User Controls
Posts by Ajax
-
2017-08-06 at 1:02 AM UTC in i want to move to hawaiiStart walking. You'll make it.
-
2017-08-05 at 10:53 PM UTC in Recommend me a good documentary.
Originally posted by Sophie
>nominated for best social/political documentary program
Fuck yeah, bud. Reading the wiki article it might actually be a worth wile watch. Seems surprisingly fair/unbiased.
It actually does. At first I was just trying to be a dick, and then I was like this actually seems interesting. -
2017-08-05 at 10:39 PM UTC in Recommend me a good documentary.
-
2017-08-05 at 10:35 PM UTC in Signing things is kinda hilariousNone of my signatures or initials look the same. I've been called out on it when signing lengthy legal documents with multiple signatures or initials, but it always goes through. Now they do "electronic signatures" on a lot of things, so it doesn't even look remotely close to your actual signature.
-
2017-08-05 at 3:28 PM UTC in Any of you gonts here own a suit?
-
2017-08-05 at 3:24 PM UTC in Any of you gonts here own a suit?Yes.
By the way, polos and neck ties do not mix. -
2017-08-05 at 12:46 AM UTC in Fuck Your Forum LannyAlways ctrl + a, ctrl + c before posting anything of value.
-
2017-08-05 at 12:45 AM UTC in OH MY FUCKING GOD THIS PLACE IS BORING THE FUCK OUTTA MEUnplug for a bit. Feels good.
-
2017-08-04 at 1:21 PM UTC in Anyone interested?
Originally posted by Lanny What are your thoughts on a roth IRA in addition to a matched 401k?
Originally posted by Lanny I mean in terms of tax efficiency vs. the penalties of early withdrawal. Like personal investment vs. a roth ira.
I think they are both great to have.
This is the order in which I would contribute: 401(k) up to the match, then Roth IRA up to the max, then back to the 401(k) up to the max, then taxable accounts if you can do even more. If you Can max out the first two accounts, you would be contributing $23,500 per tax year, which is awesome. You would easily be a millionaire by the time you retire. Here's why I would use that order.
A 401(k) match is free money. If you get a 100% match, there is no investment vehicle that will get you that rate of return right off the bat. To describe the Roth IRA, we can approach your other questions about it.
With a 401(k), your contributions are tax-deferred. This means that you can deduct the amount of your contributions from your taxable income. So if you are in, say, a 25% tax bracket and you contribute $10,000 to your 401(k), then that's $2,500 you don't have to pay to the tax man. At least not until you withdraw the money. The idea is that you can use the $2,500 you saved in taxes to invest more throughout the year than you would have otherwise. So, your money grows tax-deferred, but when you take it out, everything is taxed... including all the growth in your account (compounding rate of returns). Over a working career, more of your account balance will be growth on the principal, so keep that in mind.
With a Roth IRA, you pay taxes up front on your contributions, but then that's it. All of your growth is tax-free. So when you withdraw your money, of which the majority is growth on the principal, you won't have to pay any taxes. You already paid taxes when you contributed and the rest is not taxed. Let that sink in.
Now let's mention max contribution levels, early withdrawal penalties, and required minimum distributions (RMD). For 2017, you can contribute up to $18,000 per year to your 401(k) if you are under age 50 and up to $5,500 to your IRA (Roth or traditional) if you are under age 50. If you are 50 or older, you can make catch-up contributions of up to $24,000 for your 401(k) and up to $6,500 in your IRA. These limits will likely increase in 2018.
Early withdrawal penalties. If you make a withdrawal from your 401(k) before age 59 1/2, you get hit with a 10% federal tax penalty plus whatever tax bracket you're in (it gets treated as income). There are some hardship withdrawal exceptions such as becoming totally disabled or having medical debt up to your eyeballs, but employers don't have to honor those exceptions. I forgot to mention, a 401(k) is an employer sponsored retirement plan. For a Roth IRA, you can withdraw your contributions anytime because you've already paid taxes on it. However, you would be hit with the 10% penalty if you withdraw any earnings before age 59 1/2. There are some exceptions, but it's best to not do it. It becomes a hassle if you're audited by the IRS.
Lastly, 401(k) accounts have required minimum distributions at age 70 1/2 (along with traditional IRAs) and Roth IRAs do not. This is because the tax man wants his cut, so they force you to take distributions on tax-deferred money so they can get it. Remember, Roth IRAs are not taxable, so they don't care about that.
To maximize tax efficiency, I would make withdrawals first from taxable accounts because contributions have been taxed, then from tax-deferred accounts like 401(k)s because your tax burden will be greater than that from a taxable account (think contributions), then from a Roth IRA. Let that Roth grow as long as you can before touching it. Tax-free growth truly is a gem.
So, other than the facts here, this is all my opinion and not financial advise. Let me know if you disagree or have other thoughts. -
2017-08-04 at 12:01 PM UTC in Anyone interested?Dupe. Please delete.
Post last edited by Ajax at 2017-08-04T13:23:51.352113+00:00 -
2017-08-04 at 12 PM UTC in What to do with broken PS2
-
2017-08-04 at 1:04 AM UTC in Anyone interested?I don't play the stock market in terms of options trading or even individual stocks (at least not anymore), but my asset allocation is heavily in stocks. I have some bonds funds, but mostly in equities. I like index funds, especially when they low expense ratios. Buy and hold.
What do you consider to be valuable investments? -
2017-08-04 at 12:52 AM UTC in Anyone interested?If you don't understand the question, then the topic is probably not for you. Though there can be some good discussions around what you brought up.
-
2017-08-04 at 12:28 AM UTC in no1 talk to meI'm confused by the title of this thread. Is that a command like "no on talk to me," as in, "you better not talk to me?" Or is it a complaint like "no one is talking to me?" I'm going with the latter and chalking it up to whiny little bitch syndrome and a failure to grammar.
-
2017-08-04 at 12:20 AM UTC in Anyone interested?I'm a personal finance nerd. It's not what I do for a living, but studying it and talking about it is a hobby of mine.
Is anyone here interested in talking about personal finance topics, or do you all just snort anything you can get your hands on? -
2017-08-04 at 12:17 AM UTC in What to do with broken PS2I have the early model fat ps2.
Some of the ideas here are great. Honestly though, it's not really worth it to me to fiddle with it or try to do something else with it.
I hate throwing things away though. If no one will buy it, how do I get rid of it? Do I put it on eBay and hope someone covers the shipping? -
2017-08-04 at 12:13 AM UTC in I want to go to school... but i cant cuz of work.You should have put this in the money forum for potentially more serious replies.
Your expenses are low. With what you outlined, you easily be able to work and go to school.
I went to school full time and worked part time. Then I worked full time and worked two or three part time jobs. Then I worked full time and went to school part time.
Focus, put in the time and effort, and it will pay off. -
2017-08-02 at 3:26 AM UTC in What to do with broken PS2Let me know if you're interested in an all black card.
-
2017-08-02 at 12:55 AM UTC in Walmart made an oopsy on my behalf. FUCK YES!!!!!
-
2017-08-02 at 12:52 AM UTC in Stop using youtubeDo you feel like you're submitting something to a serious publication when you post here?