Comments on: How I saved too much for retirement http://blogs2.startribune.com/blogs/kablog/2008/05/19/how-i-saved-too-much-for-retirement/ Put the \"personal\" back in personal finance, the \"me\" in money management, the \"I\" in investing. Mon, 23 Nov 2009 15:08:04 +0000 http://wordpress.org/?v=2.3.3 By: bsimon http://blogs2.startribune.com/blogs/kablog/2008/05/19/how-i-saved-too-much-for-retirement/#comment-9189 bsimon Wed, 21 May 2008 18:13:22 +0000 http://blogs2.startribune.com/blogs/kablog/2008/05/19/how-i-saved-too-much-for-retirement/#comment-9189 I should correct my earlier statement. My wife's Roth was originally with Putnam. Vanguard is a huge improvement, both in terms of functionality & investment options. (Just say NO to front-load funds. Or load funds at all) I should correct my earlier statement. My wife’s Roth was originally with Putnam. Vanguard is a huge improvement, both in terms of functionality & investment options. (Just say NO to front-load funds. Or load funds at all)

]]> By: mike d http://blogs2.startribune.com/blogs/kablog/2008/05/19/how-i-saved-too-much-for-retirement/#comment-9184 mike d Wed, 21 May 2008 13:00:17 +0000 http://blogs2.startribune.com/blogs/kablog/2008/05/19/how-i-saved-too-much-for-retirement/#comment-9184 Ditto on Vanguard, I use it to manage my wife's Roth and my sons' UGMA accounts. Their site is very easy to use and their index funds are top-notch. I may even roll over the Fidelity Roth my dad set up for me - the Fidelity funds are decent but the ease of use is like night and day when compared to Vanguard. I go to the Fidelity site and I'm just LOST! The IRS barely has enough time to chase down Robert Beale...I think you can let the .95 slide, Kara. :-) Ditto on Vanguard, I use it to manage my wife’s Roth and my sons’ UGMA accounts. Their site is very easy to use and their index funds are top-notch. I may even roll over the Fidelity Roth my dad set up for me - the Fidelity funds are decent but the ease of use is like night and day when compared to Vanguard. I go to the Fidelity site and I’m just LOST!

The IRS barely has enough time to chase down Robert Beale…I think you can let the .95 slide, Kara. :-)

]]> By: bsimon http://blogs2.startribune.com/blogs/kablog/2008/05/19/how-i-saved-too-much-for-retirement/#comment-9183 bsimon Tue, 20 May 2008 18:06:54 +0000 http://blogs2.startribune.com/blogs/kablog/2008/05/19/how-i-saved-too-much-for-retirement/#comment-9183 I believe the Vanguard site will accomodate varying date ranges. When setting up contributions you are forced to specify the contribution year. It also prohibits, as far as I recall, making any excess contributions. Its the only site I've used for managing Roth accounts, but am happy with it, managing both mine and my wife's. I believe the Vanguard site will accomodate varying date ranges. When setting up contributions you are forced to specify the contribution year. It also prohibits, as far as I recall, making any excess contributions. Its the only site I’ve used for managing Roth accounts, but am happy with it, managing both mine and my wife’s.

]]> By: Kara McGuire http://blogs2.startribune.com/blogs/kablog/2008/05/19/how-i-saved-too-much-for-retirement/#comment-9182 Kara McGuire Tue, 20 May 2008 14:30:29 +0000 http://blogs2.startribune.com/blogs/kablog/2008/05/19/how-i-saved-too-much-for-retirement/#comment-9182 You can even direct your IRS refund into an IRA account. You can even direct your IRS refund into an IRA account.

]]> By: David http://blogs2.startribune.com/blogs/kablog/2008/05/19/how-i-saved-too-much-for-retirement/#comment-9181 David Tue, 20 May 2008 13:05:50 +0000 http://blogs2.startribune.com/blogs/kablog/2008/05/19/how-i-saved-too-much-for-retirement/#comment-9181 Vanguard has a "maximize" feature. It assumes, though, that you are not catching-up as you did in 2008 with 2007 contributions. Here's how it works. You set an auto-debit for 416/month in 2008 and then at the end of 2008 Vanguard will check to see if the 2009 amount is indexed higher...they send you a letter in November...and then automatically increase the periodic amount in January 2009. Their system assumes that you start in January with a level amount each period (month, quarter) and so therefore it's not smart enough to know if you are trying to catch up or not. There's an easy way to lump-sum: simply plan for a tax refund. The earnings lost would be minimal (again, this assumes your forecast your refund and then dutifully invest this amount each month) and it will be easy to "give away" the money to your IRA when the IRS deposit hits. Vanguard has a “maximize” feature. It assumes, though, that you are not catching-up as you did in 2008 with 2007 contributions. Here’s how it works. You set an auto-debit for 416/month in 2008 and then at the end of 2008 Vanguard will check to see if the 2009 amount is indexed higher…they send you a letter in November…and then automatically increase the periodic amount in January 2009. Their system assumes that you start in January with a level amount each period (month, quarter) and so therefore it’s not smart enough to know if you are trying to catch up or not.

There’s an easy way to lump-sum: simply plan for a tax refund. The earnings lost would be minimal (again, this assumes your forecast your refund and then dutifully invest this amount each month) and it will be easy to “give away” the money to your IRA when the IRS deposit hits.

]]> By: Karma http://blogs2.startribune.com/blogs/kablog/2008/05/19/how-i-saved-too-much-for-retirement/#comment-9180 Karma Tue, 20 May 2008 02:53:59 +0000 http://blogs2.startribune.com/blogs/kablog/2008/05/19/how-i-saved-too-much-for-retirement/#comment-9180 I divide the total contribution and round down to even dollar amount for dollar cost averaging. The difference I send an online check for the amount of the difference. For example, I dollar cost average $415.00/month which totals to $4980.00. The difference $20.00 I send as a separate amount at the beginning of the year. I divide the total contribution and round down to even dollar amount for dollar cost averaging. The difference I send an online check for the amount of the difference. For example, I dollar cost average $415.00/month which totals to $4980.00. The difference $20.00 I send as a separate amount at the beginning of the year.

]]> By: Kara McGuire http://blogs2.startribune.com/blogs/kablog/2008/05/19/how-i-saved-too-much-for-retirement/#comment-9177 Kara McGuire Mon, 19 May 2008 22:48:46 +0000 http://blogs2.startribune.com/blogs/kablog/2008/05/19/how-i-saved-too-much-for-retirement/#comment-9177 Yeah, I suppose I could save the money up all year and put it in all at once or quarterly. But I prefer dollar cost averaging instead and think technology-rich financial services firms could figure out a way to calculate our payments for us and check a box to authorize them changing the auto withholding rather than me having to call or email or log on and do the math. Yeah, I suppose I could save the money up all year and put it in all at once or quarterly. But I prefer dollar cost averaging instead and think technology-rich financial services firms could figure out a way to calculate our payments for us and check a box to authorize them changing the auto withholding rather than me having to call or email or log on and do the math.

]]> By: Chris http://blogs2.startribune.com/blogs/kablog/2008/05/19/how-i-saved-too-much-for-retirement/#comment-9176 Chris Mon, 19 May 2008 22:44:08 +0000 http://blogs2.startribune.com/blogs/kablog/2008/05/19/how-i-saved-too-much-for-retirement/#comment-9176 You could just write a check at the beginning or end of the year... yeah it's a big chuck of change for most people but it makes it easier to hit that target. You could just write a check at the beginning or end of the year… yeah it’s a big chuck of change for most people but it makes it easier to hit that target.

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