Law What's up with the authority on our retirement savings ?

[tenniswhiz]

I don't know if I'd call that common sense. But it certainly is better.

You probably have a couple million at the end, just putting in 10k/yr, for the first 20 years you work, and then stopping after those 20. Assuming a 40 year working life, about age 25-65.
You can do much better than that by contributing the full 18k/yr from the get-go, and doing that for 40 years.

 

[mkess101]

I’m going to disagree on the whole rebalancing into bonds thing…I'm totally into just leaving it in the index fund, rain or shine, even into retirement. Maybe till death, and tell the kids to do that too.
That 2008 thing, happened to my dad, uncles, friends, and it bounced back and didn’t mean shit.

Also, I like the idea of maxing out 401k and IRA through index funds in the first 15 years working. That’ll be a few million at the end.
After 15 years (late 30’s?) then I like testing other opportunities, obviously taking care of house and kids.

To each their own. Most people if they're 65 or whatever and on the cusp of retirement would be devastated seeing half their retirement portfolio wiped out in a few months when they'd spent decades building it. I'll always have SOME exposure to equities, but when I'm that age I'll be in protection mode more than growth mode. I'll have enough that growth won't matter much to me.

As for the switching to other stuff after 15 years, depends I guess. So many companies do a match, nobody should ever turn down that free $.

 

[lifelessheap]

Fully fund your Roth IRA every year.

 

[Sinister]

To each their own. Most people if they're 65 or whatever and on the cusp of retirement would be devastated seeing half their retirement portfolio wiped out in a few months when they'd spent decades building it. I'll always have SOME exposure to equities, but when I'm that age I'll be in protection mode more than growth mode. I'll have enough that growth won't matter much to me.

As for the switching to other stuff after 15 years, depends I guess. So many companies do a match, nobody should ever turn down that free $.

Hold up, it ain't free. You gotta both pay and work to get it lol

 

[DoctorNick]

It's something I'm still no expert with, but thankfully my younger brother is. I debated pulling some money out to buy something about 12 years ago, but my then company wouldn't let me without proof that I needed to pull it out (on the verge of bankruptcy, funeral, and some other reasons I don't recall.)

 

[Your Account]

It’s difficult to understand what you’re talking about.

Which government? Which countries?

I mean in general, seems there is alway that specific amount ,in every country in the world,you just have pay by law ,on which you dont have any juristiction on and its always payed out in monthly installments after you enter into retirement mode?

 

[jx820]

When 401k's replaced profit sharing, many were unhappy because all they saw was..."well, we might give you this money." Whereas with profit sharing you just got it.

I currently have a profit share arrangement (I get shares) and I love it. It's the best thing in my portfolio and I like that I have some degree of sway over how it performs, but I still need a 401k because company shares are a very "eggs in one basket" system.

How would you like to be holding a bunch of Bethlahem Steel or Tower Records shares today?

 

[Sinister]

I currently have a profit share arrangement (I get shares) and I love it. It's the best thing in my portfolio and I like that I have some degree of sway over how it performs, but I still need a 401k because company shares are a very "eggs in one basket" system.

How would you like to be holding a bunch of Bethlahem Steel or Tower Records shares today?

I'm not against diversification, and even more so not against real diversification as opposed to merely paper diversification, given today's circumstances. I mean I much prefer other means of assuring elderly care/retirement income, but that's a whole other can of worms.

I always thought GE had a really good model of keeping their workforce growing before "shareholder capitalism" became a thing. Then Jack Welch f*cked it all up.

 

[mkess101]

Hold up, it ain't free. You gotta both pay and work to get it lol

Ha ha well okay but you know what I mean. And actually, some places (I think it's rare but my wife's company does it) will actually contribute whether the employee does or not.

Either way, it's "free" in that it's an automatic return of whatever they match (be it 25%, 50%, 100%) over what the actual investment returns.

Like, some dude that bought $10k of an index fund in a year where it was down 10% lost $1k. The employee who got let's say a 50% match from his employer is still ahead on his investment because of the $ his employer put in for him.

 

[LMP]

Just buy coke and hookers with your money.

 

[emefer]

Roth IRAs are nice.
You’re able to take out money you deposited without a penalty but you will get penalized if you take any of the profit before it matures.
I’m self employed and have a SEP. I’m trying to max that out every year. I’m able to drop up to 25% pretax into it which is nice on my tax bill.