Monday, December 27, 2010

Roth IRA

I have started my research to get ready for opening a Roth IRA for Todd and I in 2011.  My friend from a message-board I am part of brought up a great point a year or two ago that I think I’m going implement.  We both have older hubbies.  Todd is 10 years my senior, which means he has less time until retirement, but can also start withdrawing funds sooner (without penalty.)  That being said, we are going to try to fully fund his Roth IRA to the maximum allowed ($5,000/year in 2011,) and then any additional funds we were going to invest (an extra $1,000/year,) would be put into my Roth IRA.

This way, in just 20 years, if we decided that we want to retire early, we can start withdrawing from his account without any penalties.  The extra money we will be investing will be for 10 years later when it’s MY turn to withdraw without penalties.
Don’t get me wrong, I don’t want to withdraw until we HAVE to.  If we can live off of part-time income or off of the interest of investments, that’d be GREAT.  But you know me…always planning ahead.

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