Thank you so much for stopping by! If you feel so inclined, hit the like button, leave us a comment, and most importantly, SUBSCRIBE to our channel! If you would like us to run a scenario for you, send us an email at derick@fwplanning.com
Thank you for the comment and the subscribe! For me, the planning process is much more fulfilling, because most pensioners do not realize the value of their pension payments. Since they have been undercompensated for most of their career, they never feel ready to retire because they don't have "X" amount saved. When they have the "ah-ha" moment that retirement is all based on cashflow, and not necessarily about the amount they have saved, it makes me feel warm and fuzzy.
Can they not invest into their Roth 401K, since total income is not a factor?? Since he is over 50, he can contribute up to $30500 and she up to $23000 into the Roth 401k in 2024.
They absolutely could, and I appreciate you pointing that out. If they were to put more money into the 401(k)s, it would make the most sense to put it into the pre-tax portion to save on taxes now. The downside is growing that taxable pool of income in retirement. The taxable account provides ease of access to the money they will need before reaching age 59.5. The same could be said about the contributions to the Roth 401(k), because they could access those at any time. My concern there is that it is up to the 401(k) administrator to keep track of what is contribution and what is growth, and in my past experience they are not always the most reliable. But you are absolutely right, they could contribute more to the Roth 401(k) and use it to follow the same path.
![I'm 50 with $1 Million | Can I Retire Early? [Case Study]](http://i.ytimg.com/vi/4S2Hk_LgSKk/mqdefault.jpg)
Thank you so much for stopping by! If you feel so inclined, hit the like button, leave us a comment, and most importantly, SUBSCRIBE to our channel!
If you would like us to run a scenario for you, send us an email at derick@fwplanning.com
Why does your ideal client have half a million and a pension?
Thank you for the comment and the subscribe!
For me, the planning process is much more fulfilling, because most pensioners do not realize the value of their pension payments. Since they have been undercompensated for most of their career, they never feel ready to retire because they don't have "X" amount saved. When they have the "ah-ha" moment that retirement is all based on cashflow, and not necessarily about the amount they have saved, it makes me feel warm and fuzzy.
Can they not invest into their Roth 401K, since total income is not a factor??
Since he is over 50, he can contribute up to $30500 and she up to $23000 into the Roth 401k in 2024.
They absolutely could, and I appreciate you pointing that out. If they were to put more money into the 401(k)s, it would make the most sense to put it into the pre-tax portion to save on taxes now. The downside is growing that taxable pool of income in retirement. The taxable account provides ease of access to the money they will need before reaching age 59.5.
The same could be said about the contributions to the Roth 401(k), because they could access those at any time. My concern there is that it is up to the 401(k) administrator to keep track of what is contribution and what is growth, and in my past experience they are not always the most reliable.
But you are absolutely right, they could contribute more to the Roth 401(k) and use it to follow the same path.