How u Doing? Retirement savings.

[The Heretic]

I have been keeping a close eye on my two accounts, especially the IRAs. It seems the managers of that have been playing with futures as the account increments from hour to hour even after the market has closed and on the weekends too. Nice.

 

[The Heretic]

My only comment is to see if you can give to your daughter with a warm hand vs a cold one. It's nice to see them enjoy the monies you give them.

I have been doing that for years. I helped them buy their house, helped them when they were short on cash a number of times, bought them a car, paid their bills, paid for her medical/dental bills and so on.

My philosophy is that within certain constraints, money that is needed now for necessary expenses is better than money withheld for future expenses. I learned that when I was young and poor and had to struggle a lot to make ends meet. Helping them has really cut into my savings (to the order of six figures), but it has kept their heads above water.

That said, there will probably come a time when I can't actively help because I won't be around any longer, so I am hoping to make a difference after I am gone. Between my real estate and my retirement funds, I hope to make life easier for them after I am gone.

 

[Medic!]

Hard to make money with 0% - .25% interest rates.

Pensions should start dropping like flies.

 

[308]

Hard to make money with 0% - .25% interest rates.

Pensions should start dropping like flies.

Do you have an Advisor? We are up 11% in the last 1-1/2 months. Not trying to de a dill, just asking.

 

[Medic!]

Glad to hear it. But we all know the stock market can take all your money.

My 401k is in Bonds. Why risk what's coming.

Zero dept. And cash on the sidelines.
Ready to buy your place cheep the minute you falter.

 

[The Heretic]

Hard to make money with 0% - .25% interest rates.

Pensions should start dropping like flies.

My checking account earns 1.5% - if I make 12 POS purchases, which sitting at home is not easy to do. I made ten last month, before that six. I usually bought a pastry at work and bought other small cost items to get over that limit of 12 in order to get an interest payment of $30-40. Otherwise, I get 0.1%

Oh well. Between yesterday and today, my IRA balance increased by $2K. If it did just $1K per week on average I would be more than happy.

 

[The Heretic]

Glad to hear it. But we all know the stock market can take all your money.

My 401k is in Bonds. Why risk what's coming.

Zero dept. And cash on the sidelines.
Ready to buy your place cheep the minute you falter.

Between all of my accounts, I am about 50/50 bonds/stocks.

 

[Medic!]

I guess it comes down to what you think the future holds for our economy. I see a deep recession/Depression.

I will stay in stocks and save cash for now. And if the Stock market crashes then I won't get hurt as bad there. And can possibly buy in at a lower point.
If the economy can some how right itself? Then I will not have lost money and will still have my savings.

Hey, it may be seen as a very fear based approach. Leaving money on the table with the stock market.
But I would argue it's all about timing and having the money on hand.

 

[sobo]

Doing rather well for my age group:

Sixtysomethings (Age 60–69)

• Average 401(k) balance: $182,100
• Contribution rate (% of income): 11%

I just turned 60, have about 200% over the average in 401(k), at 60/40 stocks/bonds, and contributing the max ($26,000) using the over-50 catch-up scheme.
I have no debt (house paid off, all 3 vehicles paid off, pay off CC bill in full every month), and a 6-month cushion of expenses in my checking account.
When you have zero debt, it's amazing how little money you need to live on. And I spare no expense for myself. I want something? I just go buy it. In cash.

My average monthly expenses run about $5,000, which will drop to about half of that in 5 years when my two kids are out of college and on their own.
Both kids have a 529 account that has about $30,000 in each one, and I contribute to it from every paycheck automatically. Both kids are in Running Start.
Saving for their college, even though they're going to have some skin in the game when the time comes, is really the only reason I'm still working these days.

All of my investments (401(k), IRAs, stocks, etc.) took about a 20% dive when the 'Rona hit, but as of 3 days ago, everything is back to end-of February 2020 levels.
Effectively, my total net worth hasn't changed in 3 months, other than I lost the time-value of money for that period. Yup, I think I'm doing reasonably well for my age...

 

[cookie]

We need savings but the saved money depletes,,, we need something that is an asset ,, that provides income and hopefully an increase in value.. I have about $400,000,00 Cash and currently a stock portfolio worth $548,000.00 and 13 doors bringing in $15,500.00 gross per month. Savings and stocks only don't cut it. After all these years I find IRA suck big time. Tomorrow every thing could go to zero or do good . You got to take some risk.

 

[Medic!]

Doing rather well for my age group:

Sixtysomethings (Age 60–69)

• Average 401(k) balance: $182,100
• Contribution rate (% of income): 11%

I just turned 60, have about 200% over the average in 401k, at 60/40 stocks/bonds, and contributing the max ($26,000) using the over-50 catch-up scheme.
I have no debt (house paid off, all 3 vehicles paid off, pay off CC bill in full every month), and a 6-month cushion of expenses in my checking account.
Average monthly expenses run about $5,000, which will drop to about half of that in 5 years when my two kids are out of college and on their own.
When you have zero debt, it's amazing how little money you need to live on. And I spare no expense for myself. I want something? I buy it. In cash.

All of my investments (401k, IRAs, stocks, etc.) took about a 20% dive when the 'Rona hit, but as of 3 days ago, everything is back to end-of February 2020 levels.
Effectively, my total net worth hasn't changed in 3 months, other than I lost the time-value of money for that period.

I'm in your boat.
Just in my 50's.

We need savings but the saved money depletes,,, we need something that is an asset ,, that provides income and hopefully an increase in value..

It's true that cash on hand is only inflating away.
But in the short term it can allow you huge profits if deflationary forces kick in. And a deep recession/depression is at hand.

All the Houses, Cars, and other toys will be on ''Fire Sale''. And only a few will have cash.
They will determine the price. And those that need cash will take what they can get.

There is a reason Warren Buffet has $130 Billion cash on hand.

 

[Stomper]

Let's just confirm I will not have to live under a bridge when I'm older...

 

[sobo]

Prepare for tomorrow.
Pay off dept debt. (spelling corrected)

When things turn down. Many will look back and see how they pizzed away money. And regret it deeply.

Some already are.

These two things right there are the two mostest goodest things anyone can do for themselves and their family.
And I would add, live within or even below your means. That just puts more cushion between you and Mr. Murphy...

 

[s1xty7]

Ahead of averages for groups older than what I am, but behind where I want to be. On the back side of my 30's, I don't plan on Social Security being viable when I retire, and I'd like to retire sooner rather than later. Looking to secure more passive income. My job isn't bad, but my free time is better.

 

[Medic!]

We need savings but the saved money depletes,,, we need something that is an asset ,, that provides income and hopefully an increase in value.. I have about $400,000,00 Cash and currently a stock portfolio worth $548,000.00 and 13 doors bringing in $15,500.00 gross per month. Savings and stocks only don't cut it. After all these years I find IRA suck big time. Tomorrow every thing could go to zero or do good . You got to take some risk.

Your situation looks good on the surface.
But How much do you owe?

A stock market crash and your $548k is shot. Then you use your $400k to pay off the house so your not on the street?
Now your at Zero. Just your homes equity.

Not picking on you. Just using your numbers as an example.
You don't want to be in dept going into this recession. Leverage will be the undoing of many in the year to come.

Now if you are debt free with your kind of numbers?
Then you my friend. Are my hero!

 

[Provincial]

During the Great Depression, more land/homes were lost to tax sales than repossession. Think about it. If you pay $6,000.00/yr. in property taxes on a $200,000.00 home (probably a low rate), and are unable to pay those taxes for three years ($18,000.00), the government will take your home and auction it off. If it sells for more than $18,000.00, you (or your other creditors) get the excess. If very few persons or entities have cash (and very few will), the bidding will be light. Your home probably will sell for less than the mortgage balance, if that.

Government will not lower property taxes in a recession/depression. They control the assessed value, and despite mechanisms to establish "fair" market value, keep that figure unrealistically high.

My point being, you have to have a cash flow high enough to live on, including property taxes.

 

[slimmer13]

Looks like I'm 10 years ahead of schedule of where I'm supposed to be and way off the charts compared to average.

 

[66PonyCar]

As of today my investments have recovered everything that I lost after the market downturn this year.

 

[Medic!]

It's a bear trap.

 

[66PonyCar]

I'm sure it will go down again. Back in 2008 a lot of my co-workers bailed out at the bottom and never got back in again. They were afraid it was going down more. When the market started climbing they didn't go in because they didn't believe it would continue. As a result they were to afraid to get back in. I rode the market down and lost about a third of my value. But I made that money back and a lot more in the ensuing years. Trying to time the market is a loser's game.