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Which of these retirement accounts do you put money aside in?

401k

26%

[ 37 ]

IRA

17%

[ 25 ]

Both

26%

[ 37 ]

Neither

29%

[ 42 ]

Total Votes : 141

amother

Jasmine

Sun, Mar 26 2023, 10:35 am

Amarante wrote:

Keep in mind that you need to opt for either the traditional IRA or the Roth.

A traditional IRA allows you to deduct the amount you put into the IRA so that you lower your taxable income. However it is taxable when you withdraw in retirement.

With a Roth IRA, you pay taxes on the amount put into the Roth IRA but you DON'T pay taxes when you withdraw so it is better for people with lower current incomes who anticipate higher incomes in retirement.

Ok thanks. So I guess he uses the traditional IRAs

amother

Royalblue

Sun, Mar 26 2023, 11:06 am

Roth IRA- but started waaay too late. Hoping to take my social security in a year at age 66.7- and add another $500 a month to Roth IRA ( iset it up so that it is withdrawn automatically).
My plan IYH is to keep working full time for at least another 8-10 years and keep putting money in that Roth till I have to (by law) withdraw.

My husband started with his own Roth IRA earlier- so we are hoping.....

amother

Crocus

Sun, Mar 26 2023, 11:33 am

amother Scarlet wrote:

Sadly, more people will have their investments wiped out too. All the recommended steps of traditional savings aren't safe including retirement accounts.

That really isn't true.

The traditional advice on retirement savings is to change the percentage of what you are invested in as you age. There are even some mutual funds which do that automatically.

Conventionally you move to bonds as you get older because the capital is safe and so you are more interested in preserving capital than looking for growth. Of course there is a difference between a bond and a bond fund.

I had investments in 2008 which lost half their value but since they were long term retirement investments they more than recovered and are STILL worth more despite the recently down turn. Obviously if I had to liquidate stocks in 2008 it would have been an issue but if I had followed advice and been close to retirement in 2008 I would have had a large percentage in bonds and so I would have been fine until the stock market recovered.

amother

DarkOrange

Sun, Mar 26 2023, 10:27 pm

I put the max in a Roth IRA until I could no longer contribute (income too high bh!) And now just 401k whatever my employer matches.

Amarante

Sun, Mar 26 2023, 10:58 pm

amother DarkOrange wrote:

I put the max in a Roth IRA until I could no longer contribute (income too high bh!) And now just 401k whatever my employer matches.

Check with your accountant but you can put in a regular IRA and still have significant tax benefits because you aren’t taxed on contributions until retirement. Roth are intended for lower salaries people who can’t use tax deductions

amother

Lemonlime

Fri, Dec 08 2023, 1:02 pm

Can someone help me out and explain how this all works in simple English? I feel it would be the responsible thing to open a retirement account (I'm 36 years old).
Which account would be worth opening IF my employer does not match BUT does offer/meaning they'd handle the direct deposits etc..
*IRA vs 401K? Roth IRA vs. 'regular' IRA? It is worth it to open if I can only contribute the minimum? (what is the minimum)?! Any insight would be appreciated.. trying to get hold of accountant but in the interim I'd love some info!

amother

Firethorn

Fri, Dec 08 2023, 1:21 pm

Roth IRA is best if your employer won’t be matching imo. Don’t have time to explain, google to learn about it.

amother

Daylily

Fri, Dec 08 2023, 1:35 pm

amother Lemonlime wrote:

IRA is best because you can control where it’s invested. Roth or regular depends on your current income - if you are eligible to do a Roth then that might be best

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