Life How prepared are you for retirement? - Page 4

KC Jones · 08-19-2012, 08:32 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)

**DaFace** · 08-19-2012, 12:23 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, 12:27 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, 12:31 PM

Quote:

Originally Posted by Nightfyre

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, 12:33 PM

Quote:

Originally Posted by prhom

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, 12:33 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, 12:36 PM

Quote:

Originally Posted by R8ers

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, 12:36 PM

Quote:

Originally Posted by lewdog

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, 12:40 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, 12:42 PM

Quote:

Originally Posted by Bump

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, 12:47 PM

Quote:

Originally Posted by DaFace

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, 12:52 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, 01:44 PM

I'm pretty much banking on an economic collapse. BRING IT!

**Rain Man** · 08-19-2012, 02:06 PM

Quote:

Originally Posted by Dayze

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, 02:07 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 ****ing 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 ****ing 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, 02:12 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.)

View Poll Results: Are you on track to retire?
No way! It's a global banker illuminati conspiracy I read about on infowars.com!	3	3.06%
We're just living paycheck to paycheck - I'll worry about that when the time comes.	14	14.29%
We've put away a little, but I doubt we're on track.	27	27.55%
My retirement plan involves a second career, "welcome to walmart!"	6	6.12%
Saving steadily here and believe we're on track to retire at 65.	27	27.55%
I'm looking at early retirement	15	15.31%
I built myself a small fortune early I'm just doing what I want now	4	4.08%
trust fund bro!	2	2.04%
Voters: 98. You may not vote on this poll

08-19-2012, 08:32 AM
KC Jones Genious Join Date: Aug 2000 Location: Colorado Casino cash: $10012761	How prepared are you for retirement? 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)
Posts: 5,366

08-19-2012, 12:23 PM	#46
DaFace Kind of a mod Join Date: Aug 2005 Location: Donkey Land Casino cash: $-1923101	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.
Posts: 53,154

08-19-2012, 12:27 PM	#47
Nightfyre MVP Join Date: Mar 2004 Location: Helena, MT Casino cash: $1298849	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.
Posts: 18,647

08-19-2012, 12:33 PM	#50
Bump YOU take YOUR seat Join Date: Nov 2007 Casino cash: $-1704895	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.
Posts: 38,292

08-19-2012, 12:40 PM	#53
BWillie Are you ready to Rumble? Join Date: Apr 2006 Casino cash: $-1508759	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.
Posts: 52,954

08-19-2012, 12:52 PM	#56
R8RFAN Molôn Labé Join Date: Sep 2001 Location: North Carolina Casino cash: $8466872	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.
Posts: 23,182

08-19-2012, 01:44 PM	#57
Bump YOU take YOUR seat Join Date: Nov 2007 Casino cash: $-1704895	I'm pretty much banking on an economic collapse. BRING IT!
Posts: 38,292

08-19-2012, 02:07 PM	#59
DaneMcCloud Supporter Join Date: Sep 2000 Location: Hollywood, CA Casino cash: $10053648	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 **ing 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 **ing 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.
Posts: 88,960

08-19-2012, 02:12 PM	#60
Rain Man Seize life. Be an ermine. Join Date: Jul 2001 Location: My house Casino cash: $-722449 VARSITY	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.) __________________ Active fan of the greatest team in NFL history.
Posts: 145,551