So, you got some extra money laying around
- Thread starter Deathwing
- Start date
Cad
I'm With HER ♀
- 24,496
- 45,437
Frenzied Wombat
Potato del Grande
- 14,730
- 31,802
Dayum.. I hate you. That was certainly a nice gamble on health care that paid off.. Do you think it's reached its peak? 30% YTD in one sector seems ripe for a correction.
Cad
I'm With HER ♀
- 24,496
- 45,437
It was something like 40% in 2013. So I dunno. I bought it at like 56 and it is at almost 100 now, and it pays dividends too.
Your retirement investment needs to at least grow by 3%/a in order to mean anything. Even then, it won't mean shit years from now.
Just to give you a small idea...I'm 42. I live in one of the lowest COL areas in the US. $40k is poverty money here NOW. What thee fuck you think $40k is going to get you years from now? Retiring at 42 might sound neat...but the reality is you are still 3 years away from peaking out on your salary. That's $375k for basically pressing palms and looking at young secretaries all day. The majority of my work isn't work at all, and I get paid well for it.
Houses? I have 5. All of them pay for themselves, and the rentals pay most of my main mortgage.
Retiring at 42 is such a dumb idea. You should be relaxing, not retiring.
Did I, or did I not convey the point with my abbreviation?
As far as poverty money and $40k is concerned? Try raising two kids, paying rent and everything else. 40k here might keep your head just above water. Might.
Khane
Got something right about marriage
- 19,875
- 13,393
I know people who do that in suburban CT, which is very far from being one of the lowest cost of living states in the country.
Also, you probably shouldn't compare a person who is "retired" with no children to a struggling family who owns nothing (i.e. needs to still rent)
Also, you probably shouldn't compare a person who is "retired" with no children to a struggling family who owns nothing (i.e. needs to still rent)
Oh god the glorious kids excuse. I've seen try raising "X" kids used on pay levels from 10 an hour all the way to 180k salaried....
1) You control when you have kids.
2) Kids are not a scaling cost, and if anything adding additional kids to the mix increases your mileage out of bulk food, clothing, and toys.
3) Having a shit ton of kids when you don't make a lot of money means the government basically subsidizes your children through significant tax credits/deductions.
Anyways my point is fuck the kids excuse. I feel absolutely no sympathy when someone with kids starts spewing about how they don't have money because of their kids, and they don't have time to improve their life because of their kids. It's a bunch of bullshit. The fact that people blame their kids well before the kid is even capable of making a decision as to why their life is mediocre and they have no money is just insane. It's as if people who have no forethought think that in some parallel universe where they wern't a fucking idiot and had kids well before they were ready that they'd be this esteemed PHD holding well off member of society instead of running down to Rent-A-Center as soon as they got their tax rebate.....
Jysin
Ahn'Qiraj Raider
- 6,278
- 4,034
I use Vanguard and have an aggressive portfolio that is actively managed and I have only made about 7.8% this year so far. (29% in 2013)
VGHAX has a pretty insane YTD considering overall markets this year.
Gravel
Mr. Poopybutthole
- 36,574
- 116,548
I feel like you didn't read anything I said outside of "retire at 42." I literally explained everything you mentioned. First, $40k covers my current expenses PLUS gives a buffer of about 5-10k (depending on how my expenses change in retirement). Second, I said that took inflation into account with everything (used a 3% rate). It's an inflation adjusted draw of $40k a year indefinitely. Third, I said that my "retirement" was just that I didn'thaveto keep working. It's "fuck you" money so that I can do whatever I want. I can take a year off and be fine, and then dick around with a part time job if I want to buy something retarded. Or not. It doesn't matter. It's just about having enough money where I don't have to work anymore. That's "retirement" to me. Maybe calling it "financial independence" is better for you?Your retirement investment needs to at least grow by 3%/a in order to mean anything. Even then, it won't mean shit years from now.
Just to give you a small idea...I'm 42. I live in one of the lowest COL areas in the US. $40k is poverty money here NOW. What thee fuck you think $40k is going to get you years from now? Retiring at 42 might sound neat...but the reality is you are still 3 years away from peaking out on your salary. That's $375k for basically pressing palms and looking at young secretaries all day. The majority of my work isn't work at all, and I get paid well for it.
Houses? I have 5. All of them pay for themselves, and the rentals pay most of my main mortgage.
Retiring at 42 is such a dumb idea. You should be relaxing, not retiring.
We also covered the kid thing in subsequent posts. I don't have kids, and we won't ever have kids. So while you might find it incredibly difficult to raise 2 kids on $40k a year, that's not any of MY concern.
taebin
Same trailer, different park
- 963
- 414
Dunno if this is the thread for it, but here goes:
Like most, I'm maxing out my 401k. I'm in a Fidelity plan with an expected retirement date of 2045. From what I understand, it's aggressive in stocks and low in bonds early on, then switches as it gets closer to maturity. Actual plan name is FID FREEDOM K 2045 (FFKGX). Under Average Annual Total Returns, it's projecting 1 year at 9.35%, 3 year at 14.42%, and 5 year at 10.98%. Those might be a little high, but the benchmark is the S&P 500 and it's killing it right now.
So if I go back to Summary and look at YTD changes, my personal rate of return is 2.53% and my change in market value is negative. My vested balance (employer match is immediate) is actually less than my contributions for this year. WTF?
Like most, I'm maxing out my 401k. I'm in a Fidelity plan with an expected retirement date of 2045. From what I understand, it's aggressive in stocks and low in bonds early on, then switches as it gets closer to maturity. Actual plan name is FID FREEDOM K 2045 (FFKGX). Under Average Annual Total Returns, it's projecting 1 year at 9.35%, 3 year at 14.42%, and 5 year at 10.98%. Those might be a little high, but the benchmark is the S&P 500 and it's killing it right now.
So if I go back to Summary and look at YTD changes, my personal rate of return is 2.53% and my change in market value is negative. My vested balance (employer match is immediate) is actually less than my contributions for this year. WTF?
Blazin
Creative Title
- 6,414
- 33,669
It can be hard to correlate personal rates of return vs overall fund numbers when you are actively investing throughout the period. For example a fund may be up over the previous 12 mos. but someone buying a piece every friday during that 12 months may be at a wash. If you are still in the early part of investing and balances haven't grown very large means the money going in currently weighs more on your returns than the money that is already there. The only part of your 401k that will match the fund returns is the balance you had at the time those comparisons started. I'm probably wording this poorly. This effect of timing though will diminish over the years just keep investing and you'll see that when the balances are significantly larger than your current contributions your personal rate of return will more closely follow the funds overall performance.
As far as the vesting I would guess you may be misreading it. Employee contributions are always immediately and irrevocably vested so by definition your vested balance can not be less than your contribution. It may be that your company only shows prior year numbers in the vested and then either on a plan anniversary or maybe calendar year the current numbers are rolled in. But it may also mean they exclude your contributions from the vested because they are always vested, and are only showing the current amount of employer contribution and it's vested amount.
Also the fund you are in, like it's Vanguard counter parts is a great low cost way to have a hands off approach to your 401k/IRA just keep dumping it in there the best you can and enjoy the phat stacks when you retire.