Start saving now for retirement

Amps 13

Amps 13

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talked to my best friend from high school yesterday. We are both 47. He told me that him and his wife had just started to utilize their 401k to save for retirement. Though it’s never too late to start saving I found this infor to be very depressing. I am trying my best to put as much as I can away for retirement cause I know SS won’t be enough to live on. I am lucky that my dad got me interested when I was a young adult.
For all of the young people who have not done so yet on here, please take advantage of your works 401k. Even if it’s only $10 a week it adds up. If you don’t have access to that start a traditional or Roth IRA.
 
Save for retirement yes. 401K, maybe. Yes if there are matching funds from employer. If not, not sure I would do it. Put tax paid money in triple tax free bond fund unique to the state where you live. Then if you need it before (currently) 59.5, you can get it with no penalty or tax.
 
jimmyjames8 said:
Save for retirement yes. 401K, maybe. Yes if there are matching funds from employer. If not, not sure I would do it. Put tax paid money in triple tax free bond fund unique to the state where you live. Then if you need it before (currently) 59.5, you can get it with no penalty or tax.
Click to expand...
Good point on the 401k. Yes, if company matches it is dumb not to take that money but if they don’t I probably would look elsewhere too. Nice this about 401k is that once you set it up you don’t have to be a disciplined person to keep it going.
 
jimmyjames8 said:
Save for retirement yes. 401K, maybe. Yes if there are matching funds from employer. If not, not sure I would do it. Put tax paid money in triple tax free bond fund unique to the state where you live. Then if you need it before (currently) 59.5, you can get it with no penalty or tax.
Click to expand...

Never heard of the triple tax free bond. I've utilized 401k partly for the tax deduction.
 
I tell all the new ff's when they start at 20-22 years old the last thing they are thinking about is retirement. They are making more money than they ever had. Start now and put back until it hurts, and every raise you get put at least half of it back, it is money you will never miss.
 
If you are less than 30 years old, I would probably avoid a Roth. You are most likely to see a transition to flat tax or federal consumption tax. Utilize the tax break that you can today, because once my generation starts living off their Roth and not paying any income tax the feds will look for new ways to tax us.
 
Reminder you can still make an IRA contribution for tax year 2018 until April 15.

Agree if your company has a match, put in the minimum so you get that match, that is free money.
You are not taxed on those contributions. Sometimes money is tight or you are in a first job.
Pay yourself first then everyone else.

20 years ago at orientation at Home Depot, most of the crew in the room said they can't afford it,
I told them you can't afford NOT to contribute, explained the matching money.
I get $1.50 for the first 1% I contribute, then even money $1 for $1 from 2-5%.

Most companies stopped the matching funds, it is an IRS thing, not a company being cheap,
Microsoft no longer matches, IBM matches but you have to be there at the end of the year to get all of it,
if you leave before that cut off date you get zero matching funds.

If you don't have a plan at work, consider your own account at Fidelity or Schwab, no fees for having the account,
under $5 for stock trades, online access.

I say buy what you know, you can track five to ten companies and do well in stocks, S&P index funds are good too,
as well as ETF's, exchange traded funds, you can 'own' 30 or more companies within the ETF when you would only
be able to own a handful, your risk is spread out.

Read and learn, you can't be a super investor overnight.
 
Live fast, die young, leave your kids the debt. :cool:

I'm convinced there will be no retirement and no social security by the time I'm elligible. If I live long enough to be elligible.

That being said, I haven't blown a tax return since I was in my early 20's. It's all been going into IRA.
I've only recently began 401k with my employer.

Anything else a young whippersnapper should be doing?
 
Ferrisfan said:
If you are less than 30 years old, I would probably avoid a Roth. You are most likely to see a transition to flat tax or federal consumption tax. Utilize the tax break that you can today, because once my generation starts living off their Roth and not paying any income tax the feds will look for new ways to tax us.
Click to expand...
If Democrats ever control both houses and the white house House again, you can kiss all privately held retirement accounts goodbye. They have been planning for years to steal the $trillions held in private retirement accounts.
They won't hesitate to take it all even if they are told it will crash Wall Street.

Sent from my SM-G935V using Tapatalk
 
fishgutzy said:
If Democrats ever control both houses and the white house House again, you can kiss all privately held retirement accounts goodbye. They have been planning for years to steal the $trillions held in private retirement accounts.
They won't hesitate to take it all even if they are told it will crash Wall Street.
Click to expand...
They better repeal the Second Amendment first. ;)
 
Jeppo said:
They better repeal the Second Amendment first. ;)
Click to expand...
They will simply say that the FDR era court ruling regarding social security says they can do it.
More than a few Democrats and liberal talking heads are in the record saying that nobody should have a private retirement account because that is the job of government to provide.
Retirement accounts, other than ordinary held precious metals, exist electronically. So it won't take much effort to make it all disappear.

Sent from my SM-G935V using Tapatalk
 
fishgutzy said:
Retirement accounts, other than ordinary held precious metals, exist electronically. So it won't take much effort to make it all disappear.
Click to expand...

My granddad lost his last $75 when the banks failed in the Great Depression. He was a preacher and a good man. He moved on with his life.

If the government were to take the money I've been saving since the late '70's, ...well...
 
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charliesgrave said:
Getta load of Mr. Fancy Pants and his pine box.
My wife is going to dump my body in the old well.
Click to expand...
I want to be cremated and have my ashes tossed off the nearest ocean fishing pier.
Regarding retirement, I'm never retiring anyway. Not by choice anyway.
My father didn't make it to 10 years retired. And he was 52 when he retired in 1989.
My step father didn't make it to 10 years either.
Retirement is deadly.

Sent from my SM-G935V using Tapatalk
 
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My employer matches up to 6 %, I put in 15%. I haven't started a Roth although I guess I should.
 
My son is on his first part-time job as a grocery bagger. He started contributing to the 401k the first check he was eligible. This month he hits the three year mark where Harris Teeter's matching is vested. He doesn't know it, but I've been logging into his account and increasing his contributions. He's now up to 14%. He is 21 and has several thousand dollars in his 401k. When he leaves HT, we'll roll it into a Roth IRA. Sure, it's a taxable event but when you make $10,000 a year, you don't pay any taxes. Forty years from now it will be worth more than ten times what he put in, and it will be tax free. Unless we have a zombie apocalypse, or the Democrats take control (well, I guess that's about the same thing).
 
If you have a 401k match, by all means take advantage of it. If there is no match, consider an IRA, Roth or otherwise, instead so you have more control.

My grandfather started young, buying some local bank (private) stock every paycheck. Eventually the bank was bought by a public one and the stock transferred, grew, splits and grew. He lived off the dividends and died a multimillionaire.
 
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fishgutzy said:
I want to be cremated and have my ashes tossed off the nearest ocean fishing pier.
Regarding retirement, I'm never retiring anyway. Not by choice anyway.
My father didn't make it to 10 years retired. And he was 52 when he retired in 1989.
My step father didn't make it to 10 years either.
Retirement is deadly.

Sent from my SM-G935V using Tapatalk
Click to expand...



Reitrement is only deadly if you don't have anything to motivate you.

If all you ever did in life was work, and you don't find something else to do with yourself but weigh down a recliner, then of course you're going to die.

Get some hobbies and get out of the house and do things. My grandfather lived over 30 years after he retired. Same with my grandmother on the other side, and my wife's grandfather is well on his way to it.



As for me, I'll be lucky if the concept of "retirement" exists in 20 years. Every office will just have a funeral director in the basement to cart people away when they keel over at their desks.
 
GoWolfpack said:
Reitrement is only deadly if you don't have anything to motivate you.

If all you ever did in life was work, and you don't find something else to do with yourself but weigh down a recliner, then of course you're going to die.

Get some hobbies and get out of the house and do things. My grandfather lived over 30 years after he retired. Same with my grandmother on the other side, and my wife's grandfather is well on his way to it.



As for me, I'll be lucky if the concept of "retirement" exists in 20 years. Every office will just have a funeral director in the basement to cart people away when they keel over at their desks.
Click to expand...
My father was actually very busy. He volunteered as substitute teacher and many of volunteer activists.
It was cancer that killed him.
My step father's heart finally caught up with him. Doctors said he should not have survived his first heart attack. That inthe came at the end of day hanging blue board and plaster. Several arteries 90+% blocked.
He lived more the 10 years after that.

Sent from my SM-G935V using Tapatalk
 
First, I never intend to retire. That is a personal choice...just me. Second, I made certain that by MY retirement age 65, I would be in a position to live totally from my social security benefits. I don't, but I could. My Total monthly liability is never over what my SS check is. I waited until 65 to claim my benefits so I could still work and make all I wanted without being penalized.
 
Something I haven't seen mentioned is the power of compounding dividends. If you invest in individual stocks (as opposed to mutual funds or exchange traded funds), you should seriously consider activating your broker's DRIP (Dividend ReInvestment Plan). This will take your dividends (assuming the company you've investing in pays one) and reinvest them in additional shares. This results in you owning additional shares which (hopefully) increase in value over time and those additional shares also pay dividends. So, you're earning dividends on your dividends.

A long time ago, I became an investor where @Button Pusher works. Today, I own about 40% more shares than I actually purchased (those additional shares resulted from reinvesting dividends) and my shares are now worth almost 7 1/2 times what I initially invested. That's the result of picking a good company, holding the course through good and bad times (assuming the company continues to operate well) and reinvesting the dividends.
 
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If I may suggest: The corollary is equally if not more powerful. Stop spending now for retirement. Saving and investing only works if you aren't drilling holes in your own boat by loading up on shit you can't afford. We all have some debts at stages of our lives, but like @BatteryOaksBilly hinted at, you have to bend that curve downward so that nearing retirement you are rigged for "silent running".
 
Put compound interest to work for you. I like to split my retirement savings between pre tax and post tax accounts, it's just another way to diversify.
 
I'm in favor of the roth IRA, We know what the tax is today, but not when we need this money. I've never seen the tax rate on income come down.
 
MostWanted said:
He doesn't know it, but I've been logging into his account and increasing his contributions. He's now up to 14%. He is 21
Click to expand...

Why isn't your adult son making his own decisions? or, at least, participating in them?

I am fortunate that my parents helped me learn early on the value of saving. So that, as an adult, l wouldn’t need anyone making decisions for me. So far, I've done all right.
 
GoWolfpack said:
Reitrement is only deadly if you don't have anything to motivate you.

If all you ever did in life was work, and you don't find something else to do with yourself but weigh down a recliner, then of course you're going to die.

Get some hobbies and get out of the house and do things. My grandfather lived over 30 years after he retired. Same with my grandmother on the other side, and my wife's grandfather is well on his way to it.



As for me, I'll be lucky if the concept of "retirement" exists in 20 years. Every office will just have a funeral director in the basement to cart people away when they keel over at their desks.
Click to expand...

Thanks for pointing me toward my next career!
 
Time and compounding interest are the sharpest arrows in the quiver. Investing for retirements is not hard but it takes discipline. You need to start early. People will argue over what investment to put your money into but every advisor I have ever encountered all agree that time is your greatest asset. At one time I was a licensed banker and was able to sell stocks, mutual funds and give financial advise for a fee but still take my thoughts with a grain of salt. These are my takeaways from my time as a banker.

  • Have an emergency fund that you can live off of for a minimum of 3 months, ideally a year, without income. Take money out of your check and send it to a savings account separate from regular checking and savings account. Having money in a retirement fund but not having enough to put a roof on your house or pay the bills if you are laid off does not make sound financial sense.
  • Pay off any high rate debt that is not tax deductible as soon as possible. Do not invest money into an IRA when you have CC debt at 13+%. If you have no high interest debt pay off all debts that are higher then the avg rate of return you could get from retirement accounts. You have to factor in taxes, tax free compounding and other factors when choosing what debts to payoff first.
  • As soon as you draw a check you can contribute to a IRA. If I were starting today I would do a ROTH and a Traditional IRA once I had an emergency fund and debts at a proper level. The goal would be to have a ROTH and Traditional IRA and max both of those out.
  • Contribute the min % of your income into your companies 401K needed to get the company match. Over time increase it because the tax break yields an instant rate of return, which will vary based on your tax bracket, but something today is better than promise later that might not be there. When you leave a company roll it over into your Traditional IRA. DO NOT CASH IT OUT. You can do a roth conversion but you will pay taxes and if you already have funds in a Traditional IRA it is more complicated.
  • Invest in low cost Index Funds and ETFs. Over the long haul very few actively managed funds beat the S&P 500 over a 20+ period. Using a total market fund, S&P 500 Fund , small cap Fund, mid cap fund, emerging markets fund, US bond fund, municipal bond fund etc.... can give you a diverse portfolio without having to pick individual stocks. Another option is timed funds but they will typically have higher fees.
  • Reinvest all dividends on individual stocks and mutual funds back into the investment.
  • Dollar cost avg. Buy on a regular timed intervals with payroll deductions or automatic transfers. When stocks are high you are gaining $$$ when stocks are low you are getting more stocks for your money and over time it will even out better than trying to guess the market.
  • DO NOT SELL STOCKS OR MUTUAL FUNDS WHEN THE MARKET IS DOWN. When the market tanks it is time to buy not sell. Buffet has made more money during Bear markets vs Bull markets over his lifetime. Every time someone told me they lost their shirt in the market it is because they bought when stocks were high and sold when they were low. Most of the time you could look at the stock that ate them up and if they had kept it instead of selling in a Bear market they would have made money on that stock but they panicked and turned an unrealized loss into a realized loss.
  • Diversify based on your risk tolerance and your age. When you are 20 you can take more risk for more reward but as you get closer to the end of your working life you need to adjust the risk in your portfolio so that if a down turn occurs you will not get crushed.
  • Look for alternative revenue streams. Rental properties, non-active partnerships in small business and side gigs. These can help you weather a storm.
  • If you max out your "tax free" retirement choices like IRAs & 401Ks look for other tax efficient investments but also look for high performing stocks and managed funds. If you have build a solid foundation you can branch out a bit more.
  • This will be unpopular on this board but SS is going to get paid out to every person on this board of gun owning age. It might start later than it does now. It might be less than we have been told it will be and it will most likely be a poor return on investment but it will be paid. IMHO That said do not count on it as your main income stream in retirement. Plan for it to be a supplement to your other income streams. Treat it as the gravy not the meat and potatoes of the meal.
  • Do not over spend but also don't make yourself a slave to retirement savings. You need to balance your current happiness with your future happiness. I don't want to die penny-less but I don't want to die with millions of $$$ having missed out on living life and doing amazing things that they money could have allowed. My heirs can make their own money. I will leave them something but I don't want them to be happy that I died. LOL Don't live like there is no tomorrow but don't live like there is only tomorrow. Balance it out.
  • Finally move to a more debt free life. I am not one who thinks that all debt is bad. If you have built a proper income stream for retirement some debt is not only acceptable it can be advantageous but the goal would be to be able to live debt free or have the means to erase all debt at any time.
If you do these things there is no guarantee but the odd will be heavily in your favor.
 
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wvsig said:
Time and compounding interest are the sharpest arrows in the quiver. Investing for retirements is not hard but it takes disciple. You need to start early. People will argue over what investment to put your money into but every advisor I ave ever encountered all agree that time is your greatest asset. At one time I was a licensed banker and was able to sell stocks, mutual funds and give financial advise for a fee but still take my thoughts with a grain of salt. These are my takeaways from my time as a banker.

  • Have an emergency fund that you can live off of for a minimum of 3 months, ideally a year, without income. Take money out of your check and send it to a savings account separate from regular checking and savings account. Having money in a retirement fund but not having enough to put a roof on your house or pay the bills if you are laid off does not make sound financial sense.
  • Pay off any high rate debt that is not tax deductible as soon as possible. Do not invest money into an IRA when you have CC debt at 13+%. If you have no high interest debt pay off all debts that are higher then the avg rate of return you could get from retirement accounts. You have to factor in taxes, tax free compounding and other factors when choosing what debts to payoff first.
  • As soon as you draw a check you can contribute to a IRA. If I were starting today I would do a ROTH and a Traditional IRA once I had an emergency fund and debts at a proper level. The goal would be to have a ROTH and Traditional IRA and max both of those out.
  • Contribute the min % of your income into your companies 401K needed to get the company match. Over time increase it because the tax break yields an instant rate of return, which will vary based on your tax bracket, but something today is better than promise later that might not be there. When you leave a company roll it over into your Traditional IRA. DO NOT CASH IT OUT. You can do a roth conversion but your will pay taxes and if you already have funds in a Traditional IRA it is more complicated.
  • Invest in low cost Index Funds and ETFs. Over the long haul very few actively managed funds beat the S&P 500 over a 20+ period. Using a total market fund, S&P 500 Fund , small cap Fund, mid cap fund, emerging markets fund, US bond fund, municipal bond fund etc.... can give you a diverse portfolio without having to pick individual stocks. Another option is timed funds but they will typically have higher fees.
  • Reinvest all dividends on individual stocks and mutual funds back into the investment.
  • Dollar cost avg. Buy on a regular timed intervals with payroll deductions or automatic transfers. When stocks are high you are gaining $$$ when stocks are low you are getting more stocks for your money and over time it will even out better than trying to guess the market.
  • DO NOT SELL STOCKS OR MUTUAL FUNDS WHEN THE MARKET IS DOWN. When the market tanks it is time to buy not sell. Buffet has made more money during Bear markets vs Bull markets over his lifetime. Every time someone told me they lost their shirt in the market it is because they bought when stocks were high and sold when they were low. Most of the time you could look at the stock that ate them up and if they had kept it instead of selling in a Bear market they would have made money on that stock but they panicked and turned an unrealized loss into a realized loss.
  • Diversify based on your risk tolerance and your age. When you are 20 you can take more risk for more reward but as you get closer to the end of your working life you need to adjust the risk in your portfolio so that if a down turn occurs you will not get crushed.
  • Look for alternative revenue streams. Rental properties, non-active partnerships in small business and side gigs. These can help you weather a storm.
  • If you max out your "tax free" retirement choices like IRAs & 401Ks look for other tax efficient investments but also look for high performing stocks and managed funds. If you have build a solid foundation you can branch out a bit more.
  • This will be unpopular on this board but SS is going to get paid out to every person on this board of gun owning age. It might start later than it does now. It might be less than we have been told it will be and it will most likely be a poor return on investment but it will be paid. IMHO That said do not count on it as your main income stream in retirement. Plan for it to be a supplement to your other income streams. Treat it as the gravy not the meat and potatoes of the meal.
  • Do not over spend but also don't make yourself a slave to retirement savings. You need to balance your current happiness with your future happiness. I don't want to die penny-less but I don't want to die with millions of $$$ having missed out on living life and doing amazing things that they money could have allowed. My heirs can make their own money. I will leave them something but I don't want them to be happy that I died. LOL Don't live like there is no tomorrow but don't live like there is only tomorrow. Balance it out.
  • Finally move to a more debt free life. I am not one who thinks that all debt is bad. If you have built a proper income stream for retirement some debt is not only acceptable it can be advantageous but the goal would be to be able to live debt free or have the means to erase all debt at any time.
If you do these things there is no guarantee but the odd will be heavily in your favor.
Click to expand...

Double like, brother.
 
Bailey Boat said:
Please consult a certified financial planner before doing anything..... Then run that decision by a CPA, then do something....
Click to expand...
Agree, one that us a fiduciary, act in your interest.
Never buy an annuity. They have their place but not worth the high fees.
 
Congress better keep their tax hands off my money.
There was talk during JV POTUS BHO years to tax the 401k's 1-3%.
I honestly believe they will not leave the Roth tax free.
In 1985 they stopped the IRA deductions to increase taxes.
That was a bozo move.
 
Of course 401Ks are going to get taxed. Those “rich” people have been taking advantage of the rest of us and not paying their fair share so it’s only right.

And it will be a short step from there to nationalizing all the 401ks to bail out SS when they have to kick that can down the road a few more years and nothing else is left.

Somewhere in between there I expect some or all retirement savings will be forced to go into savings bonds or treasuries as well.

Which is why we have the 2nd...


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wvsig said:
Time and compounding interest are the sharpest arrows in the quiver. Investing for retirements is not hard but it takes discipline. You need to start early. People will argue over what investment to put your money into but every advisor I have ever encountered all agree that time is your greatest asset. At one time I was a licensed banker and was able to sell stocks, mutual funds and give financial advise for a fee but still take my thoughts with a grain of salt. These are my takeaways from my time as a banker.

  • Have an emergency fund that you can live off of for a minimum of 3 months, ideally a year, without income. Take money out of your check and send it to a savings account separate from regular checking and savings account. Having money in a retirement fund but not having enough to put a roof on your house or pay the bills if you are laid off does not make sound financial sense.
  • Pay off any high rate debt that is not tax deductible as soon as possible. Do not invest money into an IRA when you have CC debt at 13+%. If you have no high interest debt pay off all debts that are higher then the avg rate of return you could get from retirement accounts. You have to factor in taxes, tax free compounding and other factors when choosing what debts to payoff first.
  • As soon as you draw a check you can contribute to a IRA. If I were starting today I would do a ROTH and a Traditional IRA once I had an emergency fund and debts at a proper level. The goal would be to have a ROTH and Traditional IRA and max both of those out.
  • Contribute the min % of your income into your companies 401K needed to get the company match. Over time increase it because the tax break yields an instant rate of return, which will vary based on your tax bracket, but something today is better than promise later that might not be there. When you leave a company roll it over into your Traditional IRA. DO NOT CASH IT OUT. You can do a roth conversion but you will pay taxes and if you already have funds in a Traditional IRA it is more complicated.
  • Invest in low cost Index Funds and ETFs. Over the long haul very few actively managed funds beat the S&P 500 over a 20+ period. Using a total market fund, S&P 500 Fund , small cap Fund, mid cap fund, emerging markets fund, US bond fund, municipal bond fund etc.... can give you a diverse portfolio without having to pick individual stocks. Another option is timed funds but they will typically have higher fees.
  • Reinvest all dividends on individual stocks and mutual funds back into the investment.
  • Dollar cost avg. Buy on a regular timed intervals with payroll deductions or automatic transfers. When stocks are high you are gaining $$$ when stocks are low you are getting more stocks for your money and over time it will even out better than trying to guess the market.
  • DO NOT SELL STOCKS OR MUTUAL FUNDS WHEN THE MARKET IS DOWN. When the market tanks it is time to buy not sell. Buffet has made more money during Bear markets vs Bull markets over his lifetime. Every time someone told me they lost their shirt in the market it is because they bought when stocks were high and sold when they were low. Most of the time you could look at the stock that ate them up and if they had kept it instead of selling in a Bear market they would have made money on that stock but they panicked and turned an unrealized loss into a realized loss.
  • Diversify based on your risk tolerance and your age. When you are 20 you can take more risk for more reward but as you get closer to the end of your working life you need to adjust the risk in your portfolio so that if a down turn occurs you will not get crushed.
  • Look for alternative revenue streams. Rental properties, non-active partnerships in small business and side gigs. These can help you weather a storm.
  • If you max out your "tax free" retirement choices like IRAs & 401Ks look for other tax efficient investments but also look for high performing stocks and managed funds. If you have build a solid foundation you can branch out a bit more.
  • This will be unpopular on this board but SS is going to get paid out to every person on this board of gun owning age. It might start later than it does now. It might be less than we have been told it will be and it will most likely be a poor return on investment but it will be paid. IMHO That said do not count on it as your main income stream in retirement. Plan for it to be a supplement to your other income streams. Treat it as the gravy not the meat and potatoes of the meal.
  • Do not over spend but also don't make yourself a slave to retirement savings. You need to balance your current happiness with your future happiness. I don't want to die penny-less but I don't want to die with millions of $$$ having missed out on living life and doing amazing things that they money could have allowed. My heirs can make their own money. I will leave them something but I don't want them to be happy that I died. LOL Don't live like there is no tomorrow but don't live like there is only tomorrow. Balance it out.
  • Finally move to a more debt free life. I am not one who thinks that all debt is bad. If you have built a proper income stream for retirement some debt is not only acceptable it can be advantageous but the goal would be to be able to live debt free or have the means to erase all debt at any time.
If you do these things there is no guarantee but the odd will be heavily in your favor.
Click to expand...

Out of curiosity, would you recommend funding a Roth for a minor? My 14 yo son makes a couple hundred each summer mowing lawns. I could file a 1040 for him and put his total income into a Roth out of my pocket to let him keep the money he earned.
 
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