RE to: buffalo
"I have been retired 4 years, Roth's were just getting off the ground"
One interesting part of retirement was a course called Pre Retirement Planning that was offered by GLW to those over 50. All day and very intensive. Several including me took it two times. When a CFP worked up my nubmers, I was still surprised. My 30 year pension was 38% of my pre retire salary. Not old enough for SS so feeling like had to use up the savings to live. Also knowing drawing down savings early in retirement is much worse than doing it later on.
Then, when I saw the bottom line it was not so bad. When I look at my pay stub, the ducks (de ducts) got so much. But in pension, only medical, and tax withholding. Big difference. And in NY State, first $20K of pesnion not taxes, so needed much less duck there. Also find it costs less to live when you do not have to drive to work each day. And of course not putting all that money into savings. Anyway, retirement has been a great joy for us.
Have a nice day.
I agree with you on maximizing 401K etc. My retirement is in a 403B similar to 401K, no pension just the 403B, it was matched by the employer. During the last 10-15 years of work, I maximized the amount that I could put into the 403, glad that I did. I have been retired 4 years, Roth's were just getting off the ground just as my wife and I were retiring, so we only have small amounts in them. We did transfer one of the wife's IRAs to a Roth using the then 4 year rule, meant extra taxes but the money is free and clear and continues to grow tax free. Yes the rules are a bit complicated but IRS pub 17 contains enough information to figure it out. Since I have two state returns as well as a federal return I use a CPA for my taxes expensive but better in the long run I think.
At any rate, I still advocate that younger retirement investors/savers would do well to have a Roth IRA
Re to: cjf
"$2000.00 invested, 500 + 10 = 510 shares at average cost of $3.9215686 per share.
Have fun..........Jerry "
Very good. Concept is important with large swings in price.
Have a nice day.
Many people think "dollar cost averaging" is done by buying a set number of shares per month to average up or down. Actually the maximum overall gain over time is done by investing the same $amount each month or whatever time period is choosen.
Best of luck...........Jerry