Was having a conversation with a buddy today and we started talking about retirement money and what we though we should have. My question for you guys is how old are you and what do you have in your 401k (or your version of retirement)?
I don't know too many people who actually enjoy retirement. Most people I know fall into the following categories:
- died before or right after the age of 65
- over 65, but still work because they don't have anything better to do
- retired, but mope around all day
- retired and in poor health and can't enjoy much of anything
A 30 year mortgage on a $500000 loan will be $1 million in total payments. Over a 15 year mortgage it will be $750,000. Granted my loan won't be nearly that high, but that's a nice safe way to start saving a lot of cash on a 15 year.. If your home is paid off when you retire, that is a huge monthly expense you won't have to worry about (minus taxes).
Roth IRAs are nice because you put into them after taxes, so they grow tax free as opposed to your 401k which will be taxed at collection time.
I also know nothing about finance, but I'm petrified about pissing all of my money away gambling in the markets.
A 30 year mortgage on a $500000 loan will be $1 million in total payments. Over a 15 year mortgage it will be $750,000. Granted my loan won't be nearly that high, but that's a nice safe way to start saving a lot of cash on a 15 year.. If your home is paid off when you retire, that is a huge monthly expense you won't have to worry about (minus taxes).
Roth IRAs are nice because you put into them after taxes, so they grow tax free as opposed to your 401k which will be taxed at collection time.
I also know nothing about finance, but I'm petrified about pissing all of my money away gambling in the markets.
For someone who knows nothing about finance, you gave 2 excellent pieces of advice:
15-year mortgage
Roth IRA
I know my retirement is not where I would like it to be, but it's getting there. My wife & I carry no debt, other than a (15-year) mortgage. We have money in roth IRAs, 401Ks, and and a few mutual funds. We expect to retire at the age of 55-60. Our mortgage will have been paid off several years before that, so we'll be able to put a little more away. I'm also retired military, so we'll have that check, along with the health benefits for life.
As I said, we're not completely where I want us to be, as we have 4 children and college isn't cheap, but we're getting there. Additionally, we don't spend all our time now at our jobs. We're trying to live a little while we're still young too, so that eats into savings a bit.
Regardless of where you are with retirement, start planning now. It beats working until you fall over.
__________________ I'm glad I'm not judgemental, like all these loud mouthed, know-it-alls around me.
Terrible. We have had a slew of major medical issues in the last 7 years including our 6 year old having a brain tumor. Medical bills have sucked me dry. The good news for me is I have a very high income and significant continued income growth potential still so I can make it up. The reality though is my medical bills are likely to be extremely high on an ongoing basis so I'll be lucky to retire before 70.
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"Ya know the good ole days they weren't always good and tomorrow ain't as bad as it seems."--- the great poet and philosopher Billy Joel.
In my unstable work environment, I do not have a 401K, in fact, I got nothing. and with my medical issue, I probably wont have crap for a long time.
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I am about to find out. I will be turning 61 in about 45 days and have already quit my current job due to stress. This along with working out of state (working in Dallas) is sending us home for good next week. Once we get back settled in I will look for something small at home until I can retire at 62. My wife will have to keep working being she is 5 years younger. We have put up max amounts in 401k's for years and believe we are in pretty good shape.
We currently have right at $500,000 in our accounts and my SS benefits will be around $1600 a month. Everything is paid off except for our fifth wheel camper. Both of our vehicles are fairly new (2010 & 2011). I just have to float on a temporary job for a year then it will be full retirement. I already told my wife she will have to show me how to do the laundry and cooking being I will then be the house-husband while she works.
Terrible. We have had a slew of major medical issues in the last 7 years including our 6 year old having a brain tumor. Medical bills have sucked me dry. The good news for me is I have a very high income and significant continued income growth potential still so I can make it up. The reality though is my medical bills are likely to be extremely high on an ongoing basis so I'll be lucky to retire before 70.
Quote:
Originally Posted by Saint77
In my unstable work environment, I do not have a 401K, in fact, I got nothing. and with my medical issue, I probably wont have crap for a long time.
not to derail, but this stinks. I hope if there's any benefit from Obamacare it's for folks like you two.
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"America has only three cities: New York, San Francisco, and NEW ORLEANS. Everywhere else is Cleveland."- Tennessee Williams
just refied to a 15 yr mtg ( and saved not only interest but my monthly note is LESS, yes LESS than i was on 30 yr - by about $30 but its still LESS )
Been in a sec 125 plan for 10 years now. I contribute max, unfortunately my employer lowered their threshold from 3% to 1% match. But im over $100,000 in retirement plan and have 20 more years to go. I carry very little debt ( well, as lil as possible ) outside of mtg. We pay most things in full, when due. And if we want something ( large purchase ) we save for it. Takes a little time, but just the feeling of not having a "monthly obligation" is well worth it.
I guess im ok. I really dont know what "benchmark" i should use regarding my current savings vs what i will need in 20 years. So I just keep putting as much $$$ away as possible.
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1987 Shelby Metcalf, basketball coach at Texas A&M, recounting what he told a player who received four F's and one D: "Son, looks to me like you're spending too much time on one subject."
Location: Live in Rockwall, TX but from da Wessbank brah
Age: 41
Posts: 21,908
Refi'ing the mortgage to 15 yr in April was part of it. Should be mortgage free before I turn 56. But who knows what life will throw my way by then. Between 401k and a roll-over IRA from a previous job, it's ok. Not great, but I don't see myself truly retiring. I'd get too bored not doing anything. I can see going part-time and/or changing completely to something like the Red Cross to help people in crisis situations.
32 and struggle to make ends meat from day to day but in a unique situation. At the end of this year I begin profit sharing with my company as I slowly take over ownership of the business over the span of the next 5 years. Until then I'm making $10/hr. In two more years I'll be making enough to start saving for retirement. I have a few thousand stashed away in some old IRA's but that is it.
The good news....
Before selling my glass business I paid my home off in less than 10 years and now own it outright, own my truck with no payments and have no debt.
The bad news.....
Will struggle from day to day to stay out of debt until January and only then will have small amount of breathing room for another 2 years. I have two kids who will almost certainly have to go to private school unless Mississippi has some kind of amazing public school transformation.
In 2008 I was fortunate enough to sell my stocks and gold holdings before the market fell out which was enough money for me to live off for 5 years. Medical bills and unexpected expenses wiped that out in 2011. I had planned on using that money to compensate my salary through 2014 with the hopes of saving a majority of it to go college fund/retirement but looks like I'll be starting from scratch.
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