Does the government want your retirement account?

[Ole Cowboy]

I'm not putting the military down. Not at all. But it is fiscally socialist-like... everything members need is provided for them and all new members need to do is accept the training. Then, mostly regardless of performance (to a point), they rise through the ranks. What's not socialist-like about that? It's only years later that performance and hard work begin to make a difference in rank and pay.

YOU do no know what the hell you are talking about, opening your mouth on something you clearly know nothing about (the military) and fail to understand (socialism) often leads to it being used as a funnel by those around you.

 

[itchin]

I'm pretty ignorant when it comes to.investing. I have no idea what a "Roth" even is. All I have is my 401k and my wife's retirement from the isd. If they took it we wouldn't have anything to retire on. If it happens guaranteed I'll ne shooting.

 

[AustinN4]

I'm pretty ignorant when it comes to.investing. I have no idea what a "Roth" even is. All I have is my 401k and my wife's retirement from the isd. If they took it we wouldn't have anything to retire on. If it happens guaranteed I'll ne shooting.

Simple answer:

Regular IRA - contributions deductable (pre-tax) if you meet the rules up to set limit are invested tax-deferred until withdrawn later in life. Tax is then paid at prevailing tax rate on any $ in excess of any non-deductable contributions on the premise you will earn less in retirement and, therefore, pay a lower tax rate than if you had not contributed (but is not necessarily true).

Roth IRA - all allowed contributions are made after tax, but earings and gains are allowed to compound and be withdrawn tax-free.

More info detailed here: Publication 590 (2013), Individual Retirement Arrangements (IRAs)

Edited to correct info in Regular IRA

 

[itchin]

Thanks. I've got many working years ahead of me. Maybe I need to look at alternatives. I'm really counting on getting that boardwalk game piece from Micky D's.

 

[AustinN4]

I've got many working years ahead of me.

1. Invest early and often - pay yourself first.
2. Max out any available 401K plans and do not count on company pensions being there when you need them. Many, if not most, company pension plans are broke.
3. Also utilize Traditional or Roth IRA's to the max that you are allowed, no matter if your contributions are deductable or not.
4. Live below your means, you will have more $ to invest. (see #1.)
5. Diversify your investments and don't put all your eggs in one basket. High quality dividend-paying stocks are your friend. Most (but not all) of the appreciation in my retirement funds is due to dividends and reinvestment of said dividends. Compounding is a beautiful thing. I recommned a dividend paying big cap ETF. Don't try to pick individual stocks as odds are you will not win that game.
6. Don't count on SS being there for you as it lilely won't. If it is, consider it an unexpected bonus.

Edited to add #6