- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Roth IRAs or what?
Posted on 1/20/14 at 9:47 pm
Posted on 1/20/14 at 9:47 pm
Had a teacher tell me once that you could put the maximum amount of $2,000 a year into a Roth IRA for 30 years and by the end of the 30 years with the interest it would be $1 million.
1) is this bull shite?
2) was it really a Roth IRA or something else?
3) is this still the case?
4) is this money tax deductible?
1) is this bull shite?
2) was it really a Roth IRA or something else?
3) is this still the case?
4) is this money tax deductible?
4
Posted on 1/20/14 at 9:51 pm to Beau Tie
Posted on 1/20/14 at 9:51 pm to Beau Tie
probably not. find out with a calculator. they were probably assuming 12 percent or something
yes
maybe- see first answer
no
yes
maybe- see first answer
no
Posted on 1/20/14 at 9:58 pm to I Love Bama
quote:
I don't even know where to begin, so I'll just link this.
Good answer.
To the OP - a Roth is not something you invest in, it's a type of account that gets different tax treatment. Once you put your money into that account, how well it goes depends on what you invest in.
For example, I could invest in Exxon stock in a regular brokerage account or in a Roth. It's exactly the same stock and gets exactly the same return either way, but the tax rules are different depending on the type of account.
Posted on 1/20/14 at 10:00 pm to Beau Tie
quote:
$2,000 a year into a Roth IRA for 30 years and by the end of the 30 years with the interest it would be $1 million.
$5k/yr for 30 years @ 10% would be around 900k.
Posted on 1/20/14 at 10:13 pm to I Love Bama
Great help there. I still would like some advice if you would oblige.
So are there any insurance places I can get a Guarantee of 7% to give me a shot at this now?
I currently have a state system that I contribute 8% because its required but I have no clue what my pay will be when I retire. I have money from a 401k with a previous company that I have yet to rollover anywhere. It's more that the $5,500 for a Roth. I was thinking about putting some in a Roth if I could and not sure what else I could do.
So are there any insurance places I can get a Guarantee of 7% to give me a shot at this now?
I currently have a state system that I contribute 8% because its required but I have no clue what my pay will be when I retire. I have money from a 401k with a previous company that I have yet to rollover anywhere. It's more that the $5,500 for a Roth. I was thinking about putting some in a Roth if I could and not sure what else I could do.
Posted on 1/20/14 at 10:37 pm to Beau Tie
401k and Roth have different tax rules. 401k is pre-tax, and Roth is after-tax. The earnings for each follow the contributions, assuming distributions are not taken premature. All money taken out of a 401k is taxed when withdrawn. All Roth earnings are tax free.
When rolling over from a pre-tax plan (401k) to an after tax plan (Roth), taxes must be paid on the amount rolled over.
How much is in your 401k, and what tax bracket are you in?
When rolling over from a pre-tax plan (401k) to an after tax plan (Roth), taxes must be paid on the amount rolled over.
How much is in your 401k, and what tax bracket are you in?
Posted on 1/20/14 at 10:38 pm to Beau Tie
Not 7 percent. There are many government bonds you can buy that guarantee 5 percent.
Stocks isn't my expertise so I'll let the others chime in.
Stocks isn't my expertise so I'll let the others chime in.
Posted on 1/20/14 at 10:47 pm to Beau Tie
quote:
So are there any insurance places I can get a Guarantee of 7% to give me a shot at this now?
You can find lots of issuers willing to guarantee you 7%. The question is whether they'll be good for it.
I assume you're looking for a 7% return over 30 years. That is much above market these days, I'm afraid.
Posted on 1/20/14 at 11:20 pm to foshizzle
My 401k is $25,000ish. I haven't been in it long. My tax bracket isn't that high I guess I'd say I'm lower middle class. Just trying to plan for the future.
Posted on 1/21/14 at 9:06 am to Beau Tie
As far as your 401k goes, you can roll it over into a traditional IRA, which would be a tax free transaction, or into a Roth IRA which would be taxable. If you decide a Roth is better for your situation than a traditional IRA, then you may want to consider rolling over into a traditional, then converting portions of it to Roth over a few years. This would spread the taxes out for you, and may help you from going up in tax brackets.
Posted on 1/21/14 at 3:51 pm to Beau Tie
I think $2k/yr contributions would require more than a 15% return for your 30 years. Personally, I wouldn't want to plan for my retirement assuming a consistent 15% return. I'd assume something a little more conservative... But maybe I'm a wuss 
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News