Thanks for letting me know I have “CHOICES”.
Yellow | Yet Another Bankruptcy Court Hearing Scheduled On Yellow Corp/Pension Plans Withdrawal Liability
- Thread starter Freightmaster1
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What the heck are you talking about? Do you even understand what you posted and do you also need a translation to make sense out of it?
Huh? The "growth" is in the nest egg, the "income stream" is the distributions you take out to pay yourself in retirement. Why is it difficult to understand that?
You can lead a horse to water but you can't make him drink.
You're giving him too much credit, he's not making any sense!
almost13ranch
Abitiose sed ineptum
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Is this “bring your own bong” Thursday?
Most victims don't believe they do. Some need reminding.
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Don't threaten a girl w a good time! LMMFAO
I almost changed it to no sense.You're giving him too much credit, he's not making any sense!
Thanks for the correction.
I don't know why, but I get the impression some people here have had a difficult time with life once they left mommy and daddies house!
RB, I guess I really screwed up, and screwed up horribly. I put money in ABF 401k my first few years and I never received any matching funds!!! Now that I'm less than 30 days from retirement you tell me I was supposed to receive matching funds. Thanks for closing the barn door after my 401k match has gotten loose.
So you are saying the income stream is the selling of stocks, mutual funds, or ETF's? Remember RB only has stocks in his retirement account.Huh? The "growth" is in the nest egg, the "income stream" is the distributions you take out to pay yourself in retirement. Why is it difficult to understand that?
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Preston did the same thing. Allowed Teamsters into the 401K plan. No matching funds but the company paid all the fees. What do you want, lifetime pensions and a company match?
I don't quite understand your point. Depending on the particular 401-K we're talking about, a worker can invest into his 401-K in mutual funds, individual stocks or a savings account for example. When that person retires and no longer has income from working he takes distributions from his 401-K. He can have shares of mutual funds or stocks sold to have a cash distribution or he can have shares of mutual funds or stocks transferred to a non-retirement trading account. As long as the proper amount of value is distributed it doesn't matter. For my own IRA account I just have x amount of mutual fund shares transferred to my brokerage trading account to satisfy my RMD for example. That distribution becomes part of my "income stream" in my retirement years.
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Sure that would be nice....I don't think that would be fiscally responsible....can't believe you mentioned it....
I think Homesick believes that you must sell stocks, mutual fund, or ETF's to have an income stream from your 401K.
Depending on how large your portfolio and simple your needs, you may live off the dividends alone, never touching your principal. As to RMDs, as Triplex points out you can take RMD's by transferring $X value of Y shares out of your non-ROTH 401(k) and into your brokerage account.
If you have earned income ( part time gig) you can transfer 401k money to a Roth IRA (up to annual limit)then you can avoid taxes on future gains.
Yes, you would need to sell some shares if your 401-K is in the from of stock or mutual fund shares and you need cash as a distribution. Otherwise as both of us have pointed out, you can just transfer an appropriate number of shares to a non-tax deferred account like a brokerage account for instance.
By the way, I can't quite imagine where you could satisfy an RMD by just using the dividends, I just don't think the math works out. Your investments would have to be paying an unusually large dividend rate for that to happen. I could be wrong though.
There are lots of "angles" to consider before making that kind of decision though. Even the experts disagree about if it's a good idea depending on one's circumstances. Either way there's going to be a tax consequence.
Depends on how much that earned income is.
I haven't been able to take advantage of a ROTH for a long time. Even if I could, I'm not certain that the government isn't going to change course some day and decide all those gains are taxable. Before you scream, "impossible there would be a civil war!" Please consider you have a large percentage of the population that believes we should tax wealth in addition to income. Don't under estimate the political pressure to tax those with to the benefit of those without.
I believe my effective tax rate while working will prove to have always been higher than in my retirement years. I'd rather pay a smaller percentage of a larger number than a larger percentage of a smaller number, even if the numbers work out the same. The law of commutative property.