Putty Posted March 17, 2008 Report Share Posted March 17, 2008 If you had 13% to play around with for two of these funds.....How would you allocate it? 50/50, 70/30, 60/40.....? More in this, less in that? Tell me ya thoughts... Quote Link to comment Share on other sites More sharing options...
KillJoy Posted March 17, 2008 Report Share Posted March 17, 2008 I though ROTH was post tax funds, and 401K pre-taxed funds? Also, I thought ROTH had a Deposit Cap per year ($2k~ish) KillJoy Quote Link to comment Share on other sites More sharing options...
Nate1647545505 Posted March 17, 2008 Report Share Posted March 17, 2008 Are you considering purchasing a house, going to college, etc in the future? Quote Link to comment Share on other sites More sharing options...
black00ws6 Posted March 17, 2008 Report Share Posted March 17, 2008 Does your employer match any on a 401k? If so, go that way, free money FTW Quote Link to comment Share on other sites More sharing options...
Putty Posted March 17, 2008 Author Report Share Posted March 17, 2008 Are you considering purchasing a house, going to college, etc in the future? Done all that.....so, no Does your employer match any on a 401k? If so, go that way, free money FTW Up to 6% Quote Link to comment Share on other sites More sharing options...
87GT Posted March 17, 2008 Report Share Posted March 17, 2008 50/50 in 401k/ROTH IRA until you get older. Quote Link to comment Share on other sites More sharing options...
KillJoy Posted March 17, 2008 Report Share Posted March 17, 2008 Up to 6% Then I would put the Max in for them to Match there NO MATTER WHAT! It really is FREE Money! Then..... split up the rest??? KillJoy Quote Link to comment Share on other sites More sharing options...
Wease Posted March 17, 2008 Report Share Posted March 17, 2008 Up to 6% Pre-tax FTW. Max that bitch out. I've been maxing out my 401K since I was 26. In fact, I don't ever consider affording anything until I have that full 401K funded. It's not even an option for me... :nod: Quote Link to comment Share on other sites More sharing options...
Putty Posted March 17, 2008 Author Report Share Posted March 17, 2008 Ok....I have been putting 13% into my 401 for close to 10 years..I have an IRA outside my company, but they now offer a ROTH by payroll deduction like my 401k comes out. I want in on it, but I can't really take an additional percentage to contribute, so I wondered should I lower my 401 take and add to the newly formed ROTH. Quote Link to comment Share on other sites More sharing options...
KillJoy Posted March 17, 2008 Report Share Posted March 17, 2008 Ok....I have been putting 13% into my 401 for close to 10 years..I have an IRA outside my company, but they now offer a ROTH by payroll deduction like my 401k comes out. I want in on it, but I can't really take an additional percentage to contribute, so I wondered should I lower my 401 take and add to the newly formed ROTH. Well.... the Roth comes out AFTER Taxes, and has a MAX contribution of $2k per year I believe. So..... do that, AND continue what you are doing.... ....if you have the Fundage... KillJoy Quote Link to comment Share on other sites More sharing options...
Guest GMoney Posted March 17, 2008 Report Share Posted March 17, 2008 My father retired at 53 with no college education worked in a factory, my mother never worked. He told me to always max out the Roth, 2008 is the first year that you can put in $5,000 and be tax deductable prior was $4,000 per year. I would then put the rest in your 401K and depending on your age (under 30) i would go agressive as possible with it. Yes Roth is after taxe but on your taxes at the end of the year it is a deduction, so it is almost as good as pre-tax. I have been putting 10% plus my 3% company match away into my 401K and hitting the roth every year for the past three years. I don't even miss the money and it's a great feeling when they send you that monthly statement Quote Link to comment Share on other sites More sharing options...
Wease Posted March 17, 2008 Report Share Posted March 17, 2008 Ok....I have been putting 13% into my 401 for close to 10 years..I have an IRA outside my company, but they now offer a ROTH by payroll deduction like my 401k comes out. I want in on it, but I can't really take an additional percentage to contribute, so I wondered should I lower my 401 take and add to the newly formed ROTH. OK, I gotcha now. I don't know if there is any advantage over splitting it up. Personally, I see the Roth as a suppliment to your 401K. If you have maxed it out (the full $15K or whatever it is now), then the Roth is another good option to get some tax breaks. So if I were you, I'd keep funding that 401K until you hit that $15K per year or whatever it happens to be, if you can. If you have money left over that you can contribute after that, then for sure get in on the Roth... :nod: Quote Link to comment Share on other sites More sharing options...
iwishiwascool Posted March 17, 2008 Report Share Posted March 17, 2008 But seriously, if any of your fuckers have a 401k and aren't maxing it out... you deserve to be poor when you're 65. Quote Link to comment Share on other sites More sharing options...
Wease Posted March 17, 2008 Report Share Posted March 17, 2008 But seriously, if any of your fuckers have a 401k and aren't maxing it out... you deserve to be poor when you're 65. Damn straight! I often think of what I COULD be spending on my cars, but I'd rather retire early with plenty of cash... :nod: Quote Link to comment Share on other sites More sharing options...
T Rex Posted March 17, 2008 Report Share Posted March 17, 2008 But seriously, if any of your fuckers have a 401k and aren't maxing it out... you deserve to be poor when you're 65. By maxing out do you mean 15k? or just however much your company matches? I dont make enough to put 15k away each year. I do put 9% of my income in my 401k with a 6% match from my company. *Some* IRA's are post-tax dollars and you pay taxes on income earned now. I believe he did say this was a Roth which is post-tax. You probably know this already though. I would max out your Roth IRA (5k) every year, if possible, and make sure you can keep at least 6% in your 401k (since that is what your company will match up to). I cant find any information to sway me to think a 403b is better than a Roth or 401k... Quote Link to comment Share on other sites More sharing options...
iwishiwascool Posted March 17, 2008 Report Share Posted March 17, 2008 By maxing out do you mean 15k? or just however much your company matches? I dont make enough to put 15k away each year. I do put 9% of my income in my 401k with a 6% match from my company. *Some* IRA's are post-tax dollars and you pay taxes on income earned now. I believe he did say this was a Roth which is post-tax. You probably know this already though. I would max out your Roth IRA (5k) every year, if possible, and make sure you can keep at least 6% in your 401k (since that is what your company will match up to). I cant find any information to sway me to think a 403b is better than a Roth or 401k... To the employer match point. After that, I dont have a clue what's best. My financial planner takes over after that. I know my employer had a traditional IRA last year but stopped it this year, so I've switched to a Roth. Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted March 17, 2008 Report Share Posted March 17, 2008 Depends on what your household income is. Definitely put into your 401k up to what your company matches. Maxing it out or adding anything into it from there is causing you to be less diverse. You can put away money in a pre-tax fashion in other ways. Don't max it out unless you have no other investment savvy. Get a good planner for that. At the end of every March we sit down with our planner and he basically tells us how much we will save off our taxes if we invest X dollars in various ways. Last year we put away $18k and saved ourselves nearly $6k in potential taxes. Basically instead of saving out of each check pre-tax, we pay at the end of the year and avoid any taxes. After that a Roth IRA is good, but in some cases your income may be too high. That's when we default back to our planner and have him invest. Diversify as best you can. Especially important in todays market. My personal suggesting is to get a good financial planner and enjoy a cup of coffee in their office once per quarter. Best thing we've ever done. Quote Link to comment Share on other sites More sharing options...
Guest GMoney Posted March 17, 2008 Report Share Posted March 17, 2008 Ken where are you at in westerville i never see any IX around. I have a 04 BBY Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted March 17, 2008 Report Share Posted March 17, 2008 You might want to consider not funding the 401k fully as beyond the match is just money being put into a limited set of funds. Sure, it's funded pre-tax dollars, but if you invest that money prior to April 15, you'll get the tax paid on said money back but now with more flexibility to invest in other ways and in other funds. Pre-tax FTW. Max that bitch out. I've been maxing out my 401K since I was 26. In fact, I don't ever consider affording anything until I have that full 401K funded. It's not even an option for me... :nod: Quote Link to comment Share on other sites More sharing options...
iwishiwascool Posted March 17, 2008 Report Share Posted March 17, 2008 Ken where are you at in westerville i never see any IX around. I have a 04 BBY I'm right off Westerville road... I see you all the time... Quote Link to comment Share on other sites More sharing options...
black00ws6 Posted March 17, 2008 Report Share Posted March 17, 2008 Damn straight! I often think of what I COULD be spending on my cars, but I'd rather retire early with plenty of cash... :nod: Troof... We'll be sipping Mai Tai's in hawaii together while everyone else is back in Ohio shoveling snow. Go over the guidelines for a Roth.. My wife and I file separate so I do not qualify for a Roth, but still max out a traditional IRA. (if you make over 10,000, married and file separate, then you can not contribute to a Roth.) :mad: Quote Link to comment Share on other sites More sharing options...
Wease Posted March 17, 2008 Report Share Posted March 17, 2008 You might want to consider not funding the 401k fully as beyond the match is just money being put into a limited set of funds. Sure, it's funded pre-tax dollars, but if you invest that money prior to April 15, you'll get the tax paid on said money back but now with more flexibility to invest in other ways and in other funds. Actually, my financial planner has no issues with how we are funding our retirement. I see what you are saying though, but I've got that $15K into some good funds, so I'm not that worried about changing it up. Quote Link to comment Share on other sites More sharing options...
Putty Posted March 17, 2008 Author Report Share Posted March 17, 2008 But seriously, if any of your fuckers have a 401k and aren't maxing it out... you deserve to be poor when you're 65. So you are putting $15,000 a year into your 401? Quote Link to comment Share on other sites More sharing options...
black00ws6 Posted March 17, 2008 Report Share Posted March 17, 2008 I max mine out, but ours is a Simple 401k, so the max is 10k. Thats why I have a trad. IRA plus we put about 3% of our earnings in high yield savings account as well. Quote Link to comment Share on other sites More sharing options...
iwishiwascool Posted March 17, 2008 Report Share Posted March 17, 2008 So you are putting $15,000 a year into your 401? To the employer match point. After that, I dont have a clue what's best. My financial planner takes over after that. I know my employer had a traditional IRA last year but stopped it this year, so I've switched to a Roth. I save a hell of a lot more than 15k... but in a variety of investment packages. -What- Quote Link to comment Share on other sites More sharing options...
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