Reply to Roth IRAs are great

Forum Index » Money and Finances

Reply to "Roth IRAs are great "

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Encourage your kids to open a Roth IRA!

I opened a Roth IRA right when I got out of undergrad at my dad’s suggestion. I was making 43k a year, I would contribute up to the match for wherever I was working’s 401k and then max out my Roth, only 5k-ish a year back then. I’ve had that Roth for 15 or so years. The performance metrics only go back 10 years, but when I look at it I have a time weighted return of 15.6% compared to the s&p 500 return of 12.6%. I am all for putting as much money in s&p as possible, but I took some risks in tech and weed stocks, I would trade actively within that Roth when I was younger. Buuuut that 3% increase is only like 7 k-ish. I am proud I beat the market so far, but that’s not too much extra cash compared to just passive s&p investment. However it was a great learning experience, I certainly invested in some real duds as well. Now my spouse and I make too much to contribute to Roths ( I know I could do backdoor, but haven’t bothered). Long story short, without any additional contributions, that Roth account will be well over a million bucks when I retire, simply by putting in 5-6k a year for the first 15 years of my career. I will also have a 401k, pension, and social security at retirement, but man that tax free Roth money is gonna be sweet, assuming society doesn’t collapse between now and then.
I’m done babbling, thank you for coming to my TEDtalk[/quote]

Dude, that Roth is gonna be taxed[/quote]

No f'in way. It's already taxed money. They may force an RMD on it but I don't see it being taxed. [/quote]

I think some of them will be taxed eventually but probably with some sort of cutoff— like $5 million and above[/quote]

They tried that last time.. and to shut down backdoor Roth. Both measures failed.[/quote]

I know but if we ever get around to raising taxes again, which is an if, the fact that they tried before is to me a signal they’ll try again not that it’s a dead end. [/quote]

It won't pass the courts. This is taxation of already taxed $$. That's robbery and I don't think any supreme court will put up with it. [/quote]

No, but what will happen in the future is that social security benefits will phase out entirely for individuals with especially high 401k and IRA balances, and with an accelerated multiplier penalty applied to those with large Roth balances. [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics