Withdrawal calculator

[westbranch]

That's interesting.

I was told by many that you are subject to pro-rata rules if it is inside of a financial vehicle and you try to pull it from there prior to 59-1/2 using 72(T) or Rule of 55...

Pro-rata rules apply mainly to backdoor Roth contributions and nondeductible traditional IRA contributions/withdrawals.

With Roth withdrawals they come from contributions first.

 

[Bonasababy]

Pro-rata rules apply mainly to backdoor Roth contributions and nondeductible traditional IRA contributions/withdrawals.

With Roth withdrawals they come from contributions first.

Rollovers 2nd. Earnings last.

 

[Bonasababy]

I had a college finance class where the professor showed the math on saving from age 25-35 beating the person saving from age 35-65. My wife and I started contributing 10%+ in 2012 at age 23/24. We were making $70,000 gross household income, rent was $600 a month in small town midwest. We lived like kings!

Amazing what the compounding has done in the last 14 years. Actually dropped contributions quite a bit for 2026 to cover some home projects. I want more flexibility in our mid to late 50s so don't want too much in the tax deferred bucket. Good problem to have.

Don't let these thing dissuade folks from thinking they can't start ramping up that % later in life. I occasionally run into people who say they weren't able to do much in their early getting started years and think they missed the boat and can't retire until full SS age. Starting late is better than not starting. And for many, expenses slow down in the last 15 years or so. If yours are low enough there's an increase in how much you are allowed to contribute starting at age 50 I think.

With 3 kids we never hit 10% for a decade or so. Really ramped it up after the kids were gone from the house. Retired a bit early, my wife at 62. Pension made a real difference though, and will continue to for the rest of our lives.

One strategy I like came from a work colleague. Has three adopted kids, but they are able to make it work....every raise take a portion to increase your contribution rate.

And regarding paying off that mortgage--there is peace of mind in that, but if it's at a lower rater than avg. returns in your retirement account, better to put more away for retirement than try and pay it off early.

 

[Steiny77]

Don't let these thing dissuade folks from thinking they can't start ramping up that % later in life. I occasionally run into people who say they weren't able to do much in their early getting started years and think they missed the boat and can't retire until full SS age. Starting late is better than not starting.

Yep !
We really didn't save much until about age 35. Typically peak earning years are 45 to 65 so you can really put away the savings.

Getting debt free early is a big boost also. Helps a bunch if you don't have stupid car payments or a mortgage to pay.

 

[Mallardsx2]

This is not true at all. You can withdraw your contributions (not earnings) after a five year period.

I was referring to the Roth 401 (K) See below.

 

[sigpros]

If a guy wanted to get the most from a ROTH IRA you just started with approximately 8 years before you retire what ETF would you guys look at? I am in SCHG now but just started it

 

[SAJ-99]

If a guy wanted to get the most from a ROTH IRA you just started with approximately 8 years before you retire what ETF would you guys look at? I am in SCHG now but just started it

SCHG seems fine as long as you know you are making a growth bet and half of the exposure is in tech. Most of my Roth core holding is in SPY so I don't have to look at it. Mostly just make sure you fully fund it if you can.

 

[Bonasababy]

Boy at this point it's hard to pick any winners IMO.

Tech exposure is often a lot of AI--under huge attack right now. And tech has always been about the winners and losers. If you have it, is it diversified enough to insure some winners remain?

The election will flip states and congress--would effect will that have on them?

Interest rates going up, costs going up, national debt going up, the money makers seem more than ever tied to a system designed to make them happy--when that goes away what happens?

I think being well diversified and not having a majority of your money in anything you aren't completely sure of is the way to go if you will be retiring or needing the money within the next decade or so. If you have more time than that have at it--but hang on!