I'm not really sure. We live pretty modestly and are savers.

Start building up passive streams of income. You should keep a safety net anywhere from 3 months to a year of income (I’m sure you can find more concrete values on this sub) and everything else should be invested into some sort of passive income earner for retirement. I’d personally recommend starting an investment account. Unfortunately you don’t have a lot of time for the interest to start accruing, but it sounds like you have a good amount saved already so congrats on that!

Honestly it sounds like you could use a financial advisor. There’s a special type you want to get, called a fiduciary, which long story short essentially means companies can’t pay them to push certain brands, so they act solely in your best interest. Don’t take the advice of random strangers on the internet too seriously, 100% your best course of action is speaking to a professional.

I would ask them about IRAs, investment opportunities, and how to manage your savings to effectively prepare for retirement. Best of luck!

What is your income? What are your monthly expenses? How much do you think you can comfortably spend per month in retirement?

When you say savings, what are they? A savings account? A pile of cash under the bed? Stock market investment?

I understand it's a bad position to be in. But, look at it from a spirit of the law perspective: he was using it as a retirement account. He did not draw from the initial gain to his checking account (just as if it had been a retirement account). I know the solution isn't straightforward, I suppose what I'm looking for is the best way to approach the IRS to negotiate this, because the guy is getting screwed and will be quite destitute if he has to liquidate his account to cover the tax implications of one trade.

Start here: https://www.reddit.com/r/personalfinance/wiki/commontopics

If rates go down and you qualify for a new mortgage, then sure. That’s what people have been doing for the last 50 years, as mortgage rates dropped from 20% to 2%.

I’m not a financial advisor and I agree with the notion of the commission angle. I used to sell whole life, ages ago, and it is a useful option due to the nature of it; however, it becomes very expensive later in life and it’s not touchable until retirement. I’m 15 years out of insurance, so I don’t know if an underwriter offers a whole life that “acts like a 40XY”, but that’s not the main purpose of the product. I typically sold term because it’s an easier product to sell - the expense of WL is somewhat sales prohibitive unless you have an income and strategy that takes advantage of it.

Disability insurance is great to have, but it’s a protective plan: not an investment plan.

Also agree that the match is okay, but if you’re not staying longer than the vesting period meh. Maybe you get access to low fee plans from the employer and that’s better than the alternative (nothing or IRAs). Check the fund offerings and how much fees are compared to your Roth IRA.

What are your income needs in retirement?

If you are converting every year and leaving nothing in the account, the carryover basis should be zero. If that was the case that there was zero in the account on Dec 31, 2021, I'd just proceed with a fresh 8606 for 2022 and not worry about past years.

I don't think they have ever said that the rules they have set apply to X income and up. Regardless though, I do think the advice they give is "aspirational" like another comment has said, not necessarily that if you don't do that exactly you are going to fail. I feel like I make a decent income at 110k in a relatively lower cost of living area, I just am having a hard time penciling out how to follow their advice and not be a miser at the same time. Maybe as a single person I'm not seeing the same kind of deductions that a married couple would be granted. I don't know.

Yeah you can refi but I wouldn't suggest doing a refi right away. Wait at least 10-15 years and make sure it makes sense and don't get trapped in further debt. I suggest checking a YouTube video on how refinancing works before proceeding.

Where are people still finding remote jobs like this? In my job market everyone is asking for hybrid now

Best of Luck!

There is no guarantee rates will go down.

And we’ll almost assuredly never see 2020 rates ever again

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Using life insurance as a vehicle to have tax free income in retirement isn’t a red flag

The fact that they recommended “whole life” is a red flag. These have the lowest returns compared to indexed life (pegged to say S&P) and variable life which allows sub accounts for market investment

VUL’s (variable universal life) is exceptionally popular with my clients who want to save aggressively for early retirement. I’ve opened up 3 this week alone.

I would definitely recommend Roth be your investment of choice if not interested in life policies with investment options, as Roth money will be tax free when you do retire. And yes, that match is absolutely terrible.

Ok. I would definitely start by doing that, you have a ridiculously high amount in savings; might as well max out the 401K to reduce your tax burden and grow your money more than a savings account

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No, we are not.

I get this:

> We can't complete this request. This offer isn't available at this time. We're sorry for the inconvenience. Make sure you keep your income up-to-date to be considered for future offers.

Maybe not enough history or something... My previous card was almost twice what this card was, but I had closed the other one then opened this one, so perhaps not enough gap to show potential, available credit worthiness

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Yeah from what he's said the shop he works for under reports so it's a mess from the top down. But everyone here has been super helpful. It's going to take some work but I think I have a good plan forming.

I’m probably closer. Where does he live?

In all seriousness, play his game as another commenter said. I have a similar family member (though they have no money to begin with) but my argument to them is banks can fail hit government won’t let that happen - see 2008 bailouts. Maybe you could do something similar.

If nothing else, next time you go visit, rent a small truck and get him the highest rated fireproof safe you can and help him install it. Renting the truck means no delivery people know. You buying the safe means no one with your information can easily connect the dots back to your dad. The only worry then is people seeing you unload it and you might be able to solve that with a used box from a furniture store or home improvement dumpster.

Debated it for sure. the problem is i don't want them to call my bluff and then they know they own me by the balls.

All they really look at is his ability to pay it back. Ignorance of the law is not usually taken into consideration.