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re: What is a good 401(K) balance target for someone that's 35 years old?
Posted on 8/30/16 at 11:33 pm to runningTiger
Posted on 8/30/16 at 11:33 pm to runningTiger
quote:
If you aren't putting 18000 in your plan every year you are throwing away money
That's exactly what I have been doing for the past 4 years. However I wonder if I should also look at creating a stream of income that won't be taxed in the future. Who knows how much tax I will have to pay when I start drawing from my 401(K) 30-35 years from now?
Anybody have any tips of some of the ways of diversifying the cash flow between taxed and non-taxed streams after retirement? I understand life insurance can help with this, although I know nothing about it. Any others?
4
Posted on 8/31/16 at 1:06 am to Street Hawk
I work for a company out of texas that covers the southeastern part of the country....amazingly 46% of the employees don't even belong to 401K......and have no interest in joining.....
Posted on 8/31/16 at 7:47 am to Street Hawk
Are you eligible for Roth IRA?
Posted on 8/31/16 at 8:55 am to Street Hawk
quote:
Just trying to get a feel for where one needs to be in terms of their 401(K) savings by the time they hit mid-30s.
can't get even close without knowing your starting point age, current income, current $ 401K.
also, pay attention to safety along the way, not just getting to a target number. if it all goes POOF, your 10% a year last three years won't be worth spit.
Posted on 8/31/16 at 9:48 am to CelticDog
quote:
can't get even close without knowing your starting point age, current income, current $ 401K.
Started investing in 401(K) when I was 26-27, but only in small amounts. Didn't start putting serious money / maximizing yearly contribution till I was 31. Currently sitting at $150K (gross income is about the same) and I am about to turn 35.
Wife didn't starting working full-time till she was 31 because of grad school and stuff. She is 33 now and has $18K in her 401(K) and she is now contributing the yearly maximum to her 401(K) too. Neither of us are eligible for IRA or Roth.
Have about 6 months of living expenses saved up. We have a decent amount of investment in stocks, MF and ETFs. We have a 10 month old kid for whose college education we haven't started a 529 plan or anything like that yet.
I am thinking I am doing okay on the 401(K) front. But my wife has some catching up to do.
Posted on 9/2/16 at 6:16 am to Street Hawk
quote:
Neither of us are eligible for IRA or Roth.
You can do a traditional IRA (not subjected to income limits, you can not deduct contributions though) and backdoor it into a roth.
Posted on 9/2/16 at 7:12 am to tigersnipen
quote:
You can do a traditional IRA (not subjected to income limits, you can not deduct contributions though)
So I use after tax income to put it but the growth is tax free as long as I don't take it out until age 65, then it's taxed?
Posted on 9/2/16 at 8:20 am to Old Sarge
Traditional IRA is pretax. When you convert to Roth, you pay tax. But now that money grows tax free forever, even when withdrawn. If the money was left in the traditional IRA, withdrawals would be taxed as income.
Posted on 9/2/16 at 8:35 am to Sigma
quote:
Traditional IRA is pretax
Not for me
Posted on 9/2/16 at 8:37 am to Street Hawk
Gross income at 35
3x gross income at 45
5x gross income at 55
8x gross income at 65
3x gross income at 45
5x gross income at 55
8x gross income at 65
Posted on 9/2/16 at 8:41 am to runningTiger
quote:hope this is sarcasm.
If you aren't putting 18000 in your plan every year you are throwing away money
Posted on 9/2/16 at 9:04 am to Old Sarge
quote:
Not for me
Even if you aren't able to deduct contributions, once it becomes a Roth account, you're done paying taxes on that money.
Posted on 9/2/16 at 9:14 am to Sigma
So regardless of income I can open an Ira with post tax money and then convert that to a Roth
Do I need to open a new Ira each year to do this? Do I need an accountant to do these things? Sorry if that's a stupid question.
Do I need to open a new Ira each year to do this? Do I need an accountant to do these things? Sorry if that's a stupid question.
Posted on 9/2/16 at 9:21 am to Ace Midnight
quote:Does this assume that the 401k is your only retirement savings vehicle?
Gross income at 35
3x gross income at 45
5x gross income at 55
8x gross income at 65
Posted on 9/2/16 at 9:24 am to Spirit of Dunson
quote:
Does this assume that the 401k is your only retirement savings vehicle?
These factors assume your house will be paid for by 65 (I think) and that you receive SS.
Posted on 9/2/16 at 9:25 am to runningTiger
quote:
If you aren't putting 18000 in your plan every year you are throwing away money
complete and utter bullshite. run back to the rant son.
Posted on 9/2/16 at 10:00 am to Street Hawk
When do you want to retire?
What do you expect your lifestyle/income to be like just before retirement?
What do you expect your lifestyle to be like in retirement?
What do you expect your lifestyle/income to be like just before retirement?
What do you expect your lifestyle to be like in retirement?
Posted on 9/2/16 at 10:11 am to Street Hawk
quote:
That's exactly what I have been doing for the past 4 years. However I wonder if I should also look at creating a stream of income that won't be taxed in the future. Who knows how much tax I will have to pay when I start drawing from my 401(K) 30-35 years from now?
Does your company offer a Roth 401K?
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