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still haven't decided...

April 15th, 2013 at 01:26 pm

This is so embarrassing, but I still haven’t decided which route to take with the IRA contribution – open a new Roth, lose a current tax break, but have some accessible and tax-free money available in retirement (earlier than my traditional IRA), or continue funding the traditional IRA, get the tax benefits now and deal with taxes when I start to withdraw money when I’m older (which I would have to wait until 59.5).

Thanks to everyone who weighed in. I appreciate you taking the time to share your thoughts. And extra thanks to MonkeyMama for reading and responding with your expertise during your busiest season!!

I forgot to share the third option, which is to not put any money into an IRA for 2012 (or less than $5000). I already put $17,000 through auto withdraw into my work 403b plan AND my employer added another 15% of my salary on top of that (haven’t figured out the math, but maybe $7 – 9K?) Do I really need to put more money toward retirement for 2012? I worry that I’m over-saving and not doing enough living in the moment.

My indecision is a real problem in my life – but I’ll save that for another post!

I guess I will be choosing soon as time is running out! Need to take Wino’s words to heart – just do one and live with the results. Smile

Posted in Uncategorized | 4 Comments »

4 Responses to “still haven't decided...”

  1. Petunia 100 Says:
    April 15th, 2013 at 02:34 pm 1366036440
    1366036440

    Well, you'd better get a move on, Starfishy! Smile

  2. creditcardfree Says:
    April 15th, 2013 at 02:55 pm 1366037736
    1366037736

    You could do less than the max too, if you are having doubts about over saving. What percentage would you save each way? Maybe you don't need to add more. Good luck!!

  3. JulieAlbright Says:
    April 15th, 2013 at 04:25 pm 1366043132
    1366043132

    I was going to say that whenever I find myself stuck in indecision like that, I divide the money in half and do both ... and then just consider the decision made. I mean, you can second guess yourself forever but none of us can see the future - right? You just have to make your best guess and then go with it.

    But then I looked over at your list of house projects and I'm wondering if you wouldn't be better doing some maintenance work. Septic Tanks and Roofs aren't exactly luxury items. Those could be classified as real needs. I don't know what your total retirement balances look like, but you certainly seem to be saving a good chunk a year.

    Well, I was no help at all now - was I?

  4. snafu Says:
    April 15th, 2013 at 08:10 pm 1366056653
    1366056653

    Have you used one of the retirement income calculators to work out probable sums needed to maintain your expected standard of living? Do you anticipate major expenditures to fulfill 'bucket list' desires? Once you feel secure about how much you need to add each year you can work out if 17% is enough. Most retirees just withdraw the sum needed to facilitate expenses for each year. The majority of funds continue to earn income for you.

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