Posted on 04/22/2016 10:01:15 AM PDT by MtnClimber
You should check these items off your to-do list by 40 if you want to retire with enough money in the bank.
A worker turning 40 today has 25 years to prepare for retirement by age 65. This may seem like a long time, but in terms of retirement preparation, it represents a swiftly closing door.
Compound interest is most powerful when it has a longer term in which to work its magic, and workers who fail to practice good financial habits early in their career may find they run out of time to correct mistakes prior to leaving the workforce. That doesn't mean you can't still retire comfortably if you start preparing later in life, says Rande Spiegelman, vice president of financial planning for the Schwab Center for Financial Research. However, those who start younger have an easier path before them. "If you start [retirement planning] right out of college, you could set it and forget it," Spiegelman says. "The longer you wait, the tougher it is."
To avoid making your savings situation any more difficult than necessary, finance experts say you should do the following 10 things prior to blowing out the candles on your 40th birthday cake.
(Excerpt) Read more at money.usnews.com ...
Another mistake people make is cashing out the 401K, when small, when switching jobs.
Do not make the mistake of thinking that the future will be very similar to the recent past:
Not the stock market - it may or may not. It may have another very severe decline or it may grow exponentially, or both. Like musical chairs, it will depend on how close to the retirement chair you are, when the music stops.
Not banks - we are in a new era where the FDIC cannot cover more than 2% of deposits. This is why they have adopted the Bank Bail In provisions. I think the really smart people are setting up some financial reserves in an offshore bank account before capital controls are established here.
Few have pensions any more. If they do, they should consider whether theirs will be among those that are poorly funded and subject to a haircut.
Consider something outside the market that has cash flow. This includes many kinds of real estate and other categories of investment.
I have a friend who invested $335,000 in a flock of egg-laying chickens two and a half years ago. He was getting a nice dividend. Chickens lay eggs even while you sleep. After the bird flu hit out west, egg prices went up. Corn prices are depressed. He has made approximately $5 million. Yes, that much. I asked for some details about the flock. He has never seen them personally. Despite the windfall, he was making a great 15% cash flow before the bird flu hit. On his original investment, that is +$50k per year.
Put together a couple non-stock market investments like that and you have created a pension.
I could give other examples of cash flow investments that do not depend on greater fools to enter the stock market.
I think the words of Scripture got this right:
"Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth." Eccl. 11:2
I know, I'm a terrible judge of character. But that doesn't mean I should empower a pair of leechettes to exploit my trusting nature.
Don’t piss her off.
Of course, if you do piss her off, you’re still entitled to half of it.
Unless you’re dead.
The patriarchs and the prophets didn’t retire. They labored until they died.
God does not promise us a bunch of indolent years sitting on our asses.
The search within Christendom for some sort of golden years is the early onset of name it and claim it prosperity gospel.
“you get laid off from your job and are unable to make the lump sum payment to pay it off all at once. “
Just happened to me. It was only 5k but that will go against 2016 earnings.
lol
“The other option is to get ANOTHER gov job at 51 then pull TWO pensions when your 66.”
Not if you are a white male.
And... now?
Passed the good word on to my kids and sister, and they are playing the game much smarter than I did. They will be well set if they keep to the plan (heck, just having a plan is more than most have!). Here's to retiring debt-free, without planning on the government to keep me going.
Hoping to die independent and leave my kids something to remember me by (besides my good looks)! ;-)
Exactly! Any gubment job will do. It is the passport to independence by age 50. In the meantime all you gotta to is be PC because you can’t get fired for anything else.
9 to 5 and not a minute more. Easy. Overtime? Pfffft. Not without handsome compensation even for salaried people.
1. Live within your means.
2. Marry only once.
3. Blame only yourself for your problems.
4. Rely on nobody but yourself to make your dreams come true.
5. Remember that gratitude is the secret of happiness.
I think investing in a home is a key component. By “investing” I don’t mean using goofy interest-free or variable rate loans and expecting to make a killing in 2 years. I mean getting a home sized for your family, using a conventional mortgage... and STAYING in it for a long time so you can ride out the market ups and downs and have a real asset to cash in on when the kids are out and it’s time to downsize.
She’s with me!!!
Bad enough I had to explain away my own sins to St. Peter, now I have to answer corruption charges!!
I want to owe everybody a lot of money when I die. ;)
bkmk
“Not if you are a white male.”
Just tell ‘em you’re gay.
Of course, if you do piss her off, you’re still entitled to half of it.
Unless you’re dead
The true key to retirement success and independence is to be born black and get a gubment job. You’ll never have to work another day in your life.
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