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Eh, these day it is mostly VTIVX, and VFIFX roughly 67/33 split (Vanguard Target Retirement 2045 and 2050), I still have a few other things, but I have gotten too lazy to research things through, and have historically kept things past the point I should've sold. So yeah, I guess it is the lazy man's approach to retirement.
My first post on this forum; found this topic while searching for advice on 401k saving and not sure how much should I save/have for retirement. Would love to have your opinions on my current saving:
Age: 31
401k: $56k
Personal investment: $41k (All Stock)
Salary: $42.5k with a potential to earn 10% bonus of base each year
Contribute: 20%
Company match: 15% - yes, you see it right!!! I am just thankful that I got this new job, 2 months in
The problem with this company is that they are not going to have salary increase each year unless you change position so basically I stuck with my salary forever unless I move on or apply for higher position. Currently, I am investing aggressively ALL in stock for my 401k: 30% Large Cap S&P 500, 35% SmallCap S&P 600, 35% SmallCap International. I don't have mortgage or any big debt. I am thinking of family, kids, and a house in the next 1-2 years or so. My questions:
1. Am I too aggressive on my investing even time is on my side? I would love to retire early @ 55 or 62!!!
2. With family and mortgage, should I change my investing style to something less risky?
3. Should I Borrow my 401k for mortgage down payment? I live in CA and don't want my monthly payment too high
My first post on this forum; found this topic while searching for advice on 401k saving and not sure how much should I save/have for retirement. Would love to have your opinions on my current saving:
Age: 31
401k: $56k
Personal investment: $41k (All Stock)
Salary: $42.5k with a potential to earn 10% bonus of base each year
Contribute: 20%
Company match: 15% - yes, you see it right!!! I am just thankful that I got this new job, 2 months in
The problem with this company is that they are not going to have salary increase each year unless you change position so basically I stuck with my salary forever unless I move on or apply for higher position. Currently, I am investing aggressively ALL in stock for my 401k: 30% Large Cap S&P 500, 35% SmallCap S&P 600, 35% SmallCap International. I don't have mortgage or any big debt. I am thinking of family, kids, and a house in the next 1-2 years or so. My questions:
1. Am I too aggressive on my investing even time is on my side? I would love to retire early @ 55 or 62!!!
2. With family and mortgage, should I change my investing style to something less risky?
3. Should I Borrow my 401k for mortgage down payment? I live in CA and don't want my monthly payment too high
You can start your own posts for individual advice from a lot of other people on CD who may already be done with this thread.
But to answers your questions: You would need to include any other savings you have and your monthly expenses in order to accurately answer the questions about your investment allocations and wether or not you should borrow for your home.
The reason is because people group asset allocation in different ways. Some advisors say your investment portfolio should be diverse, others say your total assets should be diverse. In the latter case if you also have 50k in cash in Money Markets than you would be well diversified across all of your assets.
Also what is your 401k invested in?
To answer question 2 any reasonable person, advisor or otherwise would say it is smart to re-examine your investment strategy as you move through different stages of life.
You can start your own posts for individual advice from a lot of other people on CD who may already be done with this thread.
But to answers your questions: You would need to include any other savings you have and your monthly expenses in order to accurately answer the questions about your investment allocations and wether or not you should borrow for your home.
The reason is because people group asset allocation in different ways. Some advisors say your investment portfolio should be diverse, others say your total assets should be diverse. In the latter case if you also have 50k in cash in Money Markets than you would be well diversified across all of your assets.
Also what is your 401k invested in?
To answer question 2 any reasonable person, advisor or otherwise would say it is smart to re-examine your investment strategy as you move through different stages of life.
Thank you for the reply, I will start a new post with more details later.
I am 30 and don't have a 401k because I have a pension (gulp!). Been here about 7 years and cash value of pension is about 30k and I don't know what it will be when I retire. Have about 35k in a Roth IRA and another 30 in mutual funds.
The people that are 25-28 and have over $100k in savings must have graduated with no debt, found high paying jobs immediately, and/or received some type of inheritance, hit the lottery, or got lucky with stocks.
Most 25-28 years old I know are drowning in their student loans, have jobs that pay $10-$20 a hour, and $5,000 in combined 401k, IRA, and savings if they are lucky.
The people that are 25-28 and have over $100k in savings must have graduated with no debt, found high paying jobs immediately, and/or received some type of inheritance, hit the lottery, or got lucky with stocks.
Most 25-28 years old I know are drowning in their student loans, have jobs that pay $10-$20 a hour, and $5,000 in combined 401k, IRA, and savings if they are lucky.
I'll give you my middle-class situation. I graduated and made 38k out of college. My wife made about 35k.
My dad got kicked out of college so he always told his children he would pay for their public undergrad education so long as they didn't screw up. So he paid for my college. I also bought a used car for about $5,000 with cash I had saved from working in college. When my grandma died she left the grandkids each about $10,000 so I used that as part of a down payment on my house. I went to grad school while I was working full-time so I paid tuition with cash each semester as I got the bills.
My wife's dad never graduated from school and so he told his children he would also pay for their undergrad if they went to the same school he went to. Two of his kids did not graduate from there but my wife did so she doesn't have any undergrad loans.
Were we lucky? Of course, but it also helps that when we did get a little cash we used it for bettering our long-term situations rather than buying a nicer car or some toys. Even making "not much" when we graduated we don't have any children and live in a low COL area so our mortgage is only about $900/month for 15 years. I started saving in a Roth the day I got my first job and put about $100/week into other long-term savings. It just takes time to build up. It does help our undergrad was paid for when I hear people complaining they have $20,000 in student loans it confuses me because that's the equivalent of a very nice used car. Education is much better than a nice used car.
I'll give you my middle-class situation. I graduated and made 38k out of college. My wife made about 35k.
My dad got kicked out of college so he always told his children he would pay for their public undergrad education so long as they didn't screw up. So he paid for my college. I also bought a used car for about $5,000 with cash I had saved from working in college. When my grandma died she left the grandkids each about $10,000 so I used that as part of a down payment on my house. I went to grad school while I was working full-time so I paid tuition with cash each semester as I got the bills.
My wife's dad never graduated from school and so he told his children he would also pay for their undergrad if they went to the same school he went to. Two of his kids did not graduate from there but my wife did so she doesn't have any undergrad loans.
Were we lucky? Of course, but it also helps that when we did get a little cash we used it for bettering our long-term situations rather than buying a nicer car or some toys. Even making "not much" when we graduated we don't have any children and live in a low COL area so our mortgage is only about $900/month for 15 years. I started saving in a Roth the day I got my first job and put about $100/week into other long-term savings. It just takes time to build up. It does help our undergrad was paid for when I hear people complaining they have $20,000 in student loans it confuses me because that's the equivalent of a very nice used car. Education is much better than a nice used car.
It also helps that you're married. COL is much cheaper for a married couple than those who are single - even single living with roommates.
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