? about retirement funds

Discussion in 'Business Operations' started by contourbs, Jul 17, 2005.

  1. contourbs

    contourbs LawnSite Member
    Posts: 185

    im 24 and want to retire around 45. i am very good at saving money and using it wisly. what kind of retirement plan should i start at my age. and what kind of money should be going to it every year since im 24 now?
     
  2. Drew Gemma

    Drew Gemma LawnSite Bronze Member
    Posts: 1,510

    you need an IRA Roth especially since you own your own business I am assuming so. Let your accountant know it will really effect your taxes at the end of the year.
     
  3. Eclipse

    Eclipse LawnSite Bronze Member
    Posts: 1,149

    How is a Roth IRA going to affect his taxes? It is not a deductible ontributiuon like the Traditional IRA contributions are.

    Agreed though, depending on your income level, a Roth IRA is an excellent savings vehicle.
     
  4. OMG

    OMG LawnSite Senior Member
    Posts: 275

    Roth IRA should be considered on the 1st $300-$3500 (whatever the limit is now)....because it grows tax deferred...............




    After that, you should consult a financial advisor.........
     
  5. rob1325

    rob1325 LawnSite Senior Member
    Posts: 685

    I have a SEP Plan (Self Employeed Person) And a Roth IRA, which I max out every year. You are young so sooner you start the better, but you can't take money out until 59 in those plans without penalties. If you gonna retire at that age you will probably need different plan. Just wish I can retire at that age.
     
  6. Kelly's Landscaping

    Kelly's Landscaping LawnSite Platinum Member
    Posts: 4,414

    Real Estate get a house and get some land I can only kick myself for not buying when I was early 20s the houses here were 130-250K now 12 years later they are 300-800k for those same homes. I am buying some land next door to me very shortly and I will be adding the land on the other side and building a huge home which will be worth over a million then all I need to do is pay it off. Stocks and Bonds are fine Real Estate is better. Looked at a dilapidated beach house on a acre in my town 2 years ago it was 400k some one bought it and did nothing to it at all it was even in worse shape when they sold it this spring for 800k.
     
  7. KDJ

    KDJ LawnSite Senior Member
    Posts: 325


    If you retire at age forty five and live to be eighty five, that is forty years of retirement right. If you can live on 25 grand a year, have no heath issues and no rise in the cost of living one million will get you there. Just a thought.
     
  8. Eclipse

    Eclipse LawnSite Bronze Member
    Posts: 1,149

    With a Roth you can take money out at any age before 59 1/2 without penalty as long as they are qualified distributions and they are not made within a 5yr tax period. One of the more important qualified distributions for a younger person investing in a Roth is for the first time home buyer. Also your contributions themselves can be removed without penalty.
     
  9. Eclipse

    Eclipse LawnSite Bronze Member
    Posts: 1,149

    Not only does it grow tax deferred but qualified distributions are tax exempt. That means you get to keep all your money and not have to pay any taxes to the governement on your withdrawls.
     
  10. contourbs

    contourbs LawnSite Member
    Posts: 185

    actually im building my second house now, what exactally is a roth ira. i have no clue to any ira or retirement plans avail. but i agree on real estate. only thing is it takes money to make money. right now i just want to save it. altough i did just make 20 grand in 1 day selling a 1/2 acre lot in my town. if i or anyone would of known about property is south florida was gonna boom like it did. i would be rich right now.
     

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