retirement.

[Prairiehaas]

Re: retirement.

Goon, I'm not quite as gloomy about this as Filbert. Though I do caution against relying on the promises of politicians and bankers, neither have a fiduciary responsibility to you. Keep in mind that at 10% annual growth money doubles in 7 years. With a bit of sacrifice and a well diversified investment portfolio you will be fine.

One other piece of financial advice that worked for me. Start a 529 plan for the little one now. Tell the grandparents, uncles, aunts, etc. about it. It will be a great place for gifts and will come in very handy in 17 years.

[goon]

Re: retirement.

About 4 months ago I switched from putting my 8% (and employer 3%) into my Traditional 401k to putting 15% (and employer 3%) into a Roth 401k. I'm pretty well diversified, but a little more on the agressive side since I'm "only" 30 and have a billion more years to retirement.

The idea of the Roth401k is that the tax hit I take now will "hopefully" be less than I'd take when I start withdrawing it in a billion years...(the tax rate now will be lower..hopefully)..

Over the past few years though, the market has basically done nothing and it makes looking at the statements a little tedious....I've hit a plateau.

Remember, when the market dips....buy more...it's on sale!

Mine is 403B. If that makes a differnce.

That's why I was thinking switching to a roth just so I csn pay the taxes now ans assume they will be higher as you said a billion years from now. I doubt my tax rate will get lower the more govt continues to be in such debt. I figure to eventually lower debt the govt will have to raise taxes some on all tax levels.

Is it normal to put half in a roth and half in a traditional pretax account? So one is paid taxes on and I don't worry about it later and half saves more now just to tax later. Or is that just crazy talk?

[RowdyRabbit]

Re: retirement.

(if in fact retirement will still be an option in the economy we all seem hell-bent for creating . . . but that's another issue entirely, not that I want to panic you or anything, but if you're in your 30's, your elders in their 50's and above have a LOT to answer to you for . . . if you're not mad as hell at me (age 52) and people older than me, you damn well should be . . .)
. .

Heh...yeah, I didn't see this part of Filbert's post...I wasn't going to go there.... because I'm not so sure myself that there'll even be a "market" by the time I can retire..

[goon]

Re: retirement.

Goon, I'm not quite as gloomy about this as Filbert. Though I do caution against relying on the promises of politicians and bankers, neither have a fiduciary responsibility to you. Keep in mind that at 10% annual growth money doubles in 7 years. With a bit of sacrifice and a well diversified investment portfolio you will be fine.

One other piece of financial advice that worked for me. Start a 529 plan for the little one now. Tell the grandparents, uncles, aunts, etc. about it. It will be a great place for gifts and will come in very handy in 17 years.

The state runs the 529 correct? I was hoping to start that soon too. I heard I think utah has a great 529 plan so can a person choose which state to put that investment in? Or is it about the same everywhere.

[SturgisJeff]

Re: retirement.

I invested with John Corzine. seemed like a good deal with Clinton working for him. Haven't seen much return yet though. Really, retire in May 2012, not that I want too but its mandatory with hazardous fed govt positions, law enforcement, at age 57. not looking good right now.

[Prairiehaas]

Re: retirement.

The SD 529 Plan is managed by Allianz Global. It has a number of fixed and aged based options. For me it and the options I chose it averaged between 7 & 8% annual yield. The SD plan is open only to SD residents. When I started the plan for my son only the SD plan was available to SD residents.

Don't know about the Utah plan in terms of options or residency requirements. This is research you will need to do prior to enrolling.

[goon]

Re: retirement.

The SD 529 Plan is managed by Allianz Global. It has a number of fixed and aged based options. For me it and the options I chose it averaged between 7 & 8% annual yield. The SD plan is open only to SD residents. When I started the plan for my son only the SD plan was available to SD residents.

Don't know about the Utah plan in terms of options or residency requirements. This is research you will need to do prior to enrolling.

From a quick check on my blackberry google search. It looks like most states allow anyone but some have different tax benefits if your a resident of that state.

[jackmd]

Re: retirement.

Put absolutely positively as much as you can possibly afford aside for your retirement. Then add a little bit to that. A bit of inconvenience right now will yield tremendous benefits 30 or 40 years down the road.

No, seriously.

Anyway, as much as you absolutely, possibly can towards your retirement. Assuming that the mess me and my elders have left you will actually allow you a "retirement," that is . . .

This. You don't need cable tv, put that many towards retirement. You don't need a data plan on your smartphone, put that money towards retirement. Turn down the thermostat and wear a sweatshirt and socks in the house. Pack a lunch for work, make your own coffee, invest in an education that will allow you to ascend in the income earning bracket. All easier said than done.

As Filbert says, sock that money away and diversify, you will be very happy in 30 years and plenty happy now.

[Nidaros]

Re: retirement.

This. You don't need cable tv, put that many towards retirement. You don't need a data plan on your smartphone, put that money towards retirement. Turn down the thermostat and wear a sweatshirt and socks in the house. Pack a lunch for work, make your own coffee, invest in an education that will allow you to ascend in the income earning bracket. All easier said than done.

As Filbert says, sock that money away and diversify, you will be very happy in 30 years and plenty happy now.

I think there has been some very good advice rendered to this thread. Jackmd says pack your own lunch. After doing that for about three weeks straight, you might just hunger for a store bought deli sandwich, I know I would. You might just break down and get one but do so in a rewarding manner not an undicsplined manner. It takes good discipline, something I have failed at miserably.

Diversification is good advice, but that can be overdone and you might just diversify right into the clutches of Bernie Mahoff. My point is be skeptical of exceptional rate of returns, when the market is in a tailspin as it was in early 2009 It requires good judgement no matter what your choices.

[rabbitfarmer]

Re: retirement.

I got an idea. either inherit farmland or marry into farmland.

[West-River_Jack]

Re: retirement.

Here is what I did. I started out putting a minimum amount into retirement, about $25 per month back in the mid 1980's. Every time I got a raise, I triet to put at least a third or half of it into retirement, that it, if I got a $10 raise, $5 went into retirement funds. That helped a lot to build up to a respectable percentage going into my long-term savings . . . and then the stock market crashed.

[RowdyRabbit]

Re: retirement.

Here is what I did. I started out putting a minimum amount into retirement, about $25 per month back in the mid 1980's. Every time I got a raise, I triet to put at least a third or half of it into retirement, that it, if I got a $10 raise, $5 went into retirement funds. That helped a lot to build up to a respectable percentage going into my long-term savings . . . and then the stock market crashed.

I tell you what, the people that hit the market hard in the 80's and 90's when it (the dow) catapulted from what...1000-2000 to 9000-11000, and retired and cashed out in 2000-2001ish really hit it perfect....

[Prairiehaas]

Re: retirement.

I got an idea. either inherit farmland or marry into farmland.

I heard an interview recently where Warren Buffet recommended buying land, that grew commodities, as one of the best investments available. So yes RF, that would not be bad advice.

[goon]

Re: retirement.

My back up plan is to win the lottery...........or hope I have relatives with a good life insurance plans and hope I am on the good side.

[SturgisJeff]

Re: retirement.

my retirement plan make the wife get a job while I go camping