What are your retirement options?

[brickbatstone]

We have all known that Social Security will not be there for us once we retire. There are various options out there to choose for your retirement. A savings account will not due as interest you earn will not be enough. Not all companies offer you a 401K, pension plan, etc. What other options are there for us who want to put away some money for when we get old?

 

[sawastea]

A savings account will not due as interest you earn will not be enough. Not all companies offer you a 401K, pension plan, etc. What other options are there for us who want to put away some money for when we get old?

Can you explain the first comment? You can also look into an IRA.

 

[brickbatstone]

Can you explain the first comment? You can also look into an IRA.

Well if you put way say, $100 a month into a savings account, the interest earned will not be as much as say, a 401K or so.

 

[*MissFit*]

death..

 

[sawastea]

Well if you put way say, $100 a month into a savings account, the interest earned will not be as much as say, a 401K or so.

What happens if you put in say more, like $10k to start off, finding several investments that pay 10-12% and continually invest 1K every year?

Off course, at a low amount, the investments will not be significant.

 

[bran987]

We have all known that Social Security will not be there for us once we retire. There are various options out there to choose for your retirement. A savings account will not due as interest you earn will not be enough. Not all companies offer you a 401K, pension plan, etc. What other options are there for us who want to put away some money for when we get old?

there are tons of options for you to begin learning about. the best place to begin learning is to go through this free lesson. It's 13 steps that cover a whole lot of ground.

http://www.fool.com/school.htm?ref=G02A06

 

[Razorguns]

have lotsa kids, and hope ONE of them becomes a millionaire.

 

[gonelifting]

Well if you put way say, $100 a month into a savings account, the interest earned will not be as much as say, a 401K or so.

This is often a misconception that people have. An IRA is a VEHICLE that's used for retirement as is a 401k plan. Some have more benefits than others, but they are still "vehicles" that you can invest in. These vehicles have different investment options such as stocks, bonds, interest bearing accounts like a money market fund or a fixed interest account such as you're referring to. A 401k plan will NOT have as many (investment) options as an IRA because an IRA let's you basically invest in ANYTHING that's out there, but a 401k plan only has a few different selections to choose from. Some have more and some have less, it depends on your employer. Either way, an IRA has more choices. Having said that, there are still pros and cons to either investment "VEHICLE".

So, if you DO choose an IRA considering you don't have a 401k plan (which should be your first choice because of company matching and tax benefits combined) you can choose an investment in a stock mutual fund or individual stocks or anything that WILL have the opportunity to make more money for you than an interset bearing account you've stated.

You're headed in the right direction by asking. I would put what I can initially... $1000, $2000, whatever and then $100 month or whatever you can afford and you'll reap the benefits in the long run. A bank account will NOT cut it. good luck.

Visit the investment board that Bran hosts. There are a lot of good topics there. good luck. Do it.

di

 

[gonelifting]

Also, Social Security WILL be there, but don't rely on it soley for retirement as it's not enough to live on really.

 

[onebigab]

Also, Social Security WILL be there, but don't rely on it soley for retirement as it's not enough to live on really.

I hope your right about that. I'm trying to plan my future around the fact that it won't be there for me when i retire.

Also what would you consider a decent amount in savings for retirement.

 

[Ish]

Wasn't SS designed to be a supplement anyways?

 

[bran987]

This is often a misconception that people have. An IRA is a VEHICLE that's used for retirement as is a 401k plan.

the other day somebody told me over the long run a 401k will return about equal to the stock market
*sigh

 

[maxpain]

Wasn't SS designed to be a supplement anyways?

Yes. But many have come to rely on it.

 

[maxpain]

I hope your right about that. I'm trying to plan my future around the fact that it won't be there for me when i retire.

That's the best way to look at it.

Also what would you consider a decent amount in savings for retirement.

Well, there's too many factors to answer that. How do you want your life to be when you retire? What will money be worth when you can retire? What age do you want to retire? Lots involved to come up with a definite answer for what's decent and what is not.

 

[gonelifting]

I hope your right about that. I'm trying to plan my future around the fact that it won't be there for me when i retire.

Also what would you consider a decent amount in savings for retirement.

There are calculators to figure that out. There's a lot of variables to take into account. Will you be traveling a lot in retirement? Will you be active, what kind of lifestyle would you like, WHEN will you retire and frankly, how long will you live? lol Some people spend MORE during retirement than when working because of the free time.

You need to figure on a relatively "safer" (don't put the lump sum in a bank account) investment at or near retirement that will give you enought to live on a yearly basis COMBINED WITH taking principle OUT of the nest egg you've built.

For example... You have 1 million at retirement getting a return of 6%, you'll make $60,000/year. Let's say you'll live to be 85, then you take out money from the 1 million slowly in proportion to the 1 million to supplement the $60,000 if need be.

The above is based solely on a nest egg of 1 million with no SS or pensions. So they may help as well. But remember, $60,000 in the future is not the same as $60,000 now.

 

[onebigab]

Well, there's too many factors to answer that. How do you want your life to be when you retire? What will money be worth when you can retire? What age do you want to retire? Lots involved to come up with a definite answer for what's decent and what is not.

Let's put it this way. I'll be 41 after 20 yrs of service. I really don't want to have to go back to work full time again.

 

[pitbullstl]

I hope your right about that. I'm trying to plan my future around the fact that it won't be there for me when i retire.

Also what would you consider a decent amount in
savings for retirement.

Social Security will be there, as for retiring and relying on it.......not unless you're the "crazy cat lady" and live in a box.

Anywho, what's a "decent" amount to have invested in your retirement??? Pretty subjective, don't you think?

Myself personally, even when I retire....(15 years from now) my money will still be working for me 24/7.........in fact long after I am dead and gone (kids trust funds) This is the goal everyone should have in mind.......make your money work for you, not the other way around.

 

[pitbullstl]

The above is based solely on a nest egg of 1 million with no SS or pensions. So they may help as well. But remember, $60,000 in the future is not the same as $60,000 now.

And........that the $60,000 is taxable income.

 

[brickbatstone]

make your money work for you, not the other way around.

And that is where the problem comes at. Many of us have no idea how to make our money work for us.

 

[bran987]

And that is where the problem comes at. Many of us have no idea how to make our money work for us.

did you click the link I posted for you?

 

[brickbatstone]

did you click the link I posted for you?

Soon as I get home. I am still at work.