Retirement Accounts... (pay, million, taxes, debts) - debt, loans, credit cards, banks, insurance... - City-Data Forum

evilnewbie · 07-08-2011, 02:25 PM

So I was thinking if there is "anything" else I could do each year for retirement...

Myself:
5k per year in Traditional IRA -> Convert to Roth IRA
2.6k per month in contribution to Pension plan

My Wife:
16.5k per year in 403b
5k per year in Traditional IRA -> Convert to Roth IRA

In 2 more years my contribution to Pension plan will go to 5k+ per month..

We are not self-employed so we don't benefit from self-employed retirement plans... is there anything else I can set up for retirement? Should I? Using 6% estimate, I will have around 6M in retirement savings by the time I retire (if I retire)... I didn't include SS benefits cause who knows where that is going to go but it should be max payout......

My wife will be able to do self-employment benefits a year... I plan on maxing that out as well (I think its something like 50k a year?)... anything else?

I have set up a 529 plan for my little baby already... I have a cafeteria plan but don't plan to put much in it cause we are too young to have any serious health care issues... We both have whole life insurance policies (WORST THING EVER) and have a number of years before we can get out... Have a good amount in emergency cash...

Own a house with a mortgage (currently 100k+ in value compared to loan with 4.5% fixed 30-year mortgage)... Both cars are paid off... about 240k in student loan debts (4% to 0.6% fixed interest rate debts - 30 year terms)...

I feel like I am missing something important that I should be doing...

CaptainNJ · 07-08-2011, 02:27 PM

retirement accounts are great. when the government finds itself unable to pay their debts, they will raid your retirement accounts.

evilnewbie · 07-08-2011, 02:29 PM

Quote:

Originally Posted by CaptainNJ

retirement accounts are great. when the government finds itself unable to pay their debts, they will raid your retirement accounts.

Hehehe... I thought about buying gold bars and coins and hiding it but I figure I go paranoid every time I leave home...

Escort Rider · 07-08-2011, 04:13 PM

Quote:

Originally Posted by CaptainNJ

retirement accounts are great. when the government finds itself unable to pay their debts, they will raid your retirement accounts.

Why don't you explain to us how you know that will happen.

mathjak107 · 07-08-2011, 04:26 PM

im a fan of retirement accounts and i find uses and strategys for them as well as taxable accounts but:

you actually have a mortgage on your retirement money in your tax defered accounts . unlike your house where you know what you owe your partner uncle sam isnt telling you what you owe on your retirement dough.

he has in effect an open check book on your money ..
he can take 40-50% if he wants in taxes.

reality is ,like i say i dont see higher income taxes for the masses in america so in my opinion i dont think there is a whole lot to worry about.

80 million voting baby boomers say so. how many people do you know will be in higher tax brackets with no pay checks in retirement than they are now with 2 checks in a family coming in.

evilnewbie · 07-08-2011, 05:18 PM

It is hard to imagine taxes going up but I already hear exactly that... people advocating for higher taxes... I think it is mostly rhetoric... why? The democrats had supermajority in the House and Senate and the presidency and yet never once tried to increase taxes... and only did they lose the supermajority/majority did they clamor their base voters to raise taxes... so I think its rhetoric to energize their base voters to vote for them... even so, there are kooky people out there in the government and they are gaining ground with their base supporters... who knows what it will be like 30 years from now... its too risky, that's why I favor a no-tax retirement account but alas, those are quite limited... what happens when some idiot convince a bunch of other idiots to raise taxes for the "good" of their voters... I rather not take the wait and watch approach... however I do understand where you are coming from... is there still something I need to do? I feel like I am missing something important? I am paying down my debts by about 20k+ a year and hopefully will be fully paid off in 12-15 years (wow, that is a long time)...

Teak · 07-08-2011, 06:19 PM

Quote:

Originally Posted by evilnewbie

So I was thinking if there is "anything" else I could do each year for retirement...

I feel like I am missing something important that I should be doing...

Based upon the fact that you are planning well in advance of your retirement gives me great hope for your retirement. You shouldn't worry too much except for the tax issue. The gov't can and will come looking for money to pay for those 40%+ people who don't pay income taxes.

mathjak107 · 07-08-2011, 06:20 PM

i believe anything and everything that can be taxed will be taxed but middle americas income tax will be sacred ground.

slackjaw · 07-08-2011, 06:37 PM

Quote:

Originally Posted by Escort Rider

Why don't you explain to us how you know that will happen.

I'm sure there is a Tightwad thread somewhere about it.

CaptainNJ · 07-08-2011, 08:48 PM

Quote:

Originally Posted by Escort Rider

Why don't you explain to us how you know that will happen.

well, as far as in america is concerned the idea of creating an automatic 401k system that people are required to contribute to and rolling over private 401ks has been discussed. not much has been done, but its been put out there. i could do a little searching and find that.

also, it isnt unprecedented in the world for government to raid pension accounts in fiscal crisis. i could do a little searching and find that.

now i certainly cant explain how i know it will happen, because i dont know. its just something thats out there and i see something happening in that department.