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GlyphGryph posted:So, current financial plan and status, myself and wife are working together to figure this out, so yeah... time for some advice:
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Feb 6, 2018 05:36
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| # ¿ May 21, 2024 10:37 |
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GlyphGryph posted:Been working on things other than retirement stuff for a bit, although I did get a Roth IRA account open. More difficult than I expected it to be, apparently they were having trouble validating my identity, but it's all worked out now. GlyphGryph posted:Looking at apartments, found a really nice place that's offering a special "2 months free" deal, so year-long contract with an effective rent of $1,200 over the year, which is really drat good for this area, and the price includes everything but electricity and internet which makes it even cheaper by comparison than the others i've looked at, and conveniently just down the street from the cheapest preschool. They're also fine with me having a May 1st move date - I've informed my current landlord I'll be moving out, so hopefully I can figure out the logistics of a move with zero overlap in rental time. GlyphGryph posted:For her part, my soon-to-be-ex already signed for a $1,650/month apartment and is getting ready to move out but hasn't started looking for a job yet. o_o It was mostly on the basis that her father promised to give her what she needed to get through the next few months.
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Feb 15, 2018 05:50
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GlyphGryph posted:Why is that? The advice from the retirement thread seemed to indicate sticking it into a Roth $36k in 401k (traditional) currently $20k withdraw, split with wife for living expenses $16k split with wife in divorce Is there any way to NOT withdraw the $20k to split with the wife? If your 401k is Traditional, you have yet to pay taxes on it so that gets added to your income this year. Any contributions from your employer are definitely Traditional, so it's quite likely any conversions/withdrawal will be taxable (+10% penalty on withdrawal of course). What I found on Google, which sums up the extent of my 401k-in-divorce knowledge, your portion of your 401k will still be at the provider, and the provider will pay your wife the ordered amount. So your Roth IRA will be separate from the 401k. You do NOT want to pay 10% penalty to early withdraw it and then pay tax to convert it to a Roth IRA. In the event that your provider does pay it out to you into an IRA, you can make the call if you want to convert to Roth and pay tax on it. I did this with a very small 401k (~$3k) during my last year of college, when I had an insanely low tax rate as I was only employed during the fall term. Total tax due was basically nothing due to refundable credits, it worked out very well. With your income, you'll pay a heck of a lot more to convert Traditional to Roth. For your future savings, 401k will be either pre or post tax (traditional vs Roth), I didn't see you list funds/ER's, if they're close to as good as Vanguard and you want to defer the taxes, you may want to go traditional. At your age and income, I kind of expect you're going to be at the same to lower income bracket in retirement, so deferring tax and getting the tax break may be good. That is a more complex computation than I am willing to get into. If your 401k sucks, screw it, go Vanguard Roth IRA. Personally I go all-Roth (employer Roth 401k, Vanguard Roth IRA), and my employer match is Traditional. This (possibly) hedges my future tax rate, I can pick and choose where to withdraw from. Hopefully my retirement income is high enough that it matters!
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Feb 17, 2018 06:38
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OP, we want you to burn as little savings as possible. Loans are negative savings. Double bad if wife doesn't have to help pay them off, and they benefited her. Your whole "gently caress retirement" this is why people steered you clear of the 401k withdraw. You still want to touch it as little as possible, but taking on debt that will get assigned to you (so I assume) is way worse.. I wonder if your wife can be assigned part of the tax debt that the withdraw will generate. No car and biking sounds great. If it turns out it doesn't work for you, you can get a cheap car. Get a reasonably price bike (I know 0 about them, friends are into them ranging from cheap to "holy gently caress you paid how much for that?! and it doesn't have a motor?!") and bike smartly. Chemondelay posted:What's the interest rate on a personal loan, and how are your retirement funds invested? If the former is higher than the expected return on the latter (including penalties), then you're better off liquidating the retirement account. Calculate the compounding for both over the life of the loan and compare them. Also, would your ex-wife share in the repayments for the loan? SiGmA_X fucked around with this message at 07:27 on Feb 23, 2018 |
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Feb 23, 2018 07:25
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GlyphGryph posted:If i take out a personal loan it will be in both of our names with her taking half the payments OR its going to agreed upon in writing that it will shift any wealth division more in my favour by that amount. I dont have any intent to harm myself in this situation (and if she doesnt agree to either of those I will just burn the retirement) it just seems like we would both come out of it better off so long as I can secure a reasonable loan, which is an additional conditional.
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Feb 24, 2018 08:16
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