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CQQ 
LSU Fan
LC
Member since Feb 2006
7198 posts
| re: Someone Tell Me About Roth IRAs (New ? on Pg 3) (Posted on 8/31/12 at 1:16 pm to crosswood)
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
16420 posts
| re: Someone Tell Me About Roth IRAs (New ? on Pg 3) (Posted on 8/31/12 at 1:16 pm to crosswood)
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
9243 posts
| re: Someone Tell Me About Roth IRAs (New ? on Pg 3) (Posted on 8/31/12 at 1:18 pm to crosswood)
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
1778 posts
 Online
| re: Someone Tell Me About Roth IRAs (New ? on Pg 3) (Posted on 8/31/12 at 1:40 pm to GoCrazyAuburn)
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
LSU Fan
LC
Member since Feb 2006
7198 posts
| re: Someone Tell Me About Roth IRAs (New ? on Pg 3) (Posted on 8/31/12 at 1:44 pm to Waffle House)
That's what I found.
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GoCrazyAuburn
Auburn Fan
Member since Feb 2010
9243 posts
| re: Someone Tell Me About Roth IRAs (New ? on Pg 3) (Posted on 8/31/12 at 1:44 pm to Waffle House)
$173k IIRC for under 50
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GoCrazyAuburn
Auburn Fan
Member since Feb 2010
9243 posts
| re: Someone Tell Me About Roth IRAs (New ? on Pg 3) (Posted on 8/31/12 at 1:49 pm to GoCrazyAuburn)
From 173k-183k you can contribute, but at a reduced Amount. After 183k you can't do any.
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CQQ
LSU Fan
LC
Member since Feb 2006
7198 posts
| re: Someone Tell Me About Roth IRAs (New ? on Pg 3) (Posted on 8/31/12 at 2:10 pm to GoCrazyAuburn)
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
16420 posts
| re: Someone Tell Me About Roth IRAs (New ? on Pg 3) (Posted on 8/31/12 at 2:14 pm to CQQ)
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
LSU Fan
LC
Member since Feb 2006
7198 posts
| re: Someone Tell Me About Roth IRAs (New ? on Pg 3) (Posted on 8/31/12 at 2:32 pm to TheHiddenFlask)
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
LSU Fan
Member since Jan 2009
8455 posts
| re: Someone Tell Me About Roth IRAs (New ? on Pg 3) (Posted on 8/31/12 at 3:59 pm to TheHiddenFlask)
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
16420 posts
| re: Someone Tell Me About Roth IRAs (New ? on Pg 3) (Posted on 8/31/12 at 4:51 pm to lighter345)
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
9243 posts
| re: Someone Tell Me About Roth IRAs (New ? on Pg 3) (Posted on 8/31/12 at 5:20 pm to TheHiddenFlask)
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
LSU Fan
Lurker since Feb 2006
Member since Jun 2007
2918 posts
| re: Someone Tell Me About Roth IRAs (New ? on Pg 3) (Posted on 8/31/12 at 6:58 pm to GoHoGsGo06)
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
the bay
Member since Aug 2009
662 posts
| re: Someone Tell Me About Roth IRAs (New ? on Pg 3) (Posted on 8/31/12 at 7:24 pm to lighter345)
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
1959 posts
| re: Someone Tell Me About Roth IRAs (New ? on Pg 3) (Posted on 8/31/12 at 8:01 pm to eye65)
quote:
don't think you can contribute without earned income
Correct.
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acgeaux129
LSU Fan
We are BR
Member since Sep 2007
14084 posts
| re: Someone Tell Me About Roth IRAs (New ? on Pg 3) (Posted on 8/31/12 at 9:04 pm to lighter345)
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
5014 posts
| re: Someone Tell Me About Roth IRAs (New ? on Pg 3) (Posted on 9/1/12 at 1:40 am to Skin)
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
ATL
Member since Jan 2011
6135 posts
| re: Someone Tell Me About Roth IRAs (New ? on Pg 3) (Posted on 9/1/12 at 8:43 am to TheHiddenFlask)
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
LSU Fan
Lurker since Feb 2006
Member since Jun 2007
2918 posts
| re: Someone Tell Me About Roth IRAs (New ? on Pg 3) (Posted on 9/1/12 at 11:37 am to hiltacular)
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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