Lettuce talk about retirement investment.

[Trouble Maker]

Right now I'm doing company match (me=6%, company=3%) into the company traditional 401k.

 

The woman is doing a small amount a month into a Roth IRA setup through our investment guy.

 

We are going to significantly up it when we buy our house. We've been waiting to get into the house, because we wanted to dump extra money into our house fund to get our target down payment quickly.

 

So these are the options as I see them.

Our investment guy suggested us to put 20% in, regardless of how we do that. I do want to sit down with him before we do this and actually run some numbers to make sure that will give us what we want in retirement

 

1) I put 17% (company match 3% = 20% total) into my traditional 401K. She puts 20% into her Roth IRA.

 

Note: My company does not support Roth 401k option.

 

2) I will do $5k/year Roth IRA, and whatever I need to in my company traditional 401K to make 20% total. She puts $5k into her Roth IRA, but where does the rest go?

This is assuming max is $5k/year, which I think is correct?

 

Note: She does have a 403B option, but didn't use it previously since the old woman doing payroll at her company was incompetent and didn't know how to set it up. There is a new person who seems to know what they are doing, so this may be an option now.

 

Our investment guy likes Roth's because he says we are at the lowest overall tax rates ever, so they are likely to be higher in the future right? I think that's especially true with these deficit issues.

 

So CR, what would you do?

[zeitgeist57]

Max out your Roth IRA contributions for the year, either lump sum or regular payments.

 

Are all of your other debts paid off except for the house? I personally continue to contribute to 529 plans, my 401(k), and cash investments...but I'm also paying down loans as well.

[AWW$HEEET]

i am thinking of dialing down my 401k contributions for the fact that i have little to no hope for the financial institutions of this country in the long term. plus i get no match. i do it right now simply to get some tax sheltering.

[Littleguy]

Roth 401K and Roth IRA's ftw.

[Trouble Maker]

Well that settles that, max out Roth IRA. Where should we put money after that?

 

i am thinking of dialing down my 401k contributions for the fact that i have little to no hope for the financial institutions of this country in the long term. plus i get no match. i do it right now simply to get some tax sheltering.

 

You gonna horde gold under your mattress?

[TTQ B4U]

Max out your Roth IRA contributions for the year, either lump sum or regular payments.

 

Agree. Max company 401k up to matching point at least. Personally, I like the tax deferred savings so I max out my 401k at work every year.

 

If your family income is in the range of a ROTH, then max that out too. After that, look at other investment funds or programs with your financial planner.

 

I can't speak for your situation, but will give you what has worked for us is that if possible, never spend a dime of the lower income of the two in your household and invest it completely. Some will say they "can't do it" and perhaps some can't but IMO most everyone can if they really try.

 

We stuck to this rule for the better part of 15/18 years my wife had her law practice open and it's what has put us in the position we are in now. That and buying a very modest home which we paid off in 15yrs. I absolutely would do it again and will do so if/when she chooses to go back to work. Even if she never does, we banked 15 yrs of serious income that have relieved just about any issue of stress about the future of our nations economy.

 

The itch of a car bug is all I really have to resist. I alleviated this by framing the titles in my office and have to look at them daily to resist temptation.

[AWW$HEEET]

Well that settles that, max out Roth IRA. Where should we put money after that?

 

 

 

You gonna horde gold under your mattress?

 

Guns, gold, cash, etc. All good ideas, all always worth something.

[Snowflake]

I stacks the cash