I plan to marry in 08 or 09. When I do, our combined salary will be over the Roth IRA threshold, so I won't be able to contribute.I know I can just keep my money, paltry as it is, in there till I retire -- does anyone know of a calculator that will give me a sense of how much I'll have when I retire? Most of the calcs I've found relate to rolling over IRAs into Roth IRAs. I also know I can w/draw penalty free up to the original amount contributed for a home. One other question -- and I realize I'll have to talk to a lawyer to confirm -- if I get married in late 2008, will I be able to contribute up to that date as a single person?
One other question -- and I realize I'll have to talk to a lawyer to confirm -- if I get married in late 2008, will I be able to contribute up to that date as a single person? No but a lawyer wouldn't be much help on this - the IRS considers you married for the whole year no matter when during the year you marry.You may want to change the beneficiary for your Roth after you marry.What's the downside to just leaving the ROth as is once you marry ?rad
Will you be able to contribute to a traditional IRA? If so, then you could do that for a couple years and then convert it into a Roth in 2010 when they eliminate the income limits for converting (for one year only right now).Regarding how much will be in your Roth when you retire, you don't need an online calendar. Open up Excel and do a future value calculation:=fv(annual rate, years to retirement, payment, present value, type)in your case payment and type should be 0. You can play with the annual rate, but a range between 8% and 12% would probably be fairly accurate. Don't worry if this number comes out negative, just take the absolute value of it and that's your number.
Just use a simple investment calculator.The fact that the money is in a Roth hasn't got a thing to do with how much it will grow until you retire. Its what INVESTMENTS you have that determine that. Assume an 8 or 10 or 12 or whatever percent return and use one of the online calculators. Here's one at CNN Money http://cgi.money.cnn.com/tools/moneygrow/moneygrow_101.html
does anyone know of a calculator that will give me a sense of how much I'll have when I retire?Rule of 72Take your assumed numbers of years until retirement-usage x your assumed interest rate. Every increment of 72 and your money will double.For example, if you assume your rate of return will be 9%, every 8 years your money will double. If you don't plan to return for 40 years, your money should double five time. (40 divided by 8). In other words, $1000 would go to $2000, then $4000, then $8000, then $16000, then $32000.So while you may not see it as much, it could be worth a lot more in the future.
plan to marry in 08 or 09. When I do, our combined salary will be over the Roth IRA threshold, so I won't be able to contribute.But that may not always be the case. One of you may get laid off, so you'll have a year where you can both contribute to a Roth. One of you may switch careers that has much lower pay and puts you below the threshold, so you'd be able to contribute. Congress could raise or eliminate the income limits, so you'd both be able to contribute.I'd leave it as it is, and contribute in those years where it is possible. We've done that in my house, and so far, have been able to contribute to a Roth for 3 different years. These have been twice when I was laid off during the year, so our income was way down, and once when DH's income was way down. And it's looking like we will be able to contribute this year as well because DH is having an awful business year.I've taken the approach that I'll put money in the Roth in any year in which we are eligible. I'd recommend doing something similar.
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