Discussion in 'The Cocktail Lounge' started by Rosyrain, May 16, 2014.
Haha, you bet I am! We can dance, we can dance -- everybody look at your hands!
I think I was in 8th or 9th grade when that came out - '83 or '84, maybe?
It's pretty sad to think about retirement because most likely the state will not be able to pay me nothing for my almost 50 years of work, so no plans for now really.
Need help planning for retirement and all your other goals? I found this cool new App, iQuantifi, its still in Beta and you can use it for free.
That app is a scam and sucks.
Anyone know of any apps that work outside the U.S? I tried PerkTV. It's what I was looking for, except for the fact that it's unavailable where I live.
I think that the cabin in Alaska sounds really wonderful. I can't really think about retirement yet, I own a catering company and I won't be able to retire for quite some time still. I am glad that I have an IRA, and some investment properties, for when I am ready to take that step.
A good rule of thumb is to take the amount of money you will need to live on and multiply it by 25 to obtain the current nestegg you would need to retire on. If you live on $40k net a year now, you'd need at least $1 mil to retire comfortably now. Hopefully by the time you're actually ready to retire you'll be debt free, have the kids out of the house, won't be raising grandkids, etc.
Then figure out how many years you have to retire, and factor in an inflationary rate that will make that number large enough in that many years. 4% is probably a good safe inflation % to round up to - that's a little high, but it's better to overestimate inflation than underestimate it.
Figure out how much money you'll need to contribute to retirement plans and other investment accounts each year to get there over so many years. If you have a moderate to aggressive risk tolerance, you can perhaps assume 10% returns on average over time, which is what the S&P has roughly averaged over the last 50 years. Hopefully you can do a little better - but just to be safe, assume that your returns will mirror the broad market.
Finally, don't forget about taxes. Tax-deferred vehicles usually tax you at ordinary income rates when you start drawing. You have annual contribution limits on IRAs, 401k, SEP, etc, and income limits on Roths. Annuities are tax-deferred and can be useful. Muni bonds are generally tax free without the income and annual contribution limits, and there are also variable life insurance products that grow tax free.
I would love to move out to California. I've been on the East coast my whole life and Cali just seems like an ideal place for the fun and youthful excitement. Not sure how long it'll take me for the dream to shatter though if I ever do move out there. Humans are very picky creatures, there's always something wrong with something. As long as I'm rich, happy and some place warm, I think I will live well.
I'm still too young to really think of retirement but I do know that I want to live somewhere warm and close to the ocean. And a bit further away from big cities.
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