If you enjoyed this video, consider subscribing to our channel by using this link: ua-cam.com/users/thefedcorner AND if you're interested in our FREE newsletter, you can find it here: thefedcorner.com/current-resources#764c6ea5-6ec2-4c7d-b04a-99745e48d53f
At 32, I'm diving into investing for the first time. I’ve started contributing to my 401K and opened a Roth IRA with automatic contributions. My main question is whether asset allocation is crucial at this stage or if I'm just overthinking as a beginner.
my current salary is in the 24 percent range and I don't ever see worrying about getting to that 32 percent range which starts at $192K. Most federal employees are no where near that line in the sand , nor will be even in retirement with RMD's . I think all this Roth stuff is just a waste of time for 99 percent of us federal retirees. Of course , who knows what the tax brackets will be 20 years down the road?
Exactly, and often we can project that someone will be in a higher bracket, even if taxes stay the same forever. Higher AGI from bigger RMDs almost always means higher bracket presumptions unless it’s just a small bump. Thanks for tuning in!
Can't do it. I'm GS13/10, wife is 15/7. A conversion doesn't save anything. That being said, the plan is to move it out of TSP and into an IRA with high paying dividends and live off of this, pension and SSI.
Consider that if you’re working for the next several years and tax rates are going back up, you’ll be paying more on the same income. That’s where the Roth TSP and Roth planning could be helpful.
Traditional versus Roth only differs in taxation. There should not be restrictions on investments unless the custodian has restrictions themselves. For instance, many work-retirement accounts only have a small pool of investments from which to choose. Additionally, no retirement account--Traditional or Roth--is able to deduct losses. Only non-retirement accounts.
I often wonder if your just better off to put your money in a simple savings account (or a old coffee can) at your local bank and not worry about taxes, inflation, the stock market, etc. and use and enjoy it as as long as it lasts. All this wealth your building will most likely be enjoyed by someone else. I do like your videos and they are very informative!
The challenge is that the same money you spend to day to buy something won't buy the same amount in the future. That's the problem with inflation--we have to outpace it or at least keep up with rising cost so we can continue spending. Thanks for tuning in!
With a Roth account, aren't you incentivized to let it grow to the max and never withdraw, so you end up dying with the highest net worth possible? What's the fun in that?
That's a really great point. That's why I always say retirement planning is both art and science. At some point, your life and objectives (art) intersect with maximizing your wealth (science). But if you can use strategies to make the most out of your money, you may have the ability to spend at higher rates and enjoy retirement even more!
If you enjoyed this video, consider subscribing to our channel by using this link: ua-cam.com/users/thefedcorner
AND if you're interested in our FREE newsletter, you can find it here: thefedcorner.com/current-resources#764c6ea5-6ec2-4c7d-b04a-99745e48d53f
I think you explained this very well. Short, concise, easy to digest - appreciate your videos.
Thank you, glad you enjoyed!
This is GREAT info - just signed up for the newsletter!
Glad to hear it!
At 32, I'm diving into investing for the first time. I’ve started contributing to my 401K and opened a Roth IRA with automatic contributions. My main question is whether asset allocation is crucial at this stage or if I'm just overthinking as a beginner.
my current salary is in the 24 percent range and I don't ever see worrying about getting to that 32 percent range which starts at $192K. Most federal employees are no where near that line in the sand , nor will be even in retirement with RMD's . I think all this Roth stuff is just a waste of time for 99 percent of us federal retirees. Of course , who knows what the tax brackets will be 20 years down the road?
Exactly, and often we can project that someone will be in a higher bracket, even if taxes stay the same forever. Higher AGI from bigger RMDs almost always means higher bracket presumptions unless it’s just a small bump. Thanks for tuning in!
Can't do it. I'm GS13/10, wife is 15/7. A conversion doesn't save anything.
That being said, the plan is to move it out of TSP and into an IRA with high paying dividends and live off of this, pension and SSI.
Consider that if you’re working for the next several years and tax rates are going back up, you’ll be paying more on the same income. That’s where the Roth TSP and Roth planning could be helpful.
You might consider getting non-glare eyeglasses so that you don’t have reflections off your glasses in your videos.
What is the name of that tool you used to create the projections?
problem with Roth is that it is limited to investing options in the stock market and/or crypto markets. And your losses are not deductible.
Traditional versus Roth only differs in taxation. There should not be restrictions on investments unless the custodian has restrictions themselves. For instance, many work-retirement accounts only have a small pool of investments from which to choose. Additionally, no retirement account--Traditional or Roth--is able to deduct losses. Only non-retirement accounts.
I often wonder if your just better off to put your money in a simple savings account (or a old coffee can) at your local bank and not worry about taxes, inflation, the stock market, etc. and use and enjoy it as as long as it lasts. All this wealth your building will most likely be enjoyed by someone else. I do like your videos and they are very informative!
The challenge is that the same money you spend to day to buy something won't buy the same amount in the future. That's the problem with inflation--we have to outpace it or at least keep up with rising cost so we can continue spending. Thanks for tuning in!
With a Roth account, aren't you incentivized to let it grow to the max and never withdraw, so you end up dying with the highest net worth possible? What's the fun in that?
That's a really great point. That's why I always say retirement planning is both art and science. At some point, your life and objectives (art) intersect with maximizing your wealth (science). But if you can use strategies to make the most out of your money, you may have the ability to spend at higher rates and enjoy retirement even more!
your kids will love you though