What is your projected 401(k) + pension monthly income?

[MustISO]

You're throwing away $18k/yr in tax-advantaged money by doing this - I would strongly suggest you reconsider your strategy.

I'm not saying I don't contribute. I put in the max for 401K and IRA but I'm just not counting on that being enough to retire on. Personally when I soft-retired (hopefully around 50) I plan to still work doing something to occupy my time and pay the bills. I'd like to use as little of my own money as I can while still enjoying a lot of free time.

 

[s0me0nesmind1]

that certainly makes things easier from a tax standpoint

i currently do the full 401k amount in standard, but have thought about making some of that Roth though. that would mean an extra 4$k-5$k in taxes now though, so i haven't done it. i do get about the same amount into Roth each year as well, so maybe %50/%50 is a safe way to go.

I'm strictly keeping it 401k traditional and IRA as ROTH.

As much as ROTH is a tax advantage LATER, you need to consider the tax advantage NOW of deferring. Since our household income is shoving us deep in the ass of the 25% tax brackets (bordering 28%), it makes equal sense to me that a ROTH would be more ideal if we were in the 15% Bracket (IE: Job transition, one of us goes back to school, etc...). Just my 2 cents.

 

[SSSnail]

Working is for suckers, I'll just suck off the gubermint's teats like the rest of the people. Thanks for contributing to my "retirement fund" y'all.

:awe:

 

[richardycc]

last time I did a rough estimate, my 401K and pension alone should cover my normal living monthly expenses, money from SS, if any by then, and my IRAs would be my play money. looking forward to my retirement.

 

[edro]

I'm strictly keeping it 401k traditional and IRA as ROTH.

As much as ROTH is a tax advantage LATER, you need to consider the tax advantage NOW of deferring. Since our household income is shoving us deep in the ass of the 25% tax brackets (bordering 28%), it makes equal sense to me that a ROTH would be more ideal if we were in the 15% Bracket (IE: Job transition, one of us goes back to school, etc...). Just my 2 cents.

Yeah, I don't understand why many think ROTH is better than 410k.
I don't know how y'all plan on retiring, but I suspect I will have a LOT less income in retirement.
Thus, my taxes will be quite a bit lower in retirement.
Thus, I want as much money going into a tax deferred (401k) account as possible.

My current retirement contributions are probably 80% 401k, 20% Roth.
I should probably look up the split to be certain...

Edit: Oops... I was way off. 94% 401k, 6% Roth.
I should up my Roth...

 

[overst33r]

Yeah, I don't understand why many think ROTH is better than 410k.
I don't know how y'all plan on retiring, but I suspect I will have a LOT less income in retirement.
Thus, my taxes will be quite a bit lower in retirement.
Thus, I want as much money going into a tax deferred (401k) account as possible.

My current retirement contributions are probably 80% 401k, 20% Roth.
I should probably look up the split to be certain...

Edit: Oops... I was way off. 94% 401k, 6% Roth.
I should up my Roth...

If bolded is what you want, why are you contributing to the Roth (401k or IRA)?

Are you talking about a Roth 401k or a Roth IRA?

 

[edro]

If bolded is what you want, why are you contributing to the Roth (401k or IRA)?

Are you talking about a Roth 401k or a Roth IRA?

I am 94% 401k (tax deferred).
6% Roth IRA(tax now).

 

[overst33r]

I am 94% 401k (tax deferred).
6% Roth IRA(tax now).

If you wanted to maximize your tax deferral, you should consider the Traditional IRA instead of the Roth.

 

[edro]

If you wanted to maximize your tax deferral, you should consider the Traditional IRA instead of the Roth.

Yeah, good point.

But... Roth has the benefit of being able to withdraw your contributions fee and tax free for emergencies.
Roth can also be used for college expenses (like a 529 plan).

So Roth is really a savings/retirement/529 account hybrid.
Maybe a Traditional IRA has these benefits too... IDK.

 

[Exterous]

Waaay to many variables to predict yet

 

[Nograts]

I'm guesstimating my pension to be at ~2000-2500$ a month after taxes starting at age 40, and I'll hit the 1mil mark in my roth @ around age 55-58. Take out after that is ~40,000$ a year plus whatever I'm making at the time so....

~$4,250-$6,000 /mo after taxes is a conservative estimate for me around age 60 I think.

Of course once Emma Stone and Emma Watson come to their senses our combined income will be much higher, but that won't matter because we'll be having so much sex we wouldn't have time to spend much money.

 

[Jeff7]

Simple: http://networthify.com/calculator/earlyretirement?

More variables: http://www.cfiresim.com/

....huh.
That calculator says I could retire at age 50, going with a long-term average of 7% growth.


I'm currently shoving a large chunk of my income into 401k & IRA (close to 40% of gross). I suppose I should take a shot at a detailed calculator. The networthify.com calculator just has a spot for "annual return." I'm expecting a different rate of return before retirement than after, due to a shift from stocks to bonds.

CalcXML is more detailed, but it gives results in today's dollars. What will that mean in 20+ years?
Assuming 7% growth, I'd be able to have a peek over the $1M fence if I retire at 50, and >$4M if the aching joints in my hands hold up until I'm 65. (Unless they finally make a direct brain-to-USB interface before then.) $40k/year in today's dollars would be quite adequate to live on, but by that time it won't be worth nearly as much.

 

[overst33r]

....huh.
That calculator says I could retire at age 50, going with a long-term average of 7% growth.


I'm currently shoving a large chunk of my income into 401k & IRA (close to 40% of gross). I suppose I should take a shot at a detailed calculator. The networthify.com calculator just has a spot for "annual return." I'm expecting a different rate of return before retirement than after, due to a shift from stocks to bonds.

CalcXML is more detailed, but it gives results in today's dollars. What will that mean in 20+ years?
Assuming 7% growth, I'd be able to have a peek over the $1M fence if I retire at 50, and >$4M if the aching joints in my hands hold up until I'm 65. (Unless they finally make a direct brain-to-USB interface before then.) $40k/year in today's dollars would be quite adequate to live on, but by that time it won't be worth nearly as much.

cfiresim allows you to change your allocation and gives you inflation adjusted dollars.

 

[jlee]

Yeah, good point.

But... Roth has the benefit of being able to withdraw your contributions fee and tax free for emergencies.
Roth can also be used for college expenses (like a 529 plan).

So Roth is really a savings/retirement/529 account hybrid.
Maybe a Traditional IRA has these benefits too... IDK.

Generally you don't want to be touching a tax-advantaged account for emergency purposes, but I guess if you have no other option it could be the best available one.

I prefer Traditional - here are some reasons. Unfortunately the tax deductibility of a Traditional IRA is phased out once you pass $60k AGI (single), so for many people (coughATOT) Roth may be preferred for the IRA.

 

[MongGrel]

Generally you don't want to be touching a tax-advantaged account for emergency purposes, but I guess if you have no other option it could be the best available one.

I prefer Traditional - here are some reasons. Unfortunately the tax deductibility of a Traditional IRA is phased out once you pass $60k AGI (single), so for many people (coughATOT) Roth may be preferred for the IRA.

I might be forced to touch one of mine soon, but I have been avoiding it.

 

[Ken g6]

Really hard for me to say what the income on my investments will be.

I got pissed off at the negative growth.

Negative? I put some money in a Betterment account last month, and it definitely hasn't seen negative growth.

So did you mean for the year overall, or do you have horrible fees, or both?

 

[hardhat]

I have a pension through the state that will provide ~$2200/month. I'm also thinking of buying some apartments. That strategy worked out very well for my parents, and I am pretty good at managing and handyman stuff. Not that impressive, but very good for a small town in the Midwest.

 

[jpiniero]

I have a pension through the state that will provide ~$2200/month. I'm also thinking of buying some apartments. That strategy worked out very well for my parents, and I am pretty good at managing and handyman stuff. Not that impressive, but very good for a small town in the Midwest.

I definitely would not count on any kind of government pension unless you are really old. Most of them are basically not funded.

 

[s0me0nesmind1]

Generally you don't want to be touching a tax-advantaged account for emergency purposes, but I guess if you have no other option it could be the best available one.

I prefer Traditional - here are some reasons. Unfortunately the tax deductibility of a Traditional IRA is phased out once you pass $60k AGI (single), so for many people (coughATOT) Roth may be preferred for the IRA.

People such as myself that put a decent sum of my retirement in ROTH do it for one simple reason.....

Our Debt load is FUCKING HUGE as of this last recovery. That will (and must) be paid for. What does that mean? Tax bracket increases are inevitable. Especially the more we become dependent on the government for everything in life. Just ask Europe about that stuff with their insane tax rates.

So which would you rather.... Pay 15 or 25% now? Or Pay 30-35% later?

 

[Slew Foot]

aiming for 7 million in cash savings by 50, wife can claim pension at 60 (45% of highest three years salary)

 

[Engineer]

What happened? Kids? Marriage?

Everything. Job loss, new job with Simple IRA (less contribution) vs 401k, loss of 401k match, Great Recession (which caused most of the above) in which my 401k because a 201k and nearly a 101k.

It wasn't so long ago that projections included a much higher rate of return than they do no (again, see great recession).