How to retire properly?

[ZOOTECH]

Re: How to retire properly?

Building wealth today for tomorrow retirement has changed from the generations gone by. Where do you put your money to build the so called nest egg. In europe, japan and other countries, the term "negative interest rates" are being introduced and practiced. Buying real estate in cities are getting unreachable for most people ect. The realities are quite different from the past where, job security was quite normal, with pension plan ect. So, while the basics stand for saving and investing stands, the reality of doing that is extremely challenging in today's economy.

That is very true, but if you don't' start early, you will be behind the 'game', and behind any security that the government might provide?

[subaro]

Re: How to retire properly?

That is very true, but if you don't' start early, you will be behind the 'game', and behind any security that the government might provide?

Well, to start you have to at whatever point you are at. It's all a different ballgame now and the rules are changing as the financial system struggles world wide. Tell me, where do you put your money now, for general safe investments. It use to be banks, credit unions with fixed returns ect. Now, to make any kind of returns you have to play the stock market or make investments on real estate that can be risky depending on how the economy performs or if your jobs stay intact ect.
The bar has been raised higher. For what a tech makes generally, there is not too much room for investing after the monthly bills. Second jobs and just working long hours has to kick in for that extra buck.
Hope i am not being seen as a pessimistic. No doubt, you have to prepare for the latter days, but you have to navigate some tough waters.
You have to sit down with a few financial planners and hear what their advice is according to your unique lifestyle. Or do the money under the mattress thing, meaning you plan and save according to your own vision and build your so called nest egg.

[Iowatech]

Re: How to retire properly?

Some other things I just remembered from when I started my I retirement plan -
Do your research and see how good the place you wish to use is. While it's not an absolute guarantee from bad things happening, the higher rated places usually do better overall, sometimes a LOT better. And the good places usually charge less fees, too, at least after your account is worth enough anyway.
As this will be a very long term investment, remember changes in the stock market are cyclical, at least they have been for all of the U. S. stock market history. So try not to go bonkers if the stock market is acting wrong if you can, at least not until you're within shouting distance of actually retiring anyway. The stock market will recover, at least it always has so far.
Also, it might be easier to consider the amount you put into your account as buying shares in the account rather than just depositing an absolute amount. That way, if the stock market is up, the shares you get are worth more but you get less of them, and if the stock market is down your shares are worth less but you get more of them. All of the shares will be worth the same amount, so the more shares you have in your account the more your account will be worth.

[SwisSeV]

Re: How to retire properly?

Building wealth today for tomorrow retirement has changed from the generations gone by. Where do you put your money to build the so called nest egg. In europe, japan and other countries, the term "negative interest rates" are being introduced and practiced. Buying real estate in cities are getting unreachable for most people ect. The realities are quite different from the past where, job security was quite normal, with pension plan ect. So, while the basics stand for saving and investing stands, the reality of doing that is extremely challenging in today's economy.

Negative interest rates are an untested policy, undoubtedly great for the stock market.

(-Warning- not a financial adviser! This is just my opinion)
None should "play" the stock market for a retirement account, rather just invest whenever possible into very broad accounts while ignoring the fluctuations. Just pay attention to interest rates (.50% now), if they ever normalize around 4-6% again, then Banks and bonds will be a good place for your money again.

I can't justify putting too much away for retirement every month, I have to fund my traveling habits. I'm planning to save my tax returns for my IRA along with the meager monthly contributions. I would love to max out the IRA contributions, but it's a little out of reach for me right now

[TheBlueOrleans]

No language warning because technically I didn't type anything explicit.

Current plan is contribute only the "up to" matching amount company pays to 401(k) account, which I do not expect to be available when the time comes, so there's not much loss to handle. Will be opening a CD this winter/spring and making quarterly deposits into it, with the interest rate just north of bullsh!t. I can add all I want to a CD, but it's locked in there at the fixed rate until the time span is completed. Sounds like the safest (and least rewarding) option for me. If I want to risk more, I can take my chances in the market, but I don't make enough to risk much.
Negative interest rates (where the bank charges you a certain small percentage for the distinct honor of holding an account with them, the smug pr!cks) are occurring already, and if it tests well (meaning there are no bank branches burned to the ground in protest) it may soon become widespread.

I was going to suggest a safe deposit box at the bank, to store cash or precious metals, (or blackmail, illicit ivory, "cleverly acquired" precious gems, etc.) but after what happened in Greece, that's not a viable option, either.
Long story, can't explain it eloquently enough to fit my standard, look it up.
Greek government and bank officials literally raided safe deposit boxes to get cash they "needed" to "keep the country going" (read: maintain the welfare state).