When did you start saving for retirement?

[lillygator]

started saving in my early 20's...

 

[Jen_in_NH]

Other things to consider. Start Roth contributions now while your earning power is lower. The income limit for contributing to a Roth IRA is, I think between 95,000-105,000. It should rise, but like the AMT limit it may get left behind. After that you are limited to a non-deductible traditional IRA.



I have a couple of questions about this. DH and I are starting to look at IRA's. We waited to set them up until we had bought our house.

1. The income limit for Roth IRA's - is that individually or as a couple? Individually, we would be under hte income limit, but as a couple, we would not.

2. If it is as a couple, and therefore DH and I would be excluded from having one, we have to have traditional IRAs. A previous post mentioned that you can't have a traditional IRA if you are in a retirement system. We're both firefighters, so we have state retirement. What happens then? We can't have either type of IRA?

Help! I'm so confused!

Jen

 

[Ronda93]

For joint filers it's currently $150,000.

A previous post mentioned that you can't have a traditional IRA if you are in a retirement system.

I'm not sure how public pension/retirement plans affect your elegibility for IRAs, but I don't think this is a true statement. Traditional IRA deductibility limitations start at lower amounts if you participate in an employer plan, but that's it.

 

[mickeyfan2]

Set up a Roth IRA for each of you. Put as much as you can up to the max.

 

[Servants of Evan]

I'll be dead long before I hit retirement age. I simply plan on dying on the job because it'll cost my employer an additonal $10 grand...

Edited to add: Don't worry, I'm not a pilot.

 

[TheRatPack]

Can I ask a question

What about something like the Roth IRA offered through ING Investments? Is there anything wrong with those over say a company like Vanguard? I just liked the idea of having it tied to savings so we could transfer so much a month....etc.

The investments look sound over the past year, from a novice perspective of course. Another thing that strikes me about there funds is that it says no fees. I'm wondering if times got tight and I stopped contributing as much on a normal fund, wouldn't the fees start eating up my profits?

Oh and while I'm at it, can I ask 2 questions LOL What can you open for your children? My children are young (11 and 10) but I'd like to go ahead and open something for them that would start working right now, but of course it would have to be smaller amounts to start, since my main concern is my husbands and my own retirement.

 

[KingsFanInRI]

I started when I was 41 (problem is, I'm only 36 now)

In all seriousness, I am in a great profit sharing plan at work and have about $10,000 in it and am 70% vested. I will be 100% vested as of 8-1-07.

 

[Ronda93]

IRAs, particularly the Roth IRA are great for kids. The only problems are a) they have to have earned income to contribute to an IRA and b) some fund companies don't allow IRAs for minors (they can't own securities as minors - some make exceptions, ask).

As soon as the kids have income (baby sitting, yard mowing) and it gets reported, they can have an IRA.

As for the convenience of ING savings and an ING IRA, I think the advantage is negligible. If they say no fee IRA they are most likely waiving the custodian's fee (usually $10-20 annually, there's an extra IRS reporting burden for these - typically - small accounts). If they are waiving it, they can always unwaive it. Read the fine print. The other type of fee you WILL pay, and all investors pay is the fund's management fee. This is where Vanguard eats others up... My rule of thumb is don't invest in any fund with a management fee over 1%. Vanguard's index funds are in the high teens .18%. That's cheap.

 

[TheRatPack]

Well, both of my children are young as I said so they won't have any earned income for quite some time I suppose opening up a savings for them until then might suffice....just hate to miss any good interest.

I just checked ING investments and it just says that some of the fees are waived....etc. But then again they want 250.00 per fund or you have to call to set up a different account, so even an initial investment of 1000.00 for a Roth wouldn't make the cut