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Retirement funding...?

Discussion in 'The Lounge' started by newyorkin, Sep 28, 2005.

?

How are you funding your retirement?

  1. My company's 401k/Pension/retirement plan

    37 vote(s)
    66.1%
  2. IRA's

    17 vote(s)
    30.4%
  3. Real Estate investments (hold and sell later/rental/etc)

    13 vote(s)
    23.2%
  4. Savings account/cash under a mattress

    16 vote(s)
    28.6%
  5. Social Security if it still exists then

    15 vote(s)
    26.8%
  6. Nothing, I'll worry about it later

    6 vote(s)
    10.7%
  7. I'm naked

    11 vote(s)
    19.6%
Multiple votes are allowed.
  1. newyorkin

    newyorkin 1 ton status

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    How are you funding your retirement?


    I've been trying to figure out the best way to raise cash fast over the next 30 years for a decent retirement fund so I'm not retiring on my kids dime or eating Ramen til I die.
    So I finally got around to playing with some retirement numbers today. It looks like I'm going to have to pump in a lot more cash than I thought to even make a few years of decent near-current-salary money.

    It's funny, when you don't pay any attention to these numbers and some guy is in your house selling you insurance and wants to help you invest, somehow he comes up with "x million dollars when you retire" by me only investing a few dollars a month under his company's management. By my figures, my 401k won't even hit 1 million by the time I retire, and that's with a significant contribution from me and my employer.

    I know my expenses will be significantly lower then, but if I hope to live to 90 (and modern medicine is predicting longer I think) and retire at 60, that's 30 years I have to stretch out that couple years salary worth of retirement funds. I could live cheap and just off the interest I guess, but that's if the market stays consistent and up during that period. I'm counting on long term gains, using 7% as my interest figure (from the S&P500 inflation adjusted past 70 year performance). If the market flounders around for a couple years while I'm retired, which it's bound to, I'm dipping into the actual funds, which may also be losing value at that time.


    This is aggravating... I was trying to justify and console myself for not buying any real estate in the past and not planning to any time soon, but it looks like that's going to be my best option.

    I don't know how many times I heard people telling me to save money when I was younger and I didn't bother. I was having too much fun buying beer and pouring cash into my car (which got wrecked and only returned $2000 from insurance anyway). I think I was deceived by my parents lack of saving, misunderstanding that they had real estate holdings that they're now (barely) living off of.



    If I started saving when I was 15, when I started working, even just $10 a month, I'd feel much better about retirement than I do right now. Now I'm 29 and I'm seeing myself cut my take-home money that I'm used to living on to fund retirement, and it still won't be much when I get there.
     
  2. cbbr

    cbbr 1 ton status GMOTM Winner

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    I fully fund my 401, but have the same problem. I really have no idea how I will ever be able to comfortably retire. I will most likely die at my desk anyway so why worry. :D
     
  3. newyorkin

    newyorkin 1 ton status

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    :haha: :haha: :haha: :haha:

    Good point...
     
  4. K5Steve

    K5Steve 1/2 ton status

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    I put in 6% of each check,every 2 weeks,and the company I work for matches my 6%.The investment company puts it where they see best.Right now we both have an "agressive" investment plan and as we get older we'll step it down a bit.My wife and I should have a good chunk at retirement.
     
  5. gjk5

    gjk5 3/4 ton status

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    I have spread mine around quite a bit. A little 401K (I own the company so the matching part doesn't do me much good), savings, whole life. I have done some Real Estate investing in the past that worked out pretty well but currently only own my primary, I will be buying a rental or two in the near future if I don't buy an commercial property for my office.

    Oh, screw 60, if I work until then I'll die 5 years later. I plan on at least semi-retirement by 50 which gives me 15 years...........



    Oh sh*t! I gotta go make some more money! :doah:
     
  6. seattle73k5

    seattle73k5 1/2 ton status

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    not to hijack your thread but speaking of retirement plans

    not wanting to hijack your thread but this is along the lines of your subject matter.

    Subject: SOCIAL SECURITY
    WHY WAIT UNTIL 2008? THERE IS AN ELECTION IN 2006. I HEREWITH FIRMLY STATE THAT I WILL NOT VOTE FOR ANY POLITICIAN, REGARDLESS OF THE OTHER ISSUES, IF HE DOES NOT SPONSOR AND SUPPORT THE FOLLOWING LEGISLATION. THAT INCLUDES EVERYONE STANDING FOR ELECTION IN 2006.

    LET US SHOW OUR LEADERS IN WASHINGTON "PEOPLE POWER" AND THE POWER OF THE INTERNET. LET ME KNOW IF YOU ARE WITH ME ON THIS BY FORWARDING TO EVERYONE IN YOUR ADDRESS BOOK.
    IT DOESN'T MATTER IF YOU ARE REPUBLICAN OR DEMOCRAT!

    KEEP IT GOING!!!!

    2008 Election Issue!!

    GET A BILL STARTED TO PLACE ALL POLITICIANS ON SOC. SEC.

    This must be an issue in "2008" Please! Keep it going.

    ----------------------------------

    SOCIAL SECURITY:

    (This is worth reading. It is short and to the point.)

    Perhaps we are asking the wrong questions during election years.

    Our Senators and Congresswomen do not pay into Social Security and, of course, they do not collect from it.

    You see, Social Security benefits were not suitable for persons of their rare elevation in society.They felt they should have a special plan for themselves. So, many years ago they voted in their own benefit plan.

    In more recent years, no congressperson has felt the need to change it. After all, it is a great plan.

    For all practical purposes their plan works like this:

    When they retire, they continue to draw the same pay until! they die.

    Except it may increase from time to time for cost of living adjustments..

    For example, Senator Byrd and Congressman White and their wives may expect to draw $7,800,000.00 (that's Seven Million, Eight-Hundred Thousand Dollars), with their wives drawing $275,000.00 during the last years of their lives.

    This is calculated on an average life span for each of those two Dignitaries.

    Younger Dignitaries who retire at an early age, will receive much more during the rest of their lives.

    Their cost for this excellent plan is $0.00. NADA....ZILCH....

    This little perk they voted for themselves is free to them. You and I pick up the tab for this plan. The funds for this fine retirement plan come directly from the General Funds;

    "OUR TAX DOLLARS AT WORK"!

    From our own Social Security Plan, which you and I pay (or have paid) into,-every payday until we retire (which amount is matched by our employer)-we can expect to get an average of $1,000 per month after retirement.

    Or, in other words, we would have to collect our average of $1,000 monthly benefits for 68 years and one (1) month to equal Senator! Bill Bradley's benefits!

    Social Security could be very good if only one small change were made.

    That change! would be to:

    Jerk the Golden Fleece Retirement Plan from under the Senators and Congressmen. Put them into the Social Security plan with the rest of us

    then sit back.....

    and see how fast they would fix it.


    If enough people receive this, maybe a seed of awareness will be planted and maybe good changes will evolve.​
     
  7. cbbr

    cbbr 1 ton status GMOTM Winner

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    Hey Ratch, I'll throw another idea out there, most of the retired folks that I know (grandparents come to mind) didn't have a large retirement. They also didn't have as many bills as I do today. Specifically, they relied on their property holdings in great part. That is to say that the owned their homes and did not have mortgage payments. They also sold those houses for a large chunk of change when they could no longer live there. They also lived much more simple lives in retirement. Just food for thought.
     
  8. chevyfumes

    chevyfumes Court jester

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    Watch for the muzzleflash!
    Using wife wasn't an option??? SO I had to pick naked,,,, same thing.
     
  9. destinbeachman

    destinbeachman 1/2 ton status

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    3 best investments-nothing else comes close

    Here they are in order of return on investment-

    1. Land

    2. Land

    3. More land!
     
  10. MTMike

    MTMike 1/2 ton status

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    My plan:

    I'm 26, wife's 22 and still in college.

    Right now I'm working for a company that's matching the 5% I'm putting in to my 401k. I picked a very agressive setup and so far have a great return. I've been with the company for a year and a half, and it's worth $6,600 right now, and I'm 50% vested into it (100% mine, 20% of the companies contribution)

    I started a business in 2001 thats really excelled this year, to the point where I will be able to be self employed once the wife is done with school (1.5 years). By then, my company 401k should be worth $12-15k and I will use that to either pay off some debt, or as more business capital. Then, I hope to have several offices in different cities/towns around Montana and possibly Wyoming by 2010. If that does happen, I should have some pretty good cash flow by then.

    Finally, I plan to invest that money in land and real estate.... namely houses in town on lots, and vast expanses of land. If the mythical "housing bubble" does in fact burst, the land (being in limited supply) will take the much less of the "burst" than say a fancy condo in San Francisco.

    If that doesn't work, then I'm screwed, but thats my plan and I'm sticking to it :D
     
  11. jekbrown

    jekbrown I am CK5 Premium Member GMOTM Winner Author

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    smart thing to do in most cases is to put as much into your 401k as the company will match (free money is always good!) and then put every other spare penny you can into a Roth IRA.

    When you're 59 you can take the Roth money out in one huge azz chunk 100% tax free.... this is what you use to buy a new house, dually desiel tow rig, boat, ATVs, seadoos and vacation villa... all tax free. The 401k is taxed on the back end as income so you take it out is small chunks at a time (like a paycheck, just to cover living expenses).

    You can put $4000/yr into RothIRAs now... if you do that every year for 30 years and you're invested in even so-so mutual funds, you'll have 1-2 million in that alone... 401k is bonus fun money at that point.

    j
     
  12. camiswelding

    camiswelding 1/2 ton status

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    Public servant= youre funding my retirement... keep paying please...

    Ok in all honesty... I worked 25 years as a policeman... made great bucks... lived the L>A. Lifestyle... always thought I would have a bundle...
    I retired at 45 with money in the bank....
    This year... now 49.. I have zero debt... home paid off... no loans or credit cards...

    My wife.. a teacher .. we thought would never have to work... but listen carefully...

    even if you think you have enough... triple that... I cant stay up with inflation... and heathcare gets way more expensive as you age...
    Yes Ill have a paycheck until I die... yes I have great benefits... but retirement early means watching your pennies and no new dodge whenever you want... so now momma is looking at going back to work,,, and that hurts (well... her more than me:) )
    And I couldnt stand working as a civie...

    but the trade off is
    I dont owe the man
    I dont have to take crap from the man (in my case citizens)
    I dont have to punch a clock...
    and i can do what I like... within financial reason... and this is subjective....

    cam
     
  13. diesel4me

    diesel4me 1 ton status Premium Member

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    I could have done more--A LOT more...

    I only worked about 20 years at "real" jobs,where I paid into social security ,and while I did I put some cash in an IRA account..I decided to be self employed and just kept and spent 90% of what I made after that..now I'm 47,andf have a whopping 5 grand in the IRA,and a few hundered in my savings account...good financial planning,huh??.. :surepal: ..thats about enough to buy me a nice stone for my grave...and the way I've been feeling lately,being sick so much--it might not be too long before I'm lying under it!..so I take each day as it comes,and hope I can hit the lottery or something....

    Working for a living is fine for those healthy enough to get and keep a job..I hope to get back to some kind of employment--but I am not able to work like I used to,so it will probably be a dead end minumin wage and minimum effort job that will barely allow me to survive..I'm not looking forward to the next 20 years.....its nice to see some of you are,and are planning for it..I didn't,and now its time to regret it... :doah:
     
  14. Can Can

    Can Can Pusher Man Staff Member Super Moderator

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    Funny this came up today. Things may be changing drastically in my life in the next year or two, and I might be looking at being able to work part-time for the rest of my life with ZERO debt left to service........ :woot:

    I think the best advice I can offer, which is working for me, is to find a balance between socking money away AND paying off debt as quickly as possible, while still enjoying life. I think the biggest obstacle facing our generation's financial well-being is that we LOVE our toys and nice homes and are willing to assume a hefty debt load in order to aquire them.

    Kim and I have done the opposite. We bought the smallest place we could stand to live in, knowing that we needed to keep out cost of living down in order to purchase an acreage. When the time came to buy the land we wanted, we had no problem obtaining the financing, and were able to get preferential interest rates because we borrowed on the equity in our house.

    Keep in mind that during the last 5 years I've spent less than $1000 on clothes and my hobbies are cheap(fishing and hiking). The only REAL money I've spent was on upgrading my drum kit, which right now is making me about $2 a minute when we play a gig(good return on investemt) .Any bigger purchases are done with cash to avoid paying interest. Until we bought the Hyundai last year we were without car payments for over 6 years. All these little things add up to LOTS of disposable income to put towards extra payments on the mortgage and increased retirement investments.

    So, to put it simply, clear up your debt ASAP in order to:

    A- have lots of dough to put away for a fancy retirement(as long as you live long enough to enjoy it and still have your health) or

    B- retire early as long as you are comfortable with living a simple lifestyle for the rest of your life.

    My 2 cents.......
     
  15. kgblazerfive

    kgblazerfive keymaster Premium Member GMOTM Winner

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    Wife and I have been talking about this more since we now own our own business and I no longer work for the State. What we have come up with is some in land, some in savings and some in IRA, life insurance etc. and some in tradeable goods. The last is more for a situation that may arrive like in NO all the money that people had in whatever don't do a lick of good if you can't get to it. I have also been thinking lately do I really want to put my money into something that may not be their in 20 years aka Enron. Last but diffinately not least a years supply of food
     
  16. newyorkin

    newyorkin 1 ton status

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    I'm enrolling in my 401K right now. How stupid, I lost a couple years on it out of laziness. I've meant to do this for 3 years and somehow it only came to mind maybe once a month and then while at lunch and talking about it.
     
  17. DPI

    DPI 1/2 ton status

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    Almost all the above.

    Start young and put in as much as you can. Especially in company matching 401Ks.

    Just make sure to invest in a diversified fund. NOT COMPANY STOCK. I worked at WorldCom for 5 years and found that out the hardway... :mad:

    S&P500 mutual funds are the way to go with the stock market. They are relatively safe and have low fees...
     
  18. newyorkin

    newyorkin 1 ton status

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    Wow, 10 people in real estate... Can you guys PM me with your strategies? I've been looking into buying some tax defaulted land for over a year now, can't seem to get into it. I'm also looking into buying a rental property, but my available cash, while my income's been completely stable for the last few years, has been completely unpredicatable for some reason (could be the constant dumping of money into my house)...
     
  19. jarheadk5

    jarheadk5 1/2 ton status

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    Ahhh, the ignorance of my youth... I didn't really start thinking about retirement funding until the past couple years, and I ended up leaving the employer I thought (at the time) I'd be working for for the rest of my career.

    I'll have a Reserve pension that'll start paying at age 60, but I've got to do at least 9 more years in the Reserve (starting next year) to qualify for retirement.

    I voted for IRA's, but I don't have one yet. My wife and I will be opening IRA's hopefully this spring once I'm out of school and working full-time again; hopefully we won't have more monthly debt than income by then...

    I have a 10% disability rating from the VA, so I get a little from them every month, but that'll only buy me 2 tanks of gas in my Eclipse at today's prices.

    We own our home, but we're not planning on staying in this house forever. The plan is for our next house to be "the one", but who knows what the future will bring?

    I'm not even gonna think about Social Security - I wish they'd give ME the money that comes out of MY pay and let ME decide how to invest it. If it goes bust, my responsibility. If it booms, lucky me. Too bad Congress will never let that happen...


    Hope that works out for you, Paul!
     
  20. newyorkin

    newyorkin 1 ton status

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    :angry1: :angry1: :angry1: :angry1: :angry1: :angry1: :angry1: :angry1: :angry1: :angry1: :angry1: :angry1: :angry1: :angry1: :angry1: :angry1: :angry1:


    Sorry. Just started really analyzing my pay stub now that I have to re-select my health benefits.
    Year to date net pay is frustratingly smaller than YTD gross pay. I need to figure out why that is... I'm getting nickle and dimed back to less than I was making 5 years ago.
    $1000 on family dental plan as opposed to less than $500 for me and spouse... We haven't taken the kids to the dentist yet this year, their teeth are just coming in...



    At least I'm not that hungry today...
     

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