Retirement Thoughts

[firecadet613]

We've got a wealth of knowledge here on INGO, seemingly spanning all economic spectrums and ages, a very good "cross-section" of America, if you will.

I'm curious everyone's thoughts and plans on their retirement savings. How / what have you done to diversify your portfolio and assets? And most importantly, is that strategy keeping you on track with when you want to retire (and providing the lifestyle you're expecting).

We're both under 40, but about to double down and put our retirement planning into overdrive. Just want to see what all everyone does while we work to chose a path that's right for us.

 

[WebSnyper]

We've got a wealth of knowledge here on INGO, seemingly spanning all economic spectrums and ages, a very good "cross-section" of America, if you will.

I'm curious everyone's thoughts and plans on their retirement savings. How / what have you done to diversify your portfolio and assets? And most importantly, is that strategy keeping you on track with when you want to retire (and providing the lifestyle you're expecting).

We're both under 40, but about to double down and put our retirement planning into overdrive. Just want to see what all everyone does while we work to chose a path that's right for us.

Specific strategies will be dependent on your age, etc.

That said, if either of your companies provide matching funds for 401k, etc then try to maximize that (obviously understand any vesting period, how much gets matched, etc), but that's typically the easiest return you may get.

Also, if you have HSA(s) fund them up. There are definite tax benefits now and can grow and be used for qualified medical expenses now without penalty and for can be withdrawn after age 65 without penalty (taxes may apply) even if not used for medical expenses.

 

[NyleRN]

As stated above. Put into your employment IRA the amount they will match you. Then max out a ROTH IRA each month. Then, if you still have extra you can contribute that towards your employment IRA too.
I max out my ROTH with monthly contributions. Then I have an extra 4% that I can afford to put into my employment IRA additionally. They don't match anything so I make sure my ROTH is fully funded first

 

[foszoe]

Roth. Roth. Roth.

Free money matching maxed

Never spend HSA money unless you HAVE to. Cash flow it all out of pocket.

 

[blain]

* Live below your means for 45 years.
* The sales pitch for equity performance is just that, a sales pitch.
* Don't get friendly with debt, see it as an adversary.
* Honor God

 

[Hawkeye7br]

As above said, max out each Roth. I waited too long and it didn't have much chance to build up. Your savings and investment is your future. I retired at 62 and glad I did. Able to travel a bit, enjoy my shooting sports, while relatively healthy. Not everyone is cut out to be their own investment counselor, don't be afraid to seek pro advice.

 

[snorko]

This year I started a 6-10 year countdown to retirement. In my twenties and early thirties I half-assed saving for retirement, did a few things right and a few stupid moves. I wiped out most all with a very stupid mistake at 33 involving a woman. Then I got serious. I ended up in a career that is also very flexible. It is very scalable and I intend to back down significantly in 5-6 years while still having the ability to earn 25% to 50% of what I do now with at least that much less effort.

What everyone says above I would agree with.

Pay off your mortgage and avoid debt.
Contribute to employer 401K/SIMPLE IRA, maxing out the match at a minimum.
Max out a Roth if your income is low enough (at $138K limit starts to step down).
For diversity consider alternative assets such as real estate or precious metals as a hedge and alternative savings.

 

[NyleRN]

Also, I'd advise you to see a trusted financial advisor for you and your wife's ROTHs. He'll ask a series of questions to gauge how aggressive you are. At your age, I'd be super aggressive. You'll have larger swings in your account balance but long term you'll gain the most. He can point you to mutual funds and ETFs that are geared towards your goals.

 

[yeahbaby]

Also, I'd advise you to see a trusted financial advisor for you and your wife's ROTHs. He'll ask a series of questions to gauge how aggressive you are. At your age, I'd be super aggressive. You'll have larger swings in your account balance but long term you'll gain the most. He can point you to mutual funds and ETFs that are geared towards your goals.

For sure on the financial advisor. Talk to friends, family and co-workers who may be working with one currently. Don't just jump into one without doing your homework. My parents used one for the later part of their lives. He did very well for them. We use him now, and are very pleased.

 

[WebSnyper]

So anyone have a financial advisor that they trust that is an advisory fee based only (by the hour, etc and not based on amount of portfolio $ you have and that is not selling investments)? Just curious.

 

[Nugget]

There's a lot of good advice above. Always make sure you get ANY matching funds from employers. It's free money. On the subject of IRAs though, and how much you contribute to retirement accounts in general, make sure you take into account the possibility of higher tax rates in the future and early retirement. If you want to retire early but all of your savings are stuck in retirement accounts, you're screwed. Open a brokerage account and stuff it full of broad market ETFs.

 

[Ziggidy]

* Live below your means for 45 years.
* The sales pitch for equity performance is just that, a sales pitch.
* Don't get friendly with debt, see it as an adversary.
* Honor God

Reverse the order….

 

[blain]

Reverse the order….

I should have posted the disclaimer... "In no particular order"

 

[firecadet613]

Great responses so far.

We've been saving well above the amount our employers (pretty generous) 401k matches but with being mortgage free soon, we'll have a substantial bit more money to invest every month.

Anyone have a trusted financial advisor in the central / southern end of the state?

Our plan is shaping up to allow us to retire early...still trying to figure out how early that is.

 

[blain]

On the subject of IRAs though, and how much you contribute to retirement accounts in general, make sure you take into account the possibility of higher tax rates in the future and early retirement. If you want to retire early but all of your savings are stuck in retirement accounts, you're screwed.

Max out a ROTH if at all possible.
I'm no Nostradamus, but I'd say, yes tax rates will be higher in the future.
There are 34 trillion reasons why I think that.

 

[Nugget]

Great responses so far.

We've been saving well above the amount our employers (pretty generous) 401k matches but with being mortgage free soon, we'll have a substantial bit more money to invest every month.

Anyone have a trusted financial advisor in the central / southern end of the state?

Our plan is shaping up to allow us to retire early...still trying to figure out how early that is.

Financial advisors are in the business of making money for themselves, even if they're cheap and honest. You don't need one. We never had one and did just fine. Seriously.

Open a brokerage account at one of the big guys, and buy etfs like SPY, DIV, VTI, and BND. Keep it simple and keep all of your money for yourself. Shoot for a portfolio you're comfortable with, i.e. 80% / 20% stocks and bonds. Invest consistently and never sell.

There will be some folks along shortly who will tell you stocks will lead you to ruin. They might be right, but probably not. I bought my first shares just before the tech bubble burst in in 2000. I kept buying straight on thru 9/11, the Great Recession, Covid19, and every minor calamity in between.

 

[firecadet613]

Financial advisors are in the business of making money for themselves, even if they're cheap and honest. You don't need one. We never had one and did just fine. Seriously.

Open a brokerage account at one of the big guys, and buy etfs like SPY, DIV, VTI, and BND. Keep it simple and keep all of your money for yourself. Shoot for a portfolio you're comfortable with, i.e. 80% / 20% stocks and bonds. Invest consistently and never sell.

There will be some folks along shortly who will tell you stocks will lead you to ruin. They might be right, but probably not. I bought my first shares just before the tech bubble burst in in 2000. I kept buying straight on thru 9/11, the Great Recession, Covid19, and every minor calamity in between.

Good post. I've heard take any 10 year period in the market and it's always gone up...

 

[WebSnyper]

Max out a ROTH if at all possible.
I'm no Nostradamus, but I'd say, yes tax rates will be higher in the future.
There are 34 trillion reasons why I think that.

But, an individual may well be in a lower tax bracket than they are today in retirement. I'm certainly hoping so. Even maxing out my tax deferred HSA, 401k, using a 529, taxes have been killing me.

 

[jerrob]

I'm gonna echo the Roth and max contribution match on 401K. I would also suggest not overlooking real estate for retirement investing. Real estate, whether kept (payed off) or sold (avoiding capitol gains tax) can be a big boost in retirement.

 

[foszoe]

One thing that gets overlooked is the legal protections are different for 401ks vs IRAs also. I believe it's harder to sue you for money in a 401k.

Maybe there's a lawyer here that knows.

I personally max out 401k contributions when the allowance goes up every year. I have what is called Fidelity Brikeragelink so i can invest most of my 401K in stocks, bonds, etc of my choosing. Max out an HSA. Max a spousal IRA because she doesn't work. Then MAX contribute to my Roth IRA. Then what's left for investment goes in a trading account.

That's my investment mechanisms. Then you have to come up with an investment strategy.