Baby Fawkes
Familiar Member
Joined: Mar 6, 2011 15:39:53 GMT -5
Posts: 812 
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Post by Baby Fawkes on Oct 16, 2015 21:45:58 GMT -5
I don't understand not wanting to have money in retirement accounts. You can do Roth conversions (or a Roth conversion ladder) and start taking out the contributions after 5 years if you're under 59.5. But don't you have to convert everything at once? That could be problematic if you have a 7 figure account because the tax bill that year would be really large you may have to liquidate some of the funds to cover it. I'm not on top of the rules though so Incould be wrong on that |
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tallguy
Senior Associate
Joined: Apr 2, 2011 19:21:59 GMT -5
Posts: 14,559
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Post by tallguy on Oct 17, 2015 1:21:54 GMT -5
No, you can do a partial conversion.
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cronewitch
Junior Associate
I identify as a post-menopausal childless cat lady and I vote.
Joined: Dec 20, 2010 21:44:20 GMT -5
Posts: 5,979
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Post by cronewitch on Oct 17, 2015 2:04:47 GMT -5
I have maxed everything I had available from 1984 to 2013. Early years only had IRA 2K a year I was making about $1,500 a month I think. Then around 1992 I worked where I could get a 401K but we were limited to 15% so I did that left that job in 1984 so not much. Got another 401K about 1998 15% again until 2000 I was making about 60K. Then nothing until 2003 when I got a 401K with a 14K limit so I did that and maxed every year until retirement. ROTH I converted with it was created then maxed every year, rolled all 401Ks to IRA then converted some to ROTH.
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plugginaway22
Well-Known Member
Joined: Jan 2, 2011 10:18:42 GMT -5
Posts: 1,659
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Post by plugginaway22 on Oct 17, 2015 8:22:29 GMT -5
We have always tried to contribute 10-15% to 401k, and still have never made the IRS limit/ with now possibility of 'catch-up'.
You guys are amazing and just when I think that we are doing 'OK' I read this, that assumes we are all 'MAXING', haha.
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Tiny
Senior Associate
Joined: Dec 29, 2010 21:22:34 GMT -5
Posts: 13,483 
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Post by Tiny on Oct 17, 2015 10:08:21 GMT -5
We have always tried to contribute 10-15% to 401k, and still have never made the IRS limit/ with now possibility of 'catch-up'. You guys are amazing and just when I think that we are doing 'OK' I read this, that assumes we are all 'MAXING', haha. Don't be discouraged... I am constantly amazed by how much is in my roll over 401K - from the days when I was contributing 8% which was about 3K a year more or less. It's been sitting without any additional contributions for nearly 20 years. I didn't get aggressive with saving until about 10 (maybe 12) years ago (upping the 8% AND contributing to a Roth). If I hadn't done that 8% all those decades ago I wouldn't be in as sweet a position as I am now. I'd have to save even more now without that Big (to me) Pile O' Money that the 8% contributions have grown into. I'm amazed by how much the more recently saved money has grown as well. I'm now a true believer in the old saw about how time and consistent saving is your friend. I'd just add in financial knowledge as well - even knowing enough to NOT keep you money 'under the mattress' and kind of grasping the idea of "diversification' and then implementing it is enough knowledge to start out with.
Saving 10 to 15% of one's income IS an accomplishment!
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The Captain
Junior Associate
Hugs are good...
Joined: Jan 4, 2011 16:21:23 GMT -5
Posts: 8,717
Location: State of confusion
Favorite Drink: Whinnnne
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Post by The Captain on Oct 17, 2015 11:39:51 GMT -5
We have always tried to contribute 10-15% to 401k, and still have never made the IRS limit/ with now possibility of 'catch-up'. You guys are amazing and just when I think that we are doing 'OK' I read this, that assumes we are all 'MAXING', haha. You are doing just fine. I can't speak for the other posters, but know a few of them, and including myself - we're not young. I'm in my upper 40's and wasn't able the hit the max until my early 40's. The fact that you're saving that percentage, and haven't hit, the max tells me you're not from a high income household, and to be honest - some of us are. Even if you're my age, or older, the fact that you've been saving that much shows you have discipline and know how to live below your means and should be fine in retirement. |
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plugginaway22
Well-Known Member
Joined: Jan 2, 2011 10:18:42 GMT -5
Posts: 1,659
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Post by plugginaway22 on Oct 17, 2015 12:04:21 GMT -5
You are correct, we are not high income, but we are mid-50s!! And just finished raising 3 children who are now all in their 20s. And just spent about 5k going on a dream vacation. So we have lived fairly frugally, but still want to LIVE while we can!
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tallguy
Senior Associate
Joined: Apr 2, 2011 19:21:59 GMT -5
Posts: 14,559
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Post by tallguy on Oct 17, 2015 12:57:51 GMT -5
Damn! You really don't want to hear about what I did then.  |
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The Captain
Junior Associate
Hugs are good...
Joined: Jan 4, 2011 16:21:23 GMT -5
Posts: 8,717
Location: State of confusion
Favorite Drink: Whinnnne
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Post by The Captain on Oct 17, 2015 13:33:58 GMT -5
You are correct, we are not high income, but we are mid-50s!! And just finished raising 3 children who are now all in their 20s. And just spent about 5k going on a dream vacation. So we have lived fairly frugally, but still want to LIVE while we can! Hehe. Then you're doing awesome! I tell DH that if we sold DD I could retire in 5 years. |
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