Comments on: 60% of Generation X Don't Have an IRA http://thefinancebuff.com/2007/07/60-of-generation-x-don-have-ira.html like a friend telling you about money ... Thu, 19 Nov 2009 19:44:17 -0600 http://wordpress.org/?v=2.8 hourly 1 By: Anonymous http://thefinancebuff.com/2007/07/60-of-generation-x-don-have-ira.html/comment-page-1#comment-285 Anonymous Thu, 11 Oct 2007 02:53:00 +0000 http://blog.thefinancebuff.com/?p=133#comment-285 For me, early withdrawal penalties are a big negative. Your tone is patronizing and fails to appreciate the wide range of life situations any given genXer may face. For example, my earned income is squat while assets are significant. I live overseas from time to time. Last year, I took a net capital gain of $50k and paid 1% tax on it. How is that possible? That's my business, but it wouldn't have been possible with an IRA. For me, early withdrawal penalties are a big negative. Your tone is patronizing and fails to appreciate the wide range of life situations any given genXer may face. For example, my earned income is squat while assets are significant. I live overseas from time to time. Last year, I took a net capital gain of $50k and paid 1% tax on it. How is that possible? That's my business, but it wouldn't have been possible with an IRA.

]]> By: TFB http://thefinancebuff.com/2007/07/60-of-generation-x-don-have-ira.html/comment-page-1#comment-188 TFB Mon, 09 Jul 2007 20:05:00 +0000 http://blog.thefinancebuff.com/?p=133#comment-188 Anonymous,<br/><br/>You are right -- people who earn "too much" cannot contribute to a Roth IRA or deduct their contributions to a Traditional IRA. But I think they should <i>have</i> an IRA of some sort, established when they weren't excluded from the contribution or tax deduction. The survey says 60% of Generation X don't <i>have</i> an IRA, not just not adding $$$ to one. Put it in another way, if you don't set up one now, if you ever enter the "income too high" category, you will not have the chance again. Anonymous,

You are right — people who earn "too much" cannot contribute to a Roth IRA or deduct their contributions to a Traditional IRA. But I think they should have an IRA of some sort, established when they weren't excluded from the contribution or tax deduction. The survey says 60% of Generation X don't have an IRA, not just not adding $$$ to one. Put it in another way, if you don't set up one now, if you ever enter the "income too high" category, you will not have the chance again.

]]> By: Anonymous http://thefinancebuff.com/2007/07/60-of-generation-x-don-have-ira.html/comment-page-1#comment-186 Anonymous Mon, 09 Jul 2007 01:43:00 +0000 http://blog.thefinancebuff.com/?p=133#comment-186 I believe you're overlooking a legitimate scenario in which putting $$$ in an IRA doesn't make sense: when your MAGI (Modified Adjusted Gross Income) exceeds $114,000/year.<br/><br/>In this scenario, contributions you make to an IRA (Roth or Traditional) are not tax deductible. <br/><br/>Putting money in a taxable account (after you've filled your 401(k)), instead, is a better strategy in my opinion. I believe you're overlooking a legitimate scenario in which putting $$$ in an IRA doesn't make sense: when your MAGI (Modified Adjusted Gross Income) exceeds $114,000/year.

In this scenario, contributions you make to an IRA (Roth or Traditional) are not tax deductible.

Putting money in a taxable account (after you've filled your 401(k)), instead, is a better strategy in my opinion.

]]> By: TFB http://thefinancebuff.com/2007/07/60-of-generation-x-don-have-ira.html/comment-page-1#comment-182 TFB Sat, 07 Jul 2007 00:29:00 +0000 http://blog.thefinancebuff.com/?p=133#comment-182 Thank you Ted for the great addition. It goes with the saying people spend more time planning for their next vacation than planning for their retirement. I don't know if that's true or not, but you are right. Opening an IRA does not take much time at all. Thank you Ted for the great addition. It goes with the saying people spend more time planning for their next vacation than planning for their retirement. I don't know if that's true or not, but you are right. Opening an IRA does not take much time at all.

]]> By: Ted Valentine http://thefinancebuff.com/2007/07/60-of-generation-x-don-have-ira.html/comment-page-1#comment-181 Ted Valentine Fri, 06 Jul 2007 15:21:00 +0000 http://blog.thefinancebuff.com/?p=133#comment-181 If you don't mind, TFB, having signed up for this exact fund in my conservative investor-wife's ROTH earlier this year:<br/><br/>4. It takes about 20 minutes to sign up online at vanguard.com and you can fund it electronically direct from your bank account. Most genXers will waste 3 times that online today at work. So you can't say you don't have time. If you don't mind, TFB, having signed up for this exact fund in my conservative investor-wife's ROTH earlier this year:

4. It takes about 20 minutes to sign up online at vanguard.com and you can fund it electronically direct from your bank account. Most genXers will waste 3 times that online today at work. So you can't say you don't have time.

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