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diz-am! good year for the Roth!

Discussion in 'The Lounge' started by jekbrown, Nov 17, 2006.

  1. jekbrown

    jekbrown I am CK5 Premium Member GMOTM Winner Author

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    My RothIRA funds don't get checked-in on very often... mainly because its such a looong term investment; there is still another 29 years before I take the $ out. At any rate, I checked my account today and my return over the last year has been 24.7%. W00t!!! I'm not in anything high risk. I have two funds right now: VGHCX (health care fund) and vgsix (a REIT fund). Both have done well.

    This last years perf is really swinging up the annualized returns over the last few years. My 3 year annualized is over 17%. :grin: Gotta love saving for retirement. I generally assume a 10% return on my 401k/roth funds to help plan for retirement. Any time you get a year like this one, it just puts a smile on your face because you know it'll help you retire richer and/or younger! :)

    My 401k is closer to 10% so far this calender year... if you don't count matching funds at all. :thumb: My company offers a full dollar-for-dollar match up to 6% of your pay... which is about as good as company matches get. Gotta love free money.

    So, how is everyone else doin'? I know someone out there is invested in some crazy overseas speculative junk and made 500% or something this year... spill the beans!

    j
     
  2. chevyfumes

    chevyfumes Court jester

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    Watch for the muzzleflash!
    I got a 1/2 gallon last night , it raised my alcohol level 100% in just a couple hours. It was a sure thing...:D
     
    Last edited: Nov 17, 2006
  3. tRustyK5

    tRustyK5 Big meanie Staff Member Super Moderator GMOTM Winner Author

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    Mine did a little over 14% the last year, my wife's did about 9% this year. Last year mine did pretty much 0%, so I bailed and starting picking up bank stocks. My wifes plan was heavily resource based so when oil started going crazy she saw some decent returns. Last year for her was about 20-25%.

    Our company doesn't match, but they do pay out bonus's into our retirement plans twice yearly. They've put over $2K into my plan in the last 18 months...

    I will not be retiring early though, I started the whole retirement savings too late for that dream.

    Rene
     
  4. 8_YOUR_H2

    8_YOUR_H2 1/2 ton status

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    3% here...

    eat a cawk :mad:
     
  5. jekbrown

    jekbrown I am CK5 Premium Member GMOTM Winner Author

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    retiring early... goooood. Life is all about compounding interest. My dad and I actually came up with a brilliant replacement for social security that took advantage of compounding to the max. Essentially, the government would give each American, at birth, $5,000 (if you die before retirement age, it goes poof back into "the system"). When the $ hit $12,000, the government takes back $6000 of it. It generally takes about 7 years for a decent fund to double in value so you'd have 5,000 at birth... 12,000 by what, 10 years old? From that point you'd have $6000 in what would essentially be a Roth IRA. If you got 8% avgerage annual return, when you retired at 62 (earliest social security age you can get right now), that $6000 would be over $328,000. Not bad, and it cost the government negative $1000 to do it. :grin:

    Supplement that cash by taking the current 13-14% of your income that now goes into Social Security and instead put 8% in a required 401k-type system. Everyone would retire rich. Everyone. Even if you made $10/hour your entire life and never moved up or got a single raise, you'd still be rich. Or we could stick with the current plan... and feed the old ladies just enough for Alpo and Bingo. I know, lets do that instead! ;)

    My dad is a good financial advisor... he picked the funds for me in my Roth and has done a very good job. My company has a really rockin 401k and offers Dodge and Cox fund which is about as good as mutual funds get. Its closed to new investors so I'm glad/lucky I am able to get in. The fund gets about 14.x% return annualized over the last few decades. For perspective, with my lowly wage ($30k/yr or so), if I continue to contribute at the max-match rate, and I retire at 60 years old... I'll have almost $2,000,000. Not bad considering my income level. My company also has a pension... and I have a Roth... and there will probably be some form of social security. If/when I get raises/promotions, that will mean even more $$$ in the fund... or early retirement. :)

    anyway, things are going according to plan. Some of us have to.... others, like Fumes, just went with the "rich wife plan" and don't have to worry about it! :grin: ;) :thumb:

    j
     
  6. Can Can

    Can Can Pusher Man Staff Member Super Moderator

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    I call bull****. Show me the proof, please.

    You've been in the plan for 3 years. Three bullish years. Just wait until the next recession hits and you lose 20% of your portfolio in a year......:deal:

    Before you tell me it will never happen, ask your dad what his portfolio value looked like in 2001, compared to 1999. The last recession hammered EVERYONE, and unless your dad is somehow magic, it hammered him too. I don't know a single person who didn't see at least a 15% correction in their portfolio in 2000/2001.
     
  7. Can Can

    Can Can Pusher Man Staff Member Super Moderator

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    Rates of Return Summary

    3 Month---- YTD -----1 Year---- 2 Year----- 3 Year---- 5 Year
    6.5% ------10.5% ----17.2% ----15.1% -----13.7% -----9.4%

    Here's what my portfolio has done.
     
  8. chevyfumes

    chevyfumes Court jester

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    Uhm yeah, I didn't go for the rich wife plan, the wife and I scraped by and clawed our way to get were we are, fighting for every foot hold. I may kid often but if you think I didn't earn what I have then you're sorely mistaken. We just decided to invest differently and as far as I can tell it beats renting a mobil home and riding the bus to work and only flushing when it's brown.:D
     
  9. tRustyK5

    tRustyK5 Big meanie Staff Member Super Moderator GMOTM Winner Author

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    ummm, burnage.

    I've met Rob and been to his house...it's very nice, yet i never once assumed it's been an easy road for him and his wife. From what I understood his wife does have a very good career, and they made some 'non-traditional' choices.

    As for the whole investmant thing, some of us had the misfortune of starting our employment years in the early 80's when it SUCKED!! I spent the first 10 years I worked looking for two dimes to rub together and not having any luck. The opportunity to 'start early' wasn't there. My paychecks were going to my parents mortgage mostly for many years...or worse yet was the 3 years I worked for my Dad's company where I drew nothing in an effort to help his company survive (it didn't). I finally went to trade school (college fund was spent on the failed business)

    Then 2001 almost put us out on the street...

    I don't think many people get to their 40's without seeing some brutal economic times, and I don't claim to have had it any worse than others...but it has been 'bumpy' to say the least.

    My current portfolio I have been putting into for a whopping 18 months now. So far it's at $10K which may be modest by some standards but has me quite tickled.

    Rene
     
  10. jekbrown

    jekbrown I am CK5 Premium Member GMOTM Winner Author

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    Go to google, search for "dodge and cox fund", their official site will come up. Annualized over the last 10 years = 14.59%. The only down year over that decade (which includes the 2000 recession and 9.11 etc) was 2002...
    -10.52%... every other year was good. My fav is 2003... 32%+ up. 20 year return, annualized: 14.85%. Over the entire life of the fund (since 1965!) the return is 12.42 annualized. That is a seriously good and long track record... one of the best in the business, which is why I thank gawd that my company has it in its 401k because it is otherwise closed to new investors.

    linky:

    http://www.dodgeandcox.com/performance/index.shtml

    I doubt his return from 1999-2001 was all that great... but I guarentee his return from 1999-2004 was outstanding. ;) Dad has lots of $ to play with and when the market is in the toilet its nothing but a big buying opportunity. Thats one side of the Depression that never gets talked about. Anyone who had cash and could buy stock after the crash got rich.... really rich. Anyone else want some AT&T at a nickel a share? That was the time to buy boy... wooooo-doggy!

    This is retirement savings... downturns that last 2-3 years aren't a big concern. All they mean in the end is that I get shares "cheap" during those times. I'm not worried. The market has never been down over a 10 year period in its history... let alone a 30 year period.

    At any rate, no need to rain on anyone else's parade here, sheesh!

    fumes: joking dude! whew! you guys got excited for a minute there! I thought the winky smiley guy would convey that but I guess I was wrong. At any rate, I was joking and no offense or "you're a lazy bum and a mooch!" type thoughts were swirling in my head. If anything you're my hero man. :)

    j
     
  11. chevyfumes

    chevyfumes Court jester

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    No dooder.I was cool with it, didn't sweat it for a second.I knew you were messin with me, I also know how it can be understood from my persona that it may be the case...
    Plus I started pooping in yer thread first...:D Just tryin to keep it at the top for ya Bro...
    I't's good that you save I wish I could convince the wife to sock some away...:wink1:
     
  12. jekbrown

    jekbrown I am CK5 Premium Member GMOTM Winner Author

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    shiat. Even if you guys didn't have a dime in the savings... that house you got is worth more than my savings/retirement money will be worth for at least 20 years. lol!!! :grin: Now if you'll excuse me, I have to go flush my toilet... its been a while. lol! ;)

    j
     
  13. chevyfumes

    chevyfumes Court jester

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    When it's brown Brother.... When it's brown....:D
    I'm about to venture into uncharted territory and get a job. Should pay about 80,000 a year.Hopefully I can sleep right through it. :haha: Dang I wish I was joking about that last part...:doah:
     
  14. jekbrown

    jekbrown I am CK5 Premium Member GMOTM Winner Author

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    if I get my bosses job when he retires (next year) I might be able to work... during work... as in, some sort of second job. He doesn't do jack unless something out of the ordinary happens. Seriously, the guy has about 30 minutes of "work" per week. Pays another $10-12k too. We'll see when I get there. Now if the city of Portland will deploy their free downtown Wi-Fi... I'll be able to surf at work without any prying eyes from the company. :grin:

    j
     

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