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KC Jones
08-19-2012, 09:32 AM
So seeing oldandslow has made it to his retirement and having seen a few early retirements at work recently, I'm curious how many planeteers are on track for this? I'd really like to retire a little early or plan for a sabbatical before I fully retire. Not sure I'm on plan for that though...

What about you?

(poll questions coming, and if you've already retired pick the options that most closely follows your retirement planning)

La literatura
08-19-2012, 09:35 AM
I'm planning on saving 8% for retirement starting off. 6% entirely from my paycheck, 2% from employer. After student loans are paid off, I want to bump it up to 11%.

I don't plan on retiring for another 40+ years, though. It's hard to say that I'm on track.

Predarat
08-19-2012, 09:49 AM
Men that wear Bluetooths and demand their Sandwiches get cut in half all the time are typically prepared to retire at an average age of 58.

Predarat
08-19-2012, 09:51 AM
For me im at "We've put away a little, but I doubt we're on track." but a fairly recent graduate from paycheck to paycheck.

KC Jones
08-19-2012, 09:52 AM
I'm planning on saving 8% for retirement starting off. 6% entirely from my paycheck, 2% from employer. After student loans are paid off, I want to bump it up to 11%.

I don't plan on retiring for another 40+ years, though. It's hard to say that I'm on track.

Everything you put away early will be huge! If you are putting money away at that rate early in your career you should be all set. I'm currently putting 12% in my 401k, but looking to start putting extra into my roth. I had a late start to my career and a few years that we didn't put anything away. In 10 years I'll have 2 kids in college though and I'll need cars/insurance for them before that. It's going to get really expensive at that point!

LiveSteam
08-19-2012, 10:01 AM
I will work till the day I die. & I'm fine with that.

Nightfyre
08-19-2012, 10:05 AM
Virtually my entire generation will have to work second jobs during our retirement because there will be no social security, but we will have to pay in to cover the ponzi scheme. Further, we will have to fix the current fiscal deficit brought on by the generation of excess.

Slainte
08-19-2012, 10:17 AM
I started late (mid-40s) and am attempting to catch up from behind. Currently maxing out a Roth plus putting 18% into a mutual fund, 10% in a cash pool and an additional 5% into another investment plan (through work - but not a 401k). According to my money guy (I suck at this -obviously, since I didn't start sooner - so I have to have a financial advisor) I'm on track to retire @ 65, but we'll see...I'm not overly optimistic.

The God Hypothesis
08-19-2012, 10:18 AM
Virtually my entire generation will have to work second jobs during our retirement because there will be no social security, but we will have to pay in to cover the ponzi scheme. Further, we will have to fix the current fiscal deficit brought on by the generation of excess.

One thing we have in our favor is the 4 year election cycle. Any politicians that want to get rid of ss will immediately be thrust out of offcie by that generation, and or have no hope of being re-elected.

They will have to work out a compromise by either taking money from our other sectors like the defense budget or up the age of ss benefits while simultaneously tightening the restrictions on who is eligble for it.

I am 33 and don't currently live paycheck to paycheck, have about $125,000 invested with almost no debt. (Work Vehicle I "own" at 0% interest I owe $20K)

I still feel woefully unprepared for retirement, and not exactly on track. They say you should have $2 million at retirement to keep your lifestyle if you make six figures, and I just don't see how I am going to get there with the crap interests rates, shaky economy, wave of inevitable inflation headed our way, and not personally owning any real estate.

R8RFAN
08-19-2012, 10:27 AM
I dump at least 15% of my salary in a 401k so I am at the mercy of the market, when the busy season is in I dump 25% of my salary, I have done this since 1995 and I will have either alot of money or be broke.

No one knows what the future holds or even if I will make it to retirement age (mom and dad died at a below average age) Before I paid off my house in 2009 I was making enough on interest alone in the bank to pay 1/2 to 3/4 of my mortgage payment a month, then the rates got so low, I could not see paying all that mortgage interest when I had the cash to pay it off, so I did. I think that was the best move I ever made even if many people told me not to do it. Of course I don't get that deduction anymore but paying a couple extra grand to the gubment a year is still better than double that in interest to Wells Fargo.

mlyonsd
08-19-2012, 10:27 AM
Wife and I are on track for 65 but I'd like to leave my current job at 62 and start up some kind of business we both would enjoy. Bed and breakfast or cafe are leading the list.

I hate sitting around so I see myself working late into life.

R8RFAN
08-19-2012, 10:29 AM
Wife and I are on track for 65 but I'd like to leave my current job at 62 and start up some kind of business we both would enjoy. Bed and breakfast or cafe are leading the list.

I hate sitting around so I see myself working late into life.

Thats all a great idea but the problem will be health insurance, it will eat you alive.

Big Smoke
08-19-2012, 10:32 AM
Well... I went for the first option since none of the other options fit me right now.

I'm 23. Once my career starts I'll start worrying about retirement.

ReynardMuldrake
08-19-2012, 10:32 AM
I plan to retire at 55. Right now I'm on track to do that.

R8RFAN
08-19-2012, 10:34 AM
Well... I went for the first option since I'm 23. Once my career starts I'll start worrying about retirement.

If you put a plan into action now at your age, you will be a very rich man when you retire... Invest in about a million in long term life insurance too.

prhom
08-19-2012, 10:41 AM
No option for moving to Central America? Surely a few people here are considering that move.

mlyonsd
08-19-2012, 10:48 AM
Thats all a great idea but the problem will be health insurance, it will eat you alive.Once I hit 62 I'm eligible to buy good/subsidized health insurance from my current employer.

I understand that's 10 years down the road and anything can change.

The God Hypothesis
08-19-2012, 10:48 AM
No option for moving to Central America? Surely a few people here are considering that move.

They have entire regions down there where they are trying to market to US retirees, entire villages of snow birds so to speak, and the land is a paradise to retire in for what we would consider very affordable prices. Has to be a VD haven. Now there's mental image.

LiveSteam
08-19-2012, 10:49 AM
Virtually my entire generation will have to work second jobs during our retirement because there will be no social security, but we will have to pay in to cover the ponzi scheme. Further, we will have to fix the current fiscal deficit brought on by the generation of excess.

I haven't paid a dime into it in over 20 years.

PunkinDrublic
08-19-2012, 10:51 AM
No option for moving to Central America? Surely a few people here are considering that move.

After a few trips down to Costa Rica I'm definately thinking about it.

R8RFAN
08-19-2012, 10:53 AM
Once I hit 62 I'm eligible to buy good/subsidized health insurance from my current employer.

I understand that's 10 years down the road and anything can change.

I hope it works out for you man and your dream becomes a reality.

Big Smoke
08-19-2012, 10:53 AM
If you put a plan into action now at your age, you will be a very rich man when you retire... Invest in about a million in long term life insurance too.

What exactly should I be doing at my age? I don't know much about saving for retirement.

R8RFAN
08-19-2012, 10:55 AM
What exactly should I be doing at my age? I don't know much about saving for retirement.

Employer matched 401k and if you don't have that a Roth IRA.
Just don't put it off if you can, that's what most of us did and I wasted a good 10 years or so before I wised up.

The God Hypothesis
08-19-2012, 10:56 AM
What exactly should I be doing at my age? I don't know much about saving for retirement.

A big one is Roth IRA's. Zero tax when you pull it out, because its taxed up front. I believe the cap is $6000 a year.

If you had invested a small amount in Southwest airlines in 1975 under the roth you'd have millions in untaxable money now.

mlyonsd
08-19-2012, 10:56 AM
I hope it works out for you man and your dream becomes a reality.Thank, but if it doesn't, my wife is 2 years younger than me and cut a deal when are kids were born. She said for every year she stayed home to raise them she'd work 2 years longer than me.

So technically she should be working 10 years longer than me. We're in contract talks to determine if that can be reduced. My current proposal is I'll cut it to 5 if she works two jobs.

The God Hypothesis
08-19-2012, 10:58 AM
What exactly should I be doing at my age? I don't know much about saving for retirement.

If I were you I'd pick up a book called "I Will teach you How to be Rich". It isnt anything astronomically new or complicated, just real sound advice for a twentysomething getting started int he financial world. Its main hook is total automation. Sounds liek it would serve you quite well.

R8RFAN
08-19-2012, 10:59 AM
What exactly should I be doing at my age? I don't know much about saving for retirement.

Also you can get a Million in TERM life insurance for probably 20 bucks a month at your age to take care of you and your family in case something happens, say if you get a terminal disease God Forbid alot of times the Life Insurance will buy you out for half the value to help the family while you are alive too.

The Roth IRA is taxed when you put it in and is tax free when you retire. Pay now, reap the benefits later

R8RFAN
08-19-2012, 11:00 AM
Thank, but if it doesn't, my wife is 2 years younger than me and cut a deal when are kids were born. She said for every year she stayed home to raise them she'd work 2 years longer than me.

So technically she should be working 10 years longer than me. We're in contract talks to determine if that can be reduced. My current proposal is I'll cut it to 5 if she works two jobs.

Good luck with thatLMAO I would love to hear that discussion.

ThaVirus
08-19-2012, 11:01 AM
I've resigned to the fact that ill be middle class my entire life. I'm a pretty good saver but ya just never know.

I fear the day all of our money is worth nothing.

R8RFAN
08-19-2012, 11:05 AM
To all you young people remember, even though you think you will never get old or die you will.

I am just a blue collar truck driver with a great company and I am living proof you don't have to be broke just because you don't have a brilliant mind or a big time college education.

lewdog
08-19-2012, 11:06 AM
I just graduated (almost 27 years old) so I started my job by just putting 3% into a 401K. I also dropped 2k into a Roth IRA. I have other expenses to take care of, trying to build an emergency savings fund, but I figured that was a good place to start.

R8RFAN
08-19-2012, 11:06 AM
I've resigned to the fact that ill be middle class my entire life. I'm a pretty good saver but ya just never know.

I fear the day all of our money is worth nothing.

What is Middle Class? Everybody has a different definition.

Trust me, if money is ever worth nothing, we have way more things to worry about than retirement.

People would be killing for a loaf of bread

R8RFAN
08-19-2012, 11:07 AM
I just graduated (almost 27 years old) so I started my job by just putting 3% into a 401K. I also dropped 2k into a Roth IRA. I have other expenses to take care of, trying to build an emergency savings fund, but I figured that was a good place to start.

Excellent place to start, just make sure you are putting the FULL amount that your employer will match... It's Free Money!

cdcox
08-19-2012, 11:08 AM
I've been putting away 10% of my salary since I was 30. If I rely only on that and we get some decent return on investment, I will be in my late 60's before I can retire.

I've got two additional hole cards.

About a year and half ago I exercised some stock options that I received for serving on the board of advisers of a start up. The company is still growing and still attracting significant investment capital, though they have not yet earned any revenue. I figure that one investment ($1000) has the potential to out perform my entire retirement plan at work. It is still a long shot, but that investment has the potential to drastically alter my retirement plans.

And then there is Sandbox Simulations. Another long shot, but if we are able to capture even a small portion of the fantasy sports market, it will be a reliable source of income that can supplement whatever other retirement income I have.

Big Smoke
08-19-2012, 11:11 AM
To all you young people remember, even though you think you will never get old or die you will.

I am just a blue collar truck driver with a great company and I am living proof you don't have to be broke just because you don't have a brilliant mind or a big time college education.

I know I will be working for the State of Missouri. So I'm not exactly sure what they offer as far as matching pay, etc. But I will be sure to look into it.

What about investments? Are they basically like playing the lottery?

R8RFAN
08-19-2012, 11:15 AM
I know I will be working for the State of Missouri. So I'm not exactly sure what they offer as far as matching pay, etc. But I will be sure to look into it.

What about investments? Are they basically like playing the lottery?

I think Single stocks are playing the lottery, I think solid mutual funds are good, look at Vangaurd https://personal.vanguard.com/us/home?fromPage=portal

Psyko Tek
08-19-2012, 11:18 AM
I will work till the day I die. & I'm fine with that.

I will work until 2 days after I die
my will says buy a keg of smithwick's and play irish punk, social d and springsteen at the wake

KC Tattoo
08-19-2012, 11:23 AM
It's been tough go for me these last few years. I'm not making it from pay check to pay check so I voted the top one lol. I've made some progress & the place I just got (cheap ass trailer house) it's nice enough just hope it holds up for the years to come. I think I am in a better managable situation now so I'm not at dires road anymore. The price of gas and food on the table is whats getting me the most now.

I have no money saved in a retirement plan but got on 401k with my job this year. I'm not really worried about retirement right now just want to see my kids graduate high school then evaluate what I want to do with the rest of my life I guess.

I've thought about becomming a hobo for a few months, ride the rails & go solo just for fun & get away from pressures of life. Then again I'm probley too chicken shit to do something like that lol.

R8RFAN
08-19-2012, 11:24 AM
I know I will be working for the State of Missouri. So I'm not exactly sure what they offer as far as matching pay, etc. But I will be sure to look into it.

What about investments? Are they basically like playing the lottery?

When you are in a mutual fund say you are in 5 of them, Each of those funds represent like 50 or so companies and the amount you put in your 401 k per week is distributed equally among all funds so sometimes you buy partial shares if a stock...

The advantage is if one company in those funds tanks, you have 49 others to hold it up but also if one company does really well you are being dragged down by those 49 companies...

This is what I own in my particular funds (#of shares)

http://img4.imageshack.us/img4/8202/capturedtc.jpg

R8RFAN
08-19-2012, 11:36 AM
Oh and the value of my 401k has doubled since may 2009
http://img641.imageshack.us/img641/3880/captureblr.jpg

Guru
08-19-2012, 11:42 AM
Planning for 65 and maybe even earlier, but with this economy, probably 70.

R8RFAN
08-19-2012, 11:44 AM
Planning for 65 and maybe even earlier, but with this economy, probably 70.

Yup I voted "Saving steadily here and believe we're on track to retire at 65."

KC Jones
08-19-2012, 12:12 PM
Excellent place to start, just make sure you are putting the FULL amount that your employer will match... It's Free Money!

truth!!!

Even if your investments don't appreciate at all if your employer match is 50% that's a 50% return on investment! At a minimum you should be investing enough in any matching plan to maximize the match!

prhom
08-19-2012, 12:20 PM
What exactly should I be doing at my age? I don't know much about saving for retirement.

Like everyone is saying, of course you should use the 401k and/or IRA accounts. The biggest thing you should do starting out is to educate yourself about what investing and saving for retirement really means. There are tons of books on this subject some good some not so good. I really enjoyed reading Robert Kiyosaki's books on investing philosophies. I'm sure there will be a few replies to this from those who disagree. I think the thing to take away from his books is not so much the details of what he has done, but the attitudes he describes toward investing and making money. Read a lot of different books and you'll start to find what works for you.

Dayze
08-19-2012, 12:45 PM
Retirement...what's that? My retirement plan has been wiped out on two occasions the past ten yrs. I'm not going to worry about it. My luck I'll die the day after I retire anyway.

DaFace
08-19-2012, 01:23 PM
I've still got 3/4ths of my working career to go, but I think I'm pretty well on track - maybe better. The wife and I are certainly dumping more into our savings/retirement plans/investments than just about anyone else I know our age. Hell, most people I know barely do ANYTHING outside of work-sponsored stuff.

Nightfyre
08-19-2012, 01:27 PM
I saw an article on cnnmoney a few moths ago that said something to the effect of the average 55 year old has 10,000 in retirement savings. Not sure how accurate it is, but that is terrible if true.

Slainte
08-19-2012, 01:31 PM
I saw an article on cnnmoney a few moths ago that said something to the effect of the average 55 year old has 10,000 in retirement savings. Not sure how accurate it is, but that is terrible if true.

That's on par with what I've been reading lately, in fact I think it's actually "less than 10K" stored away...which, if true is really frighting.

lewdog
08-19-2012, 01:33 PM
Like everyone is saying, of course you should use the 401k and/or IRA accounts. The biggest thing you should do starting out is to educate yourself about what investing and saving for retirement really means. There are tons of books on this subject some good some not so good. I really enjoyed reading Robert Kiyosaki's books on investing philosophies. I'm sure there will be a few replies to this from those who disagree. I think the thing to take away from his books is not so much the details of what he has done, but the attitudes he describes toward investing and making money. Read a lot of different books and you'll start to find what works for you.

Yea this is all new for me and I could really use some basic education on what is available to me. Any good resources you would recommend besides the one you listed?

Bump
08-19-2012, 01:33 PM
I'm going to work till I die, prices for everything keep going up and yet I'm making the same I was 5 years ago, okay a little more, but not enough to come close to offsetting the rising costs for everything and I work hard and live cheap as hell.

lewdog
08-19-2012, 01:36 PM
Excellent place to start, just make sure you are putting the FULL amount that your employer will match... It's Free Money!

Yea it isn't a great match. It says all contributions you make up to 3% of your annual wage are eligible for a discretionary match at 50% based on eligibility. I meet eligibility for this after working there for a year.

Hence why I am putting 3% into my 401k as it maximizes me getting "free" money.

DaFace
08-19-2012, 01:36 PM
Yea this is all new for me and I could really use some basic education on what is available to me. Any good resources you would recommend besides the one you listed?

Since you're pretty close to my age, I'll mention that I've found it helpful to just bite the bullet and call a financial advisor to help you get started. Yeah, they will likely take a cut of your investments, but 1) you don't have to always go through them and 2) it's nice to have someone who has some expertise you can call when stuff comes up.

BWillie
08-19-2012, 01:40 PM
I'm 28, I plan on "retiring" when I'm 32. By retiring I mean not having a full time job, will be able to make more than enough money from the houses I own from rent, poker, and then I'll pick up a 15 an hour job working at a golf course. Only have about $35,000 in my 401K, so I'll have to figure out the best option for saving for that without having an employer. IRA's? Keep contributing to 401k but would be with out a match by employer? My health insurance blows anyway at my current employer, I have like a $8,000 deductible and it's still $40 a month. You should be able to get something about that good from Blue Cross/Blue Shield or my boy Obama will let you guys pay for my health care by then.

BWillie
08-19-2012, 01:42 PM
I'm going to work till I die, prices for everything keep going up and yet I'm making the same I was 5 years ago, okay a little more, but not enough to come close to offsetting the rising costs for everything and I work hard and live cheap as hell.

Don't get married, don't have kids, pay off your house early or rigorously invest your income somewhere. Retire in your 30's. Live life to it's fullest before your balls sag down to your knees. That's my motto.

lewdog
08-19-2012, 01:47 PM
Since you're pretty close to my age, I'll mention that I've found it helpful to just bite the bullet and call a financial advisor to help you get started. Yeah, they will likely take a cut of your investments, but 1) you don't have to always go through them and 2) it's nice to have someone who has some expertise you can call when stuff comes up.

I have some parents who are pretty money savy and they just retired at age 55 without either one of them ever making over 50k a year. We always lived modestly but we had plenty of nice things and they never ever felt a money squeeze. They never even had a car loan at any point in their lives and paid their mortage off after 20 years.

I am new to the working world and I still don't have a grasp on how far my girlfriend and my combined income should get us when living a modest lifestyle with basic necessities and a little money for fun.

So I got the old man to guide me but still might be nice to have a financial advisor in my back pocket as well.

R8RFAN
08-19-2012, 01:52 PM
Also remember a 401k will also help you on taxes

Example: If you gross 1000 dollars a week and put 10% a week in your 401k (100.00), You will only be taxed for the 900.00 per week instead of the full 1000.00 which reduces your overall tax liability.

Bump
08-19-2012, 02:44 PM
I'm pretty much banking on an economic collapse. BRING IT!

Rain Man
08-19-2012, 03:06 PM
Retirement...what's that? My retirement plan has been wiped out on two occasions the past ten yrs. I'm not going to worry about it. My luck I'll die the day after I retire anyway.

Yeah, it's been a bad decade for people hoping to retire. I've complained about this before, but I've saved religiously for retirement since the day I graduated college, and it really stank to see big chunks of it get wiped out twice. I've rebuilt it, but I've lost 15 years of appreciation.

DaneMcCloud
08-19-2012, 03:07 PM
I'll share some very personal information (which is normally against my personal policy) in hopes that it helps others.

We owned a business that did very, very well for us for nearly a decade. My wife was instructed by our CPA and Financial Adviser (at the time) to put the maximum amount in a two Uni 401k accounts (one for me and one for her) during the height of our revenues.

Well, in 2006, we lost a hefty amount in the market because the 401k earning were heavily invested in overseas mutual funds. In 2008, we lost more than half of our remaining value because of the crash. As of about two weeks ago, with the market at nearly 13,200, our value was about 60% of it was in 2008, before the crash. So, considering the likelihood of another crash, I cashed out. There is an immediate 20% Federal tax, a 12.5% tax and another 12.5% penalty (10% Fed, 2.5% Cali state), so essentially, 45% off the top.

I have a little less than 25% of the money that we had earned up until 2006. It fucking sucks.

Furthermore, you have no control as to how your company invests your 401k retirement funds. They may take your $100 per month or paycheck or whatever and turn it over to some dumbass at Oppenheimer or TRowe Price or Edward Jones (THE fucking worst) to invest in a "fund". That fund can and will likely lose money, so there is absolutely no guarantee that what you've put in will be there at age 59.5, which is the initial year you can begin withdrawing YOUR money without Federal & State penalties, not to mention taxes equal to your income bracket.

I'd much rather have my money, post tax, and invest as I see fit. Right now, the only thing I even feel comfortable doing with my cash are Tax Free Money Market accounts and CD's. Both are somewhere around .08% to 1%, which is ridiculously low, BUT, you won't lose your money when the market inevitably tanks again.

Personally, I think "Financial Advisers", like those that work at the aforementioned firms, are a scam. These are guys that, 99.9% of the time, are nothing more salesmen. They don't watch the market and they don't make the decisions. The "funds" they offer are set, managed and controlled by "The Home Office" and any REAL decisions come those people and not "your guy".

To get "real" financial advice, like those of successful money managers, you need $500k or more (and more likely, $2.5 million or more) and unfortunately, those guys don't work for "the little guy" who's investing $10k a year. At that point, you're at the mercy of the stock market, which could tank any day.

Rain Man
08-19-2012, 03:12 PM
I remain intrigued by the concept of investing my IRA in alternates to financial markets, like buying investment real estate. Anyone here doing that, and how's it working for you?

(Note that I'm not talking about real estate instead of an IRA. I'm talking about real estate within an IRA.)

Nightfyre
08-19-2012, 03:13 PM
I can tell you that if you go that route, you cannot put any sweat equity into it, you cannot control the property and you must own less than 50% of the property. In other words, you must research it in-depth before jumping in.

Rain Man
08-19-2012, 03:13 PM
I can tell you that if you go that route, you cannot put any sweat equity into it, you cannot control the property and you must own less than 50% of the property.

Really? That seems kind of stifling.

Nightfyre
08-19-2012, 03:14 PM
the IRS is super strict about it because your sweat equity or improvement money plowed into it is a method of tax evasion

DaneMcCloud
08-19-2012, 03:14 PM
I remain intrigued by the concept of investing my IRA in alternates to financial markets, like buying investment real estate. Anyone here doing that, and how's it working for you?

(Note that I'm not talking about real estate instead of an IRA. I'm talking about real estate within an IRA.)

I think real estate is a shaky investment this time, at least in most markets. Not only could the real estate market collapse again, dealing with renters is nothing short of a nightmare. I've had several friends buy properties to rent, only to get out as soon as possible due the massive headaches that renters bring.

There is no safe haven for your money at this time. CD's and MMA's are your best bet until the worldwide economy has settled down. With all the unrest in Europe and the US, it's impossible to see the future. My advice would be hang onto your money as tightly as you can for the time being.

R8RFAN
08-19-2012, 03:22 PM
No way in hell I would rent houses, scumbags tear out your walls and the courts always seem to side with the tenant...

If you rent houses you damn well better know how to fix them or you will go broke.

Nightfyre
08-19-2012, 03:23 PM
Successful renting is all about either:
a) Not giving a shit about the property (IE slumlording)
or
b) Picking the right tenants

R8RFAN
08-19-2012, 03:25 PM
Successful renting is all about either:
a) Not giving a shit about the property (IE slumlording)
or
b) Picking the right tenants

2 is damn near impossible these days because of being accused of discriminating.

DaneMcCloud
08-19-2012, 03:30 PM
Successful renting is all about either:
a) Not giving a shit about the property (IE slumlording)
or
b) Picking the right tenants

Picking the right tenants is often about having good luck.

I had a friend rent a 1,600 square foot home for $5,500 per month in my area. You'd think that for $5,500 a month, you'd get a decent renter(s). But what happened was that the renter's girlfriend moved out three weeks after the leased was signed, so the guy got a bunch of buddies to move in to defray the cost.

The house was trashed and after the guy lost his job and, unbeknownst to the home owner, sublet the house. Well, a neighbor's friend met the new tenant and was invited inside the home to hang out.

When he entered, he saw guns, scales and about a ton of marijuana. He told the neighbor and I personally called the home owner (who lives out of state) to inform him of what was going on. He called the Feds, the people were evicted and jailed, and he had to spend $40k to restore his home.

No thanks.

DaneMcCloud
08-19-2012, 03:33 PM
2 is damn near impossible these days because of being accused of discriminating.

That's why it's best to hire a property management company in order to protect oneself if renting.

Even then, it's a dicey situation at best.

stevieray
08-19-2012, 03:33 PM
".....you killed my father, prepare to die."

other than than that, are any of us really prepared?


:D

R8RFAN
08-19-2012, 03:35 PM
".....you killed my father, prepare to die."

other than than that, are any of us really prepared?


:D

Not really, if you have a bunch of money it seems you will spend it all on medical shit later on in your life, people are probably better off not to have a pot to piss in when they get old.

BWillie
08-19-2012, 03:51 PM
No way in hell I would rent houses, scumbags tear out your walls and the courts always seem to side with the tenant...

If you rent houses you damn well better know how to fix them or you will go broke.

I dont know how to do shit, its been really easy. Been doing it for 4 yrs, but its a rroommate scenario but other one is not. Best thing I've ever done, easy money. I sign them all to month to month leases so its 10x easier to evict them and they hhave less "rights". Only had one bad seed and it was easy to get rid of him

Rain Man
08-19-2012, 03:57 PM
I dont know how to do shit, its been really easy. Been doing it for 4 yrs, but its a rroommate scenario but other one is not. Best thing I've ever done, easy money. I sign them all to month to month leases so its 10x easier to evict them and they hhave less "rights". Only had one bad seed and it was easy to get rid of him

Yeah, month to month is definitely the way to go.

I've been renting an apartment for 16 years now and it's been the best investment I ever made. It's in my house, so there are some distinct advantages to that, but my wife and I have off and on considered buying rental properties due to our success with this one.

I recognize that every investment is risky these days, but all I got from my $10,000 investment in f'ing JDS Uniphase was a pile of nothing, whereas if I lose money on a rental property I at least still have something of value.

Pablo
08-19-2012, 03:59 PM
Put back 6% every pay period; employer contributes 4.5%.

I'm 26, so I figure I could target retirement around 58 or so and be comfortable.

DaneMcCloud
08-19-2012, 04:01 PM
Put back 6% every pay period; employer contributes 4.5%.

I'm 26, so I figure I could target retirement around 58 or so and be comfortable.

59.5 years old. That's the first year that you can withdraw money from your IRA or 401k without the 10% penalty and State penalty (which depends on your state).

Also, keep in mind that you will pay taxes on the money that's withdrawn. It's not tax free. Oh, and depending on the plan that your employer set up, there could be administration fees taken out as well.

R8RFAN
08-19-2012, 04:08 PM
I dont know how to do shit, its been really easy. Been doing it for 4 yrs, but its a rroommate scenario but other one is not. Best thing I've ever done, easy money. I sign them all to month to month leases so its 10x easier to evict them and they hhave less "rights". Only had one bad seed and it was easy to get rid of him

I hope you make a killing on your venture and I hope you continue to have success in the tenant dept.

Deberg_1990
08-19-2012, 04:10 PM
Picking the right tenants is often about having good luck.

I had a friend rent a 1,600 square foot home for $5,500 per month in my area. You'd think that for $5,500 a month, you'd get a decent renter(s). But what happened was that the renter's girlfriend moved out three weeks after the leased was signed, so the guy got a bunch of buddies to move in to defray the cost.

The house was trashed and after the guy lost his job and, unbeknownst to the home owner, sublet the house. Well, a neighbor's friend met the new tenant and was invited inside the home to hang out.

When he entered, he saw guns, scales and about a ton of marijuana. He told the neighbor and I personally called the home owner (who lives out of state) to inform him of what was going on. He called the Feds, the people were evicted and jailed, and he had to spend $40k to restore his home.

No thanks.

Heh, yea.....basically people don't give a shit when they don't own the property. Heck, I've seen a lot of homeowners who don't give a shit about their property.

KC Jones
08-19-2012, 05:10 PM
Put back 6% every pay period; employer contributes 4.5%.

I'm 26, so I figure I could target retirement around 58 or so and be comfortable.

add a roth ira - you can pull out up to the value of your contributions almost any time for any reason since you already paid taxes on it. This way you'll have a fairly liquid investment for emergencies and if you do end up retiring early you can pull this money and leave your 401k alone until you won't have any penalties.

lewdog
08-19-2012, 05:12 PM
Heh, yea.....basically people don't give a shit when they don't own the property. Heck, I've seen a lot of homeowners who don't give a shit about their property.

And I am the opposite. We rent a house here in Phoenix and I take damn good care of it, spent $15 to stake a tree in the front yard that had blown over, used some stain remover to take out some carpet stains and made a few other small repairs throughout the house. Of course I know I am the complete opposite of most renters.

DaneMcCloud
08-19-2012, 05:14 PM
add a roth ira - you can pull out up to the value of your contributions almost any time for any reason since you already paid taxes on it. This way you'll have a fairly liquid investment for emergencies and if you do end up retiring early you can pull this money and leave your 401k alone until you won't have any penalties.

The money has to be in the account for a minimum of five years before withdrawal from a Roth and any earnings would be subject to the 10% Federal penalty.

Also, you can borrow up to $50k of your 401k and pay it back, with interest, without penalty. But if you fail to pay it back in the time specified, you'll be responsible for State & Fed penalties and taxes.

R8RFAN
08-19-2012, 05:21 PM
If you borrow from your 401k and you get fired from that job the balance of that is due within a set time period or you are taxed as if you cashed out your 401k I think so be careful.

Rain Man
08-19-2012, 05:27 PM
And I am the opposite. We rent a house here in Phoenix and I take damn good care of it, spent $15 to stake a tree in the front yard that had blown over, used some stain remover to take out some carpet stains and made a few other small repairs throughout the house. Of course I know I am the complete opposite of most renters.

I think people hear the horror stories of renters and assume that renters are da devil. In my opinion, the truth is that bad renters and bad landlords tend to go hand in hand, and good renters and good landlords tend to go hand in hand. If you're a good renter, you can generally (not always, but generally) sniff out and avoid a bad landlord. The same is true of landlords. I've had three renters in 16 years that I was glad to see leave, and only one that I had to kick out. (A second was getting close.) But none of those three caused any damage at all - one was smoking marijuana and got the boot, one was weird and having trouble paying her rent, and one was just weird. The weird one that was having trouble paying her rent would've never gotten in the door other than an administrative error, because I could see trouble there going in but couldn't stop it.

DaneMcCloud
08-19-2012, 05:27 PM
If you borrow from your 401k and you get fired from that job the balance of that is due within a set time period or you are taxed as if you cashed out your 401k I think so be careful.

Very true.

JASONSAUTO
08-19-2012, 05:30 PM
I think people hear the horror stories of renters and assume that renters are da devil. In my opinion, the truth is that bad renters and bad landlords tend to go hand in hand, and good renters and good landlords tend to go hand in hand. If you're a good renter, you can generally (not always, but generally) sniff out and avoid a bad landlord. The same is true of landlords. I've had three renters in 16 years that I was glad to see leave, and only one that I had to kick out. (A second was getting close.) But none of those three caused any damage at all - one was smoking marijuana and got the boot, one was weird and having trouble paying her rent, and one was just weird. The weird one that was having trouble paying her rent would've never gotten in the door other than an administrative error, because I could see trouble there going in but couldn't stop it. so the wife approved the one who had payment issues and weird without feedback from you.

sucks when that happens.
Posted via Mobile Device

Rain Man
08-19-2012, 06:18 PM
so the wife approved the one who had payment issues and weird without feedback from you.

sucks when that happens.
Posted via Mobile Device


Kind of. I talked to her and was she was all adamant that she was going to take it and "would give us six months of rent in cash right now" if we would commit right now. I really didn't like how she was coming across and how she was trying to take control of the process, and she was saying some stuff that had my spidey sense tingling.

We'd had one semi-interested bite before that, so I went in to the house with her, gave the wife our secret "back me up on this" look, and said, "Honey, this woman would like to pay us cash in advance now if we rent the apartment to her right now, but I know we had the other person who was first in line. I think we need to wait for that person, right?"

My wife didn't see my "back me up on this" look and said, "Oh, we don't know how serious that person was, so I think we give it to this woman. Welcome aboard!"

At that point there was nothing I could do but try to give my wife a much more blatant "take it back, take it back" look, but she again didn't notice it, and the rest is history. This tenant is the one that I think may have come into our house while we were gone, which inspired my investigatory thread a while back.

My wife and I are now very clear on what the codes are to get a weird candidate out the door. She apologized to me later and said she completely missed the cues.

chasedude
08-19-2012, 06:22 PM
Retirement Hahahaha! By the time I'm ready to draw SS, after decades of contributing, it won't be around. The small profit sharing I get from work goes into 401k, we all know how secure that is. I'm hoping I'm dead before retirement.

JASONSAUTO
08-19-2012, 06:26 PM
I would refresh the wife again just prior to the "interview" if the signals.

Seems they have a hard time remembering. I have that issue sometimes around here lol
Posted via Mobile Device

Rain Man
08-19-2012, 06:27 PM
I would refresh the wife again just prior to the "interview" if the signals.

Seems they have a hard time remembering. I have that issue sometimes around here lol
Posted via Mobile Device

Oh, we have a checklist now before the "For Rent" sign ever goes up. I'm not making that mistake again.

JASONSAUTO
08-19-2012, 06:30 PM
Oh, we have a checklist now before the "For Rent" sign ever goes up. I'm not making that mistake again.

lol right on
Posted via Mobile Device

DaKCMan AP
08-19-2012, 06:54 PM
Max out my 401k and Roth IRA contributions each year.

I don't like the thought of retirement, however. Seems boring to me. I'd rather continue working, even if in a reduced schedule, doing something that I enjoy. Maybe that will change 40 years from now.

Dunit35
08-19-2012, 07:05 PM
I can retire at 46 years old, each year after adds to my pension. But, many leave my profession 4-5 years after starting.

I would like to retire at 46 and work full time in the HVAC business.

scho63
08-19-2012, 07:16 PM
I have been a horrible saver my whole life. As a single guy who's never had the responsibility of a wife and kids, I have lived the high life. I will pay a price if I live past 65...

prhom
08-19-2012, 10:31 PM
Yea this is all new for me and I could really use some basic education on what is available to me. Any good resources you would recommend besides the one you listed?

If you only read one Kiyosaki book, read "Cashflow Quadrants", then if you like it "Guide to Investing" I think it's called. His most popular on is "Rich dad, poor dad", but I thought it was too repetitive and anecdotal.

I also like Jim Cramer, again a controversial figure. I haven't read his books yet, but intend to. I watch Mad Money sometimes and like his attitude. I also like the way he breaks down stocks and does a comparative analysis between two similar stocks to show why he feels one is superior to the other. He advocates focusing on a few investments and doing lots of research. If you can't spend the time to know what your money is invested in you probably shouldn't invest it in anything other than money market accounts or mutual funds.

I'm almost completely out of stocks in my retirement funds because I'm really not sure where things are going in the short term, but I think there will be a large correction in the markets before I "miss" anything. I also don't have a lot of time at the moment to put into research.

Personally, I don't like using investment advisors either. As Dane alluded to earlier, you don't get really qualified people to advise you unless you have $500k. Even then they tend to just follow a set of "rules" that everyone goes by. They aren't really offering much insight into what constitutes a good investment, they really only talk about categories of investments. I prefer to go my own route and learn along the way.

Demonpenz
08-19-2012, 11:21 PM
If you are thinking about it you are doing pretty good, then comes the action. I know lots of people that can't even pay for the shit they have now let alone put any away.

ClevelandBronco
08-19-2012, 11:40 PM
I pray that I will never have so little to do that I could be classified as retired. I don't think I'd enjoy it in the least anyway.

alnorth
08-19-2012, 11:42 PM
I'm aiming very high. Right now I save 20%, invested very aggressively (I'll dial it back in a couple decades when I'm closer to retirement), and I hope I can hit the max that you can put into a 401k per year either next year or the year after.

Dr. Facebook Fever
08-19-2012, 11:44 PM
At 43 I'd say no I'm not close to ready for retirement, through social security or savings. Luckily I have more than 20 years left before it might happen.

alnorth
08-19-2012, 11:44 PM
If you only read one Kiyosaki book, read "Cashflow Quadrants", then if you like it "Guide to Investing" I think it's called. His most popular on is "Rich dad, poor dad", but I thought it was too repetitive and anecdotal.

I also like Jim Cramer, again a controversial figure. I haven't read his books yet, but intend to. I watch Mad Money sometimes and like his attitude. I also like the way he breaks down stocks and does a comparative analysis between two similar stocks to show why he feels one is superior to the other. He advocates focusing on a few investments and doing lots of research. If you can't spend the time to know what your money is invested in you probably shouldn't invest it in anything other than money market accounts or mutual funds.

I'm almost completely out of stocks in my retirement funds because I'm really not sure where things are going in the short term, but I think there will be a large correction in the markets before I "miss" anything. I also don't have a lot of time at the moment to put into research.

Personally, I don't like using investment advisors either. As Dane alluded to earlier, you don't get really qualified people to advise you unless you have $500k. Even then they tend to just follow a set of "rules" that everyone goes by. They aren't really offering much insight into what constitutes a good investment, they really only talk about categories of investments. I prefer to go my own route and learn along the way.

I'm..... not a fan of Kiyosaki. At all. I like his attitude about encouraging entrepreneurship, but some of his tax and investment advice in the past has been horrid. Not sure what he's been saying lately.

I prefer Ray Lucia.

DaneMcCloud
08-19-2012, 11:47 PM
I'm aiming very high. Right now I save 20%, invested very aggressively (I'll dial it back in a couple decades when I'm closer to retirement), and I hope I can hit the max that you can put into a 401k per year either next year or the year after.

If you do that nd the market crashes again, you'll be lucky to ever see half of that money, ever again.

Take it for what it's worth but I if were you, I'd invest it conservatively outside of an uncontrollable company IRA.

alnorth
08-19-2012, 11:53 PM
If you do that nd the market crashes again, you'll be lucky to ever see half of that money, ever again.

Take it for what it's worth but I if were you, I'd invest it conservatively outside of an uncontrollable company IRA.

A lot of people had that attitude and sold at the absolute bottom 3 years ago, completely missing the rebound, and again last year at another low.

I do not believe in market timing AT ALL. People who try to get cute with timing buy high because they read the news about how awesome the market is now and they want to get in on that, and sell low because they are depressed and think the dow is going to zero, and they lose money.

Since the great depression, the market (including dividends) has never lost money over any 10-year time span. Since the depression, the market has never made less than inflation in any 15-year time span.

I have roughly 30 years. I'll think about pulling back when I've got less than 10 years left. Buy and hold, diversify, mutual funds, rebalance every once in a while, and laugh at bad news. When the market crashed a few years ago, I doubled my contribution.

prhom
08-19-2012, 11:54 PM
I'm..... not a fan of Kiyosaki. At all. I like his attitude about encouraging entrepreneurship, but some of his tax and investment advice in the past has been horrid. Not sure what he's been saying lately.

I prefer Ray Lucia.

I get that, and what I like most is the way he categorizes people's investment attitudes. He did well in real estate and good for him. Not everyone will or can. I think he's completely right that you'll never get rich by saving or retail investing though. The numbers just don't add up.

Never heard of Ray Lucia, but will check him out. Hopefully the other young investors will too. I'm not an expert so I hope they take everyone's advice and decide for themselves what they want to do.

DaneMcCloud
08-19-2012, 11:58 PM
A lot of people had that attitude and sold at the absolute bottom 3 years ago, completely missing the rebound, and again last year at another low.

I do not believe in market timing AT ALL. People who try to get cute with timing buy high because they read the news about how awesome the market is now and they want to get in on that, and sell low because they are depressed and think the dow is going to zero, and they lose money.

Since the great depression, the market (including dividends) has never lost money over any 10-year time span. Since the depression, the market has never made less than inflation in any 15-year time span.

I have roughly 30 years. I'll think about pulling back when I've got less than 10 years left. Buy and hold, diversify, mutual funds, rebalance every once in a while, and laugh at bad news. When the market crashed a few years ago, I doubled my contribution.

Good luck. I will never, ever, ever contribute another dime into a company sponsored retirement account again, nor will I contribute to an account through my personal business.

I've been fucked hard enough this past year and learned my lesson.

boogblaster
08-19-2012, 11:59 PM
got injured at 46 .. its been a long frickin haul .. save save save people SS doesnt pay that well .....

prhom
08-20-2012, 12:03 AM
Good luck. I will never, ever, ever contribute another dime into a company sponsored retirement account again, nor will I contribute to an account through my personal business.

I've been ****ed hard enough this past year and learned my lesson.

Couldn't you at least contribute through your business into an account that only invested in MM funds? Get the pre-tax benefits that way, but not the market exposure. Totally agree that not having a choice in which funds you get is a bad way to go.

alnorth
08-20-2012, 12:04 AM
apparently my old "stocks never lost money over 10 years, ever ever ever" mantra is now out of date. There is one, and only one, time period where this is no longer true: 2000 - 2010. The starting date must be 2000 (or a few dates in late 1999)

alnorth
08-20-2012, 12:09 AM
Good luck. I will never, ever, ever contribute another dime into a company sponsored retirement account again, nor will I contribute to an account through my personal business.

I've been ****ed hard enough this past year and learned my lesson.

Since I don't pick stocks (I'm in 11 mutual funds, never mind picking stocks, I also have no idea which sector or which fund will win in a given year) I don't think I really need luck. I'm not trying to hit a home run, and I'm not going to strike out.

So far, my cumulative annual return is just 4.5%/year. Not terrific since you'd normally hope for 8% or so in stocks, but I did start in 2006. Year to date, after everyone freaked out and bailed, I made 12.5%.

I'm also not earning ~1% like I probably would, if even that much, if I went to cash.

DaneMcCloud
08-20-2012, 12:10 AM
Couldn't you at least contribute through your business into an account that only invested in MM funds? Get the pre-tax benefits that way, but not the market exposure. Totally agree that not having a choice in which funds you get is a bad way to go.

Yes, I could do a tax free MMA account and recently set one up at ING.

The problem is that I'm only 46 years old and just had a baby girl two weeks ago. IF I need access to that money, I'll pay about 45% of the top with tax and penalty, so I'd rather be safe and not put it in a retirement account.

DaneMcCloud
08-20-2012, 12:14 AM
Since I don't pick stocks (I'm in 11 mutual funds, never mind picking stocks, I also have no idea which sector or which fund will win in a given year) I don't think I really need luck. I'm not trying to hit a home run, and I'm not going to strike out.

So far, my cumulative annual return is just 4.5%/year. Not terrific since you'd normally hope for 8% or so in stocks, but I did start in 2006. Year to date, after everyone freaked out and bailed, I made 12.5%.

I'm also not earning ~1% like I probably would, if even that much, if I went to cash.

And I had lost more than 40% of my total value since 2008 and with the market so volatile and likely to crash again, I cashed out.

I'd have rather have paid taxes on that money and still have it, as opposed to losing it and never seeing it return. And I'm talking hundreds of thousands, not a few thousand.

Again, good luck.

cdcox
08-20-2012, 12:15 AM
A lot of people had that attitude and sold at the absolute bottom 3 years ago, completely missing the rebound, and again last year at another low.

I do not believe in market timing AT ALL. People who try to get cute with timing buy high because they read the news about how awesome the market is now and they want to get in on that, and sell low because they are depressed and think the dow is going to zero, and they lose money.

Since the great depression, the market (including dividends) has never lost money over any 10-year time span. Since the depression, the market has never made less than inflation in any 15-year time span.

I have roughly 30 years. I'll think about pulling back when I've got less than 10 years left. Buy and hold, diversify, mutual funds, rebalance every once in a while, and laugh at bad news. When the market crashed a few years ago, I doubled my contribution.

Yeah, I sold some of my holdings at the bottom of the post 9/11 fall out, anticipating another market crash on the next terrorist action where I would buy back in. Huge mistake, but I learned from it. No more market timing for me.

alnorth
08-20-2012, 12:16 AM
And I had lost more than 40% of my total value since 2008 and with the market so volatile and likely to crash again, I cashed out.

I'd have rather have paid taxes on that money and still have it, as opposed to losing it and never seeing it return. And I'm talking hundreds of thousands, not a few thousand.

Again, good luck.

If your time horizon is less than 10 years (sounds like it might be, since you are talking about maybe needing money?) then I agree, you should not be in stocks. At least not all in stocks.

If your horizon is longer than 10-15 years (and mine is, I dont care what happens, I'll go BK before I touch my retirement), then you probably should have at least a large chunk of stocks and just ignore the news.

DaneMcCloud
08-20-2012, 12:31 AM
If your time horizon is less than 10 years (sounds like it might be, since you are talking about maybe needing money?) then I agree, you should not be in stocks. At least not all in stocks.

If your horizon is longer than 10-15 years (and mine is, I dont care what happens, I'll go BK before I touch my retirement), then you probably should have at least a large chunk of stocks and just ignore the news.

You're not getting what I'm saying.

I had X amount in the market. In all honesty, I lost about 60% of my value in 2008. Four years later, with the market in the 13's, I've only recovered about 30% percent. Each and every day the market fell by a hundred points this year alone, I'd lose thousands.

The market is not going up. With uncertainty in Greece, Spain, France and even the Middle East, it could drop to 7,000 in a heartbeat, again.

I'd rather pay taxes on my income and either day trade or save the money in a MMA, than be subjected to some computer generated mutual fund created by TRowe Price or fucking Edward Jones.

alnorth
08-20-2012, 12:42 AM
You're not getting what I'm saying.

I had X amount in the market. In all honesty, I lost about 60% of my value in 2008. Four years later, with the market in the 13's, I've only recovered about 30% percent. Each and every day the market fell by a hundred points this year alone, I'd lose thousands.

The market is not going up. With uncertainty in Greece, Spain, France and even the Middle East, it could drop to 7,000 in a heartbeat, again.

I'd rather pay taxes on my income and either day trade or save the money in a MMA, than be subjected to some computer generated mutual fund created by TRowe Price or ****ing Edward Jones.

ahh... 2008 was rather awful, I lost about 40% in that year.

well, its possible that what you may have invested in did very poorly, I don't know. I believe that I was pretty thorough in diversifying. When I only look at 2008 to present annualized rate of return, I basically broke even at about +0.6%. The company I work for is very big and can negotiate low fees though, so maybe closer to retail I would have lost money, but not as much as you did.

DaneMcCloud
08-20-2012, 12:52 AM
ahh... 2008 was rather awful, I lost about 40% in that year.

well, its possible that what you may have invested in did very poorly, I don't know. I believe that I was pretty thorough in diversifying. When I only look at 2008 to present annualized rate of return, I basically broke even at about +0.6%. The company I work for is very big and can negotiate low fees though, so maybe closer to retail I would have lost money, but not as much as you did.

EJ and UBS. We were doing about 12% a year but that wasn't nearly enough to get back to even after more than four years. And I am unwilling to continue in this extremely volatile market.

Again, good luck!

prhom
08-20-2012, 06:37 AM
Yes, I could do a tax free MMA account and recently set one up at ING.

The problem is that I'm only 46 years old and just had a baby girl two weeks ago. IF I need access to that money, I'll pay about 45% of the top with tax and penalty, so I'd rather be safe and not put it in a retirement account.

Gotcha, makes sense. Congrats on the new baby!

KILLER_CLOWN
08-20-2012, 08:32 AM
I don't want to retire, life is too much fun and death will only catch you if you stop to rest.

Reerun_KC
08-20-2012, 08:42 AM
I am looking at an early retirement. Our company is doing well. Sales have slowed this year, but we have restructured and are starting to make a bigger push heading into the 4th QTR of this year.

IF things continue, I should be done between 3-5 years and as high at 10. But should be retired in my mid 40's. Wife and I have lots of plans if that happens.

ChiTown
08-20-2012, 09:11 AM
Within 2 years (47), I will be in full position to retire. That said, I will NEVER retire. I'll just work on projects that interest me and spend more time doing the things I really want to do. But retire? Never. That's for old guys and/or people that want to grow old quick.

Reerun_KC
08-20-2012, 09:20 AM
Within 2 years (47), I will be in full position to retire. That said, I will NEVER retire. I'll just work on projects that interest me and spend more time doing the things I really want to do. But retire? Never. That's for old guys and/or people that want to grow old quick.

We have plans to move somewhere warm and buy a Marina.

tooge
08-20-2012, 10:09 AM
I'm hoping there is an aunt or uncle that leaves me some cash. I don't plan to retire per se, but I do plan on doing something different after about 60 years old. Not sure what though. I've seen too many people retire and die.

La literatura
08-20-2012, 10:18 AM
I don't plan to retire per se, but I do plan on doing something different after about 60 years old. Not sure what though. I've seen too many people retire and die.

This is sort of my plan. I want to go in my career for about 40 years, then 'retire' to do some teaching, like a couple of community college courses. I won't be asking for much, just some minimal living expenses. The point is to do something I enjoy that gives me a purpose. I figure after 40+ more years of living, I could teach students somethings about something; plus, I really love that atmosphere.

Who knows? Maybe it will be entirely online by then, or I get hit by a bus tomorrow . . .

Garden, be with family, enjoyable side vocations. I think I will make a great retiree.

Chief Henry
08-20-2012, 11:01 AM
The Mrs and I have our r'ment allocation at 80 % fixed and 20 % market. We will retire very comfortably in 10-15 years. We have been cranking $$$ into retirement for 25 plus years and have not taken too large of hits. Her employer started a ROTH option about 5 years ago and its been great. We choose to pay taxs NOW and utilize the tax free income option at r'ment. ROTH 401ks are greater than cookie jars.

HemiEd
08-20-2012, 11:09 AM
I've resigned to the fact that ill be middle class my entire life. I'm a pretty good saver but ya just never know.

I fear the day all of our money is worth nothing.

That is the big ugly problem we are facing right now. With the bailouts, our savings is worth about 1/2 what it was.

If failing companies would have failed, order would have eventually reigned.

In order to try and offset some of the loss, we bought a fairly new foreclosure where we want to retire and have done a lot of work to it.

Nightfyre
08-20-2012, 12:12 PM
Well, this thread inspired me to chuck another grand into my ROTH today. That makes 3500 since tax day.

DaKCMan AP
08-20-2012, 12:39 PM
Well, this thread inspired me to chuck another grand into my ROTH today. That makes 3500 since tax day.

If you can, max that out, brah.

DaKCMan AP
08-20-2012, 12:48 PM
I'm aiming very high. Right now I save 20%, invested very aggressively (I'll dial it back in a couple decades when I'm closer to retirement), and I hope I can hit the max that you can put into a 401k per year either next year or the year after.

A lot of people had that attitude and sold at the absolute bottom 3 years ago, completely missing the rebound, and again last year at another low.

I do not believe in market timing AT ALL. People who try to get cute with timing buy high because they read the news about how awesome the market is now and they want to get in on that, and sell low because they are depressed and think the dow is going to zero, and they lose money.

Since the great depression, the market (including dividends) has never lost money over any 10-year time span. Since the depression, the market has never made less than inflation in any 15-year time span.

I have roughly 30 years. I'll think about pulling back when I've got less than 10 years left. Buy and hold, diversify, mutual funds, rebalance every once in a while, and laugh at bad news. When the market crashed a few years ago, I doubled my contribution.

I invest similarly to you. I have 40+ years until I will access the money I am stashing away so I am in 100% equities and most of them with high risk ratings. I can afford those risks and because of 2008 and beyond I've bought many of the funds at cheap prices. Of course with regular (every 2-week) investments into the 401k it's all dollar-cost averaged.

I max out my 401k and in November I'll get the full company match ($0.75 on the dollar up to 8%.. currently I get $0.375 on the dollar up to 8%). In 2008 they reduced the company match and have slowly added it back so hopefully in another couple of years it will return to $1 for $1 match up to 8%.

You should look into opening a Roth IRA in addition to your 401k. That way you have both a tax-deferred and tax-free retirement account. I max out my Roth IRA every year but usually in a single transaction so it's not dollar-cost averaged.

The market is volatile, yes, but a loss isn't a loss until you realize it and I have 40 years to wait. On some of my investments I'm up 25% and in others I'm down 35% but overall I'm up about 9%.

My focus the past 2-3 years has been to shift funds from my taxable liquid account (i.e. money market, checking, savings) into retirement accounts. The highest interest rate I can find for cash is around 1% which is a loss against inflation so I'd rather my money be in tax deferred and tax-free retirement accounts earning a higher return.

Now that I'm done with my MBA (and the $20k per year in tuition) I can grow both my retirement and liquid savings.

HemiEd
08-20-2012, 12:52 PM
Within 2 years (47), I will be in full position to retire. That said, I will NEVER retire. I'll just work on projects that interest me and spend more time doing the things I really want to do. But retire? Never. That's for old guys and/or people that want to grow old quick.

ROFL Wait 20 years and see how you feel. We just spent the last week down at our retirement place, and it was wonderful.
No cell service there for our AT&T phones, awesome.
I worked sunup to sundown and loved every minute of it. This next 2 years can't go by soon enough for me.

Graystoke
08-20-2012, 12:53 PM
I feel sorta prepared. At one time I had life by the balls, but life bust you like that.
Eligible to retire at 55, but I am sure I will work till I am 60 or farther.

Nightfyre
08-20-2012, 01:56 PM
If you can, max that out, brah.

Definitely. I have maxxed it every year since I got out of college. I'm just well on my way this year, which should allow me to cushion my brokerage account a little more.

Swanman
08-20-2012, 02:17 PM
If your time horizon is less than 10 years (sounds like it might be, since you are talking about maybe needing money?) then I agree, you should not be in stocks. At least not all in stocks.

If your horizon is longer than 10-15 years (and mine is, I dont care what happens, I'll go BK before I touch my retirement), then you probably should have at least a large chunk of stocks and just ignore the news.

The general rule of thumb these days is to take 110 less your age and that should be your allocation to equity, with the rest to fixed income (bonds). So if you are 50, you should be 60% stock and 40% bonds. You can move that up or down 10% based on your personal risk preference.

I also stay away from "stylized" mutual funds (funds that try to beat a certain benchmark like the S&P 500, DJIA, ec). Stats show that over 80% of those types of mutual funds actually perform worse than the competing benchmark over time. I like index funds that mimic things like the S&P 500, Russell 300, FTSE, etc for that reason and index funds have extremely low expense percetanges (less than 0.25%).

One of the keys, as it has always been, is spread around your money as much as you can. Invest in different types of equity (small cap, mid cap, large cap, income, growth). Invest in international funds if available. If you are lucky and can invest in emerging markets (Brazil, Russia, China, etc), even better. The thought being is that it is rare that everything will go down or up at once so it's good to be all over the board. I still cringe when I hear people that are 100% invested in their company stock for their 401k.

ChiTown
08-20-2012, 02:18 PM
ROFL Wait 20 years and see how you feel. We just spent the last week down at our retirement place, and it was wonderful.
No cell service there for our AT&T phones, awesome.
I worked sunup to sundown and loved every minute of it. This next 2 years can't go by soon enough for me.

Sorry, I can't and won't do it. :harumph: That said, congrats on your just rewards. May time, for you, fly over the next 24 months!

Like I said, I am prepared to minimize, but not retire. I have a great biz format that allows me to pick and chose what and how much I want to work on. I can take off for a month or months and come back full time if I wish.

I should have made it more clear that I was speaking on a personal level, not a blanket statement for everyone. BTW, I have had a job since I was 7 years old doing something or the other. As a matter of fact, my first job at 7 was delivering Avon products door-to-door. By the time I was 16, I owned my own cleaning business - which I sold when I was 21. I love to work, and I love to make money. Barring physical limitations as I get older, I don't see that changing.

Reerun_KC
08-20-2012, 02:26 PM
Sorry, I can't and won't do it. :harumph: That said, congrats on your just rewards. May time, for you, fly over the next 24 months!

Like I said, I am prepared to minimize, but not retire. I have a great biz format that allows me to pick and chose what and how much I want to work on. I can take off for a month or months and come back full time if I wish.

I should have made it more clear that I was speaking on a personal level, not a blanket statement for everyone. BTW, I have had a job since I was 7 years old doing something or the other. As a matter of fact, my first job at 7 was delivering Avon products door-to-door. By the time I was 16, I owned my own cleaning business - which I sold when I was 21. I love to work, and I love to make money. Barring physical limitations as I get older, I don't see that changing.

I need to get up there and buy you a beer soon.

Garcia Bronco
08-20-2012, 02:32 PM
I am super prepared and will probably "retire" early. I bank over 30 percent of each check, when you compaoud that with the 40 percent of state, local, and federal taxes.....I live off 30 percent of my gross income. But I didn't make dumb decisions...or rather too many dumb decisions. And I got lucky too.