Thanks for the straight talk
@clarkenstein When are the fees taken out? I've moved my $$ around a ton of times over the years and have never seen a fee from leaving any funds.
@mattybfat I like the ideas but those are $2k+ a month commitments, ain't gonna happen.
Guess I should start stuffing my mattress?
there are no fees for funds in a 401k (they are taken as mgmt fees from the fund) - they usually limit the number of moves you can make in a year. (i see the answer was posted while i was typing)
---IMPORTANT---
so use a couple conservative numbers. lets say put away, with co match, $7,000 year - that is 100/wk with a 35% match.
and compound at 5% over 35 years - i found a monthly calculator here
https://www.calculator.net/investment-calculator.html
600/month at 5% for 35 years, 240k invested, turns into $665k. Hopefully you are a couple, and can multiply this by
something approaching 2.
and avg historical return for the last 50 years is 10%, you'd have $2.3 million.
--not so much--
so the house should be paid off, and worth something. if you are renting, then ya gotta save a bit more $$ -
you are now 65->70 years old. you've stayed in good shape from #BIYF2030. You've got no debt. Along the way,
the kids are out on their own. and you were able to save a few more $$ somewhere. you go into income investing,
and you move the money to MHCAX - which is a fantastic buy right now, with a 6.7% yield. or BHYIX (i'd spread it around
over high income funds) the value of the fund fluctuates, but the dividend is stable (meaning the yield changes, the
equity changes, but the monthly payment is the same.)
you can not make money in the rental business if you don't start out with cash. the interest on the mortgage will kill you.
and if you aren't handy, the repairs will kill you. and if you get really unlucky, the tenant will stiff you, and carson will write a story about it.
Have an extra bedroom/bath, and no kids? Rent it out, get cash, put it into the plan. renter is local, young, working during the day, skilled (ie trade or office worker.)
preferably female.
so what is retirement at this point? you still feel good. could still work. part time? do your own thing? consult? screen new people? teach?
point is your income doesn't need to go to $0.
it looks so difficult when at a young age - that cash that you don't get cause you are saving. those things that you want so bad.
ya gotta live below your means until the money making years. ya gotta drive the crap out of that shitbox, so you can get the badass
car when you are older. insurance will be cheaper, and you can talk your way out of a ticket.
---IMPORTANT AGAIN---
things that blow this up...
addictions, be it chemical or other - if it is sucking the money out, and then creates the inability to make more...problem
bad divorce - hell, it happens. don't make it worse. no sense spending more on lawyer fees than your net worth.
unmanageable debt load - make a plan, get out of debt. you might have to hibernate from the world for a year - think of it as investing
unproductive job changes - its the same shit everywhere, deal with it. don't call people out in public if you have a problem with them,
esp the boss. just tell them. with change comes risk. make sure the risk is worth it. on the flip side, you may have gained some skills
and the current employer thinks you "owe them" - you don't, find someone to pay you for them, keep adding onto your skills.
---REALLY IMPORTANT---
Things that help...
you and spouse on same page with $$
budget
self control
budget
plan for larger items
budget
friend network to get stuff done, at least at a reduced rate.
budget
If you inherit any $$ - pay off some debt, and put the rest of it away. Even if it is a small amount. Roth IRA.
Don't stop saving!
---meh--
i still bring my lunch to work, some leftovers, and water - not the bottled type. this allows the cash to be unwisely spent elsewhere.
do you need a paid financial planner? probably not. the fidelity stuff is fine. once you have something significant, ie over the inheritance
limit - ya need a lawyer.
couple other benefits of this - as Dave states - alot of people have very low 6 figure retirement accounts.
but banks see this as collateral when lending you $$ (even if there are rules about them getting to it) - you'll get better rates on stuff like a car loan.