Total Retirement Planning

[Bootay]

I have about equal $ going into retirement (401(k)) and shorter-term savings (brokerage account). I haven't been funding a separate IRA, but I did set one up several years ago (before the kids came and sapped the money I was going to put there :)). I might be able to max out the Roth IRA and max the 401(k), AND keep the brokerage deposits going (gotta work those numbers a bit more), but I need to get the priorities straight.

If I'm maxing the yearly 401(k) limits, expect to be in a high-income bracket at retirement, should I lower my 401(k) contributions and dump money into the Roth IRA? Seems like that makes sense, online calculators show a multi hundred-thousand dollar difference in money at 65...

One other big concern:
Married filing jointly or Head of household - Roth IRA phase-out limits -$150,000 to $160,000

So, if we file a return showing > $160k of income (I'm assuming after deductions and such), we can't contribute to a Roth IRA? I believe it's for Adjusted Gross Income, so it should be post deductions and other adjustments, but thought I'd double-check.

Word

[Alleycat]

If you expect tp be in a higher income bracket at retirement then a Roth investment may sve you some tax dollars after you retire.

The phase-out is based on your AGI.

[meatpile]

I've phased out my retirement as a priority. I invested alot from 25-35 for retirement, and it's goign to be plenty.

Also - I will inherit assets. I doubt my parents will be alive in 30 years, and I'm likely to get a fuckload for a 65 year old. 65 year olds likely don't need alot, and the amount I'm liable to get added to my assets and retirement savings to date should be more than enough. I even talked with them about it, and they agreed that my pre-retirement age expenses should be a priority. I'm still maxing out deductible investments - 'employer' sponsored plans - but I'm not looking to sneak a few thousand here or there into ROTH plans. I'm keeping that non-retirement.

I'd like to be done at 55. I'd hate to be 55 and have millions in retirement and not enough to get there!

Not to mention the fact that I have 5 people to care for for that same 20 years. I'm likely to need it before retirement.

[Bootay]

You can withdraw from a roth IRA at 59.5, so kinda early retirement is not a blocker. Super early total retirement is another story, but if I can do that, I've likely got a lot of cash from my other investments that only has to last 10-15 years until I can draw on the 401(k), IRA, etc. Hell, who plans on retiring at all anyway? I'll never stop working to some degree, I'd get bored as hell.

What I need is my guarantee - I have "gambles" in several other areas, this is my safety net for having $ when I'm no longer cranking quite as hard. I'm likely to come into big $ in 15 years or so as well, and that's great, but what happens if 30 years go by and most of that cash was spent on insane treatments that dragged on for 15 years...I'm sure as hell not gonna plan on that money, I've seen that stuff happen before. Bootay takes care of his own bootay.

Looks like Roth IRA is a go. So, my savings/retirement plan is to hit the 401(k) with at least the matching part, max out the Roth, and then add as much as seems affordable to the 401(k), hopefully capping that as well. Meanwhile, crank out 15% into company stock at a 10% discount (selling when it's tax advantageous to fund the brokerage account) for shorter-term savings, add in another 10% after-tax to that account automatically before I see my paycheck, and dump leftovers each month into that account. And in 13 more years, celebrate no more mortgage payment.

[meatpile]

Your income is predictable. Mine is not - that's why I see the non-retirement as a bigger priority, what with the kids and the wife.

Kinda the same reason I opted out of a 529 to leave that cash in a taxable account - my kid can pay for college when he's 18 if he has to, he can't pay for his healthcare when he's 10.

Meatpile gots to get paid, yo.

Again - it's not that I'm not maxing out my tax deductible plan, but not being as anal about it as I was at 27. And I'm not even close to planning on the inheritance - but it's gonna be there if I outlive the rents, so it's dumb to not consider it.

You have some wierd employer options for getting paid. Well - I don't know if they're wierd, but I don't have them. I also have no employer.

I should make some wierd things up on my own, so I can talk about them.

'Not masturbating at work earns an extra $10k per month.'

[Bootay]

If you looked at my income over the years, it's anything but predictable...varies by 6 figures sometimes. But I get your point - my income never drops below 6 figures, yours could go negative.