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Hi, after two tries at retirement I'm back to work
04-20-2011, 11:18 AM
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#1
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Confused about dryer sheets
Join Date: Apr 2011
Location: Jacksonville
Posts: 1
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Hi, after two tries at retirement I'm back to work
I tried retirement at 62, lasted 7 months, then again at 66, lasted 7 weeks. I have have concluded that I love the work I do with the senior living industry. I am a consultant to senior living sponsors of not for profit retirement communities. I contract my services to a firm based in the Carolinas. My wife and I have merged families - 6 children, 8 grandkids - and live in Florida.
As a self employed contractor I am interested in stashing away as much $$ as possible in the next three years (yes, 70 is it for sure!). I am most interested in exploring the how-to's of setting up a 401(k) for myself to shelter income during that time. Any thoughts will be appreciated.
Graduated Oklahoma Military Academy (66) and Oklahoma State University (69) and am a huge Poke Fan - hence the user name. Also former Marine (63-65). Good to be onboard!
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04-20-2011, 11:23 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Sep 2010
Location: Thailand countryside, Sisaket province
Posts: 1,328
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There is nothing wrong with doing what you want to do even if you get paid for it. The question is: Are you financially independent? Would you do what you are doing if you didn't get paid? It sounds like you would.
Stashing away as many $$ as possible . . . well . . . that may be a different issue.
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04-20-2011, 11:26 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Jun 2005
Posts: 4,391
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I take it you are self-employed. If that's the case then you can shelter up to $22k per year from the (employee) side. The employer (you) can then shelter an additional 25% of your income (up to $49k total deferral).
If you have a high income you could theoretically shelter up to $71k per year in a self-employed 401k plan.
there are a number of mutual funds and different websites that can help with setting this up.
here is a link to Fidelity's website on this topic:
https://www.fidelity.com/retirement/...-employed-401k
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04-21-2011, 01:12 AM
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#4
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Dryer sheet wannabe
Join Date: Feb 2011
Posts: 14
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Hi,
If you have a lot of income, you could look into a personal defined benefit plan. I am not an expert, but the max is 195k. There are some actuarial calculations that have to be done so there is a significant fee charged by the companies who offer this. I remember Schwab was $750 per year. So only worth it if you have a lot to put away. But it's an interesting option for the right person.
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04-21-2011, 11:21 AM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 7,677
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I don't think there is any stigma with failing at retirement. I would just question why you think it will be different at 70?
__________________
For the fun of it...Keith
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04-21-2011, 06:05 PM
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#6
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Thinks s/he gets paid by the post
Join Date: May 2007
Posts: 1,250
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Quote:
Originally Posted by MasterBlaster
I take it you are self-employed. If that's the case then you can shelter up to $22k per year from the (employee) side. The employer (you) can then shelter an additional 25% of your income (up to $49k total deferral).
If you have a high income you could theoretically shelter up to $71k per year in a self-employed 401k plan.
there are a number of mutual funds and different websites that can help with setting this up.
here is a link to Fidelity's website on this topic:
https://www.fidelity.com/retirement/...-employed-401k
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Do you know if one can be considered self employed if their source of income is rental income that's reported on Schedule E not Schedule C. Therefore, no self employment tax is paid. How about if your spouse is employed full-time?
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04-21-2011, 08:06 PM
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#7
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Full time employment: Posting here.
Join Date: Jan 2010
Location: Smith
Posts: 743
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Quote:
Originally Posted by martyp
There is nothing wrong with doing what you want to do even if you get paid for it. The question is: Are you financially independent? Would you do what you are doing if you didn't get paid? It sounds like you would.
Stashing away as many $$ as possible . . . well . . . that may be a different issue.
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Ya, if you're FI and doing it because you love it, then what's the problem?
__________________
Retired July 4th, 2010 at age 43
Trout Bum, Writer, Full-Time Dad and Husband
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04-22-2011, 10:19 AM
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#8
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Confused about dryer sheets
Join Date: Dec 2010
Location: North Oaks
Posts: 2
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Quote:
Originally Posted by Letj
Do you know if one can be considered self employed if their source of income is rental income that's reported on Schedule E not Schedule C. Therefore, no self employment tax is paid. How about if your spouse is employed full-time?
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No.
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