Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I have an account with my pension system that should be about $350,000 at time of retirement. 150k of it will be contributions after taxes so I would be able to pull that out tax free.
The question is what to do with the 200k. I’d have to pay capital gains on it if I take it when I retire at 47 or 48. I would rather roll into some other type of account and watch it grow a bit. A very very safe account though. I don’t want to lose any principal
everything has risk .even cd's have inflation risk as more often than not they have negative real returns after taxes and inflation .
the words invest and risk always are joined at the hip . even bonds have risk .
so not sure what you expected to hear as advice if you are risk adverse .
100% correct, there is no "riskless" asset. They do not exist.
This is not my area of expertise -- maybe the OP can roll the account over into an IRA and therefore defer the taxes, but he's going to have to pay them eventually anyway.
So I could put the 200k into a cd before paying capital gains?
Capitalone has a 3% apr 60 month for example. So that 200k would be $231,000 at 5 years.
Not bad and fdic insured.
not sure what your deal is but retirement money can usually be rolled in to an ira with no tax implications until taken out.
depending on inflation over the next five years a 3% return can take a beating in purchasing power.there certainly is risk there. in any case growth will be very low if any .
it is after inflation adjusting returns that count .
not sure what your deal is but retirement money can usually be rolled in to an ira with no tax implications until taken out.
depending on inflation over the next five years a 3% return can take a beating in purchasing power.there certainly is risk there. in any case growth will be very low if any .
it is after inflation adjusting returns that count .
Yea...BUT....in an ira the principal can take a hit like they did during the crash. I can’t stomach a huge loss.
you need an education on this stuff . an ira is not an investment. it is only the tax status of the account .what you buy is no different .
do yourself a favor , don't do things on your own because it is apparent you have little knowledge in this area . i would seek some professional guidance here. the pension taxing sounds a bit more complex then you think.
if you think getting good advice is expensive just wait and see what free can cost you .
what is not clear though is his plan terms and whether he should be rolling this in to an ira or not . if he doesn't we don't know the tax implications either as far as bracket , amt , and effects . .
he obviously does not have any knowledge on this subject . we know that because it is obvious he does not know how an ira works or what it is from this statement
.
Quote:
Originally Posted by westcoastforme
Yea...BUT....in an ira the principal can take a hit like they did during the crash. I can’t stomach a huge loss.
I guess I’d rather be safe with the dimly 3%
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.