#61
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The real estate advice is sound and still holds true. There are no guarantees that at every point in time it will be beneficial to sell an investment. Putting all your eggs in any one basket is a bad idea. I can buy rental homes for under $40,000 and net a $700- $750/month. In October, I found one for $25,000 net and I am getting a $750/month rental...Better than 4% ROI. Ymmv.
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#62
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Quote:
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#63
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Lots of good nuggets in here. My take (having just turned 50...):
- Live WELL within your means. It is much less stressful in the long run. - Max out your retirement savings early. I've been maxed out in my 403 (b) plan for years and now will add the "50 year-old" plus-up of $5,500 additional per year. - If at all possible, don't even count Social Security in your retirement planning. I figure I'm paying it for my mother. Then when I turn 70, SS will hopefully be a nice gift to myself. - Plan for the worst, hope for the best. I intend to retire between 62 and 65 with zero debt (I hope!), my self-funded retirement savings (no pension), and my daughter's education paid for. If anything goes better than expected (inheritance, better-than-planned ROI on investments, kid gets merit-based scholarship, etc...), then retirement gets more luxurious. - Greg |
#64
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From your lips to god's ears!
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#65
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1) plan well for your future needs and in all your subsequent "present" times you will be deriving the stress-free benefits of your awesome past planning while having plenty of stress-free time to plan for your future.....got that?
2) young people starting first real job - Save up at least 10 g's before you make a big purchase - i know way too many people with fancy cars they bought right out of school who freak out at the notion of any interruption to their income stream, whether involuntary or voluntary. You can eat kraft mac and cheese for a little while longer, you're used to it. 3) Buy stuff in the sweet spot....ie, the atlanta/concours model of 90% of the best performance for 60% of the cost....or, buy used. 4) Invest when there's blood in the streets and sell when everyone wants to buy
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Ad astra. Tempus est. Andiamo! |
#66
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Ok, but how to get advice?
Doing ok, I think. HOWEVER, I would sure like some advice. My question is: How do I choose a good financial planner? I don't know one. I don't know anyone who uses one or can suggest someone. I'm just getting names off google searches. What's a good way to find someone who can look at what I have & say "Yes, you can get there" or "No, it's Velveeta and crackers if you're lucky"?
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#67
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Most of the forgoing advice assumes retirement. The new reality for many--including some baby boomers like me--is no retirement. Some will work less. Others may start a second career. Retirement for many isn't what they imagined even if money isn't a concern. Plan what to do after work life or grow stagnant and bored. If you enjoy what you do, by delaying retirement, you'll be more likely to maintain physical and mental health. You can also delay tapping into SS, thereby increasing your monthly payments.
I'm 62. Every time I meet with my financial adviser, he breathes a sigh of relief that I'm not going out at 66. Assuming reasonable health, I plan to work full time until 70; then maybe part time. I made a commitment to pay my 3 kids' undergrad schooling, so they aren't starting adult life with overbearing debt. It wasn't easy and I realize I could quit working sooner if I hadn't. But (right now) I feel it's been worth it. My investments are fairly heavily in the market as that historically has been the best long term return. I think the market's rigged but it's the only game in town and I hope I can accumulate sufficient wealth and cash most of it out before the next toxic asset debacle. |
#68
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[QUOTE=makoti;1548792]Doing ok, I think. HOWEVER, I would sure like some advice. My question is: How do I choose a good financial planner? I don't know one. I don't know anyone who uses one or can suggest someone. I'm just getting names off google searches. What's a good way to find someone who can look at what I have & say "Yes, you can get there" or "No, it's Velveeta and crackers if you're lucky"?[/QU
You have more faith in financial planners than I do. If you don't know one, check out the Vanguard web site. You may find you can get your answers here about how to get started. |
#69
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I think you have more faith in your financial abilities than I do in mine.
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#70
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Couldn't agree more Ralph. Too many account churners out there. This isn't rocket science. Vanguard is a great place to start.
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#71
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Interesting discussion.
I have only one thing that has puzzled me throughout this conversation and that is the hypothetical 4% return. Where is this rate of return derived from? If it is a historical number or average for the sake of conversation, that means in the current investment climate, it is not real. If it is an actual return, what is the underlying investment vehicle where it is coming from? Currently 30 year T-Bonds are @ around 3.5%. |
#72
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I believe that's the Feel Good Rate of Return, also known as FGRR.
In modern portfolio theory, it's usually shown as FGRR * [Actual or Hypothetical Portfolio Value] = TBS* . . . . . . . . . *where TBS=Total Bull Shiite Quote:
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#73
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OT: Retirement Total Amount: How Much Do You Think You'll Need?
Quote:
Above I referred to a 4% of portfolio spending rate in retirement, but that includes spending some portfolio income and some portfolio principal. At least historically, stocks have earned about a 10% return over many decades which is composed of a "current" return from dividends and a capital gain return from price appreciation. To my knowledge, there is no investment that provides a *current* 4% yield that is default risk free. Even the 30 year T-bonds you mention above will plummet in value if the Fed starts to let interest rates rise. |
#74
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Quote:
Here. This is the best retirement calculator I've found on the web out of a hundred or so: http://money.msn.com/retirement/reti...alculator.aspx Just plug your numbers in and weep or sigh or cheer. Go through a lot of variables, like the inflation rate (which really changes things) and various rates of returns. I have basically said how much money I want to live on in year one, and let it go from there. Nice spreadsheet at the end.
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It's not a new bike, it's another bike. |
#75
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My 84 year old mother lives quite well on $45K a year in Fairfield CT. That is not an inexpensive place to live. It's all about priorities.
I'm 56 and on track to retire modestly at 60. Retirement to me still means working but not in my field and not full time. Just something to pass the time and pay the taxes. |
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