Retirement Plans
- Thread starter Luxman
- Start date
Sylvy Sinclair
Official Checked Star Member
I plan to move to the country, have my grandkids around me and make cakes for them. other than that, i plan to fuck wildly until im 90 and die sleeping. xx
I've got a sizeable nest egg being built up. I didn't watch that video because it seems scary.
I just don't want to think about it. I get my quarterly statements and whatever and I'm like "cool."
I just don't want to think about it. I get my quarterly statements and whatever and I'm like "cool."
Rey C.
Racing is life... anything else is just waiting.
Another great find and a very informative post, dstone2004. Of course, the system won't let me rep you. :nono:
The section about fees is one of the most telling. You can be in an investment that seems to have good returns, but if you're paying a front load (basically a commission) and there are also the fees mentioned in the video, you're being hosed (at least) twice.
I like that video. Especially since it was recently in the news about how few Americans are prepared for retirement, it's very timely. Anyone who works for a company that offers a 401K with a match, ALWAYS invest enough so that you get the full match. That's free money. They could/should have added to the video that if you don't take free money, you're an idiot. Prior to retirement, don't cash in your IRA or take out loans against your 401K to buy ANYTHING that doesn't involve you dying or becoming homeless unless you do. In addition to index funds for most people, what he said about gradually shifting to bonds as you get older can be accomplished with Target Date funds. Basically, you plug in your age or projected retirement date and the allocation balance is done for you as you age and approach that date.
Most people have no control over which investment firm their employer chooses. As it happens, my company is with John Hancock. And while we're large enough that we don't have to pay the exorbitant fees that John Oliver's company was being asked to pay, John Hancock is not the cream of the crop by any stretch. Within that plan, I basically stick with lower cost domestic and international index funds, a couple of sector funds and my match is paid in company stock. I think he gave good advice there, and also by mentioning Vanguard. Most any mutual fund offered by Vanguard is going to be a lower fee option. Even though your 401K might not be administered by Vanguard, your plan provider still might offer some lower cost Vanguard funds. Go for them! Other retirement vehicles that you can set up on your own are Roth and Traditional IRAs, among other things. If you're self employed, there are SEPs and other vehicles.
But the most important thing overall (IMO) was touched on in that video too. Start now!!! Don't wait! Don't procrastinate! And don't worry about trying to time the market - jumping in and out based on doom & gloom predictions and market ups & downs. Anyone who stayed the course during the 2008-09 Great Recession is now WAY ahead of the game. The ones who lost were the sad souls who believed the doomsayers and cashed out. Unless you want to be a professional trader with Goldman Suchs, it's not being able to time the market that leads to success... it's time in the market.
The section about fees is one of the most telling. You can be in an investment that seems to have good returns, but if you're paying a front load (basically a commission) and there are also the fees mentioned in the video, you're being hosed (at least) twice.
I like that video. Especially since it was recently in the news about how few Americans are prepared for retirement, it's very timely. Anyone who works for a company that offers a 401K with a match, ALWAYS invest enough so that you get the full match. That's free money. They could/should have added to the video that if you don't take free money, you're an idiot. Prior to retirement, don't cash in your IRA or take out loans against your 401K to buy ANYTHING that doesn't involve you dying or becoming homeless unless you do. In addition to index funds for most people, what he said about gradually shifting to bonds as you get older can be accomplished with Target Date funds. Basically, you plug in your age or projected retirement date and the allocation balance is done for you as you age and approach that date.
Most people have no control over which investment firm their employer chooses. As it happens, my company is with John Hancock. And while we're large enough that we don't have to pay the exorbitant fees that John Oliver's company was being asked to pay, John Hancock is not the cream of the crop by any stretch. Within that plan, I basically stick with lower cost domestic and international index funds, a couple of sector funds and my match is paid in company stock. I think he gave good advice there, and also by mentioning Vanguard. Most any mutual fund offered by Vanguard is going to be a lower fee option. Even though your 401K might not be administered by Vanguard, your plan provider still might offer some lower cost Vanguard funds. Go for them! Other retirement vehicles that you can set up on your own are Roth and Traditional IRAs, among other things. If you're self employed, there are SEPs and other vehicles.
But the most important thing overall (IMO) was touched on in that video too. Start now!!! Don't wait! Don't procrastinate! And don't worry about trying to time the market - jumping in and out based on doom & gloom predictions and market ups & downs. Anyone who stayed the course during the 2008-09 Great Recession is now WAY ahead of the game. The ones who lost were the sad souls who believed the doomsayers and cashed out. Unless you want to be a professional trader with Goldman Suchs, it's not being able to time the market that leads to success... it's time in the market.
Luxman
#TRE45ON
The stock market is a crap shoot game, unless you have some insider tips.
If you do decide to buy stocks, invest in teacup pigs and use a cat to choose stocks.
Other than that and what the video says to do, buy land, if the economy goes bust, you can at least grow your own food and have your own grass to sleep on.
:2 cents:
If you do decide to buy stocks, invest in teacup pigs and use a cat to choose stocks.
Other than that and what the video says to do, buy land, if the economy goes bust, you can at least grow your own food and have your own grass to sleep on.
:2 cents:
Rey C.
Racing is life... anything else is just waiting.
Land can be a great long term investment. But as with all real property, it comes down to three things: location, location... and location. For a retirement vehicle, if it's arable land and you can rent it out or use it to farm yourself, it could work well. You just have to remember that there are expenses associated with owning it (taxes, possibly liability insurance, etc.).
I wouldn't suggest that the average person rely on individual stocks or bonds in an IRA, or any other retirement plan. Too many people tend to select stocks based on their hearts and not their heads. For most people, over time, mutual funds will deliver the best and/or most consistent returns. An index fund (S&P 500) allows you to ride the market. Over time, that's been a roughly 7-8% annualized return. And if you get something like a Target Date fund, it will automatically and gradually rebalance from stocks to bonds as you age and near retirement. You don't want to be 60 and be 90% in stock mutual funds. At that point, you need to be looking at safer income streams, more so than appreciation. Plus, if there is a severe correction, you may not have enough time to recover.
All one has to basically do is look at what expenses are reasonably expected in retirement, annually or monthly. You will still have to pay for food, gas, utilities, insurance, mortgage/rent, etc. So what is that rough figure? Now look at what your expected income sources will be (pension, annuity, Social Security, etc.). If there is a deficit, you HAVE to find a way to plug it. Doing this exercise when you're 30-40 is a hell of a lot better than doing it when you're 50-60. If you don't have enough in savings or retirement vehicles to generate the necessary passive income, you either can't retire (work til you drop) or you end up fighting cats in the alley for mice that they've caught. Jokes aside, this is a very serious issue. I don't see it affecting me, but those in the younger generations will likely face a very different Social Security structure than we have now.
Social Security was never meant to be a primary source of retirement income. But for many people, because they either don't have a pension or they have been unable/unwilling to save for retirement, it is all that they'll have. When I see older people working jobs that they can barely do, I feel bad for them. I don't know how they got to where they are (bad luck or bad choices), but a big part of what has motivated me to save and invest so aggressively is that I want to be comfortable in retirement.
Think about it, folks. It's later than you think. :hatsoff:
I wouldn't suggest that the average person rely on individual stocks or bonds in an IRA, or any other retirement plan. Too many people tend to select stocks based on their hearts and not their heads. For most people, over time, mutual funds will deliver the best and/or most consistent returns. An index fund (S&P 500) allows you to ride the market. Over time, that's been a roughly 7-8% annualized return. And if you get something like a Target Date fund, it will automatically and gradually rebalance from stocks to bonds as you age and near retirement. You don't want to be 60 and be 90% in stock mutual funds. At that point, you need to be looking at safer income streams, more so than appreciation. Plus, if there is a severe correction, you may not have enough time to recover.
All one has to basically do is look at what expenses are reasonably expected in retirement, annually or monthly. You will still have to pay for food, gas, utilities, insurance, mortgage/rent, etc. So what is that rough figure? Now look at what your expected income sources will be (pension, annuity, Social Security, etc.). If there is a deficit, you HAVE to find a way to plug it. Doing this exercise when you're 30-40 is a hell of a lot better than doing it when you're 50-60. If you don't have enough in savings or retirement vehicles to generate the necessary passive income, you either can't retire (work til you drop) or you end up fighting cats in the alley for mice that they've caught. Jokes aside, this is a very serious issue. I don't see it affecting me, but those in the younger generations will likely face a very different Social Security structure than we have now.
Social Security was never meant to be a primary source of retirement income. But for many people, because they either don't have a pension or they have been unable/unwilling to save for retirement, it is all that they'll have. When I see older people working jobs that they can barely do, I feel bad for them. I don't know how they got to where they are (bad luck or bad choices), but a big part of what has motivated me to save and invest so aggressively is that I want to be comfortable in retirement.
Think about it, folks. It's later than you think. :hatsoff:
My generation has so many people without a plan. I just plan around Social Security being long dead and me likely still paying something into making up for it...
While there is no guarantee, I contribute 11% with a company match of 5% to a 401k, have a mixture of smaller, but manageable investments, own a home, 2 cars, and that's about it. We'll see where I land in 37 years even 15. There is opportunity; however, there's so many MLM's, 'sound investment advice', and get rich quick stuff all around although I block out the noise and I stick to the slower, safer approach and it's been working fine as of late. As you mentioned Animus, I mainly watch and see and move stuff around as needed, but I find it's rare.
While there is no guarantee, I contribute 11% with a company match of 5% to a 401k, have a mixture of smaller, but manageable investments, own a home, 2 cars, and that's about it. We'll see where I land in 37 years even 15. There is opportunity; however, there's so many MLM's, 'sound investment advice', and get rich quick stuff all around although I block out the noise and I stick to the slower, safer approach and it's been working fine as of late. As you mentioned Animus, I mainly watch and see and move stuff around as needed, but I find it's rare.
Rey C.
Racing is life... anything else is just waiting.
Jagger69
Three lullabies in an ancient tongue
Totally agree. You can't go wrong with real estate unless you buy in a flood plain or some parcel next to a toxic waste site. Back in 1990, my wife and I bought 5 acres of rural land in an unimproved and heavily wooded area on spec WAY out northwest of Houston....literally the middle of nowhere. We paid $17,000 for the entire parcel. In 2005, the state and county announced plans to build the Grand Parkway, a gigantic toll road to ring the outer boundaries of the suburban Houston metro area. The northwest side of this tollway was within a few miles of the property we had purchased 15 years prior. In 2010, we sold the property for more than 10 times what we had originally paid for it. Now, I wish I had bought a lot more of it back in 1990! My point is, especially if you are relatively young, do a demographic study on a metro area near where you live and use county, state and federal resources to make an educated guess about where the growth is headed in the next 20-30 years. With the continued outward push of urban sprawl happening almost everywhere, you can hardly go wrong by using this method to find cheap land that will someday be very valuable. Buy more than 5 acres if you can afford it.
I would also recommend an starting an annuity when you are young and put just a little money into with each paycheck or premium (very low-risk investment). By the time you're an old fuck like me, you'll be amazed how much that compounded interest has brought you. Ice that cake up with a decent social security check and you can live a very comfortable lifestyle when you finally quit working....especially if your wife has a nice, fat government pension to go along with it.
Please don't depend on SS alone....you'll be eating dogfood and living in a trailer (if you're lucky).
Little Red Wagon Repairman
MFOMBSoPGA
I guess I'm retired cuz I don't work. I have some real estate and money in the bank. In about 20 years me and the wife will move to The Philippines where we will live out the rest of our years.
Rey C.
Racing is life... anything else is just waiting.
:thumbsup: :yesyes:
Whatever investment vehicle you choose, SAVE. Just do it!!! And the earlier, the better.
And do NOT go into retirement with consumer debt. Even if you can't pay off your mortgage, don't have credit cards and other revolving credit (that's probably for depreciating assets).
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