Retirement....hehe

One thing I've learned... There is never enough money to retire on. I've watched my mom's stroke and resulting disability and my dad's slow death from cancer eat away at their retirement. They started saving heavily in their early thirties and have lived beneath their means for many decades. And they are now in their late 50's and early 60's... and almost broke. So save a lot and start saving early. It has spurred me to invest more heavily in my Roth and to start seriously planning for retirement now even though I'm only in my 20's. Life throws a lot of curve balls and even the best-made plans can be laid to waste by unforeseen circumstances. Just a lesson to be learned from by all. Start saving now... You are never too young and it is never too early.
 
Derg said:
I watched "The Queen of Versailles" on Netflix.

I heavily, HEAVILY suggest it as you'll get to see what true wealth thinks of the common person.
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Watched it tonight.

Makes my blood boil watching those people.
 
Serious money made this year across all my funds from the new market highs.....I'm filing for retirement and moving to a new flying job.
 
Classified staff, participating in PERS Plan 1, 2 or 3, who are planning to retire within the next 12 months.

During this three-hour, practical retirement workshop, you will learn about arranging details of retirement, tailoring benefits to best meet retirement income needs, and continuing medical plans. Timelines, forms, and procedures are discussed, and you will review materials necessary to file for retirement.

It starts by attending the workshop, look at the calendar, and filling out the form....:sarcasm:
 
So, honest question here: I maxed out my 401k contributions this year and expect to do so by September 2014 next year. Since I'll have about 3 months to invest that money next year, what would you recommend: after tax Roth, traditional, equity in the house, straight stocks or something else?
 
moxiepilot said:
So, honest question here: I maxed out my 401k contributions this year and expect to do so by September 2014 next year. Since I'll have about 3 months to invest that money next year, what would you recommend: after tax Roth, traditional, equity in the house, straight stocks or something else?
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The answer to many of these depends on your age and what interest rate you are paying on your home... I'd lean towards the Roth personally. If you have a low interest rate on your house I'd be hesitant to tie up any liquidity in it at the moment. Stocks can be good but I'd also be looking at putting my money into something that is low to medium risk (again depending on your age and retirement plans) for the next few years.
 
I'm 40, so I have 25-30 years to invest.

Interest on the house is about 3%, I'm aggressive with investments, this year I averaged 14% gains, balanced with low growth, low interest bonds. I don't have a bunch of experience with after tax investments, which is where my question spawns from.
 
moxiepilot said:
I'm 40, so I have 25-30 years to invest.

Interest on the house is about 3%, I'm aggressive with investments, this year I averaged 14% gains, balanced with low growth, low interest bonds. I don't have a bunch of experience with after tax investments, which is where my question spawns from.
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14% eh? ...not too shabby. Tech and energy stocks? If you don't already have one, I'd start a Roth. I'm all for paying down debt (mortgage) but with an interest rate that low why tie up the liquidity in a market that can still take a year + to get what you want out of your house? If you were to hypothetically sell it that is. If I were you I would go talk to a fee only investment advisor about a Roth. At your age I would definitely be putting some money in that. I averaged 8% gains this year so I'd say you are doing something right.
 
chrisreedrules said:
One thing I've learned... There is never enough money to retire on. I've watched my mom's stroke and resulting disability and my dad's slow death from cancer eat away at their retirement. They started saving heavily in their early thirties and have lived beneath their means for many decades. And they are now in their late 50's and early 60's... and almost broke. So save a lot and start saving early. It has spurred me to invest more heavily in my Roth and to start seriously planning for retirement now even though I'm only in my 20's. Life throws a lot of curve balls and even the best-made plans can be laid to waste by unforeseen circumstances. Just a lesson to be learned from by all. Start saving now... You are never too young and it is never too early.
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Damn, sorry to hear that man. You seem like a squared a person. Sorry to hear this.
 
moxiepilot said:
So, honest question here: I maxed out my 401k contributions this year and expect to do so by September 2014 next year. Since I'll have about 3 months to invest that money next year, what would you recommend: after tax Roth, traditional, equity in the house, straight stocks or something else?
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I'll probably get scoffed at for this.... but...

Why not take that money and put it into a normal brokerage account and swing trade or play options? A lot of people put a lot of faith into retirement accounts, which is all well and good... but why not try to make money now to enjoy living now?
 
ryan1234 said:
I'll probably get scoffed at for this.... but...

Why not take that money and put it into a normal brokerage account and swing trade or play options? A lot of people put a lot of faith into retirement accounts, which is all well and good... but why not try to make money now to enjoy living now?
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Because the time and dedication it takes to be successful at that type of investing leaves many people with nothing and not even a t-shirt. Well Think or Swim used to give out a monkey but you get the idea.
 
block30 said:
Damn, sorry to hear that man. You seem like a squared a person. Sorry to hear this.
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I appreciate it man. My dad passed away in August and he was in a sort of denial up until the very end so it basically left my mom's finances in complete disarray. It's been a steep learning curve to figure it all out but I've had some good (and not so good) help along the way. Definitely helps me to see how I want to do things differently as I age. This next year I plan on maxing out my Roth and 401k contributions. Maybe my perspective on saving and retirement has been skewed by extraordinary circumstances, but I don't see myself regretting these decisions later in life. I think it is important and most people my age neglect to even think about it.
 
ryan1234 said:
I'll probably get scoffed at for this.... but...

Why not take that money and put it into a normal brokerage account and swing trade or play options? A lot of people put a lot of faith into retirement accounts, which is all well and good... but why not try to make money now to enjoy living now?
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I am thinking about it. You only need a certain minimum (for example Scott Trade is $5,000 or $10,000 I think.) for day trading to cover losses.
 
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