General

Topic   Do You Budget?

Scots
GameTZ Subscriber Triple Gold Good Trader Global Trader - willing to trade internationally
1-Feb-2018(#1)
Thought it would be fun to hear how you guys manage your money, budget, etc.

We made a new year's resolution to save more than we already were, and to be more conscious of our spending. We're doing the "every dollar accounted for" system this year, and through a month, it's really been good for us. It really has made us think before spending.

We sat down and looked at our expenses in the 2 categories of known costs (mortgage, car payment, memberships, etc.) and variable costs (utilities, discretionary spending, etc.). Setting budgets for the variable stuff was the hardest part. Like, we had never REALLY tracked what we spend on groceries for the family in a month). We did pretty well on predicting for January, though.

We use Mint for tracking. If you're looking for a way to do this, I highly recommend it. Easy to use for tracking everything, budgeting, and especially setting saving goals based on predictability. Good site and mobile app.

So what do you guys do?


Porksta
GameTZ Gold Subscriber 350 Trade Quintuple Gold Good Trader Global Trader - willing to trade internationally
1-Feb-2018(#2)
I record the total of my checking and my savings each month. If it increases month to month, then I am happy.

dustin11
Double Gold Good Trader Global Trader - willing to trade internationally
1-Feb-2018(#3)
Yep. My Wife and I have a printed excel file on our fridge that has all our monthly expenditures and the total of all those amounts added up at the bottom. Most of our stuff is pretty much set and doesn't fluctuate much with the exception of utilities. Our grocery bill we budget 400/month but typically only use around $350 of it which ends up giving us some leeway when we need to buy something in bulk one month and pushes us over that amount. Taking care of it is really easy too, I just take the same amount of my paycheck every week and despot it into the account that all our bills come out of and that's it, everything is taken care of. The rest of that money goes into my personal checking account and once that hits a certain number then I transfer the majority of it over into my personal savings account where the money just hangs out and accumulates.
lpeters82
GameTZ Gold Subscriber 250 Trade Quintuple Gold Good Trader
* 1-Feb-2018(#4)
I really don't. I'd say, I have a tendency of keeping myself (my family) perpetually low on expendable cash. That's not even a bad thing though. For example, we took out a car loan late in 2016. That's by no means a high interest loan, but that is my highest interest borrowed money. We also have a mortgage, that we've refinance into a 15 year loan, and my wife has some super low interest student loans. We could pay off the student loan, but honestly it's something ridiculous, like 0.5%. So anyway, when we do have "extra" money I tend to pay off the car loan. We should have it payed off by the middle of this year.

I do try to automate as much as possible. Things like our mortgage, insurance, credit cards, daycare, college funds, utility bills, Roth IRAs, etc. are all done automatically. I set things up so our major bills withdraw the day after my paychecks are deposited. I also calculate things out, so for example, our mortgage will be ending the year before my twins graduate high school. So while, I don't budget day-to-day or week-to-week, I have a long range financial strategy.

I do sometimes feel bad that I don't have $20,000 just sitting in a bank. I figure, we can always pull the principal out of our Roth IRAs in a pinch. While it is a retirement account, it's not our main retirement. We both have decent jobs with a built in retirement savings. Until it's needed, I figured
we might as well invest the money and let the market to it's thing. Since moving my money in 2013, I've earned an additional 55%. I don't have my wife's password, but I'd assume she has similar earnings.
Helghast
Triple Gold Good Trader
1-Feb-2018(#5)
Porksta wrote:
> I record the total of my checking and my savings each month. If it increases month
> to month, then I am happy.
>
>

I did that but wanted to get deeper into my spending. I download the app Mint (also a site) and connected all of my accounts to it. Gives a lot of detail and a good overall look on your accounts.
Porksta
GameTZ Gold Subscriber 350 Trade Quintuple Gold Good Trader Global Trader - willing to trade internationally
* 1-Feb-2018(#6)
For 2018 I decided to start recording all of my reselling spending (the things I buy with the intention of reselling). I think I was up about $20 for the month of January lol although I did spend over $400 on that one big lot earlier.

Boss
GameTZ Gold Subscriber 650 Trade Quintuple Gold Good Trader Gold Global Trader (8) Secret Santa
1-Feb-2018(#7)
Yes, I budget. It's readjusted every 6-12 months as needed.
PlayYing
Double Gold Good Trader
1-Feb-2018(#8)
YNAB !

You Need A Budget!!! (both a declaration, and the program that I use)
Admiral
Bronze Good Trader Gold Global Trader (7) Has Written 1 Review
1-Feb-2018(#9)
I REALLLLLLY need to do this. I spend more than I bring in some months, many times on things I plan to flip.
sinnie
GameTZ Subscriber 550 Trade Quintuple Gold Good Trader Global Trader - willing to trade internationally Secret Santa
1-Feb-2018(#10)
I use mint.com for keeping track of all my accounts in one place. I also use a crapty excel for my home budget and business purposes. It keeps things in perspective and is worth the effort if you are wondering where your money is going.

BucketofJustice
GameTZ Subscriber 350 Trade Quintuple Gold Good Trader Has Written 6 Reviews This user is on the site NOW (25 seconds ago) Secret Santa
1-Feb-2018(#11)
I do too. I don't budget at all and I need to. It would help in so many ways besides just money.
Boss
GameTZ Gold Subscriber 650 Trade Quintuple Gold Good Trader Gold Global Trader (8) Secret Santa
* 1-Feb-2018(#12)
sinnie wrote:
> I use mint.com for keeping track of all my accounts in one place. I also use a crapty
> excel for my home budget and business purposes. It keeps things in perspective and
> is worth the effort if you are wondering where your money is going.
>
>


yes I never used anything fancy to do budgeting. Calculator and Excel.
(Or free alternative: https://sourceforge.net/projects/openofficeorg.mir...)

How's mint? Any advantages? I may update to modern times if there are good pros to doing so.
Sun
GameTZ Gold Subscriber 450 Trade Quintuple Gold Good Trader Gold Global Trader (7) Has Written 5 Reviews
1-Feb-2018(#13)
My wife and I track everything we spend in a spreadsheet and have all our accounts linked in Mint.com, but we don't actually adjust our habits. In general, we've tried to eat out less, but it's not like we save to go on a vacation. If we want to spend, we spend.

I spend more money, mostly on video games and board games.
Scots
GameTZ Subscriber Triple Gold Good Trader Global Trader - willing to trade internationally
1-Feb-2018(#14)
@Boss - I highly recommend Mint, especially if you use debit/credit cards mostly. You can set your budget, and everything automatically goes into your budget categories (if it gets the category wrong the first time, you just tell it to categorize X merchant as Y budget from then on).

It's also great for setting goals, whether it's to buy something, or just to save X amount in a certain account by a certain time.
Noid
Gold Good Trader
* 1-Feb-2018(#15)
My wife and I took Dave Ramsey's Financial Peace course: AKA Financial Peace University‎. A lot of it was a bunch of obvious stuff. But, it did help to put things into perspective and really jumpstart actual change in our lives. It's easy to know what to do; but, actually going out there and doing it's the key.

Each month, we plan a budget and, each month, we inevitably end up having to amend it. Thankfully, it's less and less drastic each time. Just like anything else, the more you do it, the better you get at it. One thing that helped is I started putting away significantly more into our 401(k) retirement plan. This drastic reduction in day-to-day money definitelty helped us to prioritize our spending habits and cut out a lot of unnecessary fat.

Thanks to a few more meals of beans 'n' rice and far less casual restaurant outings, we're five months away from being debt-free on everything but the home mortgage. Granted, a "new to us" vehicle and it's inevitable loan probably won't be too far down the road since our current family car's a '93 Station Wagon. But, until that time comes, I'm happy to hit that mortgage's principle debt as hard as I can. smile
sinnie
GameTZ Subscriber 550 Trade Quintuple Gold Good Trader Global Trader - willing to trade internationally Secret Santa
1-Feb-2018(#16)
@boss

I mostly use mint to keep track of all my balances in one place, whether it's a checking account or credit account or some other loan/debt or investment. You can even keep track of your stock accounts on there.
There's budget tools on there but I prefer my simple excel sheet for monthly budgets, though it does graph out where your money goes and that's nice... I've been using Mint for 8-10yrs now.


lpeters82
GameTZ Gold Subscriber 250 Trade Quintuple Gold Good Trader
1-Feb-2018(#17)
Noid wrote:
> My wife and I took Dave Ramsey's Financial Peace course: AKA Financial Peace
> University‎.

I've only listened to him a few times, but one thing that stood out was his lack of mentioning the benefit from having money available. So for example, I have zero issue with paying the bank my 2.5% interest on my mortgage. There is nothing else you can purchase where you're going to get that type of rate. Sure I could scrape by and perhaps become "DEBT FREE!" but for me it's not worth living the lifestyle it would require over those years. Plus, those happen to be those amazing years, when my kids are growing up. I want to enjoy them. I listen to another financial adviser on a local show on Wisconsin Public Radio. He's often telling people to take out a home loan for as long as possible and pay it off as slowly as possible. Don't go crazy with that money, but instead use it wisely over that period of time.
dustin11
Double Gold Good Trader Global Trader - willing to trade internationally
1-Feb-2018(#18)
We're paying our house off as quickly as possible. After I get my raise this year we're going to start making double payments. After the house is paid off then its off to stash as much money away as possible for retirement so I don't have to work until I'm 65-70.
Scots
GameTZ Subscriber Triple Gold Good Trader Global Trader - willing to trade internationally
1-Feb-2018(#19)
Anyone who is paying down the mortgage should at least consider the opportunity cost of going that route versus investing the money. If you've got a 4% mortgage, and could get even 6-7% investing, you're leaving quite a spread on the table.
dustin11
Double Gold Good Trader Global Trader - willing to trade internationally
1-Feb-2018(#20)
We not only are paying out house off quickly but on top of that I put 15% of my net income into a few different mutual funds which has me on track for 103% of what I'll need to retire at 65 at the current rate. One thing I absolutely hate is having debt over my head. When I bought a car back in 2005, I was tired of having car payments but my current income wouldn't allow for me to pay much more than the minimum on my 5-year load, so I took a 2nd job and saved enough to pay off the last $7k in cash. It didn't save me a ton of money, but the feeling of being out from under that rock was worth the 14-16 hour days.
lpeters82
GameTZ Gold Subscriber 250 Trade Quintuple Gold Good Trader
* 1-Feb-2018(#21)
dustin11 wrote:
> We not only are paying out house off quickly but on top of that I put 15% of my net
> income into a few different mutual funds which has me on track for 103% of what I'll
> need to retire at 65 at the current rate. One thing I absolutely hate is having debt
> over my head. When I bought a car back in 2005, I was tired of having car payments
> but my current income wouldn't allow for me to pay much more than the minimum on
> my 5-year load, so I took a 2nd job and saved enough to pay off the last $7k in cash.
> It didn't save me a ton of money, but the feeling of being out from under that rock
> was worth the 14-16 hour days.

That might get to my point. What happens when you need another car. Would you be better off paying off your house a little more slowly and start putting some money aside now for your next vehicle? More then likely your mortgage is going to be significantly cheaper then financing for a car in a few years.

PS: Don't get me wrong, it sounds like you are doing a lot of things right. I just don't agree with the extreme people, like Dave Ramsey, who think all debt is bad. Plan for the future, but also make sure you're enjoying your life now. Tomorrow isn't a guarantee.
lpeters82
GameTZ Gold Subscriber 250 Trade Quintuple Gold Good Trader
* 1-Feb-2018(#22)
Scots wrote:
> Anyone who is paying down the mortgage should at least consider the opportunity cost
> of going that route versus investing the money. If you've got a 4% mortgage, and
> could get even 6-7% investing, you're leaving quite a spread on the table.

That's actually an interesting question. At what theoretical percent would you choose to lock in? I'm slightly pessimistic right now, so if you gave me a chance to lock in at 3-5% annually, I'd probably take that over a period under 10 years.
dustin11
Double Gold Good Trader Global Trader - willing to trade internationally
* 1-Feb-2018(#23)
lpeters82 wrote:
> dustin11 wrote:
>> We not only are paying out house off quickly but on top of that I put 15% of my
> net
>> income into a few different mutual funds which has me on track for 103% of what
> I'll
>> need to retire at 65 at the current rate. One thing I absolutely hate is having
> debt
>> over my head. When I bought a car back in 2005, I was tired of having car payments
>> but my current income wouldn't allow for me to pay much more than the minimum
> on
>> my 5-year load, so I took a 2nd job and saved enough to pay off the last $7k in
> cash.
>> It didn't save me a ton of money, but the feeling of being out from under that
> rock
>> was worth the 14-16 hour days.
>
> That might get to my point. What happens when you need another car. Would you be
> better off paying off your house a little more slowly and start putting some money
> aside now for your next vehicle? More then likely your mortgage is going to be significantly
> cheaper then financing for a car in a few years.
>
> PS: Don't get me wrong, it sounds like you are doing a lot of things right. I just
> don't agree with the extreme people, like Dave Ramsey, who think all debt is bad.
>

My current plan is to buy a brand new car every 5ish years, but that will potentially change depending on how much I will lose every ~5 years on depreciation and if I feel its worth it at that point. My next car is fully paid off with the money I have sitting in my savings account right now, and when I sell my current car (2016 Honda Civic, which I paid in full at the time of purchase at the dealership, so I owe nothing on it) that will go towards my next car which will only require me to pull a small portion of personal funds for it. We also have a chunk of cash sitting in reserve for just incase we need to do something out of the blue to our house, like buy a new furnace or something, and my Wife gets an annually inheritance from her parents (while we're "young and still need it"), which we typically invest right back into our house to increase its value through additional equity. If we really wanted to "put our nose the grindstone" we could have our house paid off in 3-5 years, but we would rather allocate our funds into other things to have a more balanced budget for the future.

What helps is that my Wife and I rarely spend money on ourselves because neither of us are big spenders, we much rather spend on our future than on the present.
sinnie
GameTZ Subscriber 550 Trade Quintuple Gold Good Trader Global Trader - willing to trade internationally Secret Santa
1-Feb-2018(#24)
A new (or lightly used car) you can often find one around 1% interest if you have very good credit. I just paid off my car in December and it was 1.9% through Bank of America. Our new mortgage is 3.75% (20yr) and currently we have no car payment but my husband is going to want to get another one soon. He's driving a 2006 Civic and itching for something newer.

I'm hoping to make principle payments on the mortgage when I can and pay it off sooner, maybe an extra $500 a month would be do-able. We are also putting money into a 401k and other investments. It's never too early to put something back for retirement. I only wish we had started sooner, like right when we got married (I was 20) but back then a couple of hundred dollars was a fortune to me.

Basically it's better to pay off the things with higher interest if you can. We just purchased some furniture but it has 3yrs of no interest. I'm itching to pay that off quickly so I can buy a few more things, but in the long run it's better to make the payments because it's no interest and put that towards things with higher interest (like our mortgage.)

You can also always open up an online high yield interest account. We did that for our emergency fund. American Express has 1.25% interest and it's going up this month.

SirConnery
GameTZ Gold Subscriber 1000 Trade Quintuple Gold Good Trader Secret Santa
1-Feb-2018(#25)
Kinda-sorta.

I'm self employed and use Quickbooks Self Employed Online Edition. I log in once a week and it imports transactions from my bank accounts, PayPal, credit card. I flag transactions as personal or business. If business then full or partial. Example being my $60 a month cell bill is 20 percent personal, 80 percent business in a automated rule I setup. It makes taxes very easy.

At any given time there's about $2k in credit card debt, but I have enough in online accounts to cover that. I buy everything on credit and only carry cash for rummage sales/flea markets.

Savings and investment accounts I haven't been actively contributing to, but they're being acquired via inheritance. I don't touch any of that stuff. Occasionally stocks or bonds get called in, but then I (or my broker) choose something else and it goes back out. It's growing, not super fast, but the risk is extremely low.

I'd like to learn day trading at some point. Classes here are insanely expensive and in many cases look scammy.
Felty
Gold Good Trader Has Written 6 Reviews
1-Feb-2018(#26)
The closest I come to budgeting is saving all my change and rolling it up and cashing it in when I'm in need of cash. I did start a checking account a few months ago but I haven't kept up with writing every transaction down and when I go deposit I will have them write down on the scrap of paper what my balance is.
HybridCRoW
GameTZ Gold Subscriber Double Gold Good Trader Global Trader - willing to trade internationally Has Written 2 Reviews Secret Santa
3-Feb-2018(#27)
I invest either 5 or 10% of my check, before taxes, into a 401K Retirement plan. Then there's the pre-tax dollars for my health savings account that is used towards health expenses which is only a max of $1300 for the year.

I don't 100% budget, but I do basically list what my bills are and when they're do so I know how much my paycheck for that time period is already gone.

However, when something comes up that I have every intention of doing, like certain conventions, then I literally budget everything from travel costs, food costs, and of course spending money.

2018 - I'm making every attempt to put more money towards my student loans to get them paid off quicker. I still have a large chunk to go and if it wasn't for my 401K investments and the insurance and savings account, I'd probably have a large chunk of that chunk taken care of by the end of the year.
sinnie
GameTZ Subscriber 550 Trade Quintuple Gold Good Trader Global Trader - willing to trade internationally Secret Santa
3-Feb-2018(#28)
My husband typically puts the max towards 401k that his employer will match, to get maximum benefits from it. I don't remember what % it was.

Porksta
GameTZ Gold Subscriber 350 Trade Quintuple Gold Good Trader Global Trader - willing to trade internationally
3-Feb-2018(#29)
sinnie wrote:
> My husband typically puts the max towards 401k that his employer will match, to get
> maximum benefits from it. I don't remember what % it was.
>
>
If you don't you are just turning down free monet.

HybridCRoW
GameTZ Gold Subscriber Double Gold Good Trader Global Trader - willing to trade internationally Has Written 2 Reviews Secret Santa
3-Feb-2018(#30)
My company matches 100% up to a certain amount. I forgot the exact amount that's maximum allowable per year for my age, but I do remember it was somewhere close to half of what I make a year. With what I have going on, I can't really afford to put that much towards the 401K and like I said, the employer only matches up to a certain amount. It is nice though for free money and it's yours even if you quit or become terminated.
Jeffro
GameTZ Gold Subscriber 300 Trade Quintuple Gold Good Trader Global Trader - willing to trade internationally Has Written 5 Reviews Secret Santa
4-Feb-2018(#31)
Like, by a Terminator?

I usually dump what I can into a savings account. I need to really star getting my finances in order because I have PERS and all that will be gone by the time I get old enough to retire.

Are IRAs worth it? Some uber-conservative guys at my work keep telling me to invest in a ross/roths IRA, but they also listen to Rush Limbaugh and others all day long. So I'm not sure if it's something trust worthy.
Scots
GameTZ Subscriber Triple Gold Good Trader Global Trader - willing to trade internationally
4-Feb-2018(#32)
An IRA is just an investment mechanism. It's a retirement account, within which you can invest in pretty much any funds, conservative or high-risk. So yes, it's definitely worth it to start one of you haven't gotten a jump on retirement already,

Roth vs traditional is just a tax question, but that's a different subject.
Jeffro
GameTZ Gold Subscriber 300 Trade Quintuple Gold Good Trader Global Trader - willing to trade internationally Has Written 5 Reviews Secret Santa
4-Feb-2018(#33)
Oh, okay. Do you end up paying less tax with a Roth vs. traditional or something?
Scots
GameTZ Subscriber Triple Gold Good Trader Global Trader - willing to trade internationally
4-Feb-2018(#34)
Traditional IRA is tax free when you put it in, and taxed when you withdraw. A Roth contribution is taxed before you put it in, but tax free when you withdraw. The general thought is if you think you'll be in a lower tax bracket when you retire, a traditional is best. However, with a Roth, you're locking in today's tax rates, and who knows what they'll be in XX years.
Jeffro
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4-Feb-2018(#35)
Thanks for explaining that. Appreciate it.
HybridCRoW
GameTZ Gold Subscriber Double Gold Good Trader Global Trader - willing to trade internationally Has Written 2 Reviews Secret Santa
5-Feb-2018(#36)
No "terminated" is the official "office speak" in areas for "fired." I don't like it either, but it's what I've been used to for the past 7 years.

Yeah, I was confused by both the Traditional and Roth IRAs.... So the tax bracket is based on how much you withdraw for the year, correct? I'd ask my own HR guy regarding the 401K stuff, but the guy is hard to get a hold of. About the only time you even get to communicate with him is if he's making his yearly rounds about the healthcare plans and updates on the 401k stuff.
John
GameTZ Gold Subscriber GameTZ Full Moderator 400 Trade Quintuple Gold Good Trader Gold Global Trader (13) Secret Santa
7-Feb-2018(#37)
Scots wrote:
> Anyone who is paying down the mortgage should at least consider the opportunity cost
> of going that route versus investing the money. If you've got a 4% mortgage, and
> could get even 6-7% investing, you're leaving quite a spread on the table.

This is true. However, having just paid off our house early, I can't tell you how freakin' good it feels to have it paid off. So, there is a non-financial side to this too. The security of having it paid off, in some cases, might outway the financial security of a bit more invested for the future.

I always thought that was wrong. My wife and I would discuss this. But she really wanted to pay it off, so we put extra toward the principal each month. I agreed to it because I know that it was emotionally important to her even if it is a bit worse financially. In the end, I'm glad we did it. yes
Scots
GameTZ Subscriber Triple Gold Good Trader Global Trader - willing to trade internationally
7-Feb-2018(#38)
Yes, no doubt there is the emotional side there. And the risk tolerance side.
John
GameTZ Gold Subscriber GameTZ Full Moderator 400 Trade Quintuple Gold Good Trader Gold Global Trader (13) Secret Santa
7-Feb-2018(#39)
HybridCRoW wrote:
> Yeah, I was confused by both the Traditional and Roth IRAs.... So the tax bracket
> is based on how much you withdraw for the year, correct? I'd ask my own HR guy regarding
> the 401K stuff, but the guy is hard to get a hold of. About the only time you even
> get to communicate with him is if he's making his yearly rounds about the healthcare
> plans and updates on the 401k stuff.

There is a lot of traditional vs Roth talk for IRAs. There are exceptions, but in MOST cases, you're probably best off to go with a Roth. In that situation, you pay taxes on it before it goes in (the taxes already came out before you got your paycheck -- so you're taking actual money from your paycheck or bank account and putting it into the Roth IRA). When you go to use it after retirement, you generally don't pay taxes on it.

(With the traditional, you would set it up with your work to take the money out of your gross BEFORE taxes -- and then, when you retire and start to use it, you'll pay taxes on what you withdraw based on your tax bracket at the time.)
sinnie
GameTZ Subscriber 550 Trade Quintuple Gold Good Trader Global Trader - willing to trade internationally Secret Santa
7-Feb-2018(#40)
John wrote:

> This is true. However, having just paid off our house early, I can't tell you how
> freakin' good it feels to have it paid off. So, there is a non-financial side to
> this too. The security of having it paid off, in some cases, might outway the financial
> security of a bit more invested for the future.
>
> I always thought that was wrong. My wife and I would discuss this. But she really
> wanted to pay it off, so we put extra toward the principal each month. I agreed
> to it because I know that it was emotionally important to her even if it is a bit
> worse financially. In the end, I'm glad we did it. yes

That's awesome that you paid your house off already. I soooo hope we can start adding more to the principal soon. We just took out a $310k mortgage for 20yrs. Even once it's paid off we're looking at insurance HOA and taxes of nearly $8000 yearly, but that'd be easy to budget without the mortgage part. First payment due March 1st *barf*

At least we aren't renting anymore. We spent this last year renting a home waiting for our old house to sell in another state. I'm so happy it just barely worked out in time to where we didn't have to renew a lease and lose out on our dream home!


Osiris
300 Trade Quintuple Gold Good Trader
7-Feb-2018(#41)
if you pay off your house off, you have access to all that equity if you need it for university costs, etc.
i dont think 2nd morts or home equity lines are going to be tax deductible any longer though, unsure.

keep in mind there are some options for no penalty early withdrawals on traditional IRAs if tax code didnt change those. if not, you may feel more comfortable with ira saving approach.
John
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7-Feb-2018(#42)
If I recall, you can actually take what you paid into a Roth IRA out without penalty -- you just can't touch with gains without issues. So, another advantage to the Roth. You put it in post-tax, so they don't care if you take it back out. smile
HybridCRoW
GameTZ Gold Subscriber Double Gold Good Trader Global Trader - willing to trade internationally Has Written 2 Reviews Secret Santa
7-Feb-2018(#43)
I asked about that, moving from one account to the other and I was told that it can hurt you based on the tax bracket you're in... That's what I heard anyways.
John
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* 7-Feb-2018(#44)
I wasn't talking about moving from one account to another as far as IRAs go. I was talking about simply taking your original money out of a Roth.

I just confirmed it too (was just going by memory before).

Basically, you can withdraw any of the principal from your Roth IRA at any time without penalty. Tax bracket doesn't matter because you aren't taxed on a Roth withdrawal.

And, yes, withdrawals from a Roth do count as income, but nontaxable income. Therefore, they do not affect your tax bracket when you withdraw funds. (For a Traditional IRA, the withdrawal would be considered taxable income because you haven't paid tax on it yet -- and, therefore, can affect your tax bracket.)


Topic   Do You Budget?