Author Topic: Lacking in my IRA balances...if there anything I can do?  (Read 1454 times)

BuddyXL

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Lacking in my IRA balances...if there anything I can do?
« on: July 27, 2019, 04:49:11 PM »
I probably have half of what I should as a total amount in my IRAs for someone aged 50+.  Many years I never contributed or didn't contribute the max amount.  I know, I know...what a dumbass!  (Bows head in shame)

As of late (past 7 years or so) I have maxed them out.  Also rolled over some misc funds I had from previous jobs (10k here, 5k there) so all those small little side funds that were getting 1% interest somewhere are now in my IRAs.

Is there anything else I can do now to increase the amount other than continue to make the max contribution each year?  Too bad thats only $7k as I sure would like to drop some more in there!

moof

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Re: Lacking in my IRA balances...if there anything I can do?
« Reply #1 on: July 27, 2019, 05:07:51 PM »
Read: https://forum.mrmoneymustache.com/investor-alley/investment-order/msg1332607/#msg1332607

Then read it a couple more times.

The limits on various buckets, like IRA limits, should not be your stopping point.  Max out any 401k, then IRA’s, Roth’s, 529’s, and then dump the rest into a taxable investment account (as many as are applicable to your situation).

A high savings rate at your age is your best hope.  Slash your spending and aim the resulting firehose of savings into the various buckets dictated by your situation.  You are likely at or past your peak earnings and employability, so you may have less time to catch up than you think.

MDM

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Re: Lacking in my IRA balances...if there anything I can do?
« Reply #2 on: July 27, 2019, 05:10:01 PM »
Is there anything else I can do now to increase the amount other than continue to make the max contribution each year?  Too bad thats only $7k as I sure would like to drop some more in there!
Do you have access to a 401k or similar?  HSA?
« Last Edit: July 27, 2019, 08:12:58 PM by MDM »

Civex

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Re: Lacking in my IRA balances...if there anything I can do?
« Reply #3 on: July 27, 2019, 08:09:32 PM »
Look into if your company offers an after tax contribution (not Roth) into your 401k that you can take in service withdrawals (or not even in service if you are somewhat close to retirement.) This would allow you the "mega Roth" option. Google it for logistics, but it can potentially allow you to drop $20k+ extra into your Roth IRA every year. There have been some posts on here for it and many on bogleheads.

terran

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Re: Lacking in my IRA balances...if there anything I can do?
« Reply #4 on: July 27, 2019, 09:51:18 PM »
Since you're over 50 you can make additional contributions to both IRA (+$1000) and 401(k) (+$6000), so make sure you're doing that. If you have a spouse who doesn't work he/she can still contribute based on your earnings.

Also, don't stress yourself out about tax advantaged accounts too much. Max them out if you can afford, but taxable brokerage accounts can be very tax efficient too.

BuddyXL

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Re: Lacking in my IRA balances...if there anything I can do?
« Reply #5 on: July 28, 2019, 05:52:32 AM »
Thanks for the replies folks.

My company has squat for any retirement or other financial benes (no 401K, no HSA, nuthin') so I am 100% on my own for the future.  Hence my looking for anything I can do.

One of the things I have been looking for is another job!

I appreciate the input.


Much Fishing to Do

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Re: Lacking in my IRA balances...if there anything I can do?
« Reply #6 on: July 28, 2019, 06:42:06 AM »
I usually never had any options for a 401k during my first 10 years working, so even though I was pretty good about maxing out my IRAs there's only so much you can do in a short time period given the lower caps when compared to a 401k.  I did end up owning a business for so the high limits on the SEP-IRA, then solo 401k i set-up help me throw in a ton in a hurry (esp the last 4 years when I made enough to max it out around $50k/year).  If you're in a high enough tax bracket that you would benefit a lot from the deductions, you can look into HSAs (i believe you can still set up your own though I havent looked at them in a while) and DAFs for money saved now to be used for healthcare and charitable donations after retiring.

I still ended up with about two-thirds of my savings in taxable accounts.  I wouldn't worry about it, as always the much more important thing is to reduce spending and increase savings as much as possible now.  The treatment of investments in taxable accounts is currently really good anyway, esp if you can fit most cap gains in the 0% slot upon withdrawal.

 

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