|
|
#41
06-09-2005, 10:48 PM
|
|||
|
|||
Re: A Roth IRA won\'t work...
[ QUOTE ]
you can take money out without penalties after just 5 years as long as it goes towards the purchase of your own home. [/ QUOTE ] I didn't think that needed mentioning since the OP was looking to retire at 40 and would just need a source of income. And isn't it only for a first time home purchase? 
|
|
#42
06-10-2005, 03:28 AM
|
|||
|
|||
|
Re: A Roth IRA won\'t work...
[ QUOTE ]
[ QUOTE ] you can take money out without penalties after just 5 years as long as it goes towards the purchase of your own home. [/ QUOTE ] I didn't think that needed mentioning since the OP was looking to retire at 40 and would just need a source of income. And isn't it only for a first time home purchase? [/ QUOTE ] ROTH IRA contributations can be withdrawn at any time penalty free. In addition you can suck out 10k for your first house and for some educational expenses. I think you can also do a an equal distributaion withdrawl (you set up a plan where you withdrawl the same amount for the next x years). Also consider you can't contribue a lot to a roth ira, you will have tons of savings outside of it to use to pay for your years until you turn 59.5. The only retirement plans that you can put enough away to retire before 40 would be the SEPs and thier equilavent since you can do 40K a year. A 401k and roth combines is less than half of that.
|
|
#43
06-10-2005, 02:13 PM
|
|||
|
|||
|
Re: A Roth IRA won\'t work...
[ QUOTE ]
ROTH IRA contributations can be withdrawn at any time penalty free. [/ QUOTE ] But not tax free, right? I used "penalty," which was the wrong word. But since the advantage of a Roth is the tax-free retirement income, paying the taxes defeats the point having your retirement in a Roth if you want to get it out early.
|
|
#45
06-10-2005, 02:32 PM
|
|||
|
|||
|
Re: A Roth IRA won\'t work...
[ QUOTE ]
[ QUOTE ] ROTH IRA contributations can be withdrawn at any time penalty free. [/ QUOTE ] But not tax free, right? I used "penalty," which was the wrong word. But since the advantage of a Roth is the tax-free retirement income, paying the taxes defeats the point having your retirement in a Roth if you want to get it out early. [/ QUOTE ] Income that a Roth IRA generates is tax free. You've already paid taxes on the money you've contributed to the Roth. You can pull that money back out without getting taxed.
|
|
#46
06-10-2005, 02:36 PM
|
|||
|
|||
|
Re: A Roth IRA won\'t work...
[ QUOTE ]
You can pull that money back out without getting taxed. [/ QUOTE ] Correct, but you owe taxes on the gains. Bottom line, you can't get ALL the money out of a ROTH before you're old enough without paying some taxes. If you wait, you pay none.
|
|
#47
06-10-2005, 02:47 PM
|
|||
|
|||
|
Re: Financial Goal Question
[ QUOTE ]
that's my plan anyway, but i'm thinking 60- gotta get some living in along the way. [/ QUOTE ] This has been a toss up for me for the past few years...get the nice car/plasma tv/(enter other expensive toys here) and retire later or retire early and live cheap for the rest of my life. It's something I'm still struggling with right now, and more than likely something I will struggle with up until the point I "feel" like I can retire. And to a previous poster, yes I plan on having children. I know this is going to be a HUGE blow to my finances. I don't know how this will change things, but I know it will change everything. My parents share one checking account. My mom makes 100K a year, and my dad makes 50K. I have seen issues between them and money (my dad spending mainly). I plan on having a joint account and also our own separate accounts. My girlfriend and I have split bills/tabs pretty well since we've been dating. I would say I pay 65% of the time, but that's just because I make 7K more than she does (not including poker). I expect nothing less regarding bill payment once we move in together (she's currently splitting rent/bills with a roomate). As far as retirement income goes, I honestly believe I can live off of 25K a year if everything else is already taken care of (car payment, house payment, college tuition). And, although it has been short term, I've averaged roughly 10K a year playing poker (past 3 years). I don't expect that to keep up as I'm sure the "fad" will die out in the next 5-7 years. Thanks for all the advice. I still haven't had time to really research that retire early web site.
|
 |
|
|
Linear Mode
