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SwisSeV
08-11-2016, 10:07 PM
I have a question about retirement planning. As copy techs, we don't make a ton of money. We have to plan ahead.

My main employer doesn't offer a 401k plan so I decided to open a rothIRA with WealthFront. According to everything I read online I should be contributing the maximum allowed deposit of $5500 a year to this account. This seams like too much to contribute to a fund I wont see for 42 years.

I also have a brokerage account for the stock trading I do. I fund an investment account that consists mostly of the S&P 500 that is half my net-worth now. I also have an REIF with Fundrise.com that is about 10% my net-worth. I put about 10% of what I make into these investment accounts already. It's nice to know I can access the money in my stock investment account if I need to, unlike the rothIRA.

I know most of you are closer to retirement, how did you do it? What would you have done differently? Any advice?

blackcat4866
08-12-2016, 12:46 AM
I know there are rules that change with your age. I'm contributing $6,500 for myself and $6,500 for my wife to Roth IRA's. Both of our employers offer 401K plans, and we contribute the amount to match, which isn't very much.

Here's the part where you have to make decisions: When you're younger you'll probably have more payments like mortgage, car payments, etc., so you'll have less free cash to contribute. As you progress, you'll start paying things off, and consequently have more free cash to contribute. I'm getting within sight of the finish line, so I have no payments, and am socking away the max on all fronts. Here are some of the decisions to make:

1) The sooner that you get a meaningful amount of money saved, the sooner the interest and dividends will accumulate. That being said, you shouldn't let anybody pressure you into saving more than you are comfortable with.
2) I'm a little unusual in that I have a very strong aversion to debt. My financial advisor suggested that having mortgage interest to write off is a benefit (but never as beneficial as not paying into a mortgage at all).
3) How much do you like new cars, new furniture, new clothes, etc.? Personally I decided that I could forego most of those things, knowing that I could retire sooner.

One of the best things that you can do is start and maintain a person finance ledger. It does take a lot of discipline, but can provide you considerable peace of mind, as you are constantly monitoring how well you're doing, and compare back to last year (or 1992). =^..^=

SwisSeV
08-12-2016, 02:28 AM
I feel the same way about debt. I have a CC and a car payment to build credit but, if it was up to me I would pay cash for everything right now. But I need credit to buy a house down the line, so I have to play the game.

I'm not a big spender, I get no joy from new clothes and shoes like other people do. I used to have a girlfriend who was a "shopper" and that really annoyed me.

I could pay 5500 into the rothIRA now but that would mean quite a large cut back in lifestyle. No traveling multiple times a year. Is that what you did when you were younger or, did you just wait so that you didn't have to make sacrifices?

Non of my friends even think about this stuff, out here most people are carefree/irresponsible.

blackcat4866
08-12-2016, 02:42 AM
Like most college graduates, I started out with 4 years worth of student loans, but only 3/4ths of BS in electrical engineering (which is almost exactly the same as a high school diploma). Then some well known Illinois politician let it slip that he had never paid off his college loans. So what happens? The state of Illinois scrounges through it's records and starts collecting on every student loan outstanding. Rather than taking payments like they would ordinarily do, it went right to collections.

So there I was, with a little education, no job, and a lot of debt. That is what got me started down this road and I can't say it's a totally bad thing. I dug my way out of that hole in ~6 years working part time jobs, and it has only got better.

I know it's hard to see that far into the future. But when you're further down that road you might be thinking (like me) "I hope my knees can hold out just a little longer." =^..^=

ZOOTECH
08-12-2016, 02:47 AM
Noel, thinking about retirement now is probably the best move you can make. It's someone that waits until they are close (10 to 20 years) that may have problems makings ends meet. The Roth IRAs is a great idea - pay taxes upfront and not when retired. Diversifying your accounts now, will help you in the long run; but, with a long time frame, you may want to go with the growth stocks now, and ease up when you are closer to retirement.
I am not a financial adviser, so take this with a grain of salt- but in retirement, we are doing quite comfortably.

SwisSeV
08-12-2016, 07:29 PM
sounds like you have a good plan in place... I will never be able to retire.. I will just die in front of a machine

Hope that's not true. Did you not have a retirement plan or did you lose it somehow?

harleyrider
08-12-2016, 08:40 PM
best plan- rule#1 marry a good woman. Rule 2 buy a house at a early age and get it paid for. Rule 3 invest as much as you can in 401k,cd's, mutual funds etc. If all else fails you still have rule 1 and 2. My 2 cents worth.

richs
09-02-2016, 05:08 PM
I just buy lotto tickets and hope for the best.

VENRISO
09-02-2016, 06:52 PM
best plan- rule#1 marry a good woman. Rule 2 buy a house at a early age and get it paid for. Rule 3 invest as much as you can in 401k,cd's, mutual funds etc. If all else fails you still have rule 1 and 2. My 2 cents worth.


jajajajjaja this is the best I've read in this forum

subaro
09-02-2016, 09:23 PM
http://www.copytechnet.com/forums/images/misc/quote_icon.png Originally Posted by harleyrider http://www.copytechnet.com/forums/images/buttons/viewpost-right.png (http://www.copytechnet.com/forums/business-talk/111273-how-retire-properly-post528129.html#post528129)
best plan- rule#1 marry a good woman. Rule 2 buy a house at a early age and get it paid for. Rule 3 invest as much as you can in 401k,cd's, mutual funds etc. If all else fails you still have rule 1 and 2. My 2 cents worth.




jajajajjaja this is the best I've read in this forum


Some good advice in there, but sometimes the best laid plans can be upsetted by circumstances that you just can't see or foretell. Nevertheless you have to have or should have a plan at least as a guide to where you want to be. Along the way a wise man once said, Don't put your hat where you cannot reach it and Don't bite more than you can chew. There you go

mrwho
09-05-2016, 05:44 PM
I plan to retire alive. Other than that, it's a gamble.

allan
09-05-2016, 06:53 PM
This subject struck me very hard about 2 years ago.
Had a history of bad paying jobs and doing silly things.
Started saving up like mad but my generosity got the best of me at first.

Well back on track but i have to say i look at every thing differently no more senseless money spending for me.
Every bit i can save i do save.
But things are still way to slow.
Fighting for better income turns you into a bit of an asshole in the eyes of your benefactor.

All work no play makes Jack a dull boy is what i am thinking about.
Real feelings of FOMO...

Iowatech
09-11-2016, 02:10 AM
As someone who is still in between jobs at the moment, I will just add this.
Don't withdraw any of that money until you actually retire unless you absolutely must. If you do, there will be around a 25% tax penalty cut right from the top. For example, I just took out $10K out of my retirement fund, but I'm only getting around $7.5K. And there will probably be even more fun come next April 15.

https://www.youtube.com/watch?v=cnaeIAEp2pU
Still, I think you are doing the right thing, so keep it up.

ZOOTECH
09-11-2016, 02:42 AM
As someone who is still in between jobs at the moment, I will just add this.
Don't withdraw any of that money until you actually retire unless you absolutely must. If you do, there will be around a 25% tax penalty cut right from the top. For example, I just took out $10K out of my retirement fund, but I'm only getting around $7.5K. And there will probably be even more fun come next April 15.

https://www.youtube.com/watch?v=cnaeIAEp2pU
Still, I think you are doing the right thing, so keep it up.
OUCH!!

subaro
09-11-2016, 05:29 AM
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.

ZOOTECH
09-11-2016, 05:47 AM
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
09-11-2016, 02:01 PM
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
09-12-2016, 02:00 AM
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
09-12-2016, 07:38 PM
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
09-12-2016, 09:00 PM
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).

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