It certainty can be a safety net between age 59½ and Social Security age. And, a Substantially Equal Period Payment (SEPP) plan can create penalty free withdrawals prior to age 59½. There are disability provisions that can reach the money earlier.
Some plans have options where a portion of the money can be traded in a brokerage like account.
If you live in a state that doesn’t have Medicaid expansion like I did, having a way to create the minimum income necessary to qualify for Obamacare is a nice ace in the hole. Taxable distributions can be rolled over into a Roth, if they’re not RMDs.
Roth is a nice account, creating tax free income.
Another thing about retirement accounts is, they are beyond the reach of most creditors. So, even if I’m liable for a horrific accident, I’m not living in a cardboard box.
It might not be the optimum retirement vehicle, but, if there is employer subsidy, it’s a no-brainer. An alternative plan would be to withdraw the contributions as soon as the match vested, and even with a 10% penalty, the employer’s match would still pay off.
I went long game.
exvertus on
Nowadays it is even more passive and less discerning, with index ETFs replacing mutual funds
DuckSeveral on
And then companies stop contributing lol
CryptoMemesLOL on
I mean dude, they used people’s money as liquidity to make bigger bets and enrished themselves…
Pretty simple stuff in retrospect you will say, but still nothing is done about it. Retail, pensions, savers, … are Wall Street’s liquidity
5 Comments
Just a carrot 🥕 to keep you spinning your cog!
It certainty can be a safety net between age 59½ and Social Security age. And, a Substantially Equal Period Payment (SEPP) plan can create penalty free withdrawals prior to age 59½. There are disability provisions that can reach the money earlier.
Some plans have options where a portion of the money can be traded in a brokerage like account.
If you live in a state that doesn’t have Medicaid expansion like I did, having a way to create the minimum income necessary to qualify for Obamacare is a nice ace in the hole. Taxable distributions can be rolled over into a Roth, if they’re not RMDs.
Roth is a nice account, creating tax free income.
Another thing about retirement accounts is, they are beyond the reach of most creditors. So, even if I’m liable for a horrific accident, I’m not living in a cardboard box.
It might not be the optimum retirement vehicle, but, if there is employer subsidy, it’s a no-brainer. An alternative plan would be to withdraw the contributions as soon as the match vested, and even with a 10% penalty, the employer’s match would still pay off.
I went long game.
Nowadays it is even more passive and less discerning, with index ETFs replacing mutual funds
And then companies stop contributing lol
I mean dude, they used people’s money as liquidity to make bigger bets and enrished themselves…
Pretty simple stuff in retrospect you will say, but still nothing is done about it. Retail, pensions, savers, … are Wall Street’s liquidity