Investing General Discussion

TJT

TJT

Mr. Poopybutthole
<Gold Donor>
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Haus said:
I'm hovering around this point myself. For me the mitigating factor is knowing how much I'm mentally "built" like my grandfather who raised me, and how once he retired is when his body really started aging. Like it was a work dog that knew it didn't need to work anymore. Trying to avoid that. The money already says I could hang it up tomorrow if I needed.
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I do not have this issue. I already don't want to work as much anymore.

It will take me a bit to find my footing with no job but certainly not that long. I look forward to lower stress and just doing what I want.
 
Sludig

Sludig

Potato del Grande
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There were those more diversified indexes, though a couple mentioned I think were heavier tech, is there a pretty solid one that's less tech heavy? Ie if my 401 all 500, I could start dumping my yearly 7500 Roth IRA into Ftec or whatever that cover would be?
 
Gravel

Gravel

Mr. Poopybutthole
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Also speaking of 5 years since retirement, I just liquidated the last of our taxable account which was the bridge to start using our Roth ladder which takes 5 years to "season." Pretty crazy it lasted exactly the 5 years we needed it to.
 
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Cad

Sheriff Cad

scientia potentia est
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Gravel said:
Also speaking of 5 years since retirement, I just liquidated the last of our taxable account which was the bridge to start using our Roth ladder which takes 5 years to "season." Pretty crazy it lasted exactly the 5 years we needed it to.
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Aren't you only like 40-45? How are you planning to touch any of your IRA's at this age? I'm not planning to touch mine till 59.5, otherwise you get penalties?
 
Fogel

Fogel

Mr. Poopybutthole
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Cad said:
Aren't you only like 40-45? How are you planning to touch any of your IRA's at this age? I'm not planning to touch mine till 59.5, otherwise you get penalties?
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If it's a Roth, you can pull principle contributions at any time since it's already taxed.
 
Cad

Sheriff Cad

scientia potentia est
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Fogel said:
If it's a Roth, you can pull principle contributions at any time since it's already taxed.
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That makes sense. I don't have enough in Roths to matter I guess, I'm supposed to be doing 401k to Roth conversions once my income drops enough that I don't get turbo-fucked on taxes, but I didn't think about that.
 
Gravel

Gravel

Mr. Poopybutthole
48,455
175,838
Cad said:
Aren't you only like 40-45? How are you planning to touch any of your IRA's at this age? I'm not planning to touch mine till 59.5, otherwise you get penalties?
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42. Roth ladder.

You roll over tIRA to Roth and pay as if it's earned income. After 5 years, it becomes Roth principal and can be pulled out tax free.

The trick is that it's basically our only "income" during the year, so we get the standard section at 0% and then even after that it's super cheap tax compared to when we were working.

But even without that, I think the early withdrawal penalty is overblown. You're basically just paying a 10% flat tax, which isn't the end of the world. I mean, we're avoiding it, but in the end it's not a huge deal if we had to pay it.
 
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