Just curious - whats everyones plans for retirement? other than 401K

[tallcanadian]

Re: Just curious - whats everyones plans for retirement? other than 401K

Someone said Walmart greeter and another said lotto. Guess I should have patend my retirement plans. lol. I'll be working until I drop. But I'll still have my boat.

 

[Huron Angler]

Re: Just curious - whats everyones plans for retirement? other than 401K

Personally, I don't like IRA's because the government only seems to know one way with taxes ... higher. And while I am making money, let me pay the taxes, not when I am retired and have enough saved that I will be in a higher tax bracket.

I coudn't agree with your rationale more

Sounds like you need to look at Roth IRA's. Pretty much the only way that you can invest and keep 100% of your gains and tell the government to look elsewhere for their pillaging As long as you are 59.5 or older when you take a distribution gains are not taxable. In addition, you can always pull out your contributions tax-free no questions asked if you need the money back.

You can even convert Traditional IRA's to Roth, pay the taxes now and never again even if the account increases in value 1000%.

Roth IRA's are the best thing the IRS has ever allowed and people should take advantage before the rules change

 

[rjlipscomb]

Re: Just curious - whats everyones plans for retirement? other than 401K

I'm glad all my real estate is paid for, and worth much more than we got it for. This area hasn't lost much value at all as far as real estate goes. Md's economy is one of the stronger in the country.

Mine is in Florida. Paid cash. Still paying high taxes.

 

[scoutabout]

Re: Just curious - whats everyones plans for retirement? other than 401K

When I met my yet-to-be wife in university she was already socking away a bit of cash every month. My parents were terrible with money and my dad, a former doctor, has got zilch to show for a life of well paid work and is now approaching 80 (two divorces, bankruptcy, etc., etc., ad nauseum....). I never heard the words investment, RRSP, retirement while growing up.

Although we should be saving more, at least my wife got me on the right track early. I'd be driving far nicer cars and live in a much bigger house if it were up to me. And becuase it isn't, luckily we can still pay the mortgage after taking a real serious hit to the household income last year what with cutbacks and restructuring at both our jobs. We may yet be unemployed come summer, but thankfully we were living well within our means when it all hit the fan and as a result we are now living just at our means instead of beyond them.

Here's to the resurrection of the world economy in '10 and - sometime down the road - the ability to retire while I'm still young enough to remember my own name...

 

[ezbtr]

Re: Just curious - whats everyones plans for retirement? other than 401K

great replies (mostly) guys, I'll look into Roth and i also want rental property, even after I buy, my son and I live a very low spend life, is easy, and many fun things inexpensive , yes, all will be paid off at end of this month I beleive, after tax return. IRA is doing well too.

 

[bekosh]

Re: Just curious - whats everyones plans for retirement? other than 401K

I coudn't agree with your rationale more

Sounds like you need to look at Roth IRA's. Pretty much the only way that you can invest and keep 100% of your gains and tell the government to look elsewhere for their pillaging As long as you are 59.5 or older when you take a distribution gains are not taxable. In addition, you can always pull out your contributions tax-free no questions asked if you need the money back.

You can even convert Traditional IRA's to Roth, pay the taxes now and never again even if the account increases in value 1000%.

Roth IRA's are the best thing the IRS has ever allowed and people should take advantage before the rules change

Sounds good in theory, but call me paranoid, I don't trust that in 30 years, the government won't say "Look at all these rich people cashing out their IRA's and not paying their fair share. We need to do something about that!"
I'll take my tax break now while I know that I can get it.

 

[Huron Angler]

Re: Just curious - whats everyones plans for retirement? other than 401K

Sounds good in theory, but call me paranoid, I don't trust that in 30 years, the government won't say "Look at all these rich people cashing out their IRA's and not paying their fair share. We need to do something about that!"
I'll take my tax break now while I know that I can get it.

I can't disagree with ya...who knows what that "benevolent institution for the helpless"(congress) will decide to do with the IRA rules.

There is a "sunset" provision where congress will need to reauthorize IRA's and they will have the option to change the rules. One would hope that they don't ruin a good thing(saving and not depending on social security) but who knows.

In the meantime, Roth IRA's are the only way to invest tax-free so I will take what I can get.

On a sidenote...Roth IRA and Traditional IRA's exclude "rich" folks from taking advantage of the tax benefits. For example, if you make more than $160k filing jointly you cannot make any Roth contributions. So this really only has to do with us "regular middle class" folks.

 

[Capt Craig]

Re: Just curious - whats everyones plans for retirement? other than 401K

When I was 22, I saved every penny I could and bought a house for 60,000. Kept saving and kept buying bigger houses and real estate. Nothing huge but bought the cheapest lot and sold when the rest of the neighborhood was built up, I sold my lot for 2-3 times what I paid.

Real estate turned out to be a great thing. You have to look for the right market. Cape Coral, Florida has 250,000 homes on Gulf canals going for 125,000 right now. Their taxes are a little high, but it is prime property. Lots of people bought in 2005-6 during the boom and overpaid and over spent. Now the houses are being dumped. In the right hands they are goldmines. I turned 45 last year and retired from my full-time job to become a fishing guide.

There is still a lot of opportunity in the housing market, expecially if you own affordable rentals for people who lost their house and due to bankruptsy can't buy again, and yet need to lease when they downsized their life.

 

[pecheux]

Re: Just curious - whats everyones plans for retirement? other than 401K

It's similar to a RRSP (Registered Retirement Savings Plan).

As a side note, 401(k) refers to the section in the tax code that defines this type of tax-deferred savings plan.

Thank you,

 

[JimMH]

Re: Just curious - whats everyones plans for retirement? other than 401K

I have a defined benefit retirement. They discontinued about 10 years ago for new hires. I can draw 2% for each year I worked based the three highest paid years. I also have a 401K that I'm maxing out and a few other real estate investments going. Been with the same company for 25 years since graduating from college. Have had opportunities that would pay a little more but just can't walk away from that retirement. If I stay until I'm 62 I would draw about 84% of my highest salaried years.

 

[steve201]

Re: Just curious - whats everyones plans for retirement? other than 401K

well...I'm vested in 2 companies, and have 401k going in at about half my pay...my wife is the same....I'm praying our house will recover some of it's value so we can sell it in a few yrs and buy something cheaper away from the town we live in...

Steve

 

[HANGEYE]

Re: Just curious - whats everyones plans for retirement? other than 401K

I was very fortunate. After sreving uncle sam from 69 to 73, i left the service with a bit of a nest egg. My father suggested I invest some in the stock market. I gave it some thought and decided to go with the name on the back of an air compressor. INGERSOL RAND. 1973, age 21, investment $1000. I retired at age 47. Am now 58 and enjoying life running my own business helping people recover money from HUD and doing home and business inspection for the mortagage and insurance indusrties. I can only suggest that if you invest, do it ever so wisely. Research is the key. I got VERY LUCKY.

 

[skargo]

Re: Just curious - whats everyones plans for retirement? other than 401K

I was very fortunate. After sreving uncle sam from 69 to 73, i left the service with a bit of a nest egg. My father suggested I invest some in the stock market. I gave it some thought and decided to go with the name on the back of an air compressor. INGERSOL RAND. 1973, age 21, investment $1000. I retired at age 47. Am now 58 and enjoying life running my own business helping people recover money from HUD and doing home and business inspection for the mortagage and insurance indusrties. I can only suggest that if you invest, do it ever so wisely. Research is the key. I got VERY LUCKY.

Luck is a huge part. We dropped 20K on Googles IPO, and hit the jackpot! I was very nervous, but wondered how it would do bad. It shot up to $600 quickly, from the IPO of $85.

Luck is definitely good to have on hand when gambling in the stock market lol.

 

[Capt Craig]

Life Settlement Investments

Life Settlement Investments

OK, will see what happens... For the last 19 years Life Settlement investments have silently moved under the radar. They pay between 70 to 100% profit back on your investment. Life Settlements (LF) are this: You are buying the life insurance of an older individual for 50 cents on the dollar. A one million dollar policy is purchased for 500,000.00. The individual dies and the policy holders each make back twice their investment minus taxes on the profit, not the original investment. Generally people invest a minimum of 50,000 that is divided among 5 policies. This provides a staggered income as each of the 5 people die. It may sound morbid but provides a great service to the policy holder. It provides him or her with 500,000.00 that allows them to pay bills and live more comfortably during their ending years. Few people need money after they are deceased. They get money now and the persons that funded it, receive profit later. As a person could live two days to 5 years or longer (not usually longer), there is no particular day of maturity such as with a CD. For persons with 50,000 or more that don't need the money on any particular date, this is a great investment that provides another human being with money he can use now to live and eat and such. It is almost unmatched as far as risk and percentage return. They will tell you, previous success do not guarantee the same future results...

 

[jkust]

Re: Just curious - whats everyones plans for retirement? other than 401K

Great post. There are a lot of things to consider with a life settlement and they should not be taken lightly. Among other and a more obvious consideration is that you heirs do not get the proceeds when you die. These are great commission makers for the folks who broker them and of course insurance companies hate them. It is a relatively unregulated sect as well which bring its own issues. That said they are certainly an option as are reverse mortgages. My thought is if these options are your 'plan' for retirement, you did not plan well.

 

[rodbolt]

Re: Just curious - whats everyones plans for retirement? other than 401K

well I have quite a bit saved,uncle sam even coughs up about 496 per month.
however with the way the past and current (and most likly future) administrations are running .
my plan?
die standing up

 

[Capt Craig]

Re: Just curious - whats everyones plans for retirement? other than 401K

Great post. There are a lot of things to consider with a life settlement and they should not be taken lightly. Among other and a more obvious consideration is that you heirs do not get the proceeds when you die. These are great commission makers for the folks who broker them and of course insurance companies hate them. It is a relatively unregulated sect as well which bring its own issues. That said they are certainly an option as are reverse mortgages. My thought is if these options are your 'plan' for retirement, you did not plan well.

I heard some reporter the other day say that Congress was recommending that the US govt should begin purchasing life settlements instead of other investment methods... Wish I could remember where I saw that...