owning a multimillion dollar company says your legal counsel would get laughed at. But continue. not sure what legal counsel has to do with this anyway.
This is a forum for country folk, not one of my college exams from years past, but you wouldn’t know anything about those
The Roth is great, it works kinda like a checking acct in that no matter when, you can withdrawl from it penalty free up to the amount that you have invested in it previous to being 59.5yrs old. Any interest the account has made that your draw from previous to 59.5, you will be taxed and penalized. And don't forget anything you withdrawl, will be added on your taxes as additional income. Depending on how much you withdrawl, that could toss you into a much higher tax bracket! My last 3 yrs before retirement I moved the majority of my 401k $$ to interest bearing, and kept my bi-weekly payroll $$ going into high risk. That kept the majority of the total in safe $$ and about 20% in high risk. I couldn't afford another huge plunge in the 401K which is why I did that.
We have an investment firm that manages our investments. Yes, we pay a lot for their service, but I'm not smart enough to feel comfortable handling our future..... I've been very satisfied with our returns for the last 10 years. They underperform the market when it booms, but outperform when it sucks. Our money has more than doubled in 10 years, and we've been conservative... If it wasn't for crazy insurance prices, we could retire now. I intend for the wife to retire at 62, and I'm going part time at 62, just enough to pay for insurance.....
I know a Roth is good but I'm not convinced its better in all cases. My traditional 401K is growing on the tax money the government would be taking. So it is lowering my tax burden and using their money to grow. I think in the long run it may be a wash. The best thing is invest as much and as early as you can. I changed some of my investments in my 401K and it jumped 100K since the first of Nov. I know that run isn't going to keep going at that pace but it is making me smile. The down side is it can fall the same way and make me puke.
Pretty sure all investment places have to show a profit for you before they can charge their fees. Besides transaction fees. I have Ed Jones and my money has made 24% the past 4 years. As some have suggested its probably how your invested.
bondhu, evidently the EJ here is different than yours. I had an almost 10% loss in 2018. They take out their fees each month. Do you do the advisory or guided solutions plans or do it on your own? PM me if you want. Thanks
I have some of both. My thought is to take out some of each which would lower my tax obligations each year. Starting at 50 you can contribute up to 26,000 so you could possibly put the extra 6,500 in a Roth.
That’s true but you’re paying them now or then but paying either way. You just know the tax rate now where you don’t later. I just like using their money to make me more money now.
True, and I'm currently not doing that but the theory is that you make sure you are in a lower tax bracket later by withdrawing less taxable income. Plus the likelihood of taxes doing anything but going up is very slim.
Anybody paying any attention to what’s going on with Bitcoin and Ethereum lately? Mr. Elon Musk just made a big move. There will be several big companies following. If you’re young enough and got some money to play with get in NOW
I don’t know anything more volatile and dangerous than bitcoin. It can be made illegal. You can lose your password. It could be hacked. It could drop to nothing. My wife’s cousin became a millionaire with it a few years ago but he was lucky. No way I put 50K in something that I have no idea what the value will be week to week. My nerves simply couldn’t handle it.
