NE1 watching "can you afford to retire?" on PBA?

[FreshPrince]

holy crap! I'm no where near that.... :shocked:

here a good website they quoted: link

 

[shuttleboi]

15-18% of what into your 401k?

 

[Legend]

Starting at what age? What company matching? What kind of portfolio? Fund fees? Salary?

These all make all the different in how much is needed to put in.

 

[vi edit]

Originally posted by: Legend
Starting at what age? What company matching? What kind of portfolio? Fund fees? Salary?

These all make all the different in how much is needed to put in.

Actually, the most important thing really is how long you plan to live and at what quality of life you want to live at.

 

[FreshPrince]

Originally posted by: shuttleboi
15-18% of what into your 401k?

of your salary

another number they threw out is that your retiring portfolio should be 8-9 times your final salary.

 

[shuttleboi]

Just max out your 401k to the limit ($15500 for 2007). End of discussion.

 

[pyonir]

I've come to accept the fact that i will never be able to actually "retire". You should too. I'm 28...still live paycheck to paycheck and have very little 401k. I consider myself at middle age right now...and never plan to actually retire.

 

[FreshPrince]

Originally posted by: shuttleboi
Just max out your 401k to the limit ($15500 for 2007). End of discussion.

that's assuming you make 100K+...

 

[Legend]

Originally posted by: vi_edit

Originally posted by: Legend
Starting at what age? What company matching? What kind of portfolio? Fund fees? Salary?

These all make all the different in how much is needed to put in.

Actually, the most important thing really is how long you plan to live and at what quality of life you want to live at.

I think starting a portfolio at age 18 versus age 45 is going to make a huge difference.

 

[shuttleboi]

Originally posted by: FreshPrince

Originally posted by: shuttleboi
15-18% of what into your 401k?

of your salary

another number they threw out is that your retiring portfolio should be 8-9 times your final salary.

That 15-18% number is meaningless. Just max out the 401k and don't worry about these calculations. There is obviously no benefit to not maxing it out.

 

[Sukhoi]

Originally posted by: pyonir
I've come to accept the fact that i will never be able to actually "retire". You should too. I'm 28...still live paycheck to paycheck and have very little 401k. I consider myself at middle age right now...and never plan to actually retire.

More like your job doesn't pay well or you live outside your means. I'm 22 and I already have a 6 month emergency fund built up. I put 10% and get 4% matching into my 401K plus also have some other sort of pension fun that I don't know the specifics of.

 

[ponyo]

Originally posted by: FreshPrince

Originally posted by: shuttleboi
Just max out your 401k to the limit ($15500 for 2007). End of discussion.

that's assuming you make 100K+...

I thought every ATOTer made over 100k+...

 

[Legend]

Originally posted by: pyonir
I've come to accept the fact that i will never be able to actually "retire". You should too. I'm 28...still live paycheck to paycheck and have very little 401k. I consider myself at middle age right now...and never plan to actually retire.

If you start as early as possible, simply putting 4k into roth per year and maxing company matching in 401k into a portfolio that makes 10% (very conservative) avg per year, you'd retire with a few million at age 65 after considering inflation.

 

[JEDI]

Originally posted by: FreshPrince
holy crap! I'm no where near that.... :shocked:

here a good website they quoted: link

what's pba?

 

[ponyo]

Originally posted by: pyonir
I've come to accept the fact that i will never be able to actually "retire". You should too. I'm 28...still live paycheck to paycheck and have very little 401k. I consider myself at middle age right now...and never plan to actually retire.

Join the club. I plan on working til my death. Not out of necessity but of choice.

 

[pyonir]

Originally posted by: Sukhoi

Originally posted by: pyonir
I've come to accept the fact that i will never be able to actually "retire". You should too. I'm 28...still live paycheck to paycheck and have very little 401k. I consider myself at middle age right now...and never plan to actually retire.

More like your job doesn't pay well or you live outside your means. I'm 22 and I already have a 6 month emergency fund built up. I put 10% and get 4% matching into my 401K plus also have some other sort of pension fun that I don't know the specifics of.

My job doesn't pay well and i used to live outside my means. I never had any instruction or direction with my credit and spending when i graduated high school. so when i went to college it was just downhill completely. And i'm still not even close to being out of that. So yeah, i'm screwed for the rest of my life really. It's great.

 

[ultimatebob]

Originally posted by: shuttleboi
Just max out your 401k to the limit ($15500 for 2007). End of discussion.

That's easier said than done for most people. For many folks, $15K is half of their income!

You should always invest up to the company matching percentage on your 401k, anyway. If you're not, you're basically throwing away free money from your employer.

If you have a cheap employer that doesn't contribute a match at all, you probably would be better off starting an IRA on your own.

 

[ultimatebob]

Originally posted by: JEDI

Originally posted by: FreshPrince
holy crap! I'm no where near that.... :shocked:

here a good website they quoted: link

what's pba?

Professional Bowling Association, no?

I think that the OP meant PBS.

 

[shuttleboi]

Originally posted by: Naustica

Originally posted by: pyonir
I've come to accept the fact that i will never be able to actually "retire". You should too. I'm 28...still live paycheck to paycheck and have very little 401k. I consider myself at middle age right now...and never plan to actually retire.

Join the club. I plan on working til my death. Not out of necessity but of choice.

I've been thinking about that myself. I don't know what job I could possibly be good at when I'm in my 60s.

 

[tfinch2]

Originally posted by: shuttleboi

Originally posted by: FreshPrince

Originally posted by: shuttleboi
15-18% of what into your 401k?

of your salary

another number they threw out is that your retiring portfolio should be 8-9 times your final salary.

That 15-18% number is meaningless. Just max out the 401k and don't worry about these calculations. There is obviously no benefit to not maxing it out.

The benefit is that some people need that money to live now. Not everyone can pump 15k into their 401k.

Also, why would you put more than what the company matches into 401k? Aren't there better investments?

 

[tfinch2]

Originally posted by: shuttleboi

Originally posted by: Naustica

Originally posted by: pyonir
I've come to accept the fact that i will never be able to actually "retire". You should too. I'm 28...still live paycheck to paycheck and have very little 401k. I consider myself at middle age right now...and never plan to actually retire.

Join the club. I plan on working til my death. Not out of necessity but of choice.

I've been thinking about that myself. I don't know what job I could possibly be good at when I'm in my 60s.

Why wouldn't you be good at the job you're doing now when you are 60? Is it physical blue-collar labor?

 

[Dr. Detroit]

Two easy steps to follow:

1st) Invest in Company 401K up to the point of getting matched.
2nd) Roth IRA up to 4K a year, unless you are highly compensated, then you can not oput any into a ROTH IRA.

 

[ponyo]

Originally posted by: shuttleboi

Originally posted by: Naustica

Originally posted by: pyonir
I've come to accept the fact that i will never be able to actually "retire". You should too. I'm 28...still live paycheck to paycheck and have very little 401k. I consider myself at middle age right now...and never plan to actually retire.

Join the club. I plan on working til my death. Not out of necessity but of choice.

I've been thinking about that myself. I don't know what job I could possibly be good at when I'm in my 60s.

I think working keeps you young and sharp. You'll live longer if you keep working IMO.

I own my business so I'll have a job as long as my company remains profitable.

Plus, not working is boring. I lived off my savings and investments and didn't work for about 5 years. It was boring and bad for my health. I gained weight and became lazy. You sort of lose purpose in life.

 

[shuttleboi]

Originally posted by: tfinch2

Originally posted by: shuttleboi

Originally posted by: FreshPrince

Originally posted by: shuttleboi
15-18% of what into your 401k?

of your salary

another number they threw out is that your retiring portfolio should be 8-9 times your final salary.

That 15-18% number is meaningless. Just max out the 401k and don't worry about these calculations. There is obviously no benefit to not maxing it out.

The benefit is that some people need that money to live now. Not everyone can pump 15k into their 401k.

Also, why would you put more than what the company matches into 401k? Aren't there better investments?

The point of the (traditional) 401k is that it reduces your gross income. A Roth 401k (if you're making less than $110,000/year) is taken off your net income, but you can withdraw it tax-free. Either way, I would max out the 401k.

 

[Engineer]

Originally posted by: shuttleboi
Just max out your 401k to the limit ($15500 for 2007). End of discussion.

And if you are in the same boat that I'm in (HCE - Highly Compensated Employee) for the last few years, you can only contribute 2% more than the non-HCE average. In my case, that was 4.78% for 2005 (not sure for 2006). I would love to max it out without getting it back!