#1 above sounds like it may not work as you describe.Hi all - I am 39 and will soon have enough to stop working for the rest of my life, while using a conservative 3.5-4% withdrawal rate which I am confortable with considering I live somewhat minimally.
I am 100% out of the stock market right now, this money was earned through other investments and is a large lump sum. My question is: what would be my best course of action for investing it with Vanguard index funds or ETFs?
1. Although it far exceeds annual limits on IRAs, should I at least max out the Trad and Roth IRA contributions annually while putting the rest in a regular brokerage account?
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For starters, you cannot contribute the "max" to both a Traditional IRA AND a Roth IRA. You can divide your contributions among the two accounts, but the maximum of $7,000 is your total, regardless of which account types you use.
While you might be able to contribute for the 2024 tax year, you'll need "earned income" to contribute these sorts of retirement accounts in the future, but if you're not working, you may not qualify.
I'd suggest you read up on the rules for IRA contributions.
Hopefully the 3.5% - 4% withdrawal rate will work in your circumstances, but for a 50+ year retirement, you may need to consider a slightly lower withdrawal rate.
Regards,
Statistics: Posted by retired@50 — Mon Dec 16, 2024 9:10 am — Replies 2 — Views 111