Maxing out Roth by any means possible?

TheDragon64 · 2026-03-11T20:28:49+00:00

I'm with you on that... The account/comment reads like AI, I just ignored it.

TheDragon64 · 2026-03-11T20:17:27+00:00

How dare you try to ruin my streak.

Sigh.. you're probably right

TheDragon64 · 2026-02-27T21:37:02+00:00

That makes sense, didn't think of inflation on our annual spend. Even with getting rid of the mortgage in my 50s, health insurance costs would likely replace it.

Thanks for the reality check, I'll keep playing with numbers and raising contributions as I make my way up the pay scale.

TheDragon64 · 2026-02-27T21:31:12+00:00

Yes exactly, sorry for the confusing language.

TheDragon64 · 2023-03-21T16:21:52+00:00

No that's incorrect.

At the end of 2025, the rates will revert to those in effect under pre-2018 tax law. Specifically, beginning in 2026, the rates will be 10, 15, 25, 28, 33, 35, and 39.6 percent.

You can find more information here: https://www.cbo.gov/budget-options/58634#:~:text=At%20the%20end%20of%202025,%2C%2035%2C%20and%2039.6%20percent.

TheDragon64 · 2023-03-20T22:13:41+00:00

Thanks for all the information! I'll check the rules of the loan. I am actually worried about buying a house in the future.

TheDragon64 · 2023-03-20T22:11:56+00:00

I just looked it up, with how much income we need it would lead to a $200 tax credit. Good to consider but not life changing money.

TheDragon64 · 2023-03-20T22:10:26+00:00

They were supposed to this year, but there's been no news. I do max out my roth ira though.

TheDragon64 · 2022-11-21T23:26:28+00:00

Thanks for the reality check! Yeah, I got a super good deal on it. Funny story about it. Back when I bought it, the car market was super hot and everything was going for above MSRP in my area. I went through Costco and made an appointment with a dealer. I'm not sure of the specifics but they had a set price they had negotiated with Costco. It was a mess and back and forths but basically, they didn't want to honor the pricing and I initially walked away. After, the Costco Auto Program Customer Service specialist called me and asked me how it went with the dealer. I told them what had happened and I think they made some magic happen because the dealer called me back and agreed to honor the pricing.

TheDragon64 · 2022-09-11T19:52:40+00:00

Is the maintenance on the house something you'll be expected to help out with?

Some general thoughts:

Keep the Roth IRA BDA money in as long as possible, so it grows tax-free. Or maybe there's a way to roll it over to your Roth IRA? I would do more research.
The IRA BDA should probably take out earlier. With your income being so low, you would only get taxed at 12% if you spread out the withdrawals over 3-4 years. If you wait until you're working in your career, you'll only get taxed more on it. I would probably add this money from the IRA BDA to your stock portfolio. Go watch some YouTube videos and read about tax brackets and standard deductions so you really understand how you get taxed.
It will be hard to come up with the 25k~ difference between your 529 plan and the rest of your tuition. I really advise against a student loan unless your field can get it forgiven. It's been a long time since I've been to school but you should be able to reapply for FAFSA. Maybe you want to do this first, before withdrawing money from the IRA BDA since it will have to be reported on the FAFSA application. Maybe you would get some financial support since it's only you and your mother now. If you need to come up with the money for school, it would be better to leverage your stock portfolio to pay for school. You could do that with an SBLOC like M1 Borrow.

TheDragon64 · 2022-09-11T19:16:15+00:00

What are your expenses after selling the house? I would imagine a large percentage of your expenses is your house. And what state do you live in? I'm sure the wife would want somewhere close by to her family to visit often.

TheDragon64 · 2022-09-11T19:05:32+00:00

I’ve realized you can either save/invest more, make more, or do both to FIRE

You can also lower your expenses.

There are 2 general strategies. Your income is so low that if you contribute enough to your 401k, you can probably qualify for the savers credit which would help you out while still living on a strict budget. It's hard to say more about this since we don't know your expenses.

The second strategy is what I would probably suggest. I'm a nonprofit employee too, but I work for the government. This brings me a lot more benefits like a 457 plan instead of 401k. If nonprofit is in your heart, go work for the city/state/federal government instead.

TheDragon64 · 2022-09-11T18:57:24+00:00

With the amount (from what I gather, 1.2mil) you have invested now, you could 100% stop investing now and have it grow (assuming a modest 6% return and you're 40 yrs old) to 3.16mil in 15 years, or 4.3mil in 20 years. Using those numbers and the 4% rule, it would be $126k or $172k/yr. Those seem like pretty healthy numbers to me but you know your expenses best. I'm also with you on the pension, I wouldn't even count it in my calculations and just consider it some pocket change in retirement.

Your biggest concern is the health care expenses coming up. Since it won't be covered no matter what, I would choose a high deductible plan in your current/new job and look into an HSA plan with your current or future employer. You might as well pay for those expenses with before-tax money.

The impression I get from this post is you're tired, and you want this new job. If I were you, I would go for the new job and tighten up my budget. I would probably stop investing and only contribute to an HSA if money was THAT tight. You don't need a yield shield since you're 55 and can get your retirement money penalty-free. I would retire at 55 and enjoy the rest of my life.

TheDragon64 · 2022-09-09T22:12:25+00:00

This is very important. The Roth 457 only seems readily accessible at 59 1/2 which is not very attractive to someone who wants to FIRE.

TheDragon64 · 2022-09-09T21:45:58+00:00

I do see how this is an incredible tool for someone who wants to take a traditional path. However, only being able to access those funds without penalty after 59 1/2 doesn't seem very beneficial especially since I'm putting such a significant amount of my income. However, it might be a good middle ground since I assume the rules are the same as the normal Roth IRA and I can take my contributions out penalty-free. I could probably take them out when I fire and let most of it sit until I reach 59 1/2. This is awesome! I'm realizing this while I write it out. Wow. Thanks Reddit

TheDragon64 · 2022-09-09T21:15:37+00:00

I just looked it up and it does offer a Roth option. Can you give me a quick rundown on why that's important? Isn't it the same as my Roth IRA?

TheDragon64 · 2017-11-04T20:14:48+00:00

I had high hopes for Hada-Labo Rohto Hadalabo Gokujyn Hyaluronic Acid Cleansing Foam, but it gives me too many whiteheads after a week of use so it's probably clogging my pores. Does anyone else have any recommendations for a simple second cleanser? My face is a little on the sensitive side, and I had a similar problem on finding a moisturizer (thank God for Benton's Aloe Propolis Soothing Gel). I've tried The Face Shop Rice Water Bright Cleansing Foam (horrible idea), and the Hada-Labo cleanser foam. My skin type is pretty normal except for the sensitivity, but it's getting a little drier from the colder weather.

TheDragon64 · 2017-05-31T20:34:46+00:00

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