Lies about Retirement

This is true, but you can have multiple IRA's.
You can have as many IRAs as you like; but the total you're allowed to put in them is still capped the same.

"The IRA contribution limits for 2024 are $7,000 for those under age 50, and $8,000 for those age 50 or older."

Unless you only started the Roth and 401k a short time ago (<15 years) I have a hard time seeing how you are not setting okay for retirement, unless you still have a ton of debt.
I started saving in a 401(k) at age 50, but I did not start maxing it out until recently. I just started my IRA 5 years ago.

No matter where you are with your retirement investments, the number one thing to work on is debt elimination. This may (likely will) mean lifestyle changes. Clunker cars and smaller housing, etc...
I owe nothing on anything but my house. I have a 30 year fixed VA home loan at 2.25%. We pay extra every month, and it will be paid off in 17 years. We bought it 6 years ago.

I drive a 94 Toyota pickup in the summer and a 2000 Jeep Cherokee in the winter. I've owned the Jeep since new and the truck for over a dozen years. All paid for.

I also saw your lament about leaving your wife in debt. Do you have a good insurance policy (1M or more)?

Nope, and I cannot get one, due to my health. My employer offers me term life insurance at 2X my annual salary, which I opted for.

I am sorry to hear about your situation and very much thank you for your service.
I'm not asking for sympathy, but thanks. I started saving way too late and that's my fault.
 
I drive a 94 Toyota pickup in the summer and a 2000 Jeep Cherokee in the winter.
Good choices, especially the old Toyota. I've had several Toyota pickups each of which I ran to over 200K miles and I intended to keep them a lot longer, but one was stolen and the other was totaled by my then teenage daughter (thankfully unhurt). I now have a 2008 FJ Cruiser and my wife (by her choice) still drives a 99 Rav 4, an incredible car. And we've had no car payments for many years!!! Thank god so many people love to buy new cars so old skinflints like us can enjoy reliable old ones! :)
I'm not asking for sympathy, but thanks. I started saving way too late and that's my fault.
Bill I can't imagine you ever asking for sympathy ;). BTW who's to say we've started to late? My goal is to be like Dr. Leila Denmark. She made significant contributions to medicine, worked until 103 and then enjoyed retirement for eleven more years until she passed on at the age of 114.

Now you may think I'm overly optimistic, but honestly, I looked it up and although the statistics are debated, your odds are definitely better than one in a billion! BTW did I mention that I AM going to Las Vegas this weekend? :p

FWIW, I don't gamble or drink, ....but it is our 35th anniversary and NOT doing something special like taking my wife out of town to see shows and a very nice dinner would really be pushing my luck.
 
You can have as many IRAs as you like; but the total you're allowed to put in them is still capped the same.

"The IRA contribution limits for 2024 are $7,000 for those under age 50, and $8,000 for those age 50 or older."


I started saving in a 401(k) at age 50, but I did not start maxing it out until recently. I just started my IRA 5 years ago.


I owe nothing on anything but my house. I have a 30 year fixed VA home loan at 2.25%. We pay extra every month, and it will be paid off in 17 years. We bought it 6 years ago.

I drive a 94 Toyota pickup in the summer and a 2000 Jeep Cherokee in the winter. I've owned the Jeep since new and the truck for over a dozen years. All paid for.



Nope, and I cannot get one, due to my health. My employer offers me term life insurance at 2X my annual salary, which I opted for.


I'm not asking for sympathy, but thanks. I started saving way too late and that's my fault.
Have you looked into directed IRA's? You can have them in multiple principle names (child, wife etc...). Completely legal and recommended by financial advisors (no, I am not one).
 
You are correct, but contributions are capped annually. $7k under 50 and $8k over.


Retirement savings are like trees. The best time to start saving is 30 years ago. The second best time is now. Ive always liked that saying, though I dont know where its from.
Yep, said all this in an earlier post.
 
Have you looked into directed IRA's? You can have them in multiple principle names (child, wife etc...). Completely legal and recommended by financial advisors (no, I am not one).
That's not what a directed IRA is, as I understand it. It allows you to invest in non-traditional, non-stock market type of investments.

In any case, it doesn't do me any good. I'm maxed out on tax-sheltered retirement investments. I can't invest more than I'm investing, other than private investments that are not tax-advantaged. And I do not have unlimited funds to invest - I make a good living but must also pay my living expenses.
 
Semi retired at 59. Big pension payoff and a year later yearly pension kicked in. For two years on my campus in Japan the first year student population had dropped from 300 to 30. The beginning of the population crisis in Japan. I can honestly say I have never been so busy now. But it's doing things "we" want to do. Living up in the mountain jungle but 15 minutes away from the beach.
 

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That's not what a directed IRA is, as I understand it. It allows you to invest in non-traditional, non-stock market type of investments.

In any case, it doesn't do me any good. I'm maxed out on tax-sheltered retirement investments. I can't invest more than I'm investing, other than private investments that are not tax-advantaged. And I do not have unlimited funds to invest - I make a good living but must also pay my living expenses.
Understood.
My wife and me are both business owners. We met with our tax man to finish up last years taxes this week (yes, we had to file an extension). It was not pretty. We both pay a Lot of estimated taxes each quarter expecting it to be enough at year end, but every year we still owe something. It's always a moving target.
I think only business owners can understand this frustration, versus working for a company where you are sheltered from taxes as an employee.
It absolutely sucks to be able to see you are making more money but it doesn't matter because it never makes it way into your pocket.
I Loathe the tax man.
 
I was shocked to learn that in the U.K., 45% of small businesses pay only 10% of the tax they should be paying. At a dojo Christmas dinner I heard the teacher asking for the receipt so he could put it through his business accounts [thus obtaining tax relief on it]. I hear of people doing this all the time on furniture, reams of printer paper (all for home use) etc. Its dishonest.
 
I was shocked to learn that in the U.K., 45% of small businesses pay only 10% of the tax they should be paying. At a dojo Christmas dinner I heard the teacher asking for the receipt so he could put it through his business accounts [thus obtaining tax relief on it]. I hear of people doing this all the time on furniture, reams of printer paper (all for home use) etc. Its dishonest.
It is prudent to capture all the tax savings you can as a business. Most of the breaks you mention have been eliminated in the US but we for certain leverage the tax laws wherever we can. In the States, it roughly works out to 43% going to the tax man for sole proprietorships. You trim that any ever you can.
 
It is prudent to capture all the tax savings you can as a business. Most of the breaks you mention have been eliminated in the US but we for certain leverage the tax laws wherever we can. In the States, it roughly works out to 43% going to the tax man for sole proprietorships. You trim that any ever you can.
I agree. But certain things like filing purely personal/living expenses (which home furniture and home paper would be, assuming you don't work out of your home) is dishonest and could potentially get you in trouble if you end up audited. At least in the US, things may be different in UK.
 
I agree. But certain things like filing purely personal/living expenses (which home furniture and home paper would be, assuming you don't work out of your home) is dishonest and could potentially get you in trouble if you end up audited. At least in the US, things may be different in UK.
Yes, thats the point I was making and the law is the same in the U.K. The dojo leader who wanted to put the dojo Christmas celebration meals receipt threw his business account wouldve claimed it was a business meeting meal to gain tax relief upon it.

An accountant once said he could save me 瞿3000 a year in taxes almost instantly by suggesting I give him all the receipts for food and drink (lunch) that I buy during the tax year, since food bought out of ones domicile due to being at work is tax deductible. Thats true, its legal but the thought made me uneasy. I started taking in homemade sandwiches instead.

Its annoying and immoral that small businesses think they have the right to dodge taxes because 匈 employ 6 people who create tax revenue. They believe that it, like insurance fraud, is a victimless crime and that isnt true. They result in higher taxes and higher insurance premiums!

The only certainties in life is death and taxes.- Jennifer Anniston.
 
I agree. But certain things like filing purely personal/living expenses (which home furniture and home paper would be, assuming you don't work out of your home) is dishonest and could potentially get you in trouble if you end up audited. At least in the US, things may be different in UK.

This is a tough one. On one hand, I there are clear rules about what is fraud and not fraud. But two things are at play. First, we have a lot of grey in the middle. The question isnt whether it is an actual business expense. Its more about whether it can be proven not to be a business expense. That creates a huge ethical gray area.

Second thing is, in America, corporate finance is so corrupt that many huge businesses pay little or even no taxes by exploiting loopholes and creative accounting practices. I cant blame a small business owner for trying not to get screwed by doing something similar. It may not be entirely in the up and up, but as long as its in the gray area, I get it.
 
I agree. But certain things like filing purely personal/living expenses (which home furniture and home paper would be, assuming you don't work out of your home) is dishonest and could potentially get you in trouble if you end up audited. At least in the US, things may be different in UK.
Fully agree. I never like playing in any of the 'grey' areas. Some people I know roll the dice quite often.
 

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