How the hell are we supposed to retire?

@Patrick What stock options do I pick to have enough to buy an island in the next few years? J/k.

Any opinions on these T Rowe or similar 'retirement' plans? My company matches 80% so I've been dumping. A good percentage is in this 2055 plan which starts you with riskier/stock options, and over time moves more towards safer/bond investments depending on your plan retirement year.
 
The biggest issue i see is that younger people think they have "time" to start savings, and little (if any) extra money to actually save.
so it isn't worth starting - when it is really the "time" that is the more valuable item than the money!

My 16yo is going to have reportable income this year of $600. I'll start a ROTH ira for him with a 50 year horizon.
if the laws don't change, and the earth doesn't fall off its axis, it should be worth around $30,000 tax free by then.
if the earth does fall off its axis, he'd be better off with fuel and ammo.....mostly ammo.
 
Magic said:
@Patrick What stock options do I pick to have enough to buy an island in the next few years? J/k.

Any opinions on these T Rowe or similar 'retirement' plans? My company matches 80% so I've been dumping. A good percentage is in this 2055 plan which starts you with riskier/stock options, and over time moves more towards safer/bond investments depending on your plan retirement year.
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Looks good to me. 85% stock for a young guy is fine. Put in as much as you can and forget about it. Don't drive yourself crazy looking at short-term ups and especially downs.
 
Magic said:
@Patrick What stock options do I pick to have enough to buy an island in the next few years? J/k.

Any opinions on these T Rowe or similar 'retirement' plans? My company matches 80% so I've been dumping. A good percentage is in this 2055 plan which starts you with riskier/stock options, and over time moves more towards safer/bond investments depending on your plan retirement year.
Click to expand...

1. does your co match in company stock? or $$$?
- if it matches in stock, keep it to approx 5% of the total plan by re-balancing every 6 months or so. they get reports, so you want to be "in" - but not at risk.

2. ret. year target plans are fine - i'd think the fees outweigh the benefits of a total market, or index fund, but i've not done any analysis.
If a fund manager could consistently out-gain the market, they'd be a rockstar. I think what these do best is protect the $$$ as retirement approaches.
At that point the principal is high, and a 5% safe return is acceptable. Somewhere in here i mentioned that i don't do bond funds - instead i do income funds.
they can take a principal hit, but keep paying....

3. i have an island for you, but i'll need a deposit. :D
 
Patrick said:
but in general, your money is going to double every 7-10 years.
so the earlier you start, the better off you'll be.
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where does this come from?

Google Rule of 72 - for close enough estimates of time to double give the avg interest rate....
 
Patrick said:
1. does your co match in company stock? or $$$?
- if it matches in stock, keep it to approx 5% of the total plan by re-balancing every 6 months or so. they get reports, so you want to be "in" - but not at risk.

2. ret. year target plans are fine - i'd think the fees outweigh the benefits of a total market, or index fund, but i've not done any analysis.
If a fund manager could consistently out-gain the market, they'd be a rockstar. I think what these do best is protect the $$$ as retirement approaches.
At that point the principal is high, and a 5% safe return is acceptable. Somewhere in here i mentioned that i don't do bond funds - instead i do income funds.
they can take a principal hit, but keep paying....

3. i have an island for you, but i'll need a deposit. :D
Click to expand...
1. $$$$$$

2. I'm so good at not knowing what I'm doing that I don't know what the fees are, but had some good growth this year. Only 4% YTD now after the recent developments. Time to pull it all out to buy a used 911 and some bicycles.

3. Joking on island. Islands are for hermits. Do you have a Mclaren F1 sitting around?
 
Magic said:
1. $$$$$$

2. I'm so good at not knowing what I'm doing that I don't know what the fees are, but had some good growth this year. Only 4% YTD now after the recent developments. Time to pull it all out to buy a used 911 and some bicycles.

3. Joking on island. Islands are for hermits. Do you have a Mclaren F1 sitting around?
Click to expand...

1. ?
2. ignore ytd returns. but you know this.
3. i can re-badge the Metro and add some brake cooling intakes/tubes. hope you don't mind the cabriolet configuration. gull wing wasn't available.



BTW: good job at getting in there - keep putting it away. think of the slight downturn as your current investment buying the funds on-the-cheap.....
 
sorry, every time i see this thread, i say the title of it in my head in this voice

 
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Patrick said:
The biggest issue i see is that younger people think they have "time" to start savings, and little (if any) extra money to actually save.
so it isn't worth starting - when it is really the "time" that is the more valuable item than the money!

My 16yo is going to have reportable income this year of $600. I'll start a ROTH ira for him with a 50 year horizon.
if the laws don't change, and the earth doesn't fall off its axis, it should be worth around $30,000 tax free by then.
if the earth does fall off its axis, he'd be better off with fuel and ammo.....mostly ammo.
Click to expand...

Just saw this Pat. Your son is richer than you are. He is a time billionaire!

My father did the same thing for me and at 18 explained to me in detail the relationship of time and money. He started by eliminating any thinking I had of a Black Swan event like hitting the lottery, lol. By 23 I was out of school and spreading my wings. He reminded me weekly that I had no idea what I money was about. There was a period there were we couldn't see eye to eye. I was earning the money and he was influencing me on how to handle it. I thank him often for enduring the verbal lashings and even one time I threatened to kick his ass (young and dumb). I can only repay that lesson by paying it forward to my kids. That's one reason why I don't buy new bikes every other year. I feel I'm giving in and weak if I do buy something impulsively.

My wife, who was my gf at the time, came to me bragging about what she saved at store on store discounts. I told her I spent zero so I was the biggest saver. She got it right away.
 
w_b said:
this assumes you don't have it in CL stock.... pffft
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Did I outline it above? I'm in 3 funds - well 4, cause i like one of the managers, but his is just a play on us total market.

1. Total international market - returned 22% last year. VTIAX
2. Total US Market - returned 30% last year. VTSAX
3. High Yield fund (rather than bond fund). returns about 5% with consistent monthly reinvestment. VWEAX
secret 4th fund is VWUAX

ratio is something like 1:4:2 -

the only individual stock i have is BRK-B - again, betting on the individual, and the company is a conglomerate -

Last real stock i had was cisco, avg cost probably around $2, rode it up to $90, and all the way back down to $20.
Should pay attention..now i don't have to.

I'm going to guess the market is going to pull a 20% correction one of these days, then hang out for a bit, then start back up slowly.
seems way overheated, but that shouldn't stop people from getting in - ya can't time it.

Save! Save! Save! - like your future depends upon it.

if you feel that you are conservative, or the timing is bad, just go heavy bonds, and some in total us & total intl. say ratio like 3:2:1
then re-balance after some "event"

i don't do options or futures. If you find yourself in a start-up, with certain restrictions and they go public, you might be able to purchase PUTS
far enough out after a restriction expires. kinda protect the downside.
 
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