Retirement investing...

[Stumpalump]

Crazy story IveBeenRued! Good advise as well. The Roth money grows tax free and over decades that it is huge. Some years I’d put 100% in 401k and once it hit the max yearly contribution I’d get full paychecks. I consolidated into an Edward Jones account . Doing it like I was told I went from living in my car at 18 to wondering who is going to get the money when I’m dead. Thats the last chapter Dave Ramseys book. The only chapter I never read because I did not believe I’d have it. Dave Ramsey was right. I read his “total money make over” and it worked beyond all of my dreams. The bottom line like he says is to get a plan and I don't care if it is throwing $20 bills under the mattress. Annuities and life insurance are the ones you need to stay away from. Trust that. I have a current license to sell them and the only person making money are those that sell them to you.

 

[rijndael]

the only person making money are those that sell them to you.

Yep, and it's mostly hidden from the consumer.

 

[Stumpalump]

It is just another example of rules and laws written to appease the banks and the insurance lobbyist. Real estate and lending is almost as bad. Bottom line is the bureaucrats and law makers never had our best interest in mind.

 

[tbm5690]

I wouldn't be too concerned about the 500 index fund...it seems diversified enough. I don't have access to any indexes in my 401 and the best I can do on expenses ratios is about 0.3, so having the option you do is pretty good.

 

[LDB]

I need to understand what the fund costs to manage etc no? Or is there literally zero way it's so expensive it's eating even 50% match?

Well, let's say the matched fund has an insane 5% fee. Option A, no match, 0.01% fee, we'll call it zero for convenience. Contribute $100 and have $100. Option B, 50% matched contribute $100, have $150, pay 5% fee $7.50 net $142.50. I don't see how it could possibly come close to killing the entire match.
An aside, while working for Tenneco, a pretty well known and legitimate company, our matching was done with Principal. Don't remember details now but that was late 70's and 80's so they've been around a while. I was young and foolish and went elsewhere for a larger paycheck rather than sticking for the matching etc. My older and smarter cousin stayed and is now retired benefitting from that.

 

[Ws6]

I wouldn't be too concerned about the 500 index fund...it seems diversified enough. I don't have access to any indexes in my 401 and the best I can do on expenses ratios is about 0.3, so having the option you do is pretty good.

When I finally rage quite, how would I roll that over or keep it or whatever?

 

[Astro14]

Why are you asking us what the fees are?? We have no way of knowing. You have to find this out.

Get the information from your HR - from the service provider. Fees vary with provider. Some, like Vanguard, have very low fees. Some have very high fees.

Fees matter.

Once you see the fees - then you can make some decisions. Worst case scenario - put all of your contributions into your company 401(k)money market fund, collect the match, then roll it into an IRA.

But you need to read the terms and conditions of your company provider. You need to do the legwork.

 

[JeffKeryk]

This thread has focused on the earnings side of the equation, which is important.
In my case, I focused on the cost side; my long term goal was to minimize recurring costs because if the money went south, I might still be able to manage. Homelessness will do that to you...

Housing around here is expensive which also means it could be a good investment. I bought the worst house in a strong zip code and proceeded to fix it up and pay it off. I also installed solar and a tankless water heater, again with the goal of minimizing recurring costs.

I live dirt cheap in a well patrolled and kept area. It's great. And let's just say the investments have far exceeded my expectations.

 

[tbm5690]

When I finally rage quite, how would I roll that over or keep it or whatever?

Transfer to either a traditional IRA or a ROTH IRA. In the latter scenario you will have to pony up the taxes. Your current account with your employer won't go away when you quit, though...they just won't be contributing anymore for you.

I'm in a golden handcuffs scenario with retirement right now with my employer but if/when I move on I will transfer to either the new employer's 401 account or into my ROTH and pay the taxes.

 

[Ws6]

This thread has focused on the earnings side of the equation, which is important.
In my case, I focused on the cost side; my long term goal was to minimize recurring costs because if the money went south, I might still be able to manage. Homelessness will do that to you...

Housing around here is expensive which also means it could be a good investment. I bought the worst house in a strong zip code and proceeded to fix it up and pay it off. I also installed solar and a tankless water heater, again with the goal of minimizing recurring costs.

I live dirt cheap in a well patrolled and kept area. It's great. And let's just say the investments have far exceeded my expectations.

I guess that's because I feel very confident in my cost management, so I have not made it a focus. However...


-I owe $250K or so on my estate. I have a 2.99% 20Y fixed loan, 14 years of which remaining, on my solar array, which cuts my electric bill nearly to 1/3 of what it was, even with my EV. The panels are rated for 30Y production, and warrantied as such (80% efficiency retention by then).

-The house is in excellent repair, and I carry a home warranty that will replace my HVAC when it dies, which is by and large the greatest projected expense other than a roof, as I project mine has 20% life left, although it looks good.

-I do still owe on my car, but it is an EV, and once paid off should have nearly zero operating costs. This will allow me to drive for VERY cheap when you throw the solar panels into the equation. While it won't last until retirement, it WILL make putting more money away or paying other things off much quicker and easier. I also happen to get joy from it, so that makes it priceless.

-I have a well.

-I chose an area with low costs. Property tax on my estate is $1200/year, electricity has been 12 cents/kwh delivered for 20 years and counting, roughly. Property insurance is very affordable with my mortgage coming out to under $1600/mo including escrow (taxes and insurance included in mine).

Overall, my fixed costs once everything is paid off, should be about $10K per year. ($4K insurance and taxes on the estate, $1500 home warranty, auto insurance is too variable to project and those prior two don't take inflation into account, hence the under-shooting of the ind. actual costs vs. the overall $10K projected.). After age 65, home owners here pay $1100 less on property taxes, which should almost wipe mine out.

This of course neglects food and clothing costs, but I intend to stay in an EV, so there is that aspect. Overall, you can see costs are supremely low, even before things are paid off, except for the sake of my car, which I did go hard in the paint on, because some things are worth more than money to me, and after an entire trash shift, it perks me up a bit to be walking out to something I actually want to get into and drive away in.

 

[LDB]

There's nothing wrong with sanitation engineering. It is an honorable and necessary profession.

 

[johnmyster]

Free money might even be free money even when there is an early withdrawal penalty.

 

[Astro14]

This thread has focused on the earnings side of the equation, which is important.
In my case, I focused on the cost side; my long term goal was to minimize recurring costs because if the money went south, I might still be able to manage. Homelessness will do that to you...

Housing around here is expensive which also means it could be a good investment. I bought the worst house in a strong zip code and proceeded to fix it up and pay it off. I also installed solar and a tankless water heater, again with the goal of minimizing recurring costs.

I live dirt cheap in a well patrolled and kept area. It's great. And let's just say the investments have far exceeded my expectations.

The OP defined his costs - and included a paid off mortgage and no debt.

This thread has focused on helping him achieve his stated need for income predicated on that low cost/no debt model.

 

[Ws6]

There's nothing wrong with sanitation engineering. It is an honorable and necessary profession.

Garbage guy or involved support or other roles? I'd imagine it's actually a super chill job that can pay crazy well in some areas.

 

[LDB]

Garbage guy or involved support or other roles? I'd imagine it's actually a super chill job that can pay crazy well in some areas.

I don't know. You brought up about the car after a trash shift. Don't know which function though.

 

[Ws6]

I don't know. You brought up about the car after a trash shift. Don't know which function though.

Sanitation would be a good alternative for retirement, I think. Low stress, would have health benefits as it's likely to be city funded, etc. That is a legit idea for when I'm finally able to slow down and relax.

 

[Dave Hess]

Too late to edit.

Would screenshot of members 401K balance help motivate the OP to get serious about retirement ?

 

[Ws6]

Too late to edit.

Would screenshot of members 401K balance help motivate the OP to get serious about retirement ?

I have some absurdly rich friends. They're actually who got me started on this path. But no, I've never been motivated in that manner, really, oddly enough.

 

[Dave Hess]

Continue investing and retire early.

Most people I talk to in healthcare really don’t do a good job planning for retirement, it’s just something that will eventually happen to them. No real retirement map planned out.

 

[Ws6]

Continue investing and retire early.

Most people I talk to in healthcare really don’t do a good job planning for retirement, it’s just something that will eventually happen to them. No real retirement map planned out.

I see this a lot, as well. But I'd present a counterpoint...

Most people who do have a good retirement work for companies that invest in them and the only reason they have a retirement is their company.

Healthcare isn't like that. You're there to have the soul sucked out of you and then be discarded. Thats why you need to be vicious on pay negotiations as well as quite your job every 1-2 years for maximum profit.