RE: Retirement.
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I found this link full of great information on retiring (early).
geocities.com
It details the early withdrawal of IRA's that you mentioned, Frank. It also points to some resources to help you make the appropriate calculations. It's worth a bookmark.
I didn't see any mention specifically of a ROTH being treated the same as a reg IRA, but I will keep looking.
I even found a gem on company stock in a 401k, some of you may know this, but I bet most don't - Apparently you can take the stock out of the 401k and only pay income tax on the basis of the stock (& no penalties), and then only pay long-term cap gains when you sell. - May be much better than rolling the stock into an IRA, where you pay income taxes on the amount of the withdrawal. I know a lot of folks with very low basis company stock in their 401k, it would be a crime to roll it over... Especially if you work for a G&K company.
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Anyway, at 31, I may retire in 4 - 5 years. I have calculated that working full time costs me a minimum of 1% portfolio value/month in ST portfolio management. I sell calls and puts around my volatile Gorillas and Kings (which are TLB&H), and long LT calls or LEAPS when the stock flat-lines for a bit and the time premiums shrink. This strategy requires time that I can't spare while slavin' for the man.
(The strategy has been beneficial, reduces risk and beta, while generates cash. However, I have only had the time to do it on a smaller scale) That 1%/month is rapidly approaching my annual salary, I call it my "cost of working".
I have to balance this cost with continuous quarterly employee stock option grants that should yield mid-5 to low-6 figs each. Talk about "golden handcuffs" - option grants every quarter that vest in 2 years, expire in 4. When I leave, I leave 8 options grants on the table, ouch. Hope we get bought out before I bite that bullet...(Please, don't take this as whining, it's a wonderfully awful dilemma!) Of course I don't depend on these options as part of my retirement due to the uncertainty.
This is a fantastic thread, I enjoy the variety of discussions as of late. I am inspired by the recent list of new retirees on this thread. I've been evangelizing the GG to everyone I know like a moonie at the airport, hope I don't have that crazed look in my eyes.
I rarely have time to post, so please forgive the rambling, length and slightly OT content.
Cheers,
-JG |
