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good, we may consider to setting up one too if we do some plannings
I’ve been looking at opening a Roth IRA too. Why did you choose Vanguard? They’re one of the ones I was looking at.
Yes, you definitely see the marriage penalty there. I’m not sure why they even have income limits at all for a Roth. It’s not like a super-rich person could use it to slash their tax bill, because they’d have the same contribution limits as anyone else.
I also like the idea of being able to take out deposits, just in case. I don’t want to take anything out, but it’s nice to have limited access. Micah doesn’t have one yet, but he’s the beneficiary on mine, so in case something happens to me he’s covered.
We’re going to try to start funding one for him later this year as things settle down.
[...] wrote about funding my hubby’s Roth IRA and Gift Guilt on Wise Bread. Working on a bunch of other stuff, though! __________________ [...]
Kudos to you! I wish I had been as money savvy during my college years as you are.
Way back in the day a professor told me about IRA’s. Two thousand a year was the limit back then (around 1985). Great idea I thought. I left the class, went out with a buddy, drank beer, forgot about the Roth. Twenty three years later I wish I headed to a broker rather than my friends house.
Don’t get me wrong, my wife and I are on our way to a comfortable retirement…but boy-oh-boy if I had heeded my professors advise, I would be retiring in 8 years at the ripe old age of 50 instead of at 60.
Kids, DON’T DO WHAT I DID! Take it from an old man at the ripe of age of 42 . Save for retirement as soon as you leave college!
Sure, you have the whole world ahead of you. Time is your friend in all things financial. But don’t procrastinate. Time is not your friend when it comes to retirement. It’ll be here before you know it.
Did you look at anywhere other than Vanguard? I am looking to do the same exact thing for my wife and have been looking at Vanguard (where my 401K is) and Charles Schwab.
Since I have a traditional 401K and a rollover IRA, I think a Roth might be a good hedge against taxes later.
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