Not yet, but some time in the future. HOLY SMOKES there is a lot to learn. Really complex and convoluted so far: social security, pension, nest egg, bond ladders, annuities, REIT's, mutual funds, taxes, etc. How do I know how long I will live? Who went with a retirement specialist and who went DIY? What would you have done differently?
FIL just retired Wednesday and I have never played so much golf! He is living let me tell ya, he said go when you can and don't look back. He was a lineman and put his time in. I can't wait till I can, I'm only 28! I can wish.......
Put about 10% into investments every year. 401k. Keep an eye on it. The rough time will be when the kids go to college. Don't be house poor. If self employed, that is another ball of wax. Can be done but you want to be able to live well and out from under the governments thumb. I annuities that have cola adjustments and paid health. Those packages are hard to come by today.
Starting early is key. Compound interest is where it is at. Half of your working lifetime saving/investment earning potential is before you are 35. That is if you as start an account at age 20, put the same amount of money in it every month, then at 35 stop adding to that account and start another, letting the first account grow on interest/earnings alone, it will take until you are 65 for the balance in the second account to equal the first. ( Assuming a 7% average return which is the historical stock market average.)
Time frame is one to four years to retire. Have done 401k inputs since they were invented, trying to crunch numbers and check what's possible. I read that 60% of us baby boomers are retiring early - before SS full retirement age (66). Interest rates suck these days.
Financial advisor a good idea for some. Even for a year or 2 to get a good start. Shop & interview a few, they work for you. You will never have enough , so retire when you are ready. Different, I'd invested more time, money & learning into my retirement Medical is a biggy too ! You are ahead of most by being concerned. Research & learn all you can, Invest in you !
There are a lot of "financial advisors" who just want to separate you from your money. A good rule is to withdrawal 4% of your money each year, ie. if your 401k has a balance of $500k, you can withdraw $20k a year for the rest of your life. I haven't heard anyone speak highly of annuities, they may not all be bad, but there are a lot of bad ones. If you are eligible for a Roth IRA that's where I invest. Mine is in Trowe Price and it automatically becomes more conservative as I reach retirement. I also like low cost index mutual funds, like the Vanguard 500. I would never have all of my Money in one investment or with one advisor. I think a lot of people make investing sound complicated so you will pay them to do it for you. If you do your homework you should be able to do most of your retirement planning yourself.
My wife had this little diddy sent to her about SS and when to start collecting. SS at 62 vs 65… get your 2 numbers of how much you'll receive, if you start at 62, and if you start at 65. Figure 10 years as a base. Multiply your monthly SS you'd receive at 62 times 120 months (10 years). Now, lets say you wait until you're 65, another 3 years, before you draw your SS. That would be 7 of those same 10 years right? So, multiply your monthly SS you'd receive at 65 times 84 months (7 years). Which one is more?
I retired 8 months ago, Planned for it several years ago. Invested money and had a broker do the work. he done good. Retired after 38 years from the school district here as a vocational instructor. Worked 28 and retired then continued to work there 10 more years and contribute to a t drop retirement fund. I now get a retirement check and a check from my t drop money that I invested. also other interest from monies that I invested over the years. I'm 59. My advice to young folks is don't spend every dime you have and don't get into financial trouble with credit cards. Save and always put some back. then put the money in safe investments. Find a broker to help you get the most interest. It will add up faster than you think. You will be glad you did later in life.
All good stuff SS. I'd add to younger folks, after watching my son struggle to stay within his means (which he and his wife do), that learning what you need is so much more important than what you want. And, that's the hardest part. TV, social media, movie's, etc. … are all full of people's excesses in life that are put out there as something you have to do too. Well… you don't. And once you get good with that, you'll have 2 things that are all positive. More money in your savings account/401k… and… peace of mind…
I am relatively young and this is what I have learned or noticed. Invest in low cost Mutual funds or ETF's ( I prefer ETF's) that track the broad market. High fees will kill you over the long run. Take the amount of money that advisors say you will need with a grain of salt. My opinion is that they all want you to work longer and save more money than necessary so they and their firms will get paid more for longer, your best interests is not always the goal. Retire as soon as you are eligible to receive SS. To break even on the different payout of waiting to say 66 from 62 you would have to live to 80 or so just to break even on the money you did not recieve from 62-66.
I think it's a damm shame that my generation will never have the same retirement opportunities offered to the vast majority of us that the previous generations had access to. Unless you work in the public sector or perhaps some unions, paid pension plans are a thing of the past. 401ks are no longer a supplement to your employer's retirement plan, they are the plan. Heck, even SS is a question mark as to what kind of benefits will be available 30+ years from now when I reach what is now considered retirement age. (I'm 31) everything we were told as kids growing up has changed. Getting a 4 year degree does not guarantee you a good job (or any job) anymore, your house is no longer a "safe" investment, and the McDouble is no longer $1.00. Such amazing progress we seem to have made in the last 12 years or so.
If SS would give me my $ back with no interest and stopping skimming my paycheck I would gladly "go away". Right now I consider it to be $ I'll never ever see again.
