After the positive responses and congratulations on my Retirement thread, the idea came to me that there should be a thread that helps everyone prepare for the eventuality of retirement.
There were many great ideas, comments and great suggestions that came out of the conversation. What I would like to do is put this here as a repository for information for anyone who is:
- Ready to retire
- Close to retirement
- Beginning to plan for retirement
One of the things I came to find out is that no matter how much I had thought I was prepared for retirement, there were still things I had not pondered or prepared for.
So this thread is for all your questions, comments, advice to help others that are close to retirement.
I mean....this board is about a year and a half away from being around for a quarter of a century, and many of us who have been around are there already.
So, please feel free to contribute!
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Originally Posted by 2bikemike:
What I failed to do was invest in a Roth. I have around a 14-16% effective tax rate in retirement. Nothing sucks more than to pay Uncle Same $1600 bucks for every $10K you withdraw from your IRA.
From what I understand they can only tax the GAINS in an IRA since you contribute to it with after tax money.
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Originally Posted by TinyEvel:
From what I understand they can only tax the GAINS in an IRA since you contribute to it with after tax money.
A Roth is pre tax dollars. So there is no tax on withdrawals. Your money grows tax free. A traditional IRA is pre tax dollars so every withdrawal is taxed.
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