IRA and 401K limits increase for 2019

Discussion in 'Finance, Investments, and Careers' started by Zeno, Nov 3, 2018.

  1. Ouchie-Z-Clown

    Ouchie-Z-Clown I'm better than Mulli!

    Age:
    50
    Posts:
    19,704
    Likes Received:
    5,192
    Joined:
    Sep 16, 2002
    Location:
    SoCal
    It’s better than an IRA if you eventually take a distribution in retirement for medical reasons - you’ll have never paid taxes!!!
     
  2. iLLmatiC

    iLLmatiC Drive-by Poster

    Age:
    36
    Posts:
    4,533
    Likes Received:
    2,340
    Joined:
    Jul 4, 2004
    Location:
    Gilbert, AZ
    Yeah I've just started using my HSA account as another investment tool.
     
  3. Ouchie-Z-Clown

    Ouchie-Z-Clown I'm better than Mulli!

    Age:
    50
    Posts:
    19,704
    Likes Received:
    5,192
    Joined:
    Sep 16, 2002
    Location:
    SoCal
    And you’re still ahead of likely 98-99% of Americans in doing so.
     
    iLLmatiC likes this.
  4. AZCB34

    AZCB34 Registered User

    Age:
    51
    Posts:
    9,021
    Likes Received:
    676
    Joined:
    Sep 23, 2002
    Location:
    Mesa, AZ
    If only a person didn't need a high deductible plan to use one...
     
  5. puckhead

    puckhead Waxing Gibbous Contributor

    Posts:
    7,345
    Likes Received:
    2,825
    Joined:
    Jun 15, 2005
    Location:
    Moment, AZ
    Is there a reason why that is?
     
  6. Ouchie-Z-Clown

    Ouchie-Z-Clown I'm better than Mulli!

    Age:
    50
    Posts:
    19,704
    Likes Received:
    5,192
    Joined:
    Sep 16, 2002
    Location:
    SoCal
    The law. It’s a dumb law imo
     
    LVG likes this.
  7. puckhead

    puckhead Waxing Gibbous Contributor

    Posts:
    7,345
    Likes Received:
    2,825
    Joined:
    Jun 15, 2005
    Location:
    Moment, AZ
    :lol: Thank you. I was trying to figure out why they were attached to each other, if there was a reason the policy was designed that way.
     
  8. Russ Smith

    Russ Smith The Original Whizzinator Contributor

    Age:
    53
    Posts:
    53,566
    Likes Received:
    3,091
    Joined:
    May 14, 2002
    Side question, when they talk about the 4% rule do they mean 4% of total savings, or just cash savings? The reason I ask of course is in theory if you're still somewhat invested in the markets you should be able to earn at least 4% a year on your total nest egg so if you only spend 4% in theory you don't impact the total much?

    Seems like much of the how much do you need to retire stuff is based on the assumption that you don't want your principle to go down much because you want to leave it to your heirs?
     
  9. Ouchie-Z-Clown

    Ouchie-Z-Clown I'm better than Mulli!

    Age:
    50
    Posts:
    19,704
    Likes Received:
    5,192
    Joined:
    Sep 16, 2002
    Location:
    SoCal
    I believe it’s total not cash. And I believe it was backed into using mortality tables. The goal for saving for retirement is to time it perfectly. Essentially run out of assets just after your funeral is paid for. It’s not meant to be a generational wealth transfer strategy.
     
    Russ Smith likes this.
  10. AZCB34

    AZCB34 Registered User

    Age:
    51
    Posts:
    9,021
    Likes Received:
    676
    Joined:
    Sep 23, 2002
    Location:
    Mesa, AZ
    They claim if you follow the 4% rule you shouldn't run out of money before you die. I don't exactly know how it ultimately works when it comes to RMD since at some point you will be taking out greater than 4% I would think.
     
  11. Ouchie-Z-Clown

    Ouchie-Z-Clown I'm better than Mulli!

    Age:
    50
    Posts:
    19,704
    Likes Received:
    5,192
    Joined:
    Sep 16, 2002
    Location:
    SoCal
    Just because you take a distribution doesn’t mean you have to spend it. Reinvest it until you need it.
     
    AZCB34 likes this.
  12. iLLmatiC

    iLLmatiC Drive-by Poster

    Age:
    36
    Posts:
    4,533
    Likes Received:
    2,340
    Joined:
    Jul 4, 2004
    Location:
    Gilbert, AZ
    Using dividends from stocks is another retirement strategy, you never touch the principle.
     
  13. Russ Smith

    Russ Smith The Original Whizzinator Contributor

    Age:
    53
    Posts:
    53,566
    Likes Received:
    3,091
    Joined:
    May 14, 2002
    BTW I'm not eligible for the ESPP program until mid May I just found out. I started right before the November ESPP opened but unfortunately was not aware of it, nor I think eligible although I'm not clear on that. So I've decided I'm going to go in May between 15 and 20% of salary since 20 is the max allowed. It's a 1 year cycle but you buy(and can sell) every 6 months. The 1 year is just so you can decide to opt out or re-up. If I have to lower my 401K contribution I will it just seems to me too good at my age to pass up on 15%(before tax) guaranteed(and possibly more). The stock was 18 when I started, it's 21 now, so if it were 21 in may I'd be looking at buying in around 15.50 and selling at 21 because it's 15% off the lowest of the 2prices opening of 6 months or closing of 6 months. That's a rare situation of about 1/3 profit so I wish I had been able to sign up right away
     

Share This Page