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Old 08-06-2017, 01:14 PM
 
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Quote:
Originally Posted by elnrgby View Post
Yes, but reality works in such ways that an IRA generally earns about 4%-5% per year (maybe 8% in a fantastic year like this one, but it is not the average), when it doesn't lose 40% as in 2008-9. Neither kId will get that kind of return from an IRA, plus there are taxes to pay which diminish the final net gains further. In general, if you want that kind of returns, you have to be a professional investor with your attention glued to the market at all times, without any other occupation or interest in life (I do know some people of that kind, and they are not much different from heroin addicts). If investing were so easy and gains so predictable, everyone would have the assets of Warren Buffett.
the s&p has averaged about 12% the last 30 years through crashes ,wars ,and recessions and yes , 2008 . .

more diversified stock holdings did even better . the words ira's generally earns about 4-5% is meaningless .

ira's can be anything you want . mine was 100% equities since 1987 . this year my growth model is up 14% not 8%, the s&p 500 is up 12% and nasdaq 19% so not sure why you say 8%
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Old 08-06-2017, 01:30 PM
 
Location: Forests of Maine
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Quote:
Originally Posted by scgali View Post
I would want $5M plus a paid off home to feel comfortable. My grandma is 100 years old now and I've handled her finances for a while so see all the costs associated with getting older. And she owned apartment complexes and worked on/managed those until she was 85. She now has money in estate bonds generating between 3.5-5.5% and she gets social security about $1200 a month and a very small pension from 40 years ago. So she has a good monthly income but the care home is $4k per month and she's had more falls so more ER trips. More trips to specialists for hearing and vision (often not covered by Medicare). After seeing how much it costs her just in living and health care I'm quite stressed about having enough to retire.
We're going the route of buying rental properties to generate that monthly income and are on track to retire at 50 but I'm sure I will keep working.
I think that $5Million is a bit over the top.

When my paternal grandparents retired [on SS] they owned 28 rentals. By the time they reached their mid-90s, healthcare had absorbed most of their portfolio.

My grandfather had a term life insurance policy that he had started when he was in his 40s. He thought it was a 'huge' policy, and I guess for that decade was may have been huge. But when he died it just barely covered his funeral.
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Old 08-06-2017, 01:51 PM
 
2,443 posts, read 2,068,483 times
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Quote:
Originally Posted by mathjak107 View Post
the s&p has averaged about 12% the last 30 years through crashes ,wars ,and recessions and yes , 2008 . .

more diversified stock holdings did even better . the words ira's generally earns about 4-5% is meaningless .

ira's can be anything you want . mine was 100% equities since 1987 . this year my growth model is up 14% not 8%, the s&p 500 is up 12% and nasdaq 19% so not sure why you say 8%
Past performance does not guarantee future performance will be similar. Shoot for 8%, anything over that is great.
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Old 08-06-2017, 02:03 PM
 
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i say shoot for even less when projecting future returns with valuations this high and rates this low , but the statement that past returns in ira's were so low is wrong .

an ira is only a type of tax status of an account not an investment . many diversified funds did very very well .

you have to read first before trying to dispute my answer .



Quote:
Originally Posted by elnrgby View Post
Yes, but reality works in such ways that an IRA generally earns about 4%-5% per year (maybe 8% in a fantastic year like this one, but it is not the average), when it doesn't lose 40% as in 2008-9.

Last edited by mathjak107; 08-06-2017 at 02:14 PM..
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Old 08-06-2017, 02:24 PM
 
1,695 posts, read 608,532 times
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In response to NewbieHere: Don't know much about Roth (people whose annual income is above certain limit cannot have a Roth, and that would include me). I have a self-employment SEP-IRA with T.Rowe Price (which is supposed to be a very good one as far as IRAs go), into which I stopped putting money after several years when I saw that the gains were not any better than with deferred annuities, while the IRA fluctuates unpredictably with the market, and the annuity payments are fixed and guaranteed. My IRA has gained about 50% total in ten years (which is pre-tax, so the net gain will be even lower).

In response to mathjak107: sorry, yes, it is true that IRA is only a tax status, and the account could be in any type of investment. When I said an average IRA, I should have said an average IRA offered and completely managed by a company that offers an IRA for a target-date retirement. The T.Rowe Price pamphlets that they occasionally send me seem to say that the T.Rowe Price target-date IR As compare favorably with those from other financial companies, so my returns should be similar to average returns from any such account. But sure, you can manage your own IRA with different investments, and that is a different story. At any rate, obtaining a 1000% gain from any investment over 30 years would require the amount of time and effort which I personally am not willing to devote to money; I have a life.

Last edited by elnrgby; 08-06-2017 at 02:39 PM..
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Old 08-06-2017, 02:28 PM
 
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then you made some poor choices in what you picked . you could have pretty much bought any diversified equity fund and had 2x those returns .
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Old 08-06-2017, 02:58 PM
 
1,695 posts, read 608,532 times
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It doesn't really matter, that account is less than 10% of my assets, and I opened it only out of curiosity about IRA, not out of any real need. It is a beautiful afternoon in Boston, I am going out now, and this is my last post on this thread. Hanging out on financial websites or discussion boards on a day like this is exactly an example of the waste of time that I have tried to avoid by basing my retirement primarily on annuities, so au revoir, have a long healthy life, and hope all discussion participants will be as happy with their choices as I am with mine :-).
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Old 08-06-2017, 03:15 PM
 
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Quote:
Originally Posted by mathjak107 View Post
then you made some poor choices in what you picked . you could have pretty much bought any diversified equity fund and had 2x those returns .
Oh boy, here we go again.
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Old 08-06-2017, 05:20 PM
 
125 posts, read 50,809 times
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Quote:
Originally Posted by eliza61nyc View Post
LOL, feeling the Monday morning blues on a Tuesday...

So I'm seriously considering retiring when I hit 58. If your living expense were $6,000 a month, what would be your comfort zone. the 6K includes everything, soup to nutz. mortgage, insurance, healthcare, kids college tuition and vacation fund.

Would not really want to move so for the foreseeable future, I'm stuck in a High cost of living area (Northeast)

Will have a pension of 2K

throw some numbers at me.....I may pass out but reach for the stars!!
100K considering there is a constant flow of monies from 3 different sources.

Meaning enough to keep me alive coming from my retirement acct should SS fail

Meaning enough to. keep me alive from my two rental trailers in case my retirement account should fail

I need very little to survive so 100K is fine with me. But I'd want a few backups so I can eat

and pay my property tax. Healthcare is covered so no worries there

.

Last edited by TruckeeWannabee; 08-06-2017 at 05:30 PM..
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Old 08-07-2017, 12:28 AM
 
6,353 posts, read 5,154,974 times
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Quote:
Originally Posted by jasperhobbs View Post
Past performance does not guarantee future performance will be similar. Shoot for 8%, anything over that is great.
Shoot for 6%. Inflation of 2%, dividend yield of 2%, real capital appreciation of 2% - yes, 2%. The stock market can't grow faster than GDP indefinitely.

Have a plan if the actual stock market return is less than 6%.
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