Interesting retirement stats

[Boehlertaught]

We have a 401k where I work. The company guarantees they'll match 50% up to a 6% investment by the employees. FRom the beginning in 1993 the company graciously matched our 6% contribution 100% . sounds like a great deal but it really isn't for numerous reasons. First, the total dollar I can contribute is limited due to poor participation in the plan. Second, Fidelity manages the fund and the fees are ridiculous. Also, Fidelity has terrible performance on really mediocre funds available in the plan. Frankly, if the company didn't match our funds 100% I wouldn't participate in the plan. It wouldn't pay!!!

 

[edl]

Talk to your plan administrator Boehlertaught. There is precedence that companies have fiduciary responsibility to make sure plan is well managed and that fees are reasonable. Look into it....... hope you can effect change.

 

[dennishoddy]

Dennis, what is the issue with index funds? I would recommend them if you are going to invest in the market and are trying to lower risk similar to mutual funds. Index funds have almost no fees and a very good diversification to help lower risk.

http://www.investopedia.com/articles/stocks/09/reasons-to-avoid-index-funds.asp

http://www.kiplinger.com/article/in...-wrong-time-to-buy-an-s-p-500-index-fund.html

 

[SlugSlinger]

What I've learned about the investing over the last couple of decades is everyone has an opinion and most of the time that opinion is self serving. The trick to long term investing is not trying to beat the market. The market has returned over 10% annually since inception. There are cycles and ups and downs. Index funds follow the market and the reason for the low fees include not having a team of people running analysis to beat the market. And you are paying a premium to hopefully beat the baseline market.

The most important things to long term investing in the market are consistent contributions, not making emotional decisions to buy or sell at big swings, and not touching your nest egg for other purchases or "emergencies".

Dollar cost averaging takes advantage of the market cycles and fluctuations, constistently buying is the key, especially when the market drops, and emotionally, you tell yourself not to buy when the market is dropping. Dollar cost averaging reduces the downside risk because you buy more at a lower price. Dollar cost averaging is one reason that makes index funds a great investment for long term investors.

 

[Sanford]

Social Security is designed as a retirement supplement, it was never supposed to be a person's sole source of support in retirement. I'd gladly give up my Social Security if it would exempt me from Medicare.

 

[nofearfactor]

Another good idea to add to your retirement planning is "investment" in things other than money. Land, tools, a house, guns and ammo, and other essentials.

For example, if you rent all your life, will you have sufficient income to continue to pay rent in retirement? A bought and paid for house is the answer. Property tax is a whole lot less than paying rent!

Woody

This. My mother is a retired banker/realtor/insurance agent/bail bondsman and has always been traditional about money matters. My father was total opposite, a Scot-Irish 3rd generation hustler type who grew up with a father who traveled around the midwest most of his life working on and selling cars and houses for a living. My dad did the same when I grew up. He liked to put his money in stuff he could resell if he ever needed to- prolly half of his stuff was bartered for, traded for, some stolen maybe, the rest he paid in cash or 'other' goods. He made some type of profit off of everything he ever touched I imagine. He bought old houses and remodeled them to sell- we also lived in them while he was doing it. We kids knew once the last room was done we would be moving soon. nd if you lived in his house then you worked in his business. We had a body&paint shop, an auto parts store next door, and a warehouse across the alley. He owned most of the buildings on our block and rented out the other spaces near them to other businesses. In the 80s he bought into Green Light Auto stores, we had stores in 3 states at one time before we selling out when Parts Plus came in. His bookkeeping was always a mess. It took me and my older siblings quite a while to sort out his stuff when he passed. I've been doing the same thing with my extra cash for years. Cars, guitars, amps, land, houses, whatever I can get into and back out of when I want and make a few extra bucks.

 

[Frederick]

I was lucky to have come of age knowing that I couldn't rely on a pension or social security. My parents grew up expecting it and not saving properly for retirement.

I've been placing 12-20% of my pay into a 401k since I got my first job at 18. I also get company matching contributions that one would be dumb not to take advantage of.

I won't be rich, but I'll be fairly confortable as long as I keep a job.

 

[dennishoddy]

Social Security is designed as a retirement supplement, it was never supposed to be a person's sole source of support in retirement. I'd gladly give up my Social Security if it would exempt me from Medicare.

I'm confused. I paid Medicare payments all my working life. I probably won't reap any of them other than part A as the VA pretty much takes care of everything medically wise for me.

 

[ConstitutionCowboy]

I'm confused. I paid Medicare payments all my working life. I probably won't reap any of them other than part A as the VA pretty much takes care of everything medically wise for me.

Me too.

Woody

 

[Sanford]

I'm confused. I paid Medicare payments all my working life. I probably won't reap any of them other than part A as the VA pretty much takes care of everything medically wise for me.

I never worked much under social security although I did pay into medicare. The "part B" that I'll be required to purchase to maintain health coverage when I turn 65 will cost more than my social security benefit estimate says I'll receive.