July 23, 201313 yr For LB's sake I hope that's why it's parked there. The wife is not a fan of our UPS driver, he hit her car and didn't tell us, then drove up over the curb and on my paving stones in front of the house crushing half of them and drove off without saying a word. Luckily we have a few "busybody" neighbors who let us know.
July 23, 201313 yr Retirement is a fairly new concept. Will history look back and see that it was only taken advantage of for roughly 100 years? Is pensions even viable? Is pensions and SS just giant ponzi schemes that someday will have to pay the piper? Is pensions even viable? Fixed benefit - no. Fixed contribution - yes. Most businesses have abandoned fixed benefit pensions. 30-years, a Rolex and a fat committed pension are a thing of the past. If they have a a pension it is likely a fixed contribution or 401K with matching funds. They are basically the same thing. I moves the long term risk to the receiver. And because of that it is still 'viable'. Under-funded fixed-benefit pension plans are dinosaurs. Most governments (cities and state) have not faced that realization. But most are under-funded. Badly. They will have to pay the piper eventually. (See Detroit as example). Is pensions and SS just giant ponzi schemes that someday will have to pay the piper? Fixed benefit pensions - see above. SS is a mirage more than a ponzi scheme. Remember SS has been running a surplus for decades - for when the baby boomers retire. Where did the surplus go? It was spent. There is no Al Gore lock box with all that surplus. There are IOUs. Who Os? The broke US government. SS will not be able to pay what it has committed. This has been well known since at least 1990 and before. That is when it was explained by a CFO at a startup company that everyone should get into the 401K plan and 'max-out' because SS would not be there for the 20-somethings that made up most of the audience. He pointed that if you contributed for 10 years at the max and the stop contributing all together you would come out ahead of someone who waited that 10 year and THEN started contributing for 20. The time-value of money makes a difference. My company converted from defined benefit to defined contribution pension. But I also contributed to 401K - trying to max out when young. Our 401K is over 3x the 'cash pension' value. Some I know ignored the 401K plans and relied only on the pension plan. They are not doing well now. Pension alone is not (and probably never was) the answer.
July 23, 201313 yr If its tillable it could actually be worth a nice chunk of money. Farm land has gotten outrageous in price. There's been several auctions recently in Henderson County that brought $5000-$6000 an acre. I hope you meant $50,000-$60,000 an acre
July 23, 201313 yr I am 62 and have been retired for 3 years. I worked 36 years for one of the USA largest corporations. I was lucky to get a lump sum pension and 401k which has since been discontinued! Best advice for anyone is start a 401k as young as possible contribute the max and keep your head down and your eye on the prize! Life is too short to work all of it!
July 23, 201313 yr It's still possible, just more challenging. I have seen several articles recently about the benefits of continuing to work on your health, both physical and mental. Key is to enjoy what you're doing if you do decide to work in some capacity after retiring. Volunteering is also a huge benefit to both yourself and others.
July 23, 201313 yr I am 62 and have been retired for 3 years. I worked 36 years for one of the USA largest corporations. I was lucky to get a lump sum pension and 401k which has since been discontinued! Best advice for anyone is start a 401k as young as possible contribute the max and keep your head down and your eye on the prize! Life is too short to work all of it! The only problem with the bolded (and I agree with everything you said) is that it's not necessarily realistic for a lot of young people. I'd say a good rule of thumb is for those just starting out at age 21-22, is to contribute whatever allows you to take full advantage of every penny the company will contribute. Once you're a little more financially secure, raise your contributions to as much as possible. Another smart idea is to up your contributions by the percentage of any pay increases. If you were getting by before the raise, you don't need the extra money to make ends meet, so invest it in your future/retirement. One more: When a major bill/debt is paid off (car, student loans, etc.), turn around and invest that extra cash into your 401. You may think the extra cash is nice right now, but you'll really appreciate it when retirement time comes around.
July 23, 201313 yr Yes, people will still be able to retire, and no you don't have to have some huge salary job to do it. You need a decent job with a decent 401K. -Start contributing 6% from day one. Hopefully your employer does some kind of matching. -Don't say you can't afford it! The reality is you can't afford not to. -Never stop contributing. -Never borrow from or take money out of your 401K. -If you leave your job for another, do not cash it in, roll it into an IRA. If you start doing this in your early 20's you will have a lot of money.
July 23, 201313 yr Yes, people will still be able to retire, and no you don't have to have some huge salary job to do it. You need a decent job with a decent 401K. -Start contributing 6% from day one. Hopefully your employer does some kind of matching. -Don't say you can't afford it! The reality is you can't afford not to. -Never stop contributing. -Never borrow from or take money out of your 401K. -If you leave your job for another, do not cash it in, roll it into an IRA. If you start doing this in your early 20's you will have a lot of money. Boiled down to three words... ...pay yourself first.
July 23, 201313 yr Yes, people will still be able to retire, and no you don't have to have some huge salary job to do it. You need a decent job with a decent 401K. -Start contributing 6% from day one. Hopefully your employer does some kind of matching. -Don't say you can't afford it! The reality is you can't afford not to. -Never stop contributing. -Never borrow from or take money out of your 401K. -If you leave your job for another, do not cash it in, roll it into an IRA. If you start doing this in your early 20's you will have a lot of money. Having worked at Fidelity and dealt with customers all day long, doing the opposite of the bolded are the two biggest reasons people run their retirement accounts into the ground.
July 23, 201313 yr Want to do your kids a favor? As soon as they have a job and have actual real income, open them an IRA. It doesn't have to be their money that goes into it but they have to have a real income, and you can only contribute up to what they earn or the max whichever is lower. If they had $4000 dollars in there at age 18 and never touched it till they turned 65 here's what that $4000 would become. @ 7% - $ 96,182 @ 8% - $148,928 @ 9% - $229,670 @ 10% - $352,789 @ 11% - $539,808 @ 12% - $822,824
July 23, 201313 yr Want to do your kids a favor? As soon as they have a job and have actual real income, open them an IRA. It doesn't have to be their money that goes into it but they have to have a real income, and you can only contribute up to what they earn or the max whichever is lower. If they had $4000 dollars in there at age 18 and never touched it till they turned 65 here's what that $4000 would become. @ 7% - $ 96,182 @ 8% - $148,928 @ 9% - $229,670 @ 10% - $352,789 @ 11% - $539,808 @ 12% - $822,824 Now there's an eye-opener.
July 23, 201313 yr I hope you meant $50,000-$60,000 an acre UH, no. Farm land typically sells for $2500-$3000 an acre. In the past few years there have been several auctions around here that ended up going at $5000-$6000 an acre. No way farm land goes for $50,000 - $60,000 and acre. If you subdivide it and develop it then maybe but not as farm land.
July 23, 201313 yr Boiled down to three words... ...pay yourself first. Truth - that idea is Law of Gold #1 from "The Richest Man in Babylon".
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