Kentucky has the second worst unfunded pension liability in the nation. Until that situation is improved I am limiting my exposure to Kentucky bonds. I can also do without exposure to the Yum Center bonds. Buying other states' munis still gets you federal tax free status. I am just giving up on saving on Kentucky income tax. I am probably being too conservative though.
How much money is needed in your retirement account to actually retire?
- Thread starter Oldblueone
- Start date
Kentucky has the second worst unfunded pension liability in the nation. Until that situation is improved I am limiting my exposure to Kentucky bonds. I can also do without exposure to the Yum Center bonds. Buying other states' munis still gets you federal tax free status. I am just giving up on saving on Kentucky income tax. I am probably being too conservative though.
Ever notice how wealthy people use financial advisors and the less wealthy don't?
Hmmm...
Hmmm...
It may go against the grain, but moving your assets into bonds and CDs and low return nonsense at 60 years old — with possibly 30-40 years left to live, is significantly more idiotic.
The math isn’t incredibly complicated. If you save $1,000,000, and expect a 10% return from the market (just an example and using round numbers), you live off something like 7-8% of your investment.
There will be some up years and some down, and 2-3% cushion for inflation, but your principal remains basically untouched. And god forbid you should die in a down market, well, so be it.
It goes against the grain because it's the dumbest goddam retirement planning anyone has suggested in this thread.
If you are reading this thread, and PTI's advice sounds reasonable or logical, please contact a professional so they can stop you from being an idiot. I can assure you it will be worth the money.
On the other hand, if PTI's advice seems reasonable to you, there was a recent thread about investing in wine you should check out. I know that goes against his 100% stock market philosophy, but that way you can at least get drunk when the market craters and you are cutting into your principal to fund your miserable retirement.
If you are reading this thread, and PTI's advice sounds reasonable or logical, please contact a professional so they can stop you from being an idiot. I can assure you it will be worth the money.
On the other hand, if PTI's advice seems reasonable to you, there was a recent thread about investing in wine you should check out. I know that goes against his 100% stock market philosophy, but that way you can at least get drunk when the market craters and you are cutting into your principal to fund your miserable retirement.
Enjoy your CDs. If you’re lucky, a local credit union can probably get you 1.25% for 18 months!!!
LOL
Again people, if you are reading PTIs posts and thinking, he may know what he's talking about, please contact a professional.
Contrary to what he may think, there's something in between 100% in the stock market and 100% in CDs.
Most people will advise you to find an allocation that meets your needs and risk tolerance.
Again people, if you are reading PTIs posts and thinking, he may know what he's talking about, please contact a professional.
Contrary to what he may think, there's something in between 100% in the stock market and 100% in CDs.
Most people will advise you to find an allocation that meets your needs and risk tolerance.
And lawyers, and accountants, and engineers, have plenty of insurance, etc., etc. That way they tend to avoid making a big financial mistake. That was one of the key lessons I recall from "The Millionaire Next Door", best common sense analysis of wealthy people I ever read.
I think the best thing to do is to trust all of your savings to a bunch of random people on a message board.
Or hire somebody shady. My brother picked an “honest Abe” good old boy fraternity brother. After he got caught for fraud by Met Life and blew his brains out, the word was that his son had a drug problem and broke him.
True. However with flat fee advisors at least personally I know that I'll avoid "unnecessary cost" when I can and would be less likely to seek advice.
For me the bottom line is "my guy" handled my parent's money and did well for them. Dad was a lot smarter than I'll ever be and he thought it was a good idea to have someone manage his money. I learned over the years that when I followed his advice it usually turned out well, when I went against that advice I often regretted it. We all have to do what makes up comfortable.
Yes because neither have a Roth available from their employers...and I doubt once they got their hands on the money that they would invest for retirement given that they are both saving to buy homes and other expenses for their young families. Their bumps would occur the same time as their annual reviews and (hopefully) salary increases which make them less painful.
I was somewhat slow to jump on the Roth bandwagon but for the last 5 years and going forward I've been fully funding Roth IRAs for the wife and myself while I continue to contribute to my 401K.
What is good about Roths are that there are no required withdrawals. My "plan" is to live off of the 401K RMDs + Soc Sec and then use the Roth money for big ticket expenditures that require more.
Financial advisors are almost always the conduit to hedge funds for the well heeled.
Even institutional investors go thru FA's to get to the hedge funds.
What I have come to find is wealthy people are use to paying more for certain things. Like financial advisors. However, the results from utilization of such financial advisor is no better than investing money into Vanguard funds
Large pensions use to turn to hedge funds thinking they would be able to quickly grow their funds...only to find out this was not the case, while they payed through the nose for such flimsy guidance.
I don't use a financial advisor, but I have a very good tax accountant. Maybe you are confusing the two, but financial advisors are needed for people who have very little sense with their money.
You never know, used to do tax returns, people can be peculiar, one guy used to rough out his own return on paper just to see how close he was to getting it right...usually close, some fear tax audits or simply have insecurity about money, taxes or investing even if they have the knowledge.
What % of “financial advisors” are just salesmen and haven’t been fiduciaries? That’s why “financial advisor” doesn’t mean a whole lot.
I try take a look at my 401K every couple weeks and put my money in whatever thing it is that is having the highest short-term return. Bounce around the thing that's giving you the most in a short time and I figure the money will grow quicker.
Haven't messed around much with the Roth IRA yet. That **** is a bit more complicated and I'm not entirely sure what the **** I'm doing.
None of you ******** are retiring. Get over it
As a financial advisor for over 31 years, I always hesitate to wade into these types of threads due to the amount of false info being spouted by folks.
This response is a perfect example. I'll bow out now.
More or less you heard right. Been a few good ones but they close out in a hurry as soon as the annuity co realize they screwed up and gave the customers a good product.
Actually not many any more. The SEC is cracking down on people who use the term “Financial Advisor” and are not actually registered as with FINRA (which is the regulator for the Financial Industry). You can always go to Broker Check and see if the advisor is registered, and also if they have any disciplinary actions against them. Oh and by way I have never “funneled”someone into a hedge fund. I have 1-2 clients that might be a good fit, but I have them in a REIT instead. Which is real estate.
Don't know if I could disagree more. First off...you get what you pay for. Second, in a bull market a blind monkey can make money. It's what happens when the market drops that often divides the pros from everybody else.
If you are 45 or younger and have 20+ years until retirement then by all means do a little research to understand market basics, choose some good solid growth mutual funds and save until it hurts. You have time on your side and can stand for some market ups and downs. Once you reach 50+ and your 401K is approaching $500K-$1M+ then things get a lot more serious. A market hit like 2007-2008 could cut that in half and there are no guarantees that things will bounce back as they have since 2009. When the market crashed in 1929 it took until 1959 for the market to return to its previous high...that's 30 years! If you were retiring or about to retire in 1929 and your future income was dependent upon your portfolio then you were f#cked!
I'm no longer at the point where I am chasing the highest returns because with the highest returns come the highest risks. I'll accept a solid 7-8% annual return which will double my money in 10 years in exchange for knowing that I'm diversified enough to minimize the pain of a market crash. Those bond funds aren't doing much today but if the market goes south they become the foundation that provide income. If you are disciplined enough to diversify your portfolio the by all means do it yourself! I simply know that when I was making all the decisions on my own and I've got money to invest and on my left is a mutual fund that has been returning 17% over the last 5 years and on my right there is a bond fund that has returned 3-4%...I know which I'm buying despite the fact that I have 90% of my other money in similar investments.
Saying "financial advisors are needed for people who have very little sense with their money" is like saying people who hire lawyers have little understanding of the law. I know several people who are financial advisors. One particular one who I have known for 20+ years and heads her own firm has somebody else help her manage her money. Her advice to me was that it is important to remove emotion from the process and that is very difficult to do when you are doing it yourself.
So this professional lady friend that gives financial advice to others is so confident in her offerings that she go to someone else to manage her money.
Sounds legit...
Glad to hear the toothless SEC is cracking down on someone/something/anything these days...
Folks...we are talking about your money. No one is going to look after it as well as you might be able to. So learn about investing your money. There is no secret about what you should be doing at different stages of your life.
No one on here is going to game the market and everyone is going to suffer the same fate. It all boils down on how well you can save.
Those folks that run the Vanguard funds do very well in comparison to many other funds that are out there.
If these are things that you are not comfortable with, then yes, find a financial advisor...but once again you need to do your homework. As we only have the best financial advisors on the Paddock, the likely hood is that you will run into folks that are more worried about their commissions and their company's bottom line.
No one on here is going to game the market and everyone is going to suffer the same fate. It all boils down on how well you can save.
Those folks that run the Vanguard funds do very well in comparison to many other funds that are out there.
If these are things that you are not comfortable with, then yes, find a financial advisor...but once again you need to do your homework. As we only have the best financial advisors on the Paddock, the likely hood is that you will run into folks that are more worried about their commissions and their company's bottom line.
What do you think about the current market? It’s hard not to get drawn in on a great start like early this morning, but I’m 50-60% Cash and holding at least until the election, pretty conservative positioning for me.
Oh, hell, another poor usage of my tax dollars, better dig some roots and stick some beans in your garden, ground hogs are pretty tasty when you’re really hungry.
Let's see...who's opinions on the subject of finance should I put more stock in...those of some message board know-it-all or that of highly successful professionals within the world of finance?
Seriously, it's OK that we have different opinions. I am going to guess your successful professionals were blindsided in 2008?
Like I said, ain't no one going to game the market.
Anybody coming here for precise advice on their own situation would be foolish, but I’ve observed some very good general tips for people in this long thread. I’m now the wrong side of 70 and we retired at 60 despite both of us being middle class wage earners, so maybe some of my comments were helpful, too.
It's also worth noting that just about anyone in this thread are likely the lesser concerns in the general public. I think if you're at least interested in some knowledge of retirement.....you're probably ahead of the general populace. It's the ones that don't seek knowledge........and that don't plan for the future....that worry me. Someone is going to have to care for that population of "igmos" in the future.
True in many cases, but certainly not all. Pretty much everyone I used to work with either has or has had a part time job, but not because they NEEDED the money, but because that they liked getting out and having something to go to. Hell, I retired at 56 two years ago, and in that time I've had 4 part time jobs, and turned two others down that I would have liked to have had, but didn't like the hours. I liked those jobs, but one was seasonal, one turned from a perfect 3 days a week into a 4-5 days a week, and the other I just left for a better job with the company I retired from. I spent the last 5 months working part time for the company I retired from and loved it. I could basically name the days and hours I wanted to work. Will probably do that again next year and may pick up something in between if it looks like something I might enjoy. We're looking for a condo in Florida to do the snowbird thing for a few years and then maybe move permanently. If we find a place, I'll look for something there, like maybe a part time job in a marina. Just something to get me out and meet new people.
My advice for anyone wanting to retire....
* Put as much as you possibly can into a 401K
* Live within your means.
* Have your home, vehicle(s) and pretty much everything else paid off before you retire.
My wife and I were very fortunate. We both have pensions, had 401K's that we put a lot into, our kids have been out and gainfully employed for 12+ years, and we didn't owe anything when we retired. We don't live extravagantly, but we do things we like to do.