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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 25226  
Subject: Re: Roth 401K-brokers that allow individual stoc Date: 8/20/2013 4:55 PM
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I am also determined not to live off of Social Security, like my parents are now. If SS is there when I retire, fine. If not, that needs to be fine too.
If I max out our 2 Roth's that's only 13k per year. That won't be enough.


You're right. IRAs alone are not nearly enough, even if you were only in your 20s. Being over 50, not wanting to use SS to live off of, and having only $5k in your current investment portfolio? You probably need to be putting away mid to upper 5 figures each year, depending on how long you want to work, and what your expenses in retirement will be.

Where do I put the rest?

Taxable accounts are options, in addition to 401(k) accounts.

If, for example, I had a Roth and a Traditional IRA is the max contribution per person? Rather than per account?

The contribution limit is per person, not per account. Each individual can contribute $5,500, plus a $1,000 catch-up contribution to a Traditional IRA, a Roth IRA or a combination of the 2.

Not sure if the cost of a 401k can be justified.

Well, if you are willing to invest in index funds until you get enough accumulated so that you can be diversified when buying individual stocks, Vanguard's plan costs $20 a year. You don't have to leave your account at the company you start with - you can move to Schwab, or someplace else, later - when you can justify the higher costs to be able to invest in individual stocks.

Instead of being vague about the stocks I have now, and your wondering about my abilities to pick decent ones, I only have Tesla Motors and Amazon stock right now. I know, I know, it's not diverse but $5,000 won't buy much when it comes to aggressive companies. Today, combined, they are at a 12% gain. They have been as high as over 20% on some days (Tesla by itself has been over 30%). The market is down some right now though.

You are gambling, not investing.

AJ
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