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Thank you. I honestly think I could have done a lot better, although i realize my net worth is well above average for my age and income.
Jacob at Early Retirement Extreme is sort of my role model, although I admit I am not willing to do the things he did to be able to retire or semi-retire before 40.
You did really well to save that much on a $52K salary. However you choose to invest it, best of luck. I'm hoping for a good year of investing once we get past the debt ceiling debate. At least for now, my strategy for 2013 is focused on trading in SPPI, VELT, ATRS, MNKD, with long shot buy-and-hold bets on PZG, BRCD, MSON. And so far looking good ... $58K richer since that last post.
Last edited by mitchmiller9; 01-12-2013 at 03:41 PM..
You did really well to save that much on a $52K salary. However you choose to invest it, best of luck. I'm hoping for a good year of investing once we get past the debt ceiling debate. At least for now, my strategy for 2013 is focused on trading in SPPI, VELT, ATRS, MNKD, with long shot buy-and-hold bets on PZG, BRCD, MSON. And so far looking good ... $58K richer since that last post.
Thanks. I hope for a good year, too...but I tend to be a bit pessimistic. I feel that stock valuations are getting a bit high...not crazily overpriced, but not inexpensive, either.
I found out the hard way that I am REALLY BAD at investing in individual stocks. I don't have the temperament for it...but if you do....more power to you!
I got about a 12% return in my TSP last year and a little more than 17% return in my ROTH-IRA. Let your money work for you, not you work for your money. Obviously I don't think I can get these types of returns year after year, but if I can get 8-10% that's still not too bad IMO.
I broke the 100K mark in my TSP last year which was a personal milestone. I'm 33 in a few months so if I can keep on track, I don't see why I can't live a comfortable retirement in the future. I've been thinking of opening up a regular brokerage account and trying my hand there. I'm not too comfortable buying individual stocks, but a couple of index funds would be tame enough.
If anyone just sits with a calculator and ask themselves how much they need to retire on, it's scary. I would say one needs at $1-1.5 million in cash/assets to retire at age 60-65 and live another 20-25 years. $1 million dollars over 25 years is $40k a year so we are not even talking about living lavishly here. And I'm assuming we cannot rely on the government here. Whatever benefits we get will be insignificant.
Sure some people can save this money but how many really can, especially the way the markets and the world has turned. Some people even retire abroad in Panama and Thailand because they can't afford it. My question is that are you saving for retirement and how do you plan on funding it?
Up to the past few months, I had no idea. It's been a hard row. The job I have now, government, if I can stomach it for 25 years.....sigh....boy....that's a lot of time...I will be able to retire comfortably. But dang, that's a lot of time.
Up to the past few months, I had no idea. It's been a hard row. The job I have now, government, if I can stomach it for 25 years.....sigh....boy....that's a lot of time...I will be able to retire comfortably. But dang, that's a lot of time.
35-40 years of possible retirement is even longer. Think future and comfort and stay the course.
No, people need to explain how regular joe with wife and two kids can save X amount every month, invest it in the real world without turning into a day trader and end up with 1.5 million in 30 years. Answer? Can't be done. The man will end up with 300K if he's lucky. With a pension, no sweat. without one, you're hosed. Most have no pension. Most are hosed sans in the most aggressive of savings behavior.
The 401K model is predicated on the idea that regular joe has to save 40% of his/her net income for 40 years to get to 1.5 million compounded. That's Fantasyland numbers. Regular Joe is lucky to save 10% to 20% (best case) and still afford to substantiate his livelihood enough not to alienate his family into divorce or destitution. This is not conjecture, 401K balances prove the worthless condition of 401K plans for the median earner, all by themselves.
If someone can show me how a median earner can get to a balance of 1.5 million bucks in 30 years on less than 30% of their net income, I'm all ears.
35-40 years of possible retirement is even longer. Think future and comfort and stay the course.
My friend/coworker and I worked for the government, where I retired after only 30 yrs in service at age 49. Under CRS my initial pension was pretty small until I reached age 60 and 62 when I started to collect my other 2 pensions and with the aid of the annual COLAs it quadrupled my combined pensions! My friend/coworker under FERS is still working over 40 yrs now and by the time he retires at age 62 his TSP will be over in the 1 million dollar mark! It was his choice and he doesn't mind working where as I hated working for the government, but fortunately it paid off at my old age even though I retired early! I may not have a million dollars to my name, but my monthly pension will suffice!
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