen
Footballguy
wilked
Footballguy
Someone above asked about books. They were mentioned, but I want to reiterate the 3 I recommend (in order)
1. Bogleheads Guide to Investing (everything you need is here)
2. Millionaire Next Door (while some may see it as common sense, I don't think the majority do. It is all about living below your means)
3. Random Walk Down Wall Street (really well written and illustrative)
1. Bogleheads Guide to Investing (everything you need is here)
2. Millionaire Next Door (while some may see it as common sense, I don't think the majority do. It is all about living below your means)
3. Random Walk Down Wall Street (really well written and illustrative)
wilked
Footballguy
good point
decent chart here
https://investor.vanguard.com/what-we-offer/small-business/compare-plans
Buddy Ball 2K3
Footballguy
There are other employees. We offer them a plan but surprisingly few choose to invest in it even with us matching 3%.
Grahamburn
Footballguy
Getting closer to being able to do this. Where should the disposable income go after this point? Index funds?
Gawain
Footballguy
So, in 2015 I will cap my 401K from my employer and will be looking to fund an IRA. I was wondering if you financial folks could offer a little advice.
I am not a knowledgeable investor and want something similar to my 401K where I can pick a mid/small cap and a large cap and let it sit. Does anyone have any recommendations?
It looks like there is an option just to have this funded through a payroll deduction. Does my company have to offer this (they don't), or can I bring in a form they will honor? I know it'll be a lot easier for me to have $200 taken out each pay period than to have to remember to transfer money or something.
What happens if you've contributed to an IRA, but pass the AGI limit during the year?
I am not a knowledgeable investor and want something similar to my 401K where I can pick a mid/small cap and a large cap and let it sit. Does anyone have any recommendations?
It looks like there is an option just to have this funded through a payroll deduction. Does my company have to offer this (they don't), or can I bring in a form they will honor? I know it'll be a lot easier for me to have $200 taken out each pay period than to have to remember to transfer money or something.
What happens if you've contributed to an IRA, but pass the AGI limit during the year?
wilked
Footballguy
For the Ira open an account with vanguard. Call them, they are very helpful. You would invest in their total stock market index fund, which has every stock on the market (mix of small, mid, and large cap). Very simple and super low expense ratio.
If for some reason your salary goes up and you become ineligible you simply recharaxterize the Ira later, again just call vanguard. Not a big deal
You should try and do both 2014 and 2015 (in a week) if you can.
If for some reason your salary goes up and you become ineligible you simply recharaxterize the Ira later, again just call vanguard. Not a big deal
You should try and do both 2014 and 2015 (in a week) if you can.
wilked
Footballguy
Good problem to have. Yes, just open a taxable account and use that. Just to be certain though, consider these first
Hsa
529
Dentist
***Official FBG Dentist***
What do you mean cap your 401k? If you mean you will hit the max contribution you won't be able to do a tax deductible IRA, but may qualify for a Roth.
Wherever you set up the account should offer automatic deductions from your checking account.
If you go over the limit you need to remove the excess contribution before your tax due date, along with any earnings attributed to the excess.
Doctor Detroit
Please remove your headgear
I can concur that Vanguard is great. Smooth customer service, responsive, actively managed funds as well as their famous index selection, and nice and they have all the ETFs. Had them for 15 years now, not one hiccup.
Random
Footballguy
Good article that gives you comps based on age and income level. Guessing Dentist is dragging down the averages here.
http://www.fool.com/investing/general/2015/01/05/the-average-american-has-this-much-saved-in-a-401k.aspx
http://www.fool.com/investing/general/2015/01/05/the-average-american-has-this-much-saved-in-a-401k.aspx
Dentist
***Official FBG Dentist***
Those are truly pathetic numbers across every single age level and income level. For those of you curious, i have over double the over 65 year old mean balance and I'm 37.
But hey if are wiling to work until you're 70 and spend your retirement playing bridge, fishing at the local pond, babysitting grandchildren, watching jeoprody and eating early bird specials and your "travels" are to the local state park, it could still work out.
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kutta
Footballguy
Agreed. Those numbers are ridiculous.
I won't even say where I'm at, but I'm 48 and if I was close to those numbers I'd be freaking out.
NewlyRetired
Footballguy
I never know what to say when I see numbers like this but they are really lower than I would have guessed. The 55-64 age group is just frightening. You can almost see that affect of paying for college for kids in their 40's had in that older demographic. :(
The only reason I hold back on going too crazy about these low numbers is that this is just 401k's. I know there is a solid subsection of people who invest in things like real estate instead of the market and that artificially makes some of these numbers look worse, but even saying that,....... wow.
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culdeus
Footballguy
Why is 55-64 number that shocking? 401k have really only been around for about 20 years, and really only about 10 years in any widely used way outside of fortune 500 companies.
mquinnjr
Footballguy
Yeah, these numbers are horrifying. And, probably representative of the nation as a whole, taking all people into account vs. their savings habits.
People in this thread are most-likely backing into their target nest egg number somehow or other, and planning accordingly to get to it. We're going to be miles ahead of gen pop.
