Retirement Finance Discussion

“J”

“J”

Twelve Pointer
Natebonebusta said:
Studies I have read discuss people who save to the point when they hit 35-40 years of doing it, can’t go the opposite direction and spend any because that muscle has atrophied.

Balance is always the difficult part. I worry how much will be enough for the future. It’s impossible to predict. What I don’t want is to miss the quality years I have left.

This is a great thread, thanks for starting it!
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This happened to me after I retired. Kept saving and holding back spending on anything unless it was a need. Took a good friend to sit me down and explain that. He’s a financial guy and I trust him with my life. So it wasn’t a hard sell.
We were programmed by our parents and grandparents (who lived through the depression) on saving for a rainy day and retirement. That day sneaks up every so slowly, you didn’t see it coming until you’re knee deep into it…..
 
woodmoose

woodmoose

Administrator
Staff member
Contributor
to paraphrase a worn out quote,,,,

Life should not be a journey to the grave with the intention of arriving safely in a pretty and well preserved body with a bunch of money in the account,,,, but rather to skid in broadside in a cloud of smoke, thoroughly used up, totally worn out, and nearly broke and loudly proclaiming "Wow! What a Ride!
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Homebrewale

Old Mossy Horns
On the discussion of age, the average 60 year old male lives to 82 and the average 60 year old female lives to 85.
 
Jimbob78

Jimbob78

Twelve Pointer
Firedog said:
good.. those are the ones I want advice from.. goals
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I think this guy is who I want advice from:
woodmoose said:
to paraphrase a worn out quote,,,,
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“Life should not be a journey to the grave with the intention of arriving safely in a pretty and well preserved body with a bunch of money in the account,,,, but rather to skid in broadside in a cloud of smoke, thoroughly used up, totally worn out, and nearly broke and loudly proclaiming "Wow! What a Ride!”
 

Homebrewale

Old Mossy Horns
Chicken209 said:
There is no wrong or right answer to this. You only need to have enough money to live within your means. Everyone’s idea is different. I retired at 49 with a state pension. That isn’t much money. But me and my wife decided to spend our money on things that make us happy. You can spend your entire life saving and investing this and that. But your gonna die. Enjoy some things now. Don’t wait. You never know when your last day will be. Enjoy your hard work and savings while you can.
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I'll post the same reply I made to @Firedog on the Stock Market thread.

Consider reading Die with Zero: Getting All You Can from Your Money and Your Life by Bill Perkins.

I have not read this book yet but it comes highly recommended from two groups I belong to on Facebook. It's on my list to read in the future.

For those younger people in the accumulation phase of life, consider reading The Simple Path to Wealth: Your road map to financial independence and a rich, free life by JL Collins.
 
Fatkid

Fatkid

Eight Pointer
I’m 38.

Started investing in my Roth IRA at 27. I am pretty sure I maxed it out every year. The only thing I did was buy Vanguard mutual funds. I have invested $57,000 that has grown to $112,000. I just started really accessing and moving a bit of it around about two years ago.

My parents bought me some mostly :donk:donk:donk:donk mutual funds as a kid with money I earned in the family business. Putnam Investments. I finally got that transferred out of the custodial account about a year ago and sold about half that pretty much made nothing for 25 years and started playing with that day trading as “money I can afford to lose”. I have that all in a Charles Scheab account. It is valued $55,000 and I am down $5000 on one stock at the moment! And I’m dumb enough to keep buying while it is low!

I have no idea when I plan to retire. I enjoy what I do. I also have no clue what I need to retire. I image I will just wake up one morning between 55-60 and say I am done and just work when I want. Which I kinda do already!
 

entropy

Twelve Pointer
I left corporate job at 60 during Covid. Got a Voluntary separation package.
Took 2 months off, and started doing a consulting gig for a different company. Been doing that for four years.
I will exit that at the end of this year, and will turn 65 next year,
Health care costs have been pretty tough. for the two of us with an Obamacare plan we pay $1100 a month.
Very high deductible,. and very little benefits until you reach the deductible,
Had both eyes done for cataract surgery this year, and my out of pocket was around $14K.
Biden's inflation caused me to work a couple of years more than I wanted to, but we are in a very good place with savings and SS kicking in next year.
I read a lot about investing and retirement planning, I have rolled my own and done well. If I go before my wife, she will have to use a financial adviser, she just isn't good with that stuff.

I paid my house off at age 50, and since that age, I took the house payment amount and saved it.
I am debt free, except for a boat loan that has a good rate and not much time left on it.
 
Firedog

Firedog

Old Mossy Horns
Contributor
Fatkid said:
I’m 38.

Started investing in my Roth IRA at 27. I am pretty sure I maxed it out every year. The only thing I did was buy Vanguard mutual funds. I have invested $57,000 that has grown to $112,000. I just started really accessing and moving a bit of it around about two years ago.

My parents bought me some mostly :donk:donk:donk:donk mutual funds as a kid with money I earned in the family business. Putnam Investments. I finally got that transferred out of the custodial account about a year ago and sold about half that pretty much made nothing for 25 years and started playing with that day trading as “money I can afford to lose”. I have that all in a Charles Scheab account. It is valued $55,000 and I am down $5000 on one stock at the moment! And I’m dumb enough to keep buying while it is low!

I have no idea when I plan to retire. I enjoy what I do. I also have no clue what I need to retire. I image I will just wake up one morning between 55-60 and say I am done and just work when I want. Which I kinda do already!
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My problem with a roth is that the contribution limits are SO LOW on a yearly basis.. Less than 1/3 of the 401K Max and our income level takes us out of the Roth discussion all together.. We can do traditional and then do a conversion.
 

remingtonman

Four Pointer
What retirement funds do you invest in enlarge cap, small cap, international do you invest in and what is your % allocation in each
 
Firedog

Firedog

Old Mossy Horns
Contributor
remingtonman said:
What retirement funds do you invest in enlarge cap, small cap, international do you invest in and what is your % allocation in each
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Not sure if this was specific to any one person.. for me I have my market investments spread like this roughly

50% in Large Cap Growth funds - aggressive but long term stable high returns.
20% in large Cap Blend
10% in Large Cap Value
6% in Bonds
The rest in small and medium cap across the spectrum of value, blend and growth.

Roughly 10% in Foreign stock funds and 90 domestic. 30% of my investable funds are not in the market.. 66% of those are in realestate and 33% are either cash or 0 risk cash equivalencies (CDs or High yield interest bearing accounts)

As I get closer to "needing" that money I have been and will continue to slowly readjust those % to yield lower returns but lower short term risk of loss.
 
catfishrus

catfishrus

Twelve Pointer
Self employed here. Wife has a 401K that she is maxing out. Her second husband will enjoy that..LOL. I tried an IRA for 7 years but I wasn't doing any good with it, so I cashed it in. I paid my house off at 40 years old. My house and boats were my life savings. Lived debt free for several years and the catfishing was wonderful under Oboma because construction was dead! Then I hocked or sold everything I had to buy rental houses under Oboma. Put a lot of sweat equality into the rentals. Rental houses are the best thing I ever done. It's an early retirement income and it's a tax write off for 27.5 years. Plus I bought mine at a great time. I bought mine with the intentions of making 10% off the rent. If I paid 80 grand then I wanted 800/month rent. Today you can't buy one and do that. I was paying 70 to 90 grand for houses today those houses are going for 275 to 350. For a young person I still think it might be a good option if the housing market continues to grow and it will over time.
 
Fatkid

Fatkid

Eight Pointer
Firedog said:
My problem with a roth is that the contribution limits are SO LOW on a yearly basis.. Less than 1/3 of the 401K Max and our income level takes us out of the Roth discussion all together.. We can do traditional and then do a conversion.
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I am more or less middle class poor so the Roth contribution level is perfect for me!

Some years I actually struggle to max it out but I usually get it done last minute right before the tax day deadline.

I figured where I am at now I will be north of $1,000,000 in my retirement account and have everything paid off by the time I am ready.

Right now the majority of what I make goes right back into the business it seems so my cost of living once I retire should be close to the interest of that million plus.
 
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