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!

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    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

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    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!

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    And you’re still ahead of likely 98-99% of Americans in doing so.
     
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  4. AZCB34

    AZCB34 Registered User

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    If only a person didn't need a high deductible plan to use one...
     
  5. puckhead

    puckhead Waxing Gibbous Contributor

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    Is there a reason why that is?
     
  6. Ouchie-Z-Clown

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

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    The law. It’s a dumb law imo
     
  7. puckhead

    puckhead Waxing Gibbous Contributor

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    :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

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    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!

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    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.
     
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  10. AZCB34

    AZCB34 Registered User

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    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!

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    Just because you take a distribution doesn’t mean you have to spend it. Reinvest it until you need it.
     
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  12. iLLmatiC

    iLLmatiC Drive-by Poster

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    Using dividends from stocks is another retirement strategy, you never touch the principle.
     

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