I'm in a situation where my current home is a condo, that I could potentially rent out if I choose when I buy a house.

 

For me, I feel like the sooner the mortgage is paid off on the condo, the sooner I can start making money on it. Maybe that's not as smart as playing the market, I'm not sure, but I feel like I'd make more in the long run by paying the condo off. Then I can invest the money I was using for the mortgage and the money I make in rent.

 

I say all that while still putting 9% of my salary in my 401k (plus a guaranteed 3% by employer, and an additional 4% the last two years). Plus IRAs.

 

I really should just sit down with someone at Fidelity or a broker to make sure I'm making some good decisions with everything. Kinda scary and confusing when you don't have a pension and can't count on SS.

I met with my broker last week. We reviewed my 401K balances through work along with the stuff on mine he has. He runs a nice "what if" report and it allows you to change retirement age, dollars you want to retire on and takes into account odds of the market changing. Pretty cool to see where I stand versus where I wanted to be. Got a late start in my retirement plan but made the most of it. We listed my assets and did not plan to use them to help fund the retirement. Always a back up to do so.

 

But the key thing I took away from the meeting. He noted I was still rather conservative on where I put my funds. Said I'm still younger than I think I am. If I retire in 8-10 more years I will still see another market correction. so the DOW at 18,500 should dip and come back up in that time frame. I changed a few of my fixed and bonds into higher risk avenues.

 

You're my age or thereabouts. You can't go conservative in your investments. You're statistically likely to live to about 80. You need funds.

You're my age or thereabouts. You can't go conservative in your investments. You're statistically likely to live to about 80. You need funds.

 

What was the average age people from your generation really jumped on board with investing for retirement? Similar to today?

What was the average age people from your generation really jumped on board with investing for retirement? Similar to today?

 

My generation? How old are you?

Alot of this depends on your mortgage as well. Like in our case where our mortgage (we are in year 3 of a 15 year) is about half as much as most car payments. So in some reality with our low rate, paying it off only saves us a little and we dont get the tax break on interest because we dont pay enough of it in a year.

My generation? How old are you?

 

Your sons age.

Your sons age.

 

28? Good lord. I had you at 40+.

28? Good lord. I had you at 40+.

 

Same. :lol2:

28? Good lord. I had you at 40+.

 

I thought your son was older, I have a half decade on him lol.

 

I was asking you because I didn't know if retirement funding really amped up with your generation. We all see the seniors working at Walmart that shouldn't be. But they don't have a railroad pension or anything else. Always bums me out.

You're my age or thereabouts. You can't go conservative in your investments. You're statistically likely to live to about 80. You need funds.

 

Mom gone at 60. Dad at 69. Told the wife I planned on checking out at the average of 65. Bumped it up to 67.5 because I never did the cancer sticks.

I'm spending it now. Life is too short and precious.

I thought your son was older, I have a half decade on him lol.

 

I was asking you because I didn't know if retirement funding really amped up with your generation. We all see the seniors working at Walmart that shouldn't be. But they don't have a railroad pension or anything else. Always bums me out.

 

So let's be clear.

 

I'm 52. Not sure if that puts me in the "retiree" generation or not in your mind.

 

I'll say that "my generation" seems to have done a decent job in the area of using 401k/stock market vs previous generations.

Mom gone at 60. Dad at 69. Told the wife I planned on checking out at the average of 65. Bumped it up to 67.5 because I never did the cancer sticks.

I'm spending it now. Life is too short and precious.

You will never get to play the gold tees checking out that early.

Interesting article.

 

For disclosure - 54. Did real well in 401K during Clinton years leveraging internationals.

 

If you have a 3.75% interest mortgage you are almost borrowing for 'nothing'. If you can deduct the mortgage interest (itemizer or AMTer) then there is that break.

 

I do like throwing a bit of extra principle in each month. Not much - but it will accelerate the pay down over time and it helps each month after you do it since they will bill you the fixed amount but the interest will be less each month.

 

I think you need to look at both. If talking 401K - get the company match. That's a given. And manage it actively when young. Like I posted above the Clinton years were good for stocks overall - but they were even better in the internationals during that time frame.

 

The good thing of investing is having that liquid buffer. Lay offs (wife laid off twice since 2010), unplanned major expenses, etc. Having liquid assets is always good. Dave Ramsey says have 6 months of income at your disposal. Very view really do that. But you should know where you can get cash if needed in a relative hurry.

 

Having the mortgage paid is great. But you can not eat your house if things get tough.

Invest, Invest , Invest.....but start as early as possible. I just set up my 22 and 21 yr old with some mutual funds and automatic withdraws for a small amount that they likely will not miss. Hopefully they do not touch and by the time they are 45-50 they will have a nice nest egg.

Invest' date=' Invest , Invest.....but start as early as possible. I just set up my 22 and 21 yr old with some mutual funds and automatic withdraws for a small amount that they likely will not miss. Hopefully they do not touch and by the time they are 45-50 they will have a nice nest egg.[/quote']

 

That's where I was going with my man Clyde. I feel like today fear has really forced a lot of people into investing, even if they said they would "never do it." The whole there will be no social security fear when I retire concept.