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Old 01-25-2016, 12:36 AM
 
843 posts, read 535,622 times
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Hello, im quite young, and yet quite old.....
reason I said old is....I started out pretty late in life. Received my career at the age of 28. I am also now beginning to save for retirement.

I was wondering what is my best option for retirement

my company offers 401k, I also have a mortgage (if that counts)

on top of that, I was wondering what else I can do. Should I spread my savings and open a separate CD? or IRA and contribute 50 a month on that as well?

Or what other investments should I make? Say I save $5,000, which I know its not a lot in this day of age; but maybe that 5,000 will turn to 8,000 in 5 years somewhere
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Old 01-25-2016, 02:55 AM
 
71,700 posts, read 71,801,099 times
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10% a year , at least in the near term may be a bit optimistic with valuations and conditions as they stand .

in my opinion i would project with about 6% for equity's and let anything better be a welcome upside surprise
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Old 01-25-2016, 03:30 AM
 
10,819 posts, read 8,069,111 times
Reputation: 17034
Quote:
Originally Posted by willc86 View Post
on top of that, I was wondering what else I can do. Should I spread my savings and open a separate CD? or IRA and contribute 50 a month on that as well?
DH & I contributed faithfully for many years to IRAs. They didn't work out well for us.
The assumption behind them is you're in a higher tax bracket now than you'll be when you retire. Not so for us, we're in a higher tax bracket now than we ever were during our working, child-rearing, and mortgage paying years.
But even if that doesn't hold true for you, can you truthfully look ahead to 2040 and know what the tax brackets will be?

If you invest heavily in an IRA, then when you retire you'll have to look at whatever amount you're accumulated and automatically discount it by 25% or so.
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Old 01-25-2016, 03:33 AM
 
71,700 posts, read 71,801,099 times
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most folks with normal careers that ramp up in income and brackets spanning decades of time will find their average long term tax bracket is higher in retirement .

the working career average is usually going to be lower since it takes in decades of lower income .

that is because our final lifestyle and income is somewhere closer to our peak earning years which are usually the tail end of our careers .

roths would be the best move
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Old 01-25-2016, 04:52 AM
 
761 posts, read 639,058 times
Reputation: 2229
Quote:
Originally Posted by willc86 View Post
Hello, im quite young, and yet quite old.....
reason I said old is....I started out pretty late in life. Received my career at the age of 28. I am also now beginning to save for retirement.

I was wondering what is my best option for retirement

my company offers 401k, I also have a mortgage (if that counts)

on top of that, I was wondering what else I can do. Should I spread my savings and open a separate CD? or IRA and contribute 50 a month on that as well?

Or what other investments should I make? Say I save $5,000, which I know its not a lot in this day of age; but maybe that 5,000 will turn to 8,000 in 5 years somewhere
Instead of giving you advice, I will congratulate you for being concerned about your future.
Age 28 is a great time to get a jump start on savings and retirement.

Best of luck!
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Old 01-25-2016, 05:56 PM
 
Location: Florida
4,370 posts, read 3,706,500 times
Reputation: 4111
Try Roth IRA.
No CD's unless they are your emergency fund.
Save 15%
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Old 01-25-2016, 06:48 PM
 
Location: The South
5,233 posts, read 3,640,883 times
Reputation: 7929
If your company matches any on the 401k, take it. Then do a Roth IRA.
Always pay yourself first.
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Old 01-25-2016, 07:24 PM
 
Location: Central Massachusetts
4,800 posts, read 4,851,516 times
Reputation: 6379
Quote:
Originally Posted by willc86 View Post
Hello, im quite young, and yet quite old.....
reason I said old is....I started out pretty late in life. Received my career at the age of 28. I am also now beginning to save for retirement.

I was wondering what is my best option for retirement

my company offers 401k, I also have a mortgage (if that counts)

on top of that, I was wondering what else I can do. Should I spread my savings and open a separate CD? or IRA and contribute 50 a month on that as well?

Or what other investments should I make? Say I save $5,000, which I know its not a lot in this day of age; but maybe that 5,000 will turn to 8,000 in 5 years somewhere
You are not too old to start. That is the age I started mine. You are on track. I will add here though, do not save to the exclusion of everything else. Live for today. Save what you can for tomorrow. But do not lose out on living and enjoying life with family.
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Old 01-26-2016, 07:18 AM
 
Location: The South
5,233 posts, read 3,640,883 times
Reputation: 7929
Quote:
Originally Posted by golfingduo View Post
You are not too old to start. That is the age I started mine. You are on track. I will add here though, do not save to the exclusion of everything else. Live for today. Save what you can for tomorrow. But do not lose out on living and enjoying life with family.
I don't agree, unless you are certain you are not going to get old. Growing old is bad enough, being broke and old is a lot worse.
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Old 01-26-2016, 08:37 AM
 
Location: Close to an earthquake
890 posts, read 678,100 times
Reputation: 2390
Quote:
Originally Posted by willc86 View Post
Hello, im quite young, and yet quite old.....
reason I said old is....I started out pretty late in life. Received my career at the age of 28. I am also now beginning to save for retirement.

I was wondering what is my best option for retirement
I'm sure this is not what you want to hear but I'll toss it into the suggestion hat. Cultivate a joy of living below your means and bank the surplus. That is first up in the batter's box in my opinion. Others here will offer the advice you're seeking.
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