How prepared are you for retirement?

[KC Jones]

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)

[alnorth]

Originally Posted by DaneMcCloud

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]

Originally Posted by prhom

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]

Originally Posted by alnorth

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]

Originally Posted by alnorth

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]

Originally Posted by DaneMcCloud

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]

Originally Posted by alnorth

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 ****ing Edward Jones.

[alnorth]

Originally Posted by DaneMcCloud

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]

Originally Posted by alnorth

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]

Originally Posted by DaneMcCloud

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!

[Imon Yourside]

I don't want to retire, life is too much fun and death will only catch you if you stop to rest.

[Reerun_KC]

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]

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]

Originally Posted by ChiTown

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]

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.

[Jenson71]

Originally Posted by tooge

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.