What's your strategy...for retirement?

[805Bowhunter]

scratchers

 

[MtGomer]

I only put the company match in to my 401k, the rest of my expendible income goes into buying additional rental properties (tax haven). Main source of income at some point will be my rental properties, currently own 65 units. I don't think I'll buy much more at this point, will have enough cash flow in the next 5-6 years to stop doing my current W2 job and do real estate full time in one shape or another. Hopefully going to drop to 3 days a week within the next year.

Does it take that many to comfortably replace a job or are you being super cautious?

 

[EastMT]

Stock market is nuts, I got really lucky and read about the market performance during the SARS outbreak losing 13%, decided to move my 401k to a safe place early last week. These are some solid losses

 

[jmcd22]

Stock market is nuts, I got really lucky and read about the market performance during the SARS outbreak losing 13%, decided to move my 401k to a safe place early last week. These are some solid losses

I was too young during the SARS ordeal to have stocks but looking back on it, I believe it only took about 50 something days for the market to completely recover from the losses during that outbreak and less than 60 to actually be higher than where it was before the outbreak. The losses are significant, yes, but it will come back in time. These guys have an interesting prospective on these sell offs, bear and bull market longevity.

 

[IdahoElk]

Stock market is nuts, I got really lucky and read about the market performance during the SARS outbreak losing 13%, decided to move my 401k to a safe place early last week. These are some solid losses

Good job! I feel bad for the people with 401k's that thought this market wasn't going to tank even though the bond market has been inverted for some time, the virus will be blamed but that's not why the market is tanking.
The last 3 years of gains were just wiped out.

 

[EastMT]

Oh yeah, it will be back. I just figure if I can save 100k, buy back in after a 20% drop, even if it drops another 20% I’m way better off. I don’t think selling now is a good idea, I also don’t think buying back in right now is a good idea.

4 months on average pullback is complete recovery. But if it turns into a bear market they last 13 months on average with a 3 year recovery. I think playing it safe for now is ok.

I have really saved over 100k already in 10 days, so I’m ok with missing a few gains when it turns. The concern is so many companies losing money that a slow down is inevitable. Airlines, cruises, electronics, car parts, etc are going to be effected.

Will it be a recession? Who knows, but we’ve been due for one awhile. There been a recession an avg of every 7-8 years since the depression, we’ve been 11 years. It’s a natural cycle, this will pass on. Of course if you are that close to retirement, all of your money shouldn’t be in stocks to begin with. I’ve got 20 years, so even a 50% loss while shocking isn’t a big deal.

 

[Oldpuck]

I am able to retire now, but decided to work another year. First and best strategy was a two income family. I realize that’s not going to work for everyone. However, it made the difference for us. When we started we lived paycheck to paycheck. Mortgage, daycare, all the “ necessities“ a young family requires. And this cost less when we started than it does now. As time went on our incomes increased. But Living standard, education and college costs for our children did too. My wife saved 8% from her job since she started it, but i didn’t, or at least not much after 13 years working or so. It wasn’t until 40 that I started really saving. Went to a 15 year mortgage which we put extra on and paid off early.. Put 8% into retirement increasing the percentage to 15% annually by 55. At 55 I was able to make the max contribution and catch up that Feds allowed and did that every year for the next 11 years. We also worked to become debt free and being able to live on just what I made without the mortgage payment allowed us to bank most of my wife’s income. And she retired early and after three years off decided to go back and work part time. So now that retirement is here we can safely retire and it is our choice to still work versus a requirement.

A point I’m trying to make is that you can save and retire even if you start later. The point is to start putting money in your 401k and stay reasonably disciplined after you start.

 

[toadmeister]

Market dips can be a good thing too.


Time to buy!

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[ljalberta]

No selling here. Ways to retirement, so seems like a great time rebalance by selling bonds and buying equities.

 

[Whaledriver]

Remember time in the market will always win for long term returns. No one has ever successfully timed the market....ever. Keep your asset allocation where you can sleep at night. Otherwise focus on the long, boring growth. You lose money eventually by keeping your dollars in a "money market". Inflation eventually wins.

Pay attention to real news not hype driven bullshit. As for myself, I am putting a little more money in equities and less in bond funds.

 

[rob86jeep]

Remember time in the market will always win for long term returns. No one has ever successfully timed the market....ever. Keep your asset allocation where you can sleep at night. Otherwise focus on the long, boring growth. You lose money eventually by keeping your dollars in a "money market". Inflation eventually wins.

Pay attention to real news not hype driven bullshit. As for myself, I am putting a little more money in equities and less in bond funds.

I always hate when I hear people talk about pulling money out of stocks in their retirement accounts due to downturns/corrections in the market. They "might" get lucky once (or a few times), but they will never be able to do that consistently and come out ahead. It's always safer to have your allocations set the way you want based upon your allowable risk/retirement date and let it ride.

 

[Beendare]

Selling stocks;
Its important to differentiate between a systemic reason for market drops ....vs a temporary event.

Granted we don't know exactly how temporary this Covid virus will be....but its not a 5 year event...probably only one quarter.

Bad idea to sell into those. When this is Covid-19 is contained, the market will recover most of its looses in a very short amount of time.


An example of long term market problems would be something like WWIII...or a worse...... Bernie presidency- grin


________

 

[juwalker1116]

Retirement? Not an option

 

[elkhunter505]

Thanks to all you real adults out there for this! This is really helpful! I’m about to turn 25, working at a dead end job, not in my field, and saving to go back and get my wildlife biology masters to be a game biologist. Biding my time working at this job so my girlfriend can be near her family for a while before we get engaged and decide where to go. Right now I’m about 800 dollars from debt free and I have just started saving. Have some money from an old job I’m gonna transfer into a Roth IRA soon and right now I’m saving almost 30% into a high interest savings account. Hopefully I’m on the right path, and hoping to not take on more debt with graduate school.

 

[freebird]

My plan for the future is to die poor.

 

[gbflyer]

Self employed for a lifetime. Pushing 50 real hard right now. No 401K, and what’s a retirement account? Every extra goes back into the business. Sitting on some cash and quite a few assets. Hope to die on the end of a shovel.

 

[Zak89]

Interesting thread since I'm pretty passionate about finance as well as hunting. I feel that as long as I max my tax-advantaged accounts for retirement (401k + HSA + Roth IRA), then the rest of my money can be spent on whatever I want.

 

[brushape]

This thread is pretty cool and inspiring, I’m 33 and have have been depositing into a Roth IRA since I was 17 but i absolutely never hear anyone in this area speak of their retirements and don’t believe anyone I work with has any sort of retirement plan


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[EastMT]

This thread is pretty cool and inspiring, I’m 33 and have have been depositing into a Roth IRA since I was 17 but i absolutely never hear anyone in this area speak of their retirements and don’t believe anyone I work with has any sort of retirement plan


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Starting at 17, you will likely be in the top few %, well done. I was busy investing in booze at an early age. Not earning much interest on those investments. Nice job!

 

[Zak89]

This thread is pretty cool and inspiring, I’m 33 and have have been depositing into a Roth IRA since I was 17 but i absolutely never hear anyone in this area speak of their retirements and don’t believe anyone I work with has any sort of retirement plan


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Compound interest is truly an amazing opportunity that not enough young people take advantage of. Good job for starting off really early.