Comments on: My favorite writings of January 2008 http://earlyretirementextreme.com/2008/02/my-favorite-writings-of-january-2008.html Financial independence, frugality, self-sufficiency, ecology, capitalism, and voluntary simplicity Fri, 21 Nov 2008 22:11:38 +0000 http://wordpress.org/?v=2.6.3 By: greentea http://earlyretirementextreme.com/2008/02/my-favorite-writings-of-january-2008.html#comment-330 greentea Tue, 05 Feb 2008 22:25:43 +0000 http://earlyretirementextreme.com/2008/02/my-favorite-writings-of-january-2008.html#comment-330 Thanks for the reply. I've been defaulting to throwing as much savings as possible into retirement accounts, but since I'd like to retire long before age 60, I'll start looking more into taxable accounts. When you suggest to save 70% of your income, do you mean net or gross? With my current plan, I'd be saving about 70% of my net but only 45% of my gross (damn taxes!). Thanks for the reply. I’ve been defaulting to throwing as much savings as possible into retirement accounts, but since I’d like to retire long before age 60, I’ll start looking more into taxable accounts.

When you suggest to save 70% of your income, do you mean net or gross?

With my current plan, I’d be saving about 70% of my net but only 45% of my gross (damn taxes!).

]]> By: Jacob http://earlyretirementextreme.com/2008/02/my-favorite-writings-of-january-2008.html#comment-328 Jacob Tue, 05 Feb 2008 15:45:18 +0000 http://earlyretirementextreme.com/2008/02/my-favorite-writings-of-january-2008.html#comment-328 @ greentea - My retirement accounts comprise about 3% of my entire portfolio. However, I have lived in three different countries so starting and trying to move retirement accounts would be a major hassle. I think it depends on how you want your retirement to play out. For instance, you could continue maxing out the Roths and if you have money left you could start a taxable account. This way you would still have to work for money close to age 60. Maxing them out you might have enough money long before that but would be unable to get at it (without penalty). In the mean time you could scale down to part time work just to cover expenses. Of course this all depends on what your expense level is <=- that is the most important determinant. The alternative is to think about how many years you got left until retirement and how many years you expect to have left after retirement and fund accordingly to taxables and roths. This would require some number crunching which I haven't done. @ greentea - My retirement accounts comprise about 3% of my entire portfolio. However, I have lived in three different countries so starting and trying to move retirement accounts would be a major hassle. I think it depends on how you want your retirement to play out. For instance, you could continue maxing out the Roths and if you have money left you could start a taxable account. This way you would still have to work for money close to age 60. Maxing them out you might have enough money long before that but would be unable to get at it (without penalty). In the mean time you could scale down to part time work just to cover expenses. Of course this all depends on what your expense level is <=- that is the most important determinant. The alternative is to think about how many years you got left until retirement and how many years you expect to have left after retirement and fund accordingly to taxables and roths. This would require some number crunching which I haven’t done.

]]> By: greentea http://earlyretirementextreme.com/2008/02/my-favorite-writings-of-january-2008.html#comment-326 greentea Tue, 05 Feb 2008 07:52:07 +0000 http://earlyretirementextreme.com/2008/02/my-favorite-writings-of-january-2008.html#comment-326 What do you think of traditional retirement accounts? I was planning on maxing out both a Roth 401(k) and Roth IRA this year, but now I'm wondering if there are better investment options for those desiring early retirement. Thank you for starting this blog! It's very inspirational. What do you think of traditional retirement accounts? I was planning on maxing out both a Roth 401(k) and Roth IRA this year, but now I’m wondering if there are better investment options for those desiring early retirement.

Thank you for starting this blog! It’s very inspirational.

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