Someone Tell Me About Roth IRAs (New ? on Pg 3) - Page 2 - TigerDroppings.com

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CQQ
USA Fan
LC
Member since Feb 2006
11190 posts

re: Someone Tell Me About Roth IRAs (New ? on Pg 3)


Check out Flask's responses. We should get one so we can retire and have money to travel and do cool shite when we're old.





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TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
16770 posts

re: Someone Tell Me About Roth IRAs (New ? on Pg 3)


quote:

and break down for me what the hell Roth IRAs are


an investing vehicle that allows tax free gains and income.

quote:

why an individual should invest in one


because you aren't taxed on your gains

quote:

why not an individual should invest in one


If you plan on losing money, you can't deduct your losses?






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GoCrazyAuburn
Auburn Fan
Member since Feb 2010
13489 posts

re: Someone Tell Me About Roth IRAs (New ? on Pg 3)


It is a retirement investment vehicle. It allows you to put in after tax $ (money you have once you has paid your taxes), that grows over time. The growth is not taxed, and you can withdraw the money without paying taxes. Think of it as a farmer: you pay your taxes on the seed, and get the harvest tax free.





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Waffle House
Virginia Fan
NYC
Member since Aug 2008
2176 posts

re: Someone Tell Me About Roth IRAs (New ? on Pg 3)


Does anyone know the income max for a couple on Roth IRAs? I think it is 175k but not sure.





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CQQ
USA Fan
LC
Member since Feb 2006
11190 posts

re: Someone Tell Me About Roth IRAs (New ? on Pg 3)


That's what I found.





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GoCrazyAuburn
Auburn Fan
Member since Feb 2010
13489 posts

re: Someone Tell Me About Roth IRAs (New ? on Pg 3)


$173k IIRC for under 50





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GoCrazyAuburn
Auburn Fan
Member since Feb 2010
13489 posts

re: Someone Tell Me About Roth IRAs (New ? on Pg 3)


From 173k-183k you can contribute, but at a reduced Amount. After 183k you can't do any.





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CQQ
USA Fan
LC
Member since Feb 2006
11190 posts

re: Someone Tell Me About Roth IRAs (New ? on Pg 3)


Is it correct that if my wife and I file jointly, that I can contribute $10,000 a year?





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TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
16770 posts

re: Someone Tell Me About Roth IRAs (New ? on Pg 3)


quote:

Is it correct that if my wife and I file jointly, that I can contribute $10,000 a year?


Yes, assuming you aren't over the income limit.






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CQQ
USA Fan
LC
Member since Feb 2006
11190 posts

re: Someone Tell Me About Roth IRAs (New ? on Pg 3)


quote:

Yes, assuming you aren't over the income limit.


Unfortunately we have a long way to go to hit that






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lighter345
New Orleans Pelicans Fan
Member since Jan 2009
10362 posts

re: Someone Tell Me About Roth IRAs (New ? on Pg 3)


So what if I don't have any income. I am still a student, but have the assets to open up a Roth Ira and contribute 5k for the first year and maybe 1K every year until 2015 when I will hopefully have job.





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TheHiddenFlask
Clemson Fan
The Welsh red light district
Member since Jul 2008
16770 posts

re: Someone Tell Me About Roth IRAs (New ? on Pg 3)


quote:

So what if I don't have any income


Roth is definitely the way to go.

You'll never be in a lower tax bracket.






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GoCrazyAuburn
Auburn Fan
Member since Feb 2010
13489 posts

re: Someone Tell Me About Roth IRAs (New ? on Pg 3)


Yep. It would be foolish not to set up a Roth when you are young, if you have the funds to do it.





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Skin
McNeese State Fan
Baton Rouge, Louisiana
Member since Jun 2007
3682 posts

re: Someone Tell Me About Roth IRAs (New ? on Pg 3)


quote:

One of the reason's Roth's are pumped up is the assumptions tax rates will increase overtime


this is where I'm confused a little. what if..... I'm completely retired when I start making withdrawals from my roth. my only income is from other retirement accounts. will my tax bracket really be that high? Once I retire from my job, I would think it would drop back down. No?






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eye65
Alabama Fan
Member since Aug 2009
755 posts

re: Someone Tell Me About Roth IRAs (New ? on Pg 3)


don't think you can contribute without earned income from you or your spouse (if filing jointly)





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Hand
Army Fan
far side of the moon
Member since Dec 2007
1998 posts

re: Someone Tell Me About Roth IRAs (New ? on Pg 3)


quote:

don't think you can contribute without earned income


Correct.






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acgeaux129
USA Fan
We are BR
Member since Sep 2007
15011 posts

re: Someone Tell Me About Roth IRAs (New ? on Pg 3)


quote:

So what if I don't have any income. I am still a student, but have the assets to open up a Roth Ira and contribute 5k for the first year and maybe 1K every year until 2015 when I will hopefully have job.



I'm 20. I established a Roth and put in $1k into a couple different ETFs a month ago (already made 1% on my money ). I'll contribute another grand before the calendar year is over.

I think it's a good idea to get started early if you break it down with TVM. If you want to go with a target date fund, Vanguard all the way.






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Who Me
LSU Fan
Ascension
Member since Aug 2011
5467 posts

re: Someone Tell Me About Roth IRAs (New ? on Pg 3)


quote:

this is where I'm confused a little. what if..... I'm completely retired when I start making withdrawals from my roth. my only income is from other retirement accounts. will my tax bracket really be that high? Once I retire from my job, I would think it would drop back down. No?




I know it's been stated but you aren't taxed on your gains. Too me that's the best part of it.

Let me give a hypothetical example to see if I understand it correctly:


You make $50,000 a year and contribute the max of $5,000 to a Roth. Lets say down the road near retirement that $5,000 has grown into $50,000. You get the $50K tax free since you already paid taxes on the intial $5K.

Where as without a Roth you could payroll deduct the $5,000 and save on annual income taxes but uncle sam will tax the hell out of that $50,000 when you withdraw it.


Is that right????






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hiltacular
Georgia Tech Fan
FILA
Member since Jan 2011
8524 posts

re: Someone Tell Me About Roth IRAs (New ? on Pg 3)


quote:

If this is your biggest concern, just put it in a low cost (vanguard) target retirement date fund. It's the personal finance version of autopilot.



I'm still extremely young but have the means to put in the max ($5K/year from this thread) into a roth ira. I literally have no idea what kind of funds or whatever I want to invest in.

So my best bet would be pick one of the target retirement date funds? And then maybe do some research and a later date I can change what I want to invest in? Thanks.

ETA I completely understand this is the best way to go to save for the future, just have no understanding of the funds they have that are available.



This post was edited on 9/1 at 8:45 am


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Skin
McNeese State Fan
Baton Rouge, Louisiana
Member since Jun 2007
3682 posts

re: Someone Tell Me About Roth IRAs (New ? on Pg 3)


quote:

So my best bet would be pick one of the target retirement date funds? And then maybe do some research and a later date I can change what I want to invest in? Thanks


yes, good plan. i started out with vangaurd target retirement fund and stuck with it for a few years. once i got some knowledge under my belt, i exchanged shares for other vangaurd funds with higher potential rates of return. since i'm young, i'll take the ups with the downs. buy more when its down.

here are the ytd returns of target funds as of 8/31. Good, but not great.

quote:


Target Retirement 2030 9.85%
Target Retirement 2035 10.39%
Target Retirement 2040 10.59%
Target Retirement 2045 10.57%
Target Retirement 2050 10.58%
Target Retirement 2055 10.57%







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