I already have a 401k from where I work, I put in 11% and the company matches me 4%. I’m looking for other ways to save for retirement. I just turned 40, I’ve be contributing to this 401k for 7 years. My wife will have a very small retirement. Is a Roth IRA a good way to go? My 401k is with vanguard and they have a Roth that I can put money into there. Was thinking 150-200 each pay until I retire (20-23) years from now... any input will help!! Thanks 🙏
If you're already with Vanguard for your 401k a Roth IRA through them is a good idea. Having a diversification in tax options in retirement is a great thing. Also it's great that your already at 15% combined, but if you started when you were 33 it's good that you're saving additionally now. 33 is somewhat of a late start and those 10 years or so make a world of difference at the end of a 40 year working life. Whatever you can do to increase contributions as soon as you can will make a big difference in the end, especially if you're trying to retire at 60-63.
You will benefit by putting money in with a Roth. I only have a 401 and will be paying more in taxes in retirement and when I have to do RMD than when I was working. Wish I had split the money going in between a Roth and the 401k.Originally Posted by WVTundra
dvl2700
Good idea on the Roth for tax reasons. You might benefit a lot by seeing a good fee based financial advisor also.
Make sure to do some reading on the Vanguard site to make sure you are eligible to contribute. There are income limitations on Roth IRA's and ways to bypass that so make sure you do some reading to make sure you do it right.
Make sure to talk with your accountant first. As was said above... your annual income and the dollar value you are saving in your 401k will determine how much you can put into a Roth.
In2019 your only allowed to put $6000.00
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