some opinions/ guidance?

[old medic]

B&M of either are over an hour away, same 2 cities in either direction.
Your correct in the difference. Its nice to have the nest egg (or 3) on the side thats continuing to build. I'm now wondering if I can roll some of my 401K out and let the rest sit.

 

[pb4uski]

One of the things Im trying to figure is what to do with the 401K money. I dont want to roll it into my retirement account. I can leave it in the Prudential account but can't add to it once I retire. Will have a second chance when the wife retires with hers..

Is there a reason why you don't want to roll it into your retirement account?

Unless your 401k has a good stable value fund or really good, low-cost investment choices I would roll it into a tIRA if you are over 55.... Vanguard or Fidelity or Schwab would be fine.

What is your 401k invested in now?

Prudential is the administrator for my former employer's pension plan... good company but their service pretty much sucks.

 

[old medic]

Is there a reason why you don't want to roll it into your retirement account?
Prudential is the administrator for my former employer's pension plan... good company but their service pretty much sucks.

It only adds a small amount to my check, and I loose the future gains.
FC shows me loosing out bigtime on future growth...

 

[gayl]

B&M of either are over an hour away, same 2 cities in either direction.
Your correct in the difference. Its nice to have the nest egg (or 3) on the side thats continuing to build. I'm now wondering if I can roll some of my 401K out and let the rest sit.

IMHO I would roll out all of it as well as all of hers when she retires to the same place. There is no benefit in leaving some of it behind

 

[old medic]

IMHO I would roll out all of it as well as all of hers when she retires to the same place. There is no benefit in leaving some of it behind

I was looking at it as a nest egg, more stable funds slow growth, and a separate IRA that I can add to and take some chances on.
I have a lot of learning to do over the next few months...

 

[pb4uski]

It only adds a small amount to my check, and I loose the future gains.
FC shows me loosing out bigtime on future growth...

Oh, I thought where you said retirement account that you meant a tIRA.

 

[pb4uski]

I was looking at it as a nest egg, more stable funds slow growth, and a separate IRA that I can add to and take some chances on.
I have a lot of learning to do over the next few months...

That's a bit silly... can't you do the same thing within an IRA? Have $x in investments that are stable and $y in investments that are riskier? You can easily do that in a single tIRA account.

 

[gayl]

Ok. But you can't add to an IRA unless you have earned income. Maybe try the core / explore philosophy? Use this IRA as your core ..... put aside a little out of your overage into a brokerage account as your explore investments? You've got 8 months to figure it out ..... plenty of time

When I moved everything over to an IRA at Schwab they suggested that I keep this safe and sound for when I eventually needed to draw upon it in retirement. They were not familiar with government retirees like you and I who have a stable pension with a COLA .Then I ran into a really smart guy there (Lou Mercer) who taught me the core / explore mindset. IRA = core, safe & sound broad based low expenses ETFS buy & hold. BROKERAGE = explore, learn, individual stocks & eventually options. He actually set up my screens. Introduced me to 3 ways to pick stocks: fundamentals, technical, behavioral

 

[old medic]

That's a bit silly... can't you do the same thing within an IRA? Have $x in investments that are stable and $y in investments that are riskier? You can easily do that in a single tIRA account.

Like I said... I've got a lot of learning to do...

 

[old medic]

Great info Gayl. Its nice to have a paycheck and still have the investment savings as back up/play the market.

 

[OldShooter]

One of the things Im trying to figure is what to do with the 401K money. I dont want to roll it into my retirement account. I can leave it in the Prudential account but can't add to it once I retire. Will have a second chance when the wife retires with hers..

Well, thing one IMO is that simplicity is better. So fewer accounts is better. Thing two is what I advise, including to my Adult-Ed investing class, is to have your account where your type of account is their main business. IOW never with insurance companies, banks, or big investment banks. For the typical long-term investor here, that means Schwab, VG, or Fido. For the traders that probably means a firm more oriented to that kind of investor. E-Trade? Robin Hood? For example, Morgan Stanley has reported "Wealth Management" revenue of $3.5B IIRC, with profit margins over 25%. For them we are just little cash cows to be milked. Their wealth management interests are in the high NW individuals and nonprofit endowments with big $ AUM numbers.

 

[gayl]

Well, thing one IMO is that simplicity is better. So fewer accounts is better. Thing two is what I advise, including to my Adult-Ed investing class, is to have your account where your type of account is their main business. IOW never with insurance companies, banks, or big investment banks. For the typical long-term investor here, that means Schwab, VG, or Fido.

Exactly!! [emoji106]

 

[ivinsfan]

Like I said... I've got a lot of learning to do...

You talked about doing an occasional part time shift.. this money would be ideal to drop into either an IRA or a Roth..

 

[old medic]

You talked about doing an occasional part time shift.. this money would be ideal to drop into either an IRA or a Roth..

Or buy toys... got my eye on a side by side.

 

[ivinsfan]

Or buy toys... got my eye on a side by side.

Do what you want.. the comment was you can't contribute to an IRA without earned income...

 

[skyking1]

Congrats OP and thanks all.

 

[old medic]

Do what you want.. the comment was you can't contribute to an IRA without earned income...

But would my pension not be considered earned income... I mean I still have to pay tax on it...

 

[ivinsfan]

But would my pension not be considered earned income... I mean I still have to pay tax on it...

No. It's time for you to do some homework..

 

[teetee]

I am always interested in how frugal people work for most of their adult life and have little net worth to show it. If I have less than 200k but have more than 50k debt, I would not feel comfortable saying I am done with full time job. But I was the one thinking 4M MW is the minimum to retire comfortably so I am likely biased.

I don't take SS or pension into consideration because they are not realized yet (I don't know if I will live that long to get them). But that is just me.

Everyone is different. I am totally fine living in a camper when I retire as long as I don't owe anyone money for it.

I think the OP is too comfortable with having debt. You are retiring on your net worth, not your asset unless you don't plan to pay your debt off while you are alive. But that is not fair to your cosigner/partner.

 

[gayl]

But OP will have 700 month more in retirement than working while his IRA continues to grow. Might have continuing gov't hc & never have to understand ACA. Pay sucks during employment but gotta love govt pensions[emoji126]

 

[gayl]

But OP will have 700 month more in retirement than working while his IRA continues to grow. Might have continuing gov't hc & never have to understand ACA. Pay sucks during employment but gotta love govt pensions[emoji126]

Teetee's post is correct for anyone without a gov't pension

 

[ivinsfan]

But OP will have 700 month more in retirement than working while his IRA continues to grow. Might have continuing gov't hc & never have to understand ACA. Pay sucks during employment but gotta love govt pensions[emoji126]

Just having a conversation about IRA funding rules nothing. Ore

 

[old medic]

No. It's time for you to do some homework..

Class is in session....
I'll be the one in the corner with the dunce hat...

 

[old medic]

I don't take SS or pension into consideration (I don't know if I will live that long to get them).

Everyone is different. I am totally fine living in a camper when I retire as long as I don't owe anyone money for it.

I think the OP is too comfortable with having debt. You are retiring on your net worth,.

I want to be young enough to enjoy the pension and SS...
Debt... not comfortable with it... But a necessary evil...
We actually have 2 different campers... A 36Ft 5th wheel set up that we live in, Paid for, and can get our money back when the house is done. The smaller one we travel with and will keep we owe some on.
The Backhoe has saved me more money on work here on the property than it cost, Plus It makes enough money on the side to pay for itself.

 

[pb4uski]

But would my pension not be considered earned income... I mean I still have to pay tax on it...

No, your pension is not earned income. Just because you have to pay tax on it doesn't make it earned income. You have homework to do.