tag:blogger.com,1999:blog-6837687243407973220.post5705947390119399643..comments2023-11-03T06:24:57.188-07:00Comments on American Dividend Dream: 401K Update - July 2015ADDhttp://www.blogger.com/profile/05258208917142939036noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-6837687243407973220.post-90491944255400283422015-07-14T19:17:50.190-07:002015-07-14T19:17:50.190-07:00Thanks for the tips! I'm in a weird position ...Thanks for the tips! I'm in a weird position in that I work for a government contractor. With year to year contracts, my job is not as assured as some other people. I will probably put a post up sooner or later on this, but long story short... I'd like to have enough cash readily available to pay off our house before upping our 401k contributions. I may even cash out all of our stocks to pay off the house when we get to that point and then pick up investing all over again with $1500 extra from the mortgage per month. Or finally my wife and I want her to be a stay at home mom. If we get to the point where our investments in taxable accounts are greater than our mortgage payoff, instead of paying off the mortgage, we let the dividends build up and transfer them to a Roth IRA. Therefore, we will always have enough to pay off the house in case I lose my job while simultaneously scooting around paying additional taxes. What do you think?<br /><br />It's pretty awesome that you are on pace to retire at 34. I am no where close to that but I am certainly trying. I wish you continued success on your journey!ADDhttps://www.blogger.com/profile/05258208917142939036noreply@blogger.comtag:blogger.com,1999:blog-6837687243407973220.post-55035184323603923252015-07-14T19:05:34.402-07:002015-07-14T19:05:34.402-07:00Yes, I continue to read about the early withdraw a...Yes, I continue to read about the early withdraw and ways to get around the tax/fee consequences. As retirement comes closer, i'll continue to explore these loopholes. Otherwise, an added bonus in 30 years sound great to me!ADDhttps://www.blogger.com/profile/05258208917142939036noreply@blogger.comtag:blogger.com,1999:blog-6837687243407973220.post-883923663073456922015-07-14T19:02:03.703-07:002015-07-14T19:02:03.703-07:00$30k was not just the 401k, it was a combination o...$30k was not just the 401k, it was a combination of both accounts but I am still very grateful to have invested that much so soon in my life. Hope the good times keep rolling. 32 years is a long way away but I'll be pretty ecstatic to see the results when we get thereADDhttps://www.blogger.com/profile/05258208917142939036noreply@blogger.comtag:blogger.com,1999:blog-6837687243407973220.post-57154628959461550552015-07-09T08:54:22.177-07:002015-07-09T08:54:22.177-07:00Awesome job, big bump so far this year. You can, w...Awesome job, big bump so far this year. You can, with relative ease, get your 401(k) money out penalty-free. After you retire you'll transfer the balance to a traditional IRA. Then, each year, transfer however much you're comfortable paying taxes on to a Roth IRA. If you do it smartly,you'll transfer just enough so that your deductions and exemptions will alleviate you of any taxes.<br /><br />After those transferred funds sit in a Roth for five years, you can withdraw them without penalty (or tax).<br /><br />It's what I'm doing when I retire at 34.Retire29http://www.retire29.comnoreply@blogger.comtag:blogger.com,1999:blog-6837687243407973220.post-75676534720401276612015-07-08T23:51:48.492-07:002015-07-08T23:51:48.492-07:00Nice job! There actually are a couple ways to get ...Nice job! There actually are a couple ways to get to that money before age 55 without penalties but I think your attitude is correct. If that will fuel the second half of your retirement then great!<br /><br />"Added bonus" indeed!Adam - IWTRShttps://www.blogger.com/profile/13494393889774751702noreply@blogger.comtag:blogger.com,1999:blog-6837687243407973220.post-42492742643135550882015-07-08T19:07:16.361-07:002015-07-08T19:07:16.361-07:00Wow, a $30k lift in 5 months is quite impressive. ...Wow, a $30k lift in 5 months is quite impressive. Imagine how huge your 401k will be in 32 years.Anonymousnoreply@blogger.com