Comments on: 401k, Traditional IRA and Roth IRA Savings Not The Same http://moneyning.com/retirement/401k-traditional-ira-and-roth-ira-savings-not-the-same/ A personal finance blog where we share insights on carefully saving money, investing, frugal living, coupons, promo codes because the little things matter in achieving financial freedom! Sat, 20 Mar 2010 07:49:40 -0700 http://wordpress.org/?v=2.9.2 hourly 1 By: SimplyForties http://moneyning.com/retirement/401k-traditional-ira-and-roth-ira-savings-not-the-same/comment-page-1/#comment-17979 SimplyForties Sun, 09 Aug 2009 22:40:58 +0000 http://moneyning.com/?p=3476#comment-17979 What a nice, clear recitation of the considerations we must keep in mind as we slog along towards retirement. Hopefully when the time comes something will indeed be left! What a nice, clear recitation of the considerations we must keep in mind as we slog along towards retirement. Hopefully when the time comes something will indeed be left!

]]> By: MoneyNing http://moneyning.com/retirement/401k-traditional-ira-and-roth-ira-savings-not-the-same/comment-page-1/#comment-17955 MoneyNing Sun, 09 Aug 2009 01:37:39 +0000 http://moneyning.com/?p=3476#comment-17955 Everything starts small but like a snowball rolling down the hill, it gets there. Keep investing and putting money away. Everything starts small but like a snowball rolling down the hill, it gets there. Keep investing and putting money away.

]]> By: MoneyNing http://moneyning.com/retirement/401k-traditional-ira-and-roth-ira-savings-not-the-same/comment-page-1/#comment-17954 MoneyNing Sun, 09 Aug 2009 01:36:50 +0000 http://moneyning.com/?p=3476#comment-17954 It's true that our tax system is setup where the high earners are taxed much more than the lower income earners. While I don't like it one bit, it's important to note that without doing it this way, the tax system would cripple every lower income earner because tax rates across the board would be higher. Of course, what we really should be doing is stop all the money the government wastes and tax everyone fairly to promote productivity but that's much easier said than done. RB, be thankful that you were privileged enough to attend graduate studies and came out the gate having a job that others can only dream about. Despite the fact that you probably worked really hard to obtain your degree, there are many others who never even got the chance to try. It’s true that our tax system is setup where the high earners are taxed much more than the lower income earners.

While I don’t like it one bit, it’s important to note that without doing it this way, the tax system would cripple every lower income earner because tax rates across the board would be higher. Of course, what we really should be doing is stop all the money the government wastes and tax everyone fairly to promote productivity but that’s much easier said than done.

RB, be thankful that you were privileged enough to attend graduate studies and came out the gate having a job that others can only dream about. Despite the fact that you probably worked really hard to obtain your degree, there are many others who never even got the chance to try.

]]> By: RB @ RichBy30RetireBy40 http://moneyning.com/retirement/401k-traditional-ira-and-roth-ira-savings-not-the-same/comment-page-1/#comment-17944 RB @ RichBy30RetireBy40 Sat, 08 Aug 2009 18:29:06 +0000 http://moneyning.com/?p=3476#comment-17944 The problem with IRAs is that it unfairly penalizes those who make more money. I forget what the exact cut off is, but if you make more than $85,000 as a single individual, and definitely more than $100,000, you can't contribute! The average income of an MBA student out of a top 25 school is about $100,000 and 28 years old. Why is the system punishing 28 year olds who pursued further education? The limit needs to be raised by 3X at least. My first job out of college, and I was already cut off the IRA system. Fast forward 10 years later, I've lost a lot of potential retirement funding. I've only been able to contribute on average 15K a yr for 10 years out of school in the 401k. I think the 401K limit of 16.5K this year should be raised to at least 25K. People who work for 30 years saving 16.5K are not going to be able to retire comfortably. Best, RB RB30RB40 The problem with IRAs is that it unfairly penalizes those who make more money. I forget what the exact cut off is, but if you make more than $85,000 as a single individual, and definitely more than $100,000, you can’t contribute!

The average income of an MBA student out of a top 25 school is about $100,000 and 28 years old. Why is the system punishing 28 year olds who pursued further education? The limit needs to be raised by 3X at least.

My first job out of college, and I was already cut off the IRA system. Fast forward 10 years later, I’ve lost a lot of potential retirement funding. I’ve only been able to contribute on average 15K a yr for 10 years out of school in the 401k. I think the 401K limit of 16.5K this year should be raised to at least 25K. People who work for 30 years saving 16.5K are not going to be able to retire comfortably.

Best,

RB
RB30RB40

]]> By: Wilson Pon http://moneyning.com/retirement/401k-traditional-ira-and-roth-ira-savings-not-the-same/comment-page-1/#comment-17931 Wilson Pon Sat, 08 Aug 2009 07:38:09 +0000 http://moneyning.com/?p=3476#comment-17931 Ning, you know what? You've cleared all my doubts here. I always being asked by my friends the differences of Traditional IRA and Roth IRA. In this case, I think they should come over and read your article thoroughly! Ning, you know what? You’ve cleared all my doubts here. I always being asked by my friends the differences of Traditional IRA and Roth IRA. In this case, I think they should come over and read your article thoroughly!

]]> By: Emma http://moneyning.com/retirement/401k-traditional-ira-and-roth-ira-savings-not-the-same/comment-page-1/#comment-17863 Emma Wed, 05 Aug 2009 23:59:22 +0000 http://moneyning.com/?p=3476#comment-17863 I love my Roth IRA account because of the exactly same reason as what Craig said. Without the worry of taxes, I know what I saved in my Roth is rock solid and dependable. On the other hand, who knows what will happen to the 401k tax structure as we get more and more into debt? I love my Roth IRA account because of the exactly same reason as what Craig said. Without the worry of taxes, I know what I saved in my Roth is rock solid and dependable.

On the other hand, who knows what will happen to the 401k tax structure as we get more and more into debt?

]]> By: MoneyNing http://moneyning.com/retirement/401k-traditional-ira-and-roth-ira-savings-not-the-same/comment-page-1/#comment-17862 MoneyNing Wed, 05 Aug 2009 19:59:01 +0000 http://moneyning.com/?p=3476#comment-17862 How do you make bread yourself? Care to share so I can turn it into a short post? :) How do you make bread yourself? Care to share so I can turn it into a short post? :)

]]> By: marci http://moneyning.com/retirement/401k-traditional-ira-and-roth-ira-savings-not-the-same/comment-page-1/#comment-17859 marci Wed, 05 Aug 2009 19:11:40 +0000 http://moneyning.com/?p=3476#comment-17859 DIY - learn to make it yourself :) Yes, ingredients will be higher, but you won't be paying labor and bread transportation on top of it :) DIY – learn to make it yourself :)
Yes, ingredients will be higher, but you won’t be paying labor and bread transportation on top of it :)

]]> By: Craig http://moneyning.com/retirement/401k-traditional-ira-and-roth-ira-savings-not-the-same/comment-page-1/#comment-17858 Craig Wed, 05 Aug 2009 18:21:32 +0000 http://moneyning.com/?p=3476#comment-17858 That's why I recently started my Roth IRA and like it. It gets taxed now which can hurt a bit cause when I add money it really doesn't seem like anything is increasing, but I know whatever is in there is fully mine when I retire. Mentally makes it easier for me. That’s why I recently started my Roth IRA and like it. It gets taxed now which can hurt a bit cause when I add money it really doesn’t seem like anything is increasing, but I know whatever is in there is fully mine when I retire. Mentally makes it easier for me.

]]> By: Jodi http://moneyning.com/retirement/401k-traditional-ira-and-roth-ira-savings-not-the-same/comment-page-1/#comment-17857 Jodi Wed, 05 Aug 2009 17:43:15 +0000 http://moneyning.com/?p=3476#comment-17857 I think inflation is actually going to be much worst than 3% due to the massive borrowing that we are doing currently. However, even at 3% a year, everything will be 23% more expensive in 7 years. Then it will be another 3% more every year after retirement. No one is immune unfortunately. I think inflation is actually going to be much worst than 3% due to the massive borrowing that we are doing currently. However, even at 3% a year, everything will be 23% more expensive in 7 years. Then it will be another 3% more every year after retirement. No one is immune unfortunately.

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