I’m looking a lot more at “nearer term” security than at long term security.
I don’t think “long term” is going to exist.
Not if the obamabots are getting ready to grab your 401K or IRA savings. And they are.
I’d be putting that money in beans and ammo. Something that you can use. There won’t be any such thing as a 401k in the future, especially when the feds steal it and use the money to buy crap banks. Cigarettes would be good for barter.
According to this, I’m forked.
Obama is Marxing out everything.
Anyone under 60 that is counting on Social Security is a fool.
Maxing is nice, but it’s not enough... here’s why. Aside from taxes on the monies when you begin withdrawal at 70-1/2 y.o., there is going to be a tidal wave of baby boomers beginning to retire at about the same time, which means all those securities will be on the market to sell at once... so their prices will begin to drop and will steadily decrease as more and more folks retire. So even if your 401K and IRAs are worth a cool million now, in 20 years they may be 1/3rd of that price.
First thing to do is rid yourself of as much debt as you can, I’m in the process of doing that right now and I can tell you the feeling is good.
Most of the prediction tools assume you will need 80% of your present income for retirement. These predictions don’t take into account moving to cheaper places after retiring from jobs in higher expense places.
We took a big step in getting out of the market this year, and all we’ve got left is very conservative. Lost half last year, and I sincerely believe the current uptick is destined for a major correction or another collapse.
The lack of jobs is a ticking time bomb.
Thank God I have an Employee-Owned Stock Option Plan (ESOP) with my company in addition to a 401K. People here actually retire at 59 1/2. I just don’t see how you can do it with a 401K alone.
Get out of debt and pay off your house. You’ll be surprised how comfortably you can live on limited cash flow when you don’t have to make car, credit card, student loan, or mortgage payments.
After that — save 15 to 25% of your annual income. Invest. Diversify. You’ll be fine.
SnakeDoc
I’ve been thinking about investing in farmland...
I feel pretty fortunate to have worked for a company for the last 10 years which gives me 15% of my salary for a SEP-IRA. I started this in my mid 20’s. Combined with paying off debt, I think we and the Mrs. will be just fine.
Isn’t the big 0 going to force those Tax Deferred funds to be converted into Gvm’t notes to keep their tax deferred status??
The liberal government is looking at seizing the nation’s wealth in those 401k plans. They aren’t safe from grabbing hands of the Marxists. Certainly not 40 years safe.
1) Social Security payments will be effectively $0.00. The Ponzi Scheme will collapse.
2) 4% annual spend presumes stocks do well; make sure lots of your stocks are outside the U.S., at least until the 0bummer Communism is politically finished.
3) 4% presumes low rates of default on the bonds you hold. Avoid too many U.S. government (Fed / State / Local) bonds. They have so many unfunded liabilities (read: union retiree benefits) that many government bonds will default.
4) 4% presumes the U.S. dollar will not become worthless through a period of hyperinflation due to fiscal deficits and / or monetary expansion. Protect yourself with anti-dollar investments in foreign stocks and bonds (unhedged), gold, oil, TIPS (if they don’t default), etc.
Just a few thoughts.
401(k)s are appropriate for financial instruments. The prudent investor will invest in other types of investments, and will steer those other dollars in that direction.
As serendippity would have it the average household income in the USofA is 44,000 and change.
Anybody see a problem here?