Finance

Have Finance Questions? Ask a Financial Expert Online.

Ask an Expert,
Get an Answer ASAP!

Finance
This answer was rated:

I'm a soon to be divorced single mom, age 44, living on

Hello. I'm a soon to...
Hello. I'm a soon to be divorced single mom, age 44, living on mostly alimony for the next 3 years. Can you help me understand how much I should be saving for retirement each month? I ill have about 300k in a retirement account. How much will that end up to be in 25 years? And given that, how much should I plan to put away monthly? Thanks! (I live in Atlanta, cost of living a bit high here)
Show More
Show Less
Ask Your Own Finance Question
Answered in 32 minutes by:
7/10/2017
Chad EA, CFP ®
Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Finance
Satisfied Customers: 1,370
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA
Verified

Hello, My name is***** am a Certified Financial Planning ® Professional. I am also registered with the IRS and have obtained a valid Preparer Tax Identification Number.

The amount you may need in retirement has several factors. A general rule of thumb is to plan to replace about 70% of your current income during your retirement years.

A good first step is to think about how you want to live during your retirements years. Will your house be paid for, where will you live? Do you plan on selling your home.

Do you have a pension and will you be able to draw off of Social Security?

How much will 300K be in 25 years? The answer depends on how your funds are allocated and invested. Assuming a 7% annualized rate of return for 25 years $300,000 would grow to $1,628,229.79.

If you withdrew in retirement 7% of the principal you would receive $113,976 annually. Since the funds grew tax deferred you would owe taxes on this amount.

There are a lot of scenarios that would play out over a 25 year period of time. The S & P 500 has historically returned 8% annually, however this is not a guaranteed return and returns do fluctuate from year to year.

I recommend consider Roth IRA and/or savings the funds in a taxable savings account or brokerage account before you make new contributions into a retirement account.

The above information is generally financial planning information. You have a long time to prepare and time is on your side.

My goal is to answer your question as thoroughly as possible with the information communicated to me.

If you do have further questions or if my answer was incomplete please let me know.

Please take a moment to rate my service. Rating my service cost you nothing, but tells JustAnswer to credit me for assisting you.

Rate my service by using the stars, or faces on your screen and clicking submit.

I hope you feel that I provided you with 5 Star services and I look forward to working with you in the future.

Regards,

Chad CFP ® professional

You may stay informed with up to date information by visiting and liking us on Facebook!

Please remember, as outlined in the terms and conditions of this website, Answers of Experts on the Site are to be used by Customers for general information purposes only, not as a substitute for in-person evaluation or a specific professional opinion.

Ask Your Own Finance Question
Customer reply replied 7 months ago
ok, is there an online calculator for this that won't make me sign up for anything : ) ? The amount will be 250k if I take out 50k to put toward a home purchase, so I'd like to play with these numbers. Also, I could put more $ down and get better terms on my mortgage. Do you think this is a good way to diversify the funds as well (into a house)? I'll have a QUADRO, so will not have to pay penalty, but will have to pay tax, if I'm understanding correctly. I'll need to take some for down payment and cash reserves/emergency fund in the first couple of years.

Here is a calculator to determine "compound interest," which is also known as compound return of an initial investment over a certain amount of years at a certain rate. I used $300K, 25 years and 7% rate of return

https://www.investor.gov/additional-resources/free-financial-planning-tools/compound-interest-calculator

Ask Your Own Finance Question

If you plan to live in the house for a longer period of time (10 years or more) then I would agree that taking 50K out and paying down a home loan is a good way to diversify.

Chad EA, CFP ®
Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Finance
Satisfied Customers: 1,370
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA
Verified
Chad EA, CFP ® and 87 other Finance Specialists are ready to help you
Ask your own question now
Customer reply replied 7 months ago
thanks. im going to start another question, k?

From what you are stating you seem to be aware of the important financial factors to consider. I would add that if you have the opportunity to spread out the distributions over years, then you should do so.

Tax Rate--Single Taxpayers--2017

Taxable income: Tax: Over But not over Tax +% On amount over $ 0 $ 9,325 $ 0.00 10 $ 0 9,325 37,950 932.50 15 9,325 37,950 91,900 5,226.25 25 37,950 91,900 191,650 18,713.75 28 91,900 191,650 416,700 46,643.75 33 191,650 416,700 418,400 120,910.25 35 416,700 418,400 ....... 121,505.25 39.6 418,400

Ask Your Own Finance Question

Ok, I will close this question. Thank you very much

Ask Your Own Finance Question
Ask Chad EA, CFP ® Your Own Question
Chad EA, CFP ®
Chad EA, CFP ®
Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Finance
Satisfied Customers: 1,370
1,370 Satisfied Customers
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA

Chad EA, CFP ® is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,608 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,218 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,920 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
I am contributing 12% to my 401k at work. can I still
I am contributing 12% to my 401k at work. can I still contribute to a roth or traditional ira? what is contribution max? … read more
Chad EA, CFP ®
Chad EA, CFP ®
CERTIFIED FINANCIAL PLANNER TM, Professional
1,370 satisfied customers
Sorry idot type well. Can i withdraw money more than once a
can i withdraw money more than once a year in a roth ira … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I would like to know what is a reasonable rate of return on
I would like to know what is a reasonable rate of return on investment considered by the City of Oakland and are those exempt through the Costa Hawkins Act also exempt for this? … read more
Patrick Mullis
Patrick Mullis
Masters
18 satisfied customers
I am sole beneficiary (non-spouse) of a roth ira (the
Hello, I am sole beneficiary (non-spouse) of a roth ira (the designation was made with the account; ie, non-probate). It was my father's roth and he died in 2016. It is now dec 31 of the year after d.… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,051 satisfied customers
Have a Traditional IRA and Roth IRA I contribute to. The
Have a Traditional IRA and Roth IRA I contribute to. The Traditional IRA my employer matches my contribution. Question, does this mean I am covered by a retirement plan at work? I am reviewing questio… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
I am 58 now in march i will be 59, i am thinking about
hi my name is ***** ***** am 58 now in march i will be 59, i am thinking about setting up a Roth IRA so i can invest it in real estate, one of the ROTH rules i read said you can withdraw the ROTH & ga… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
I have 2 Roth IRAs for my husband and I and we created an
I have 2 Roth IRAs for my husband and I and we created an LLC with professionally made up documents to own the LLC wiith our Roths. In the document it states we can buy and sell basically anything tha… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have a self directed Roth IRA with TDAmeritrade, can I buy
Hello, I have a self directed Roth IRA with TDAmeritrade, can I buy and sell stocks without capitol gains, as long as I don't cash out or reinvest ?Thanks, Ken… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I have a roth ira account with a bank that i also invest
I have a roth ira account with a bank that i also invest money and buying stocks. I want to know if i can attach a credit card to that account so i can buy bigger quantity of stocks straight from cred… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Ministers Retirement Plan. How is a Roth IRA setup for the
Ministers Retirement Plan. How is a Roth IRA setup for the pastor? Want tax free future income. What would be the best vendor to setup this account. Is there such an account under 403?… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
Recently, my stepdaughter inherited a roth Ira from her
Recently, my stepdaughter inherited a roth Ira from her mother, in the amount of $34000. Her Adjusted Gross Income for this year if expected to be $20000. If she takes a lump sum payout this year, can… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
I have taken deep losses on my Roth IRA. Approximately 80%.
I have taken deep losses on my Roth IRA. Approximately 80%. I have read if I close the Roth IRA I can write off a portion of these losses. How does this work?… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,283 satisfied customers
I have a self directed roth ira llc and am interested in
I have a self directed roth ira llc and am interested in coinvesting the funds with my personal funds to write a single note. I would like all of the returns on the note to go to the roth because of t… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I made 2 $5500 contributions to my Roth IRA in Sep 2015. I
Greetings I made 2 $5500 contributions to my Roth IRA in Sep 2015. I just discovered the error and am trying to figure out how to fix the issue. I did not contribute anything to my Roth in 2016. … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
How much % should I save in my 401K for Roth IRA & pre-tax
How much % should I save in my 401K for Roth IRA & pre-tax if I'm making $130K + per year to have the most efficient tax break?I also have a house which I can deduct the interest rate.… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am curious in investing with my Roth IRA. I have a few
I am curious in investing with my Roth IRA. I have a few questions. * I will need to set up a Roth IRA llc account, which depending on the state pay those state fees. Along with a bank account in that… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Regarding my Roth IRA, on December 9th of last year my then
Hi, regarding my Roth IRA, on December 9th of last year my then LinkedIn shares were sold as I believe Microsoft bought them (bought the company LinkedIn) and I was provided a cashout that was put int… read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
691 satisfied customers
I have a question about roth IRA for non working spouse. I
Hello,I have a question about backdoor roth IRA for non working spouse. I am a married self employed physician with high income. My wife had a job early this year but quit in the summer to take care i… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x