Current Events > It's 1/4 thru the year. Have you contributed to your Roth IRA yet? >_>

(+) Yeah! (+)

You can put in $6500 this year and it's a good retirement investment. The earlier you put the money in the better

boobs

IRA deez nutz

No, I'm not poor so a Roth IRA literally does me no good

ArkhamOrigins posted...

No, I'm not poor so a Roth IRA literally does me no good

If you make more than 150k a year, you cant contribute to it >_>

Not yet, but I will make the full contribution soon.

About 10 bucks

Every 2 weeks

Something that won't yield for another 20 years? I'll probably be sick

DKBananaSlamma posted...

If you make more than 150k a year, you cant contribute to it >_>

I make well over 150k a year, but that has nothing to do with it.

I have no idea how Roth Ira works. I got 10k in ibonds this year and more in cds and my employer matches 10% with retirement so I guess I'm good

hyperskate65 posted...

Every 2 weeks

I would recommend dumping the whole 6.5k at once if you can, since that entire lump has all year to work instead of bits and pieces throughout the year. But obviously do whatever you financially can handle >_>

Idk, i have a union pension thats a 9% pay deduction

its a full ride if i retire here, but idk im torn

DKBananaSlamma posted...

I would recommend dumping the whole 6.5k at once if you can, since that entire lump has all year to work instead of bits and pieces throughout the year. But obviously do whatever you financially can handle >_>

Mine's through my job. I drop 5% and they drop 10%.

UndefeatedGOAT posted...

Idk, i have a union pension thats a 9% pay deduction

its a full ride if i retire here, but idk im torn

Nothing wrong with having a bigger portfolio.

ArkhamOrigins posted...

I make well over 150k a year, but that has nothing to do with it.

You should be contributing to a Roth IRA. You make too much to deduct contributions to a Traditional IRA. And contributing to neither a Roth IRA or a Traditional IRA is just paying taxes for no reason.

Kuuko posted...

You should be contributing to a Roth IRA. You make too much to deduct contributions to a Traditional IRA. And contributing to neither a Roth IRA or a Traditional IRA is just paying taxes for no reason.

He legally cant contribute if he makes over 150k

$75 : /

DKBananaSlamma posted...

He legally cant contribute if he makes over 150k

You can. It's called a Backdoor Roth IRA and it's very easy to do. I did it last year and this year. It's a stupid loophole but it's IRS-approved.

Yup, I frontload that shit every January, got $63K in it now and I think about $35K are contributions which is nice if I ever have to pull it out

Kuuko posted...

You can. It's called a Backdoor Roth IRA and it's very easy to do. I did it last year and this year. It's a stupid loophole but it's IRS-approved.

Oh shit, really?

DeepFriedSquid posted...

Yup, I frontload that shit every January, got $63K in it now and I think about $35K are contributions which is nice if I ever have to pull it out

Nice!

hyperskate65 posted...

Mine's through my job. I drop 5% and they drop 10%.

Are you sure that's not a Roth 401k? I've never heard of a company contributing to a Roth IRA, but maybe they can.

And no, my wife and I were over the contribution limit last year for the first time and had to deal with recharacterizing. Once I know we did that correctly, I'll contribute to my Trad IRA, may look into the backdoor, may not.

Given the age of people who still use GameFAQs, they can probably add $7,500

The_Popo posted...

Given the age of people who still use GameFAQs, they can probably add $7,500

lol

I always do it right before taxes, so I only just did it for 2022 lol

Nah that shit is pointless for me

Can't afford a full contribution, what I can afford is not enough to add up to anything and I won't live to retire anyway

TendoDRM posted...

Are you sure that's not a Roth 401k? I've never heard of a company contributing to a Roth IRA, but maybe they can.

And no, my wife and I were over the contribution limit last year for the first time and had to deal with recharacterizing. Once I know we did that correctly, I'll contribute to my Trad IRA, may look into the backdoor, may not.

Duh, that's on me, haha. I saw Roth and was like "yeah I got that."

In my defense, I'm on lunch.

This life insurance lady told me to buy life insurance that includes an investment portfolio and she told me the interest returns are so much better than Roth IRA or anything else really. She's saying the national average return on these kind of portfolios are 12% which is better than any 401K or Roth IRA.

DKBananaSlamma posted...

I would recommend dumping the whole 6.5k at once if you can, since that entire lump has all year to work instead of bits and pieces throughout the year. But obviously do whatever you financially can handle >_>

that worked terribly for me in 2022, jan. 3 was ... not the best time to contribute
just gonna dca in 2023

Yes. I maxed out the rest of 2022 and contributed half the limit for 2023

VeggetaX posted...

This life insurance lady told me to buy life insurance that includes an investment portfolio and she told me the interest returns are so much better than Roth IRA or anything else really. She's saying the national average return on these kind of portfolios are 12% which is better than any 401K or Roth IRA.

Is this a whole life insurance? Those at times are not really as good as they make it sound. As opposed to just doing a term life insurance and investing the money you're now waving on premiums

emblem-man posted...

Is this a whole life insurance? Those at times are not really as good as they make it sound. As opposed to just doing a term life insurance and investing the money you're now waving on premiums

She called it Index Life Insurance or something like that and it's pretty new to the world she says.

Haha no

Im down to only 52k in debt tho

thronedfire2 posted...

Haha no

Im down to only 52k in debt tho

Hell yeah brother keep chipping away at it

VeggetaX posted...

This life insurance lady told me to buy life insurance that includes an investment portfolio and she told me the interest returns are so much better than Roth IRA or anything else really. She's saying the national average return on these kind of portfolios are 12% which is better than any 401K or Roth IRA.

Please run away from that person. Life Insurance is absolutely teeming with shady salespeople. If you think your local shady car dealer is shady, they pale in comparison to how shady life insurance people get. That's not to say life insurance isn't a useful product for people (not everyone) but based on what you say, she's obviously the shady kind.

You can immediately tell because her statement doesn't make any sense. To be clear, 401ks and IRAs can invest in (almost) anything. They're not investments on their own, they're just buckets that you invest within - and then those investments get tax advantages. Well technically in 401k's you're limited by the fund selection your employer gives you but these days most 401's have a variety of stock and bond choices. And in an IRA you can invest absolutely anything you want. If your life insurance salesman was investing in something that gets 12% returns then you could invest in whatever that same thing is in your IRA too. With that being said, the 12% number is obviously made-up too. Keep in mind Bernie Madoff promised his ponzi scheme buyers "only" a modest 10% return. Consistent 12% returns don't exist.

The life insurance salespeople have other weasely magic words they say about their products too. Like how they're "tax-free" because you can borrow against your own cash value and death benefit, and let you make your money work in multiple places at the same time, or allow you to do "infinite banking" and other buzzwords. Or worst case, they guilt you about how much happier your family would be with life insurance money if you died suddenly right now. It's all scammy.

Like, a 30 year term life insurance for like a million is like $30 a month or something for my wife. Life insurance shouldn't really be an investment vehicle, it's insurance. It's for if some bad shit happens before you've reached the age where your actual retirement and investments can take care of your family

VeggetaX posted...

She called it Index Life Insurance or something like that and it's pretty new to the world she says.

Tell me you didn't buy it

Nope. I'll start doing that once I promote again. I have been looking into my retirement info though. Wish I had decided to work for the state sooner than I did. Had I joined right when I turned 18 I could have retired at 55 with 74% of my salary as my final compensation. If I try that now, I'd only get 39% at 55

Anyway...IULs are not new. I worked for an insurance company for years where the salespeople were aggressively seeking Variable Life Insurance (VUL) policies. IULs were around and looked into back then. You aren't getting 12% returns. Anyone trying to pass that of is lying to you.

One of my roles in the company was watching these VULs we sold and making sure they were funded properly and didn't blow up on us. I wonder how they weathered the stock market downtown

Dat_Cracka_Jax posted...

Tell me you didn't buy it

Nope. What's your opinion on IULs then. Are they really the go-to for ultimate investment? The lady was saying people are taking out their 401Ks to invest in their premium IUL instead.

Yeah that sounds shady >_> I would do more research before you jump on that

DKBananaSlamma posted...

Nothing wrong with having a bigger portfolio.

will do, just been topping off my emergency funds and financially dealing with having a baby

as things stabilize ill be investing more

I unfortunately can contribute to my IRA this year. Last years bonuses kept me from doing it the year before.

Was planning on maxing it out this year buuuut then my car broke. Gonna take maybe a month off of contributing to just build up my checking account and then go from there.

Ha.

Ive put in my 6.5k already, all into VYM