Roth IRA

[desertbasser]

Jerry just think of those millions your makin.

[elm creek]

We could work out the details at the rally

[WB]

Jerry if you need somebody to dip them minners call. I think I might be the man for the job........

[elm creek]

<table width="90%" cellspacing=0 cellpadding=0 align=center><tr><td>Quote, originally posted by desertbasser &raquo;</td></tr><tr><td class="quote">Jerry just think of those millions your makin. </td></tr></table>

Jeff its probably just like yours, it takes just a little more than you make to operate on

[Corkpuller]

<table width="90%" cellspacing=0 cellpadding=0 align=center><tr><td>Quote, originally posted by WB &raquo;</td></tr><tr><td class="quote">Land is not a good investment when you can only afford 3 acres. </td></tr></table>





<table width="90%" cellspacing=0 cellpadding=0 align=center><tr><td>Quote, originally posted by elm creek &raquo;</td></tr><tr><td class="quote">Corky, I`ve got just the place for your money. How would you like to invest in a nice little marina This could be a working investment where you could work and watch your money grow......maybe </td></tr></table>

no way boss, I see how much you actually get to fish
My bride thinks it would be just "Grand" to own a campground and I agree it would, if you could afford to hire somebody to maintain it.
You have a fine place Jerry and sure hope all your hard work and time spent has provided you well. I'm thinkin it has and also know you enjoy what you do.

[WB]

<table width="90%" cellspacing=0 cellpadding=0 align=center><tr><td>Quote, originally posted by Corkpuller &raquo;</td></tr><tr><td class="quote">





no way boss, I see how much you actually get to fish
My bride thinks it would be just "Grand" to own a campground and I agree it would, if you could afford to hire somebody to maintain it.
You have a fine place Jerry and sure hope all your hard work and time spent has provided you well. I'm thinkin it has and also know you enjoy what you do. </td></tr></table> Jerry, we love ya for what you do and what you put up with......

[elm creek]

It`s the guy`s like ya`ll that make it worth it I`m really looking forward to this years Rally I thinks it`s going to be a blast

[WB]

Cork enjoy the rest of your day. Jerry and Jeff get in bed. I know ya'll have to get up at the crack. I am out. Enjoyed it guys.

[elm creek]

Yea I`m Out, got to get ready for the memorial day crazies.

[desertbasser]

<table width="90%" cellspacing=0 cellpadding=0 align=center><tr><td>Quote, originally posted by elm creek &raquo;</td></tr><tr><td class="quote">

Jeff its probably just like yours, it takes just a little more than you make to operate on </td></tr></table>

Yup

[Corkpuller]

nite nite boys, I got another 7 hrs to go

[basspastor]

I know I paid 20% tax on funds I withdrew from my pension when I retired.
They got theirs and sent me mine.

[Skip]

I've been thinking about retirement myself

[elm creek]

I think you`ll enjoy retirement Skip

[bgibson53]

Skip is the national poster child for retirees.

[BMCD]

I switched over to a Roth.

[Texas Larry]

You need to see a good CPA or investment advisor to help you. I'm not either one, but here's my understanding of the basics:

Your 401K and normal IRA contributions are not taxed now. You pay taxes on the money only when you make withdrawals at whatever tax bracket you are in at that time. This means you reduce your taxes today. If you contribute $10K per year for 10 years into an IRA, you will have $100 K plus whatever you earn on it during that period, compounded. Assuming you fund the IRA at the beginning of each year, and using 7% average per year return, compounded, you would have $148.387.50 in your account at the end of the 10 years on the $100K investment. If you are over 59.5 you can withdraw all or part without paying the penalty, and pay at whatever tax rate you are in at that time. The idea is that you will be in a much lower bracket when you retire because you won't be making as much income.

Contributions you make to a Roth IRA, however, are taxed at your current rate when you make the deposits, but you pay no more taxes on the money you contributed to the fund and any earnings you may have on that money. If you contribute the same $10K per year at the beginning of the year, and are in a 20% bracket you will pay $2K in taxes each year on your contributions. If you do it for 10 years you will have $80K ($100K - 20K in taxes) in savings + whatever you earn from your investments during that period, compounded. Assuming the same 7% earnings per year, you would have $118,710.00 in your account at the end of 10 years, that you could withdraw without paying any taxes when you reach 59.5. You have to make less than $95K per year as a single taxpayer or less than $150K per year filing taxes jointly to participate in a Roth.

My understanding is that the Roth becomes more attractive the longer you have until you begin withdrawing the funds - i.e. you will be making more return on the money you have invested because it is in there longer.

There are many other rules on these things, so you need to do a lot of studying and/or talk to a professional!!

You should insure you are contributing enough to your 401K to get all the company matching every year (free money), and then put the remainder you want to invest in an IRA or Roth depending on your circumstances (you have many more investment choices in an IRA through a brokerage house than your 401K). If you don't want an IRA, max out your contributions to the 401K.

Hope this helps.....

[Corkpuller]

Pretty sure the most I can put in a Roth IRA is 5K per year compared to a Roth 401K, it's 16.5K.
I talked to my tax man this morning and he said there a too many variables involved to determine what tax bracket you will be in at retirement. Just as I suspected. He thought it would be a good chance I'd be in a higher tax bracket at retirement simply because of how the economy is currently and the fact that taxes do go UP.

[Stompy]

Just send it to me, I'll invest it for you

[Corkpuller]

give me yer address