Same as a Roth Ira. Just after tax money, that can be withdrawn tax exempt.
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K. The term just threw me a little as I associate a 401k as a tax deferred retirement with taxes @ withdrawl. Roth I associate with an after tax investment free from taxes upon withdrawl.
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Meant lower tax brackets for Roths.
It can be confusing, but all retirement plans are simply designed to give an incentive to save.
Roths are designed for the tax brackets.
Whenever you retire, just make sure you have predictable income to replace your paycheck. And max out your 401k, or whatever type of plan your employer offers.
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Oh, I see now. Thanks. I have a personal Roth and a member of TCRS (TN state pension plan)
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When you retire your state plan will give you the option to take out a guaranteed payment for single or joint life an maybe some period certain options or the choice to roll it to an ira.
The benefit of that is its predictable, the downside is you lose the ability for growth.
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When you retire your state plan will give you the option to take out a guaranteed payment for single or joint life an maybe some period certain options or the choice to roll it to an ira.
The benefit of that is its predictable, the downside is you lose the ability for growth.
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Oh i know, should've quoted NEOCON. I was replying to him when he saidIf you wanna make 2 percent. Roth is a retirement plan.
CD is an actual investment. Apples and oranges.
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was wondering what kind of investments he meant by short term.It is smart though to have another vehicle that is gaining which can be used in short term needs if necessary.
You are lucky. I think it's like 9% of the workforce actually has pensions today.
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Oh i know, should've quoted NEOCON. I was replying to him when he said
was wondering what kind of investments he meant by short term.
Not complaining. I wont get rich, but it's ok. We had a discussion a few days ago and a poster said some state employed in Cali get a pension of 80% salary. That's crazy. I'm in line for 48% after 30 years. I'm 17 yrs in. I have to have a personal retirement savings plan as 48% won't cut it by itself.
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Not sure if any of your are your own bosses but if you are look into a SEP. The nice part is it has less admin fees than a 401k and you can basically max out at the same. You can not take a loan against a SEP though.
I hate youI have both a pension and 403b with employer contribution. It's a sweetheart deal and the tax payers regularly have to kick in to cover shortfalls in the pension.
Both of my contributions (to the pension and 403b) are tax exempt on the front-end so I'll be paying taxes on the disbursements.
I hate you
Wait are you employed by the state of bammer? If so take every dime they (taxpayers) have
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You are lucky. I think it's like 9% of the workforce actually has pensions today.
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My company got rid of the pension plan for new hires in 2002
Then their going to stop contributions for existing employees in 2017..I'll have 22 years at that point, so I'll still be set
The 401k- you can invest up to 16%, with the first 6% matched...