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I don't know if rounding out the numbers help illustrate it.
100k starting balance -50% = 50k
Year two you would have to be up 100% to break even for the two year time period. Being +50% in year two only gets you back to 75k or still down 25% over the time period
Yep. It's amazing that people I talk to who don't understand that. You cannot compare % to % for different years when looking at losses/gains and "breaking even". Have to be $ to $.
Yep. It's amazing that people I talk to who don't understand that. You cannot compare % to % for different years when looking at losses/gains and "breaking even". Have to be $ to $.
Or in REAL simple terms, 1.5*.5=.75. Go up 50% year one and down 50% the next (or vice versa) and you're at 75% of what you started with.
(Works out to a -13.4% compound annual growth rate ["CAGR"], if anyone cares)
i just started putting money in my 401k this week.
fast forward 8 months
$2,200 in my 401k's. i have another one through my PT job that i recently found out about
$4,000 in my roth ira
$2,500 taxable brokerage
$2,000 in emergency fund/savings account
-i also have a pension with about $1,000 at my p/t job that they recently stopped contributing. this will be absorbed into my company 401k next year.
-in the mean time, i am dumping $800-1,200 a month into student loans. the minimum payment is $180/month. at this rate, i should have them paid off in a year or two so that i can increase how much i can save.
Been following this forum, and thought I would share and see if anyone has some tips.
I am 31 years old and single with no debt other than approx $9k left on an auto loan.
I realize that for my age group, I've done fairly well for myself, but that cash position is a HUGE regret of mine. It started in my mid 20s when I had a pretty substantial pay bump from my entry level salary. I was finally able to pay off all debt, and started diligently saving to accumulate an emergency fund. After that, I started thinking I may want to buy a house, so I just kept accumulating cash until it got kind of out of hand ( yeah...good problem to have, I know). I have since realized I'm at least a couple of years away from really wanting to settle down and buy.
I'm a fairly educated investor, but I really don't want to dump $40k+ into the market right now while we're at all time highs. The plan I put into place earlier this year is to DCA about $750/mo into a diversified portfolio of etfs that I put together in order to get that cash position working, and tactically dump lump sums in if a larger pullback occurs. It has been working out fairly well, but does anyone have any other ideas that may be prudent to take a look at right now?
Been following this forum, and thought I would share and see if anyone has some tips.
I am 31 years old and single with no debt other than approx $9k left on an auto loan.
I realize that for my age group, I've done fairly well for myself, but that cash position is a HUGE regret of mine. It started in my mid 20s when I had a pretty substantial pay bump from my entry level salary. I was finally able to pay off all debt, and started diligently saving to accumulate an emergency fund. After that, I started thinking I may want to buy a house, so I just kept accumulating cash until it got kind of out of hand ( yeah...good problem to have, I know). I have since realized I'm at least a couple of years away from really wanting to settle down and buy.
I'm a fairly educated investor, but I really don't want to dump $40k+ into the market right now while we're at all time highs. The plan I put into place earlier this year is to DCA about $750/mo into a diversified portfolio of etfs that I put together in order to get that cash position working, and tactically dump lump sums in if a larger pullback occurs. It has been working out fairly well, but does anyone have any other ideas that may be prudent to take a look at right now?
many folks change jobs and roll their 401k's over in to their ira's. what good is asking about just 401k's?
i have 125k in my 401k. but i have 7 figures in my ira account. get the point?
i can never figure out what anyone hopes to get by asking just pieces of an entire situation.
usually it is because they have limited knowledge about what it is they are asking and do not realize it really is not amounting to anything that is useable or compareable.
You definitely are behind the eight ball. Start an IRA immediately.
Quote:
Originally Posted by sacite
I am 38 with $10k in savings and a defined benefit pension of 10 yrs in and counting and nothing else. Guess I am a complete loser, eh?
Lol I am actually trying to get "to my first 15 grand!" and quite excited about it.
This thread has a distinct D measuring contest quality to it.
07-04-2014, 09:39 AM
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n/a posts
Quote:
Originally Posted by sacite
I am 38 with $10k in savings and a defined benefit pension of 10 yrs in and counting and nothing else. Guess I am a complete loser, eh?
Lol I am actually trying to get "to my first 15 grand!" and quite excited about it.
This thread has a distinct D measuring contest quality to it.
Even discounting the exaggeration and outright lying that these threads always attract, that's pretty terrible.
At least you do have a pension. Just hope that it doesn't get axed lest you be completely screwed. I'd be putting away as much as possible if I were you.
many folks change jobs and roll their 401k's over in to their ira's. what good is asking about just 401k's?
i have 125k in my 401k. but i have 7 figures in my ira account. get the point?
i can never figure out what anyone hopes to get by asking just pieces of an entire situation.
usually it is because they have limited knowledge about what it is they are asking and do not realize it really is not amounting to anything that is useable or compareable.
I agree completely.
Most of my jobs didn't even have 401k options, and the small 401k I did have was rolled into my IRA, which is robust since I started young. And I have even more invested in Index funds in my brokerage account. Even though my income was very low, I am very glad my parents encouraged these behaviors - saving and IRA contributions.
It is unfortunate there are not better retirement savings vehicles for people who do not have jobs with robust retirement options (eg. no 401k with significant matching, or even 401k's.... and no pension) as many of these jobs exist. IRAs have relatively low caps. And if you are unfortunate and lose your job (or like me, have to stop working to "work" as an unpaid caregiver to family members), then you lose not only your earned income but all those years of IRA contributions. It is unfortunate that I cannot contribute a small amount from my investments to an IRA each year.
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