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got my wife a heck of a Christmas gift...

Discussion in 'The Lounge' started by jekbrown, Dec 12, 2006.

  1. jekbrown

    jekbrown I am CK5 Premium Member GMOTM Winner Author

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    I have been putting money in my RothIRA for the last few years... and last year I started my 401k rolling at Wells. Things have been going good for me on the retirement front thus far. Problem was, my wife's former employers haven't had jack for 401k... and she never started an IRA either. Anyway, I decided about 3 months ago that I would start one for her to get things going. She is only 26, so there are a lot of years between now and retirement... which means its the best time to invest! Thanks to much cheapness and penny-saving, I scraped up the coin just in time....

    Today we got her an account at Vanguard and bought her $3000 worth of Vanguard Equity Income Fund Investor Shares (VEIPX). This isn't the best fund on the planet, but it does have a good solid long-term return. Since its inception in 1988, its returned 11.56% annualized. No guarentees of course, but if it mantained that rate, when my wife pulls the $ at 60, that $3000 we just put in will be $123,700-ish. Not bad... especially since it will be 100% tax free... and we will definitely be adding more in the future. :)

    As if that wasn't enough good times... the IRS is actually going to pay us $375-ish this year because we invested in our own retirement. Nothing better than free money. :grin: I'll put that into my HSBC account... rake in 5.05% for the next year and then put it into my Roth at the end of next year. :) Anyone in the lower income range (sub $55k for a jointly filing couple I believe...) should research this tax credit on the web... it expires on Dec 31st of this year. No ****... the IRS will actually pay you to invest. Doesn't get any better than that when you're talking about those scoundrels!

    Anyone else buy their significant-other some retirement ca$h for Chri$tma$? :grin:

    j
     
  2. 79k20350

    79k20350 3/4 ton status

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    Thats definetly a good idea. Im lucky that my union hasme very well covered $4 an hour for annuity and almost $5 for pension. I think our interest rates average around 10% annually. Fromt eh guys ive talked to, weve gotten as high as 18%:eek1: and as low as 4% none of those being bad numbers. The best part is that once you reach a certain point the interest compounds faster than the money you are putting into the account:D
     
  3. jekbrown

    jekbrown I am CK5 Premium Member GMOTM Winner Author

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    yeppers... its gotta be a great feeling when compounding interest has made your account grow so large that you can just chill (retire!) and watch it grow. When the market has a very good day, my dad will see a paper-gain of over $5000 sometimes. One time he 'scored' over $10k... in one day. Damn... that has to be nice! Encouraging thing for me is that my dad didn't start saving for retirement until he was in his late 30s... I'm 31 now and started my IRA 4-5 years ago.

    Its all about getting the $ in early really... if a parent really wanted to do something great for their child, they'd put $1000 in the market for them at birth. At age 60, if you got a 10% return, that $1k would be over $300,000. Now that is a baby shower gift. :grin: Parents who shower their infant with hundreds and hundreds (thousands?) of dollars of gifts and toys and crap (before they even really appreciate them) should think about this...

    j
     
  4. 79k20350

    79k20350 3/4 ton status

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    Thats definetly a good point. I worked 2000 hrs this year at $4 an hour. Thats 8000 + the 3000 i made last year (i didnt start till late in the year) Add interest and i am way up there already. I should have a cool mil easy by the time i plan to retire from the union. (43 btw:p:) Then ill move onto something easier (enough to keep busy and fart around for the rest of my life. Being that i started when i was 18 i really think i made a wise move. As long as i can get a house paid off by the time i plan to retire i should be set.
     
  5. jekbrown

    jekbrown I am CK5 Premium Member GMOTM Winner Author

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    you're gonna be rich dude. I only put about $3700 into my 401 this year. :thumb:

    j
     
  6. 79k20350

    79k20350 3/4 ton status

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    Thats why i get mad when people diss unions. For me in construction it was a very good choice. No non-union construction company can match the benefits. They match the pay but not the bennies...
     
  7. jekbrown

    jekbrown I am CK5 Premium Member GMOTM Winner Author

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    I'm no fan of unions myself, but if they have negotiated good retirement benes, thats all good.... so long as the $ is actually yours... and not in the unions name.

    j
     
  8. 79k20350

    79k20350 3/4 ton status

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    The money is all mine. It is "pooled" so to speak into one fund but then it goes out to bid every year to see who will give us the highest interest rates. (when its hundreds of lillions of dollars... they want that money:D)

    The thing is our annuity goes in untaxed... This means that the government watches it very close, with that much money that hasnt been taxed, they want their cut:rolleyes::crazy:
     
  9. shane74

    shane74 1/2 ton status

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    Jek, does the company allow you to move from one fund to another? I have played mutual funds like stocks for years. I started watching/tracking funds in Excel looking for trends (think of it like ocean waves). I stumbled across 4 funds that all seemed to be moving opposite of each other pretty consistently. Basically, when 2 were up, 2 were down. I play 2 of them pretty hard right now. I can pretty much tell when they are going to hit their "ceiling" and start heading back down. I have averaged a 20+% return every year for the last 4 years. Combine that with the $$ that goes in every month, and I am headed for early retirement at 50. Woohoo!

    It's pretty easy to do. If you are interested, I can show how to do it and what to look for.

    There are a couple funds out there that swing like crazy and if you know how to read them, you'll make some crazy $$ pulls just for paying attention :woot:

    You know my # dood.:wink1:
     
  10. jekbrown

    jekbrown I am CK5 Premium Member GMOTM Winner Author

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    yeppers, I can put my $ and my company match (even if I'm not vested in all of it!) in any of the funds I want. Unfortunately, only a couple of the funds they have are truly worth a crap... so shifting around a lot doesn't really get much for me. They offer one truly great fund (DODGX) and a couple of Index funds (always nice for low fees), my "striker oil!" fund (RERFX) and a bunch of crap that tends to get 5-6%, or less (yawn!).

    j
     

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