Posted on 03/24/2014 6:37:38 PM PDT by SeekAndFind
Absolutely!
The primary reason we've gotten involved in Bogleheads in the past few years is that they seem to have a reasonable approach to diversification. Over the next few years my husband and I will be moving to mostly index funds. I stopped working in '99 and I'm trying to get my husband to retire (he will be 60 this summer). All the more reason to be diversified!
It is very difficult to save $1,000,000.
OTOH it is not difficult to save 15%, invest the money and end up with well over that number.
I highly recommend Dave Ramsey’s approach. He recommends four good performing growth stock mutual funds invested in for the long term (and real estate purchased with cash only). Let the professional mutual fund managers watch the markets all day. That way, the only way you get hurt riding the roller coaster of the market is if you jump off....
I got to listening to him as the market turned down in late 2008 and 2009. While I was never “over my head” with debt, I had made the mistake of believing there was such a thing as “good debt” used to buy assets. But when those assets stopped producing as much income, it got uncomfortable... and my wife and I made some changes. We are now pretty much debt-free except for the house and can easily get by on my military retirement. — anything we earn is extra....And we are doing decently with our investments
Anyway, it works for us. V/R Bill
These theories never bother to tell people that by the time they retire a gallon of milk or gasoline might cost a million dollars.
That’s nice, you’re a millionaire. Did you forget about inflation?
Retire with $1 million - so the nursing home can eventually get it...
Back when my son was in college his bank (I think it was BofA) had a debit card feature where every purchase made was rounded up to the next dollar and the change balance was auto deposited into a savings account. By using that card for everything he did in college and the first two years at work afterward graduation he had enough for a down payment on his first house.
Does it account for the 3.8% ACA TAX on “unearned” income over $200k?
Pieces of $hit in Washington DC need to be tarred and feathered and then get to test their swimming abilities with a concrete block tied around their legs...
Inherit $2,000,000 and blow half of it on hookers and liquor.
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LOL.
How do you make a million dollars playing bluegrass music?
Start with 2 million.
What did the bluegrass musician say he would do with his million dollar lottery win?
Keep playing til the money runs out.
“In 1776 the rich sacrifice EVERYTHING they had for the betterment of everyone. It just blows my mind. Never happened before, never happened again. “
Thankful it happened once, but BEYOND thankful Jesus sacrificed Himself “once for all”. He did tell believers not to worry about food and clothing, since God knows we need them. Of COURSE this doesn’t set aside work and prudent saving (see Proverbs), but God cares for birds. How “much more” will He care for us (who will not have a million banked)!
“How to Become a (Public Pension) Millionaire”
Data from the Bureau of Labor Statistics’ Occupational Employment Statistics survey show that the average retired state-government employee has an income higher than 72% of full-time workers in his state. Generous public pensions ignore political bounds.
http://online.wsj.com/news/articles/SB10001424052702304360704579415173512940990
Not sure if you know, but once you've passed your 50th birthday, you can sock away up to $22,500 a year PRE-TAX towards your retirement. The money simply has to go into a retirement account (401k, Roth IRA for example.)
The benefit is that if you can sock away $22,500/yearly it greatly reduces your tax burden. Next year my wife turns 50, so in addition to the $22,500 I can sock away for me, I can do the same for her.
Since our home is paid off and we literally pay $0 in interest on anything, that tax deduction has come in very handy.
Not if you start young and understand how compound interest grows your money.
Smart investments in financially solid companies that pay dividends which are then used to fuel your retirement fund's growth also helps.
The trick is START YOUNG.
Both my teenage son's have put everything they've made into their own 401k's since each was 12 years old. They had to save up the first $1500 to open the account, mom and dad made up the difference ($1,000) so they could open up a starter 401k of $2,500.
Oldest son's 401k went from $2,500 at opening account balance to just over $6500 as of his last balance. That's more than doubling in 5 short years. Proves the sooner you start, the faster your money starts doubling.
There is nothing magic about $1m.
There is a 4% rule of thumb so $1M only gives you $40,000 a year to live on.
RE: There is a 4% rule of thumb so $1M only gives you $40,000 a year to live on.
That plus social security and downsizing to a smaller house, might help a long way for a reasonably comfortable retirement.
I think we’ll be retiring next year. We sold stock several years ago, and I am very thankful we saved that money.
My husband was diagnosed with cancer 2 years ago, then he was laid off. He’s got some new serious medical problems now.
After my girls graduate from high school, we’ll be moving out of California and hopefully to Texas.
We’ll buy a modest house there. My husband will probably do contract computer work as best he can. The only thing I worry about is the cost of medical care. I think it is around $40k a year for insurance and deductibles. I think if I canfind any job with benefits, that would help a lot!
I wonder how this will change after obama’s market interferene is halted.
Hi Beef, Glad things are going well. The one thing I can say for the guy after listening for 4+ years is that he is extremely consistent. But just to clarify, Ramsey doesn’t advocate paying off your house until you have a fully funded emergency fund and are investing for college and retirement....While he has no problem with paying off the house early, he understands the need to build more liquid /investing wealth that is not tied up in the house. Also, while he likes real estate, he is also the first to tell folks not to do it if they don’t want the hassles of being a land lord... Not sure what you are talking about with the commercial on spending the emergency fund, though. It doesn’t sound at all like the kind of thing he would do......are you sure he wasn’t advertising something an item on which to spend disposable cash after getting debt free and building some wealth?
It was some foundation repair company. He words were “This is what you spend your emergency fund on.” Foundation issues are serious, but not all are emergencies.
That is other other side of the wealth equation that does not get discussed enough. There are lot of things you can do to live comfortably on less money. Happiness is not measured by the square foot.
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