Will be buying my first car, a used boxster

[Flavor 987S]

Farmer, ask yourself:

1) Do I have a garage to park my Porsche in?
2) Is all my debt paid off?
3) Will I put $17,500 into my 401K/Roth 401K this year? (assuming you are under 50 y.o. if not, add another $5,500 for the catch-up)
4) Will I put another $5,500 into my self directed IRA account

Start doing and thinking this way, and you will be rich beyond your wildest dreams!

[steved0x]

Originally Posted by Flavor 987S

Farmer, ask yourself:

1) Do I have a garage to park my Porsche in?
2) Is all my debt paid off?
3) Will I put $17,500 into my 401K/Roth 401K this year? (assuming you are under 50 y.o. if not, add another $5,500 for the catch-up)
4) Will I put another $5,500 into my self directed IRA account

Start doing and thinking this way, and you will be rich beyond your wildest dreams!

Can you do both 3 & 4 at the same time now? Or does #4 have to be a spousal IRA?

Thanks,

Steve

Ps. First car was a late 70's pinto wagon with no ac in FL. 2nd car was a 77 fiat x1/9 I bought for $500 working at McDonald's and my friend's dad helped me fix it up

[Flavor 987S]

Originally Posted by steved0x

Can you do both 3 & 4 at the same time now? Or does #4 have to be a spousal IRA?

Thanks,

Steve

Ps. First car was a late 70's pinto wagon with no ac in FL. 2nd car was a 77 fiat x1/9 I bought for $500 working at McDonald's and my friend's dad helped me fix it up

Hey Steve, I am no expert, but, yes, you can have a company 401K/Roth 401K fund and max out at the $17.5. And you can stash away another $5.5 in an after tax self directed IRA account. No tax deductions for the the extra $5.5. Your spose can do the same, so yearly you can bank $46,000 away. If you turn 50 years old this year, add another $11,000 ($5.5 each) to the "catch-up" at your company's plan. For a grand total of $57,000.



RIGHT RANDALL?????????

[steved0x]

Originally Posted by Flavor 987S

Hey Steve, I am no expert, but, yes, you can have a company 401K/Roth 401K fund and max out at the $17.5. And you can stash away another $5.5 in an after tax self directed IRA account. No tax deductions for the the extra $5.5. Your spose can do the same, so yearly you can bank $46,000 away. If you turn 50 years old this year, add another $11,000 ($5.5 each) to the "catch-up" at your company's plan. For a grand total of $57,000.



RIGHT RANDALL?????????

I just checked these out and you can do both 3 & 4 The ability to contribute to an IRA and have it be deductible or a Roth IRA phase out based on your income, with the limits being higher if you are filing married. I am not sure of the benefit of contributing to an IRA if it is not Roth and is non deductible since you have to pay taxes when it comes out but I am sure there must be one I will check it out further, thank you!

[recycledsixtie]

I don't recommend tire burning starts at green lites. Firstly racing on the street is not safe and two, the Boxster is not a good burnout car. Why? I get a real strong clutch smell when I do and if you do it too often and you burn out the clutch that is big $$$$$.....just trying to help!

[The French Dude]

Originally Posted by recycledsixtie

I don't recommend tire burning starts at green lites. Firstly racing on the street is not safe and two, the Boxster is not a good burnout car. Why? I get a real strong clutch smell when I do and if you do it too often and you burn out the clutch that is big $$$$$.....just trying to help!

Never did it with my box and never had the idea to do but what a fun in twisties !

[Perfectlap]

Originally Posted by steved0x

I just checked these out and you can do both 3 & 4 The ability to contribute to an IRA and have it be deductible or a Roth IRA phase out based on your income, with the limits being higher if you are filing married. I am not sure of the benefit of contributing to an IRA if it is not Roth and is non deductible since you have to pay taxes when it comes out but I am sure there must be one I will check it out further, thank you!

great advice from a contributor to Ritholtz's blog

"One of the little tricks that we have done over the years is increase the percentage taken out of our pay in 401ks and 403bs by 1% every time we got a pay increase until we bump against the maximum permitted deductions. I would try to do 2% in years when the markets were tanking. You didn’t even know the money was missing because you had never had it before. Years when pay increased by inflation or less only, you would feel a small pinch, but in years when pay went up more than inflation it still felt like your pay was rising.

Doing this allowed us to increase our savings rate from 6% of pay to almost 20% (including the catch-up contributions) over the past 20 years. Employer contributions have typically added another 3% to 15%annually (variable depending on employers) to that savings rate over that time period. It adds up over time."

[Flavor 987S]

Originally Posted by steved0x

I just checked these out and you can do both 3 & 4 The ability to contribute to an IRA and have it be deductible or a Roth IRA phase out based on your income, with the limits being higher if you are filing married. I am not sure of the benefit of contributing to an IRA if it is not Roth and is non deductible since you have to pay taxes when it comes out but I am sure there must be one I will check it out further, thank you!

I think it because the gains are not taxed until you take the money out in retirement, and hopefully I'm in a lower tax bracket then. I think that's why my guy has me doing it.