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Old 02-10-2015, 04:53 PM
 
289 posts, read 422,114 times
Reputation: 133

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Hello,
I started a IRA a week ago. I do not have a retirement plan at my place of work. I started a IRA with Fidelity and the most I can contribute a year is $ 7,000.00. I am only asking for advice, does any one on her have a similar situation? How can I fund retirement on only $ 7,000.00 a year? We do not plan on having a any debt at all when we retire but need to consider thinking about other investments to make retirement a possibility in 14 years. I will appreciate any information you can provide! Thank You!
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Old 02-10-2015, 04:58 PM
 
70,898 posts, read 71,262,364 times
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how are you getting 7,000 in an ira? the limit is 5500.00 unless you are over 55 then it is 6500 . use tax efficiant index funds in your taxable account for anything over.
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Old 02-10-2015, 04:59 PM
 
18,728 posts, read 13,505,396 times
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You can't contribute 7k it's either 5500-6500 and if that's not enough just save in a taxable account and or get employed by a company that has a 401k
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Old 02-10-2015, 05:02 PM
 
8,701 posts, read 5,065,034 times
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The limit is 6.5k for 2015 (age 50 and over). You have until 4/15/14 to contribute 6.5k for 2014. You said "we"; your spouse can contribute to his/her IRA too.

After IRAs are full, invest in a taxable account. Try to keep your most tax inefficient investments inside your IRA(s).
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Old 02-10-2015, 05:34 PM
 
25,959 posts, read 28,374,816 times
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Quote:
Originally Posted by mathjak107 View Post
how are you getting 7,000 in an ira? the limit is 5500.00 unless you are over 55 then it is 6500 . use tax efficiant index funds in your taxable account for anything over.
Correction: If you're over 50 (not 55), it's $6500. You can also contribute $5500 or $6500 for your spouse if you are married.

Index funds are good for taxable accounts.

I also like Mairs & Power Growth. It has reasonable volatility (but is still 100% stocks) for a growth stock fund and very low turnover, which usually means the taxable income generated by the fund is low. It also has great long term returns.
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Old 02-10-2015, 06:28 PM
 
289 posts, read 422,114 times
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I apologize for the mistake. You are right with the amount available for contribution. I am 51 years old. My wife has her own 401k with her employer. Thank you for your help !
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Old 02-10-2015, 07:50 PM
 
291 posts, read 249,189 times
Reputation: 374
Quote:
Originally Posted by murph1982 View Post
Hello,
I started a IRA a week ago. I do not have a retirement plan at my place of work. I started a IRA with Fidelity and the most I can contribute a year is $ 7,000.00. I am only asking for advice, does any one on her have a similar situation? How can I fund retirement on only $ 7,000.00 a year? We do not plan on having a any debt at all when we retire but need to consider thinking about other investments to make retirement a possibility in 14 years. I will appreciate any information you can provide! Thank You!
You are starting very late. Maybe you are a very poor planner. Maybe you should have started earlier. The reality is that you either retire in 14 years and make it work or you work past the age of 65.

Everyone seems hinged on your mistake of the 7000 v 5500 v 6500 and didn't bother to answer your question.
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Old 02-11-2015, 06:30 AM
 
629 posts, read 1,439,850 times
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Quote:
Originally Posted by murph1982 View Post
I apologize for the mistake. You are right with the amount available for contribution. I am 51 years old. My wife has her own 401k with her employer. Thank you for your help !
You and your wife can both max out IRAs (Roth or regular) = $6,500 for you and ($5,500 or $6,500 for your wife depending on her age). That gets you to 12-13k per year in IRAs.

You can also max out her 401k ($18,000 regular limit plus potential $5,500 catch up provision if she's 50 or older).

Those two would allow you and your wife to contribute somewhere between $30,000 and $36,500 to retirement accounts. 14 years of that would give you a nice sized nest egg.

If there's extra available to invest you would just invest in regular taxable accounts.
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Old 02-11-2015, 09:33 AM
 
Location: 3503 Jack Northrop Ave Hawthorne, CA 90250 USA
5 posts, read 4,219 times
Reputation: 29
If you are already maximizing your wife's your 401Ks and if you have extra money, open a Roth IRA and max out that. Ensure you have savings for 6 months. Open an HSA if you can. Invest in low cost index funds that mimic the S&P.
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Old 02-11-2015, 10:13 AM
 
289 posts, read 422,114 times
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thank you very much for the helpful advice!
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