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Old 12-25-2016, 11:13 PM
 
2,294 posts, read 1,559,623 times
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Quote:
Originally Posted by lieqiang View Post
Well the word "grim" is somewhat open-ended. For example I wouldn't consider anyone who could afford to throw money into precious metals investments as short on cash, if their lifestyle is suffering is more because of poor choices.
A whooooooole series of them.
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Old 12-26-2016, 01:47 AM
 
4,649 posts, read 6,479,224 times
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Just understand this. A person can have the best laid plans and the markets can decline. God help you if you put 100% faith in a 401k plan. You put the money in and take all the risk with most people having no clue about investing. Next to top that off there are the fees and potential taxes at distribution.

2008-9 should have been an overall wake up call but of course wall street just told people to just keep sending them money. Fees, Fees, Fees..

To top it off what we're the financial guru's saying? They never saw anything coming. Yet as people lost jobs and financial value the talking heads still hawked their wares. At retirement be debt free and seek out guaranteed income. Once you know what you have to work with you can work most anything.

I saw first hand a forced retirement and it wasn't pretty. I'm not there yet but retirement time is no joke. Lack of funds and a broke down body is scary. As for me. It's make as much as I can and live the best I can.

Hopefully I can have enough to afford at age 65 a 25 year-old gold digger. Take me and use me up till you just can't use me no more. You can't take it with you.

Oh yea as for inheritance with wealthy parents. Consider a life insurance policy and consult with an estate planning attorney and insurance professional. Every problem has a solution. Thing in many cases information isn't free.
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Old 12-26-2016, 02:13 AM
 
6,353 posts, read 5,156,240 times
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Quote:
Originally Posted by Caltovegas View Post
Just understand this. A person can have the best laid plans and the markets can decline. God help you if you put 100% faith in a 401k plan. You put the money in and take all the risk with most people having no clue about investing. Next to top that off there are the fees and potential taxes at distribution.
It's not a matter of faith. A 401(k) plan is the vehicle most people have for saving, so they'd better use the vehicle wisely.

It is possible to accumulate a small fortune in 401(k) money. Buy index funds to minimize fees. Hold fixed income and cash as well as stocks; nobody should be 100% in stocks, and relatively few people should be 75% or more in stocks. Don't withdraw the money early. It is not possible to completely avoid taxes, but deferring them until you're in a lower tax bracket is usually a good idea.
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Old 12-26-2016, 02:22 AM
 
2,443 posts, read 2,069,466 times
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You don't have to have millions to retire. Don't listen to the naysayers on here, for all we know they are not that well off at all and use a computer at the library to post as much as they can to hopefully make some money with reputation posts.

Kind of sad that they have all this wealth they say and spend the majority of their time on a forum patting themselves on the back.

I could think of better things to do if I had millions.

Last edited by jasperhobbs; 12-26-2016 at 02:56 AM..
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Old 12-26-2016, 02:35 AM
 
71,511 posts, read 71,674,131 times
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Quote:
Originally Posted by Larry Siegel View Post
It's not a matter of faith. A 401(k) plan is the vehicle most people have for saving, so they'd better use the vehicle wisely.

It is possible to accumulate a small fortune in 401(k) money. Buy index funds to minimize fees. Hold fixed income and cash as well as stocks; nobody should be 100% in stocks, and relatively few people should be 75% or more in stocks. Don't withdraw the money early. It is not possible to completely avoid taxes, but deferring them until you're in a lower tax bracket is usually a good idea.
i would disagree on the allocation if you are still young .

there is zero reason not to be 100% equity's if you have 15 years or more to go .

bonds are as i say " a means of mitigating temporary short term drops that permanently reduce long term gains " .a long term investor has no need to protect against short term temporary drops with anything that permanently reduces their gains . there just is no logic to that if you really think about it .

as morningstar's investor returns show us , as a group balanced fund owners do not stick around in tough times anymore than more aggressive stock fund owners do .

so unless you are truly gun shy ,over the long term bonds hurt not help you accumulate money .


in order for bonds to really improve things for a long term investor they have to be a good market timer .
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Old 12-26-2016, 02:26 PM
 
6,353 posts, read 5,156,240 times
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Quote:
Originally Posted by mathjak107 View Post
i would disagree on the allocation if you are still young .

there is zero reason not to be 100% equity's if you have 15 years or more to go .

bonds are as i say " a means of mitigating temporary short term drops that permanently reduce long term gains " .a long term investor has no need to protect against short term temporary drops with anything that permanently reduces their gains . there just is no logic to that if you really think about it .

as morningstar's investor returns show us , as a group balanced fund owners do not stick around in tough times anymore than more aggressive stock fund owners do .

so unless you are truly gun shy ,over the long term bonds hurt not help you accumulate money .


in order for bonds to really improve things for a long term investor they have to be a good market timer .
Bond yields are so close to zero that this advice sounds right for the time being, but should long-term investors have 0% in bonds when yields are 6%?
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Old 12-26-2016, 03:57 PM
 
71,511 posts, read 71,674,131 times
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Depends. If inflation is 7% than no they shouldn't.

Long term , meaning a typical accumulation period of decades stocks will always out perform bonds . There really would be no reason to hold bonds if you had long periods of time on your horizon.

Unless you were a market timer and a good one at that mitigating temporary drops by holding bonds would make little sense since they are guaranteed to reduce those long term gains.

Bonds only make sense when the shorter term matters
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Old 12-26-2016, 04:50 PM
mlb
 
Location: North Monterey County
3,179 posts, read 2,853,807 times
Reputation: 4876
Live BELOW your means - well below. There there will be no surprises.

I started having heart palpitations about our lack of saving when we reached our mid-40's. We married at 35 and spent 10 years relocating and trying to have a family. The result was no kids - and a husband who couldn't find work..... the early days before the recession hit.

The simple truth was I had to save as if he had a 401K. So I doubled the percentage - 20-30% savings rate so that we would end up as if he had saved right along with me.

That took some very hard belt buckling....and was not easy. But then we discovered we were "lucky" to not have dependents.... because if we had - we could not afford to save.

We're about 3 years out from full retirement and I think we'll be ready. It's nowhere near a million. But I'll have a three -legged support - 401K, pension and SS from my spouse (my SS will be well underfunded because my employer does not contribute).

But my figuring is that we will be bringing in just about what we have now on a monthly basis. No surprises.
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Old 12-26-2016, 05:20 PM
 
Location: On the road
5,926 posts, read 2,887,264 times
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Quote:
Originally Posted by Caltovegas View Post
Just understand this. A person can have the best laid plans and the markets can decline. God help you if you put 100% faith in a 401k plan.
401k is about tax deferment, not risk. Given two participants in same 401k plan one person might be 100% emerging markets and another 100% stable value fund.
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Old 12-26-2016, 09:33 PM
 
10,058 posts, read 4,654,843 times
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Quote:
Originally Posted by lieqiang View Post
401k is about tax deferment, not risk. Given two participants in same 401k plan one person might be 100% emerging markets and another 100% stable value fund.
or have an annuity in the 401k, that seems to be the new selling item
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