Comments on: Retirement Saving Options—my thoughts http://financefreelancelife.com/2008/02/03/retirement-saving-options-my-thoughts/ Thu, 18 Mar 2010 17:36:24 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: » February 5, 2008 Link Payday Uncommon Cents: (Hopefully) simple personal finance http://financefreelancelife.com/2008/02/03/retirement-saving-options-my-thoughts/#comment-10177 » February 5, 2008 Link Payday Uncommon Cents: (Hopefully) simple personal finance Tue, 05 Feb 2008 16:12:59 +0000 http://financefreelancelife.com/2008/02/03/retirement-saving-options-my-thoughts/#comment-10177 [...] Micah gives her thoughts on comparing retirement savings options with her current job. In her situation, putting money into a Roth IRA first seems to make the most sense given that her [...] [...] Micah gives her thoughts on comparing retirement savings options with her current job. In her situation, putting money into a Roth IRA first seems to make the most sense given that her [...]

]]> By: deepali http://financefreelancelife.com/2008/02/03/retirement-saving-options-my-thoughts/#comment-9996 deepali Mon, 04 Feb 2008 19:01:48 +0000 http://financefreelancelife.com/2008/02/03/retirement-saving-options-my-thoughts/#comment-9996 Good post - I actually don't put anything into my 403b because my org does it with or without me. I'm funding a Roth IRA to the max for 2007. For 2008, I will also fund the Roth to the max, but I am also going to start putting in my 403b, a little bit. Honestly, I like it for the psychological factor - it comes out of my paycheck before my paycheck hits my bank account, so it's already "gone". And TIAA-CREF actually does a fairly good job and is pretty highly rated. My org's contributions go to a TIAA-CREF account. Mine will go to a Vanguard account (I like them as well). Good post – I actually don’t put anything into my 403b because my org does it with or without me. I’m funding a Roth IRA to the max for 2007. For 2008, I will also fund the Roth to the max, but I am also going to start putting in my 403b, a little bit. Honestly, I like it for the psychological factor – it comes out of my paycheck before my paycheck hits my bank account, so it’s already “gone”.

And TIAA-CREF actually does a fairly good job and is pretty highly rated. My org’s contributions go to a TIAA-CREF account. Mine will go to a Vanguard account (I like them as well).

]]> By: Dan http://financefreelancelife.com/2008/02/03/retirement-saving-options-my-thoughts/#comment-9941 Dan Mon, 04 Feb 2008 15:20:52 +0000 http://financefreelancelife.com/2008/02/03/retirement-saving-options-my-thoughts/#comment-9941 There are things that can happen that make the Traditional IRA better than the Roth. For instance, the fair tax has been a heated topic recently on the financial blogosphere. If it was implemented with no provision to tax previously untaxed Traditional IRA and 401K contributions, then they would fair better than the Roth. That said, if you earn less than 65,100, you're only paying 15% in income tax on what you contribute to the Roth. It's not too likely that you'd be paying a lower rate in retirement, so the Roth wins or at least ties the Traditional. On your note of a fantastic year making you ineligible for the Roth, I would also love to be in that position. As a married couple filing jointly, you'd have to earn $169,000 in 2008 to be fully excluded from contributing to a Roth. There are things that can happen that make the Traditional IRA better than the Roth. For instance, the fair tax has been a heated topic recently on the financial blogosphere. If it was implemented with no provision to tax previously untaxed Traditional IRA and 401K contributions, then they would fair better than the Roth.

That said, if you earn less than 65,100, you’re only paying 15% in income tax on what you contribute to the Roth. It’s not too likely that you’d be paying a lower rate in retirement, so the Roth wins or at least ties the Traditional.

On your note of a fantastic year making you ineligible for the Roth, I would also love to be in that position. As a married couple filing jointly, you’d have to earn $169,000 in 2008 to be fully excluded from contributing to a Roth.

]]> By: SJean http://financefreelancelife.com/2008/02/03/retirement-saving-options-my-thoughts/#comment-9823 SJean Mon, 04 Feb 2008 05:49:00 +0000 http://financefreelancelife.com/2008/02/03/retirement-saving-options-my-thoughts/#comment-9823 Point taken. Like i said, i'm not a professional! I do more shopping/browsing on amazon, but when in an actual library, i suppose a system is needed, and the dewy decimal system is a great one. Point taken. Like i said, i’m not a professional!

I do more shopping/browsing on amazon, but when in an actual library, i suppose a system is needed, and the dewy decimal system is a great one.

]]> By: mrsmicah http://financefreelancelife.com/2008/02/03/retirement-saving-options-my-thoughts/#comment-9817 mrsmicah Mon, 04 Feb 2008 04:33:33 +0000 http://financefreelancelife.com/2008/02/03/retirement-saving-options-my-thoughts/#comment-9817 SJean, as long as we're using books at libraries, then yes. Because otherwise we couldn't use the non-fiction section of the library. Sure, we could organize them by author, but that would mean we'd miss out on all the side-benefits of classification. For example, if you want to read Total Money Makeover, you have to be able to find it among the 100,000 other books/items in our library. So you look it up online and it's 332.024 R ish. You go there and you notice Jean Chatzky's books, so you grab one too. You then browse or come back later for similar stuff. You'd be able to find it under "Ramsey" too, but you wouldn't get all the handy benefits. Traditional card catalogs with actual cards---not very useful in the age of computerized searching. SJean, as long as we’re using books at libraries, then yes. Because otherwise we couldn’t use the non-fiction section of the library. Sure, we could organize them by author, but that would mean we’d miss out on all the side-benefits of classification.

For example, if you want to read Total Money Makeover, you have to be able to find it among the 100,000 other books/items in our library. So you look it up online and it’s 332.024 R ish. You go there and you notice Jean Chatzky’s books, so you grab one too. You then browse or come back later for similar stuff. You’d be able to find it under “Ramsey” too, but you wouldn’t get all the handy benefits.

Traditional card catalogs with actual cards—not very useful in the age of computerized searching.

]]> By: SJean http://financefreelancelife.com/2008/02/03/retirement-saving-options-my-thoughts/#comment-9813 SJean Mon, 04 Feb 2008 04:17:20 +0000 http://financefreelancelife.com/2008/02/03/retirement-saving-options-my-thoughts/#comment-9813 Off intended topic (but you started it!) do you think the dewey decimal system is still relevant, with the age of computers and powerful searches? I don't, but I'm not a library professional. :) On topic, i think you made a good decision. Off intended topic (but you started it!) do you think the dewey decimal system is still relevant, with the age of computers and powerful searches? I don’t, but I’m not a library professional. :)

On topic, i think you made a good decision.

]]> By: vh http://financefreelancelife.com/2008/02/03/retirement-saving-options-my-thoughts/#comment-9808 vh Mon, 04 Feb 2008 02:34:45 +0000 http://financefreelancelife.com/2008/02/03/retirement-saving-options-my-thoughts/#comment-9808 Hmmm... Take a look at what they offer. I've never been overly thrilled with TIAA-CREF, but now the Great Desert University offers Fidelity (among others). My financial advisor likes Fidelity as well as Vanguard. If you're not getting a match and your budget doesn't allow you to save more than the max for the Roth, you're prob'ly better off with the Roth than the 403b. My tax lawyer remarked that she doesn't much like 401k's and 403b's, because chances are your taxes won't actually be much lower in retirement and because transferring pretax investments to your heirs is really problematic. She said given her choice, she'd max out the Roths and then put whatever else she could invest into regular mutual funds. Hmmm… Take a look at what they offer. I’ve never been overly thrilled with TIAA-CREF, but now the Great Desert University offers Fidelity (among others). My financial advisor likes Fidelity as well as Vanguard.

If you’re not getting a match and your budget doesn’t allow you to save more than the max for the Roth, you’re prob’ly better off with the Roth than the 403b. My tax lawyer remarked that she doesn’t much like 401k’s and 403b’s, because chances are your taxes won’t actually be much lower in retirement and because transferring pretax investments to your heirs is really problematic. She said given her choice, she’d max out the Roths and then put whatever else she could invest into regular mutual funds.

]]> By: Amanda @ Me vs Debt http://financefreelancelife.com/2008/02/03/retirement-saving-options-my-thoughts/#comment-9807 Amanda @ Me vs Debt Mon, 04 Feb 2008 02:28:15 +0000 http://financefreelancelife.com/2008/02/03/retirement-saving-options-my-thoughts/#comment-9807 You inspired me with your first post. I opened a Roth IRA with Sharebuilder last week. Seems like a good deal except for the $25 account maintenance fee. With a mere $500 to invest that's a 5% fee! I'm very seriously considering slowing down debt reduction to make a few extra contributions. More on that later... You inspired me with your first post. I opened a Roth IRA with Sharebuilder last week. Seems like a good deal except for the $25 account maintenance fee. With a mere $500 to invest that’s a 5% fee! I’m very seriously considering slowing down debt reduction to make a few extra contributions. More on that later…

]]> By: Christine http://financefreelancelife.com/2008/02/03/retirement-saving-options-my-thoughts/#comment-9798 Christine Mon, 04 Feb 2008 01:10:40 +0000 http://financefreelancelife.com/2008/02/03/retirement-saving-options-my-thoughts/#comment-9798 Please do give us the whole Dewey system on these posts. That would be charming. Please do give us the whole Dewey system on these posts. That would be charming.

]]> By: Ryan S. http://financefreelancelife.com/2008/02/03/retirement-saving-options-my-thoughts/#comment-9783 Ryan S. Sun, 03 Feb 2008 23:37:07 +0000 http://financefreelancelife.com/2008/02/03/retirement-saving-options-my-thoughts/#comment-9783 I think there's no question that your decision right now is correct given that you're not getting a match on the 403(b)--which is for non-profits, not just educational institutions. If you were getting a match, it would be a different story; I hope you're doing your Roth with a discount broker or no load mutual fund family. Hope all is well. I think there’s no question that your decision right now is correct given that you’re not getting a match on the 403(b)–which is for non-profits, not just educational institutions. If you were getting a match, it would be a different story; I hope you’re doing your Roth with a discount broker or no load mutual fund family. Hope all is well.

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