False, death beats time. Sorry, had to.
Regardless, it is crazy how I hear some adults in their 50's have hardly anything saved in retirement at times. I'm like how? Even a couple hundred bucks goes a long ways.
Retirement Targets
- Thread starter yowza
- Start date
Regardless, it is crazy how I hear some adults in their 50's have hardly anything saved in retirement at times. I'm like how? Even a couple hundred bucks goes a long ways.
The simplest advice I've seen over and over again is in order 1. Put the maximum your company will match into your 401k 2. Ensure you have a comfortable amount in savings 3. Max out a Roth IRA 4. Anything leftover either add to your 401k or a brokerage account
Turning 51 soon, hope to be out in the next 4-5 years barring any epic collapse in the markets before then. May consider consulting if it's on my own terms, otherwise I'd plan on some travel and health-related activities with my time. Income would not be the constraint, however health insurance with dependents is a primary factor.
Many come from poor families and living to pay check to pay check is the only way of life they know. Many do not have much education, going from job to job and the idea of saving for retirement is foreign concept for many. Its live for today, because I might not be around for tomorrow, so I am going to enjoy my life. That line of thinking was fine they could get factory jobs that had a pension, but those types of jobs are few and far between these days.
My personal advice - be aggressive! Screw those target date options. I think my date wouldn't been about 1/3 of what my return was last year.
Invest. Be aggressive (especially when young). Invest more. Invest even more. Keep investing.
You'd be surprised how many people with 6 figure incomes do such a piss poor job of saving.
Not really YOLO, just didn't think long-term. She also had bought a baby grand piano from a friend before I came along and was paying the friend a little every month, no interest. When we decided to get married, she got cash from a credit card to pay off the friend. Somehow figured that would look better to me. When I saw the credit card bill, I couldn't believe it.
Anyway, we agreed early on I would handle all money and bills. She has never once asked about anything. Works perfectly!
True live in a house way over what they need and can afford, new vehicles, changing phone every year, great vacations, they are all living for today and could care less about the future. Hell, maybe they figure they are going to get a nice inheritance when their parents pass.
I'm close to retirement and losing a couple years worth of salary during a bad week can bite. I tend to use target date options 10 years later. So if I plan on retiring in 2030, I'll use 2040 instead. I currently have about 1/2 in S&P 500 and 1/2 in the 2040 fund.
You're 100% right though. So far this year, my S&P500 return has been 14.41% and the 2040 has been 7.39%. Roughly 1/2 the return.
Agreed. Hardly any of my 401k is in target date funds. Oracle Common Stock Fund (not just ORCL) became an option when they bought us and it's returned nearly 50% the past couple years, already at 34% YTD.
Watching the numbers flash red is tough. It takes a bit of conviction and will power to keep from easing up
But the market can work wonders if an investor lets it work.
My wife is 7 years younger than me. She's an earner. In theory I won't need to touch my retirement funds until there's an RMD. We can make ends meet on her salary.
At this point I don't see a change in strategy for decades. But the ol' "we plan, God laughs" wildcard can change everything
(Of course everyone's situation is different. Stick with your own comfort level and don't swap everything because it's on here!)
Speaking about retirement, any suggestions on places to check out? Here are my must haves:
Warm
Low humidity
Somewhat affordable
Within an hour of a decent airport
So far we've checked out:
Palm Springs-Love it, too expensive
San Diego-Love it, WAY too expensive
Phoenix-Suburbs are nice, enjoyed our time there.
Tucson-Really liked Tucson. A little cooler than Phoenix, a lot smaller, a lot more relaxed.
Vegas-Been to Vegas a lot but never any of the suburbs.
St. George-Never been but looks nice
Albuquerque-Never been but my wife didn't seem to love it
I feel like I'm missing some smaller areas but the desert states don't seem to have as many options.
Warm
Low humidity
Somewhat affordable
Within an hour of a decent airport
So far we've checked out:
Palm Springs-Love it, too expensive
San Diego-Love it, WAY too expensive
Phoenix-Suburbs are nice, enjoyed our time there.
Tucson-Really liked Tucson. A little cooler than Phoenix, a lot smaller, a lot more relaxed.
Vegas-Been to Vegas a lot but never any of the suburbs.
St. George-Never been but looks nice
Albuquerque-Never been but my wife didn't seem to love it
I feel like I'm missing some smaller areas but the desert states don't seem to have as many options.
Other options?
I’m far from retirement, but I’d probably think about Vegas when I get to that stage.
Warm. No income tax in NV. Once you’re out in the burbs it feels more like PHX, not like you’re going to be living on the Strip or Fremont St. Not as massive as PHX either.
Of course assuming they still have water in 30 years
I am in same boat. Will be buying health coverage for family when time comes to exit (within 5 years or so). I'm not going by the 70% of current income rule or 80% as some might say. I want an income at or above what I currently have and I am not counting on SS even though it will likely pay in some amount by then when I reach age.
I go by the 4% rule, but I know realistically that will probably be a low number as I plan to leave a decent chunk in the market.
I look at about 3 times during the day and I need to stop it in paying that close attention to it. I watch the morning stuff on CNBC just to get the vibe for the day starting out. So informative in the mornings.
The first year in it is the most unnerving. Once you get funds built up in the HSA that would cover a really bad health year (and then multiple years) the comfort level grows with it.
Do you keep all of it in the investment, or a portion in cash/stable fund?
I currently have mine set to keep one year deductible in cash, anything above that gets invested.
I keep $1k to $2k in liquid stable and balance in index funds. It takes a day or two to cash out some in a fund if cash needed to pay a bill. So far (knock on wood), 99% of our medical stuff has been stuff we scheduled ahead and no real unknown emergencies. Have been in a HDHP with HSA for about 9 years.
