Retirement planning.
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From: Randolph, NJ
Originally Posted by JonasM,May 7 2006, 08:57 AM
I guess that's why diversification - in all its forms - is a smart strategy overall.
That's also why any advice you get on a forum like this, and online articles, should only be taken as a starting point. Current economic/tax realities change the calculations, as do your own situations & goals.
JonasM
That's also why any advice you get on a forum like this, and online articles, should only be taken as a starting point. Current economic/tax realities change the calculations, as do your own situations & goals.
JonasM
You are absolutely right on both points.
Regardless of most anything else, the smart portfolio is a diversified portfolio.
As to getting advice here, my point in starting these threads was simply to get people thinking. I offered some advice, but my intent was for people to see their attorneys, accountants and advisors. Too often I see clients who always intended to take care of retirement planning, estate planning, and tax planning, and too often they put it off until tomorrow. When tomorrow finally comes, it's too late.
Life is dynamic, situations change, laws change, taxes change. If you don't have some plans made, make them, if you do revisit them every few years to make sure that they are current. Don't wait until tomorrow.
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From: Philly (Narberth)
If your own retirement investment planning is on track, a really smart thing to do for your children.....as soon as they have taxable income:
Fund a ROTH IRA for them....perhaps in a no-load target date mutual fund. This does not reduce your taxable income, but the younger workers are probably not in a high tax bracket....so no matter. I think the allowable contribution is $4k until >50 age. In 40 or 50 years, these small contributions will become real money
I've done this for several years for our dtr (still in grad school....only earns pin money) and will start to do it for our son (probably starting in the 2006 tax year).
Fund a ROTH IRA for them....perhaps in a no-load target date mutual fund. This does not reduce your taxable income, but the younger workers are probably not in a high tax bracket....so no matter. I think the allowable contribution is $4k until >50 age. In 40 or 50 years, these small contributions will become real money
I've done this for several years for our dtr (still in grad school....only earns pin money) and will start to do it for our son (probably starting in the 2006 tax year).
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From: Smalltown
Originally Posted by paS2K,May 8 2006, 01:50 PM
If your own retirement investment planning is on track, a really smart thing to do for your children.....as soon as they have taxable income:
Fund a ROTH IRA for them....perhaps in a no-load target date mutual fund. This does not reduce your taxable income, but the younger workers are probably not in a high tax bracket....so no matter. I think the allowable contribution is $4k until >50 age. In 40 or 50 years, these small contributions will become real money I've done this for several years for our dtr (still in grad school....only earns pin money) and will start to do it for our son (probably starting in the 2006 tax year).
Fund a ROTH IRA for them....perhaps in a no-load target date mutual fund. This does not reduce your taxable income, but the younger workers are probably not in a high tax bracket....so no matter. I think the allowable contribution is $4k until >50 age. In 40 or 50 years, these small contributions will become real money
I've done this for several years for our dtr (still in grad school....only earns pin money) and will start to do it for our son (probably starting in the 2006 tax year).Feel free to fund a ROTH IRA for me as well.
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From: Marblehead
Ralper: Thanks good points. Certainly no argument from me regarding the estate planning value of Roth IRAs.
Keep in mind that per stats, only 1 in 10 gets any nominal inheritance and only 1 in a 100 has an inheritance in excess of 100k. Wish I still had the reference, but I think it was Forbes. Point is that if you are able to then the Roth IRA is a real value for inheritance/estate planning. On the other hand, not many folks are likely to benefit from this opportunity.
I still say, surprise yourself and do a mock retirement 1040 as part of your retirement planning. My state/dederal taxes are >2000% less than when I was working.
Keep in mind that per stats, only 1 in 10 gets any nominal inheritance and only 1 in a 100 has an inheritance in excess of 100k. Wish I still had the reference, but I think it was Forbes. Point is that if you are able to then the Roth IRA is a real value for inheritance/estate planning. On the other hand, not many folks are likely to benefit from this opportunity.
I still say, surprise yourself and do a mock retirement 1040 as part of your retirement planning. My state/dederal taxes are >2000% less than when I was working.
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From: Delaware, OH
Originally Posted by RC - Ryder,May 8 2006, 03:15 PM
... My state/dederal taxes are >2000% less than when I was working.
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From: Philly (Narberth)
Originally Posted by Lainey8484,May 8 2006, 01:16 PM
Hey Jerry,
Feel free to fund a ROTH IRA for me as well.
Feel free to fund a ROTH IRA for me as well.
OTOH, it would be a great thing to do for yer grandkids....as soon as they earn some W-2 money.... 
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From: Philly (Narberth)
Originally Posted by RedY2KS2k,May 8 2006, 06:32 PM
I suspect there's a typo in this statement: 100% less is zero taxes. ;-)
He starts this thread and then disappears....probably practicing for the puddin' wrassle!
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From: Smalltown
Originally Posted by paS2K,May 8 2006, 08:59 PM
You're in too high a bracket OTOH, it would be a great thing to do for yer grandkids....as soon as they earn some W-2 money....
OTOH, it would be a great thing to do for yer grandkids....as soon as they earn some W-2 money.... We're a LOT younger than you.
We are still trying like HE$$ to fund our own retirement. The others will have to fend for themselves for a while longer.
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From: Delaware, OH
Originally Posted by RC - Ryder,May 9 2006, 07:52 AM
Red Y2KS2K: I suppose I should have said that I'm paying 1/20th the taxes that I used to pay?
And I certainly hope that it works that way for me; however, the ever-increasing property tax rates where I live pretty well preclude that.