My favorite kind of post is the kind where the poster is completely wrong, but states it as a fact.
Retirement thread
- Thread starter CloneGuy8
- Start date
My favorite kind of post is the kind where the poster is completely wrong, but states it as a fact.
Why? I would do the 401K up the company match to fully utilize the free money, then go back to the IRA for the next $5,500, then if you want to do more than that go back to the 401K. Seems like there are more options/flexibility with an IRA vs a 401K.
This is what I would recommend as well. Though (going from memory here) he wanted to max both out in which case the order of operations is moot.
But in general, the more money you can invest/control on your own, as opposed to being in an employer-sponsored plan, the better off you are. That means, as you stated above, using the employer-sponsored plan only enough to get the match then shifting to an IRA. It means whenever you leave jobs, don't roll your 401(k) into your employer's new plan - roll it over to an IRA. This way you control it and can invest it or move it to another company whenever you like.
There are exceptions of course - if you have a truly great employer plan, for example.
Net worth is finacial/economic definition and is Assets minus Liabilities. It's not up for debate. $300,000 in assets minus $250,000 in liabilities = $50,000 in net worth. Think of it as what you family could sell all your crap for, pay all of your debts off, and have left when you die.
The house would have to have a market value of $300,000 not just be built for it. It could be worth more or less depending on several factors. Sorry now I made things difficult for some of you.
Fair point. The downside of a Roth IRA is that you lose the immediate tax deduction that you get with a 401(k) contribution.
You could set your IRA up as a traditional if you wanted the tax deduction today and still get the flexibility/options that were discussed above.
Home equity = market value - outstanding mortgage balance.
So my understanding is for your net worth calculations to be accurate you would put one of:
1) Home equity value in assets
2) Home value in assets and mortgage balance in liabilities
Ok, so I've got 15 million set aside for retirement, and I'm 40 years old. Am I doing ok? 
That depends ... 15 million of what set aside??Ok, so I've got 15 million set aside for retirement, and I'm 40 years old. Am I doing ok?
now if I could just get them to come wash the windows or mow the lawn and **** instead of arguing what side of the balance sheet my house belongs on.
These threads are funny. People either say they have nothing or "are doing very well" without giving a number. No one ever comes out and says what they have except the op.
