UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: RogerD One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 79743  
Subject: Stop investing and just manage the balance? Date: 11/18/1998 3:16 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I'm looking for other people's thoughts on this question. My 403(b) at Vanguard and an IRA invested in Dell have done quite well, and that raises a new issue. Growth is now almost entirely driven by market returns on my balance, and new investment is only a small contributor. I'm considering not funding a Roth IRA but wondering if I've missed something. Of course I'll continue to take my employer's 2:1 match on the 403(b), but I see less benefit in a further reduction in current cash flow to fund a Roth.

When I do the numbers, assuming I'm not going to touch any retirement account until age 55 (18 years) and assuming a real rate of return on Vanguard's Index 500 of 8% or more, the 403(b) alone gives me an annual inflation-adjusted income forever of triple what I now make. What's the reason, if any, for funding a Roth too? Has anyone else considered this question and determined a balance or other threshold at which it no longer makes sense to add new money to their retirement portfolio?
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Macro Economics

Looking at Oil and Gas
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.