Retirement Targets

[dmclone]

I plan on using a combination of Roth/Traditional from 60-65 to get ACA discounts before I'm eligible for Medicare. At least that's my plan for now. My financial advisor told me to never use Roth in the beginning but I don't think she was factoring in ACA discounts.

 

[CloniesForLife]

Since I'm young I do some of each of a Roth and traditional 401K. I'd like to start a Roth IRA in the next few years as well but don't have a lot of extra cash with daycare and I'm not maxing out 401k yet

 

[TitanClone]

Since I'm young I do some of each of a Roth and traditional 401K. I'd like to start a Roth IRA in the next few years as well but don't have a lot of extra cash with daycare and I'm not maxing out 401k yet

Just my 2 cents company match on 401k then max out Roth IRA and only then bump your 401k as much as you can. Roth IRAs give a ton of flexibility

 

[CloniesForLife]

Just my 2 cents company match on 401k then max out Roth IRA and only then bump your 401k as much as you can. Roth IRAs give a ton of flexibility

Interesting I suppose that makes sense. I will look into that. thanks!

 

[Cyched]

Just my 2 cents company match on 401k then max out Roth IRA and only then bump your 401k as much as you can. Roth IRAs give a ton of flexibility

My current mix is:

1) Traditional 401k up to company match amount
2) Max Roth IRA
3) Additional 401k in Roth that makes sense with budgets.

Set for 15% total including company match.

 

[KnappShack]

I plan on using a combination of Roth/Traditional from 60-65 to get ACA discounts before I'm eligible for Medicare. At least that's my plan for now. My financial advisor told me to never use Roth in the beginning but I don't think she was factoring in ACA discounts.

"Never" is a word I don't want to hear from anyone advising me.

I have my yearly company sponsored meeting with an advisor.

Any questions I should slip in?

I have:
1. Tell me why I should go 100% Roth 401k vs my hybrid option?
2. When should I consider taking off risk in my traditional accounts? (Not convinced I ever should and don't plan on easing up in Roth accounts)
3. Explain the best way to draw down. Investments. Investment types. 4% rule vs flat 4%
4. Can I hang 'em up early or is 65 still the best goal?

 

[Jayshellberg]

"Never" is a word I don't want to hear from anyone advising me.

I have my yearly company sponsored meeting with an advisor.

Any questions I should slip in?

I have:
1. Tell me why I should go 100% Roth 401k vs my hybrid option?
2. When should I consider taking off risk in my traditional accounts? (Not convinced I ever should and don't plan on easing up in Roth accounts)
3. Explain the best way to draw down. Investments. Investment types. 4% rule vs flat 4%
4. Can I hang 'em up early or is 65 still the best goal?

Here are a couple few more to consider asking:

1) What your advice on when to draw SS given my situation
2) What are health care options if I retire before I am eligible for medicare
3) Have I saved enough or should I bump up my saving rate

 

[KnappShack]

Here are a couple few more to consider asking:

1) What your advice on when to draw SS given my situation
2) What are health care options if I retire before I am eligible for medicare
3) Have I saved enough or should I bump up my saving rate

For me that's all squared away. I'm pretty comfortable with those, but I do wonder if they have an opinion

 

[BCClone]

"Never" is a word I don't want to hear from anyone advising me.

I have my yearly company sponsored meeting with an advisor.

Any questions I should slip in?

I have:
1. Tell me why I should go 100% Roth 401k vs my hybrid option?
2. When should I consider taking off risk in my traditional accounts? (Not convinced I ever should and don't plan on easing up in Roth accounts)
3. Explain the best way to draw down. Investments. Investment types. 4% rule vs flat 4%
4. Can I hang 'em up early or is 65 still the best goal?

When I start my only fans site, is that active or passive income?

 

[Cyched]

When I start my only fans site, is that active or passive income?

Thee IRS won’t care that you make an extra $3 a month

 

[BCClone]

Thee IRS won’t care that you make an extra $3 a month

You think I can actually clear that???

 

[Cyched]

Also found this the other day. Usually don’t see anything official til November or so

Your First Look At 2025 Tax Rates: Projected Brackets, Standard Deductions And More

Inflation-adjusted amounts in the tax code are expected to increase by 2.8% from the 2024 numbers—about half the increase that taxpayers saw in 2024.

www.forbes.com

 

[qwerty]

I think I'm in the same boat somewhat. Mostly because of an age difference. My wife is 7 years younger. We can live off of her income and supplement with mine.

Supplement by using taxable until it jumps a bracket and then use the roth. My tax bracket could conceivably be 12% by today's numbers.

By the time I hit RMD she'll be retired. We'd rely more on my taxable and supplement with her roth.

Until I die and she has this taxable 401k issue to sort through

Are you factoring in that RMDs still apply to the surviving spouse (when they hit RMD age)? So, the problem is just shifted from you onto her. If the money is left to non-spouse, they have an additional requirement of withdrawing the entire balance within 10 years.

 

[KnappShack]

When I start my only fans site, is that active or passive income?

If you wanna earn it damn well better be active

 

[cyfanbr]

Just my 2 cents company match on 401k then max out Roth IRA and only then bump your 401k as much as you can. Roth IRAs give a ton of flexibility

I may be making a mistake, but for me I’ve done.

1) 401(k) to company match.
2) Max HSA (invest it and don’t spend any of it - 100% tax free money for using later in life on medical expenses)
3) Max ROTH IRA
4) After tax brokerage account.

Maybe for #4 I should increase my 401(k), but I don’t like the idea of my money being tied up until a certain age. My goal is to save now to have the flexibility to walk away from my job whenever I feel like but before 401(k) withdraw age.

 

[Cyched]

I may be making a mistake, but for me I’ve done.

1) 401(k) to company match.
2) Max HSA (invest it and don’t spend any of it - 100% tax free money for using later in life on medical expenses)
3) Max ROTH IRA
4) After tax brokerage account.

Maybe for #4 I should increase my 401(k), but I don’t like the idea of my money being tied up until a certain age. My goal is to save now to have the flexibility to walk away from my job whenever I feel like but before 401(k) withdraw age.

Left out HSA in my previous post.

I do keep one year’s deductible in cash, just because you don’t know what could happen. But the additional investment account is nice.

 

[cycub51]

Can HSA $ be used for long term care like a nursing home?

 

[fcclone]

Can HSA $ be used for long term care like a nursing home?

Yes, they can.

 

[TitanClone]

I may be making a mistake, but for me I’ve done.

1) 401(k) to company match.
2) Max HSA (invest it and don’t spend any of it - 100% tax free money for using later in life on medical expenses)
3) Max ROTH IRA
4) After tax brokerage account.

Maybe for #4 I should increase my 401(k), but I don’t like the idea of my money being tied up until a certain age. My goal is to save now to have the flexibility to walk away from my job whenever I feel like but before 401(k) withdraw age.

I was strictly talking retirement accounts. HSA definitely makes sense. I also aim to add X amount vs a percentage to my brokerage account then adjust my additional 401k contribution as fits, still marching towards the goal of maxing it out.

 

[brianhos]

As Jay says right above you, until Uncle Sam demands you take the money and pay him his share. SS and RMDs will surprise many people and probably bump them into same or higher tax brackets than working years. OK, if that happens, ONLY 85% of SS will be taxed.

According to the calulcator, my wife and I will get 33K a year in SS if it even exists then. We still have 60K of 401k money to take out and be under the 12% tax rate. Since Iowa will have almost no state taxes then, it's way better to be in a regular 401k rather than a roth if I am in the 32% tax bracket now.