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Started By
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Ok, so you're advising your 20 something year old where to start for retirement....
Posted on 4/8/21 at 8:07 am
Posted on 4/8/21 at 8:07 am
Say you want them to start with $1k. Where would you advise? IRA? Roth IRA? Other?
15
Posted on 4/8/21 at 8:36 am to Nole Man
Roth IRA with Vanguard Total Stock Market Index Fund - that is after a company 401K with a match if he is eligible.
Posted on 4/8/21 at 8:39 am to Nole Man
Roth IRA and S&P Index fund..... Also, advise him/her to contribute monthly, even if it is just $20/month.
Posted on 4/8/21 at 8:43 am to hottub
Thanks all.
Roth IRA. Why vs. traditional IRA?
Roth IRA. Why vs. traditional IRA?
Posted on 4/8/21 at 8:45 am to Nole Man
Roth IRA - buying GBTC
Or Coinbase buying Bitcoin
Or Coinbase buying Bitcoin
Posted on 4/8/21 at 9:01 am to Nole Man
Roth IRA. Tax free capital gains. Also get him a whole life policy now.
Posted on 4/8/21 at 9:12 am to Nole Man
quote:
Roth IRA. Why vs. traditional IRA?
He is young. The Roth earnings will be tax free.
Posted on 4/8/21 at 9:30 am to Nole Man
whole life policy 
Roth is awesome as you owe zero taxes once you put in after tax money. i do both pre tax and roth but more roth.
Roth is awesome as you owe zero taxes once you put in after tax money. i do both pre tax and roth but more roth.
Posted on 4/8/21 at 9:31 am to 21JumpStreet
quote:
Bitcoin
Posted on 4/8/21 at 9:44 am to jsk020
quote:Also, at least so far, no RMD on Roth. I wish I had realized what that really meant a lot earlier in my life.
Roth is awesome as you owe zero taxes once you put in after tax money. i do both pre tax and roth but more roth.
Posted on 4/8/21 at 10:16 am to 21JumpStreet
quote:
Bitcoin
maybe not all of the $1k into Bitcoin, but maybe a portion of it. then pay into Bitcoin weekly/monthly along with other traditional investments.
Posted on 4/8/21 at 10:18 am to finchmeister08
Guns. Ammo. Fishing hooks
Off the grid
Off the grid
Posted on 4/8/21 at 10:20 am to Nole Man
ABC - Always Be Contributing.
Seriously though -- training yourself to consistently save and starting good habits are the most important imo.
Savings rate will drive whether or not you have savings and investments; the sooner you learn to live on less the better off you will be.
This has been my experience and led me to be pretty successful at 31 years old.
Seriously though -- training yourself to consistently save and starting good habits are the most important imo.
Savings rate will drive whether or not you have savings and investments; the sooner you learn to live on less the better off you will be.
This has been my experience and led me to be pretty successful at 31 years old.
Posted on 4/8/21 at 10:20 am to Nole Man
Posted on 4/8/21 at 10:32 am to Nole Man
quote:
Isn't that a major disadvantage?
Potentially. However, the saver's tax credit is eliminated at a relatively low level of income of $66K for an individual.
Once you exceed that income level, you would realize no current tax benefit so might as well take the post tax treatment to avoid RMDs in the future.
IRS Info on Saver's Credit
For me personally, I max a pre-tax 401(k) and Roth IRA every single year. Gives me a decent mix of taxable and non-taxable retirement income.
This post was edited on 4/8/21 at 10:35 am
Posted on 4/8/21 at 10:38 am to Nole Man
quote:
gives you no current-year tax benefits
Isn't that a major disadvantage?
It's a disadvantage, but if you are just starting out, and let's say, make $50k then contributing that same $1k in a traditional IRA rather than a Roth isn't saving you more than maybe a couple hundred bucks, probably closer to $100.
Posted on 4/8/21 at 10:43 am to J_Hingle
quote:
Also get him a whole life policy now.
Don’t listen to this person
Posted on 4/8/21 at 10:43 am to Nole Man
quote:
gives you no current-year tax benefits
Isn't that a major disadvantage?
Depends on where you see income taxes going honestly. Historically, we are currently in one of the lowest marginal income tax rates. We also as a government are spending into oblivion and the only way I see us paying that back is raising taxes, especially 20+ years from now. So if you’re in that boat, I would much rather be paying taxes today than paying them 20-30 years from now.
But ultimately, who knows.
Posted on 4/8/21 at 10:56 am to Shepherd88
Quite likely. So that'd put you in the "Roth IRA" camp as well. Becoming convinced that's what we'll look into.
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