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a) With no prospects or credentials, going to work for the Federal government as an apprentice in my late twenties. Almost did not accept the appointment.
b) Marrying my wife (yes, this is a big business decision as others on here will attest).
c) Realigning my Thrift Savings per the advice of this redneck at work (really smart guy who understood money). I mainly did this because he had his foot in my back. Years later after his retirement, I went out of my way to thank him.
d) Buying back my military time. My friend refused to buy back his and is paying for it.
e) Not buying a time share when a salesman was pressuring my wife and me.
f) Retiring early as opposed to waiting. People I run into say I look a lot better. I feel it.
g) Switching my Thrift Savings in late August from the C fund to G. I am going to call it luck.
h) Learning from you guys and gals City-Data.
All the above were key to me having a successful retirement.
This is more like a lesson for someone like me who is looking as to what are few financial things needs to be done which will decide our retirement.
Consistently maximizing IRA and/or 401(k) contributions every year over many years has yielded success. Being a long-term investor is the way to proceed. Other than a mortgage, long-term don't have any other loans is possible. Don't carry a balance on your credit cards. Learn to live on the net after all savings and investment yearly goals have been met.
Not buying a house the minute a could afford one, and then buying way less house than I could afford when I did eventually buy. The money went into the stock market instead and way outperformed real estate.
b) Marrying my wife (yes, this is a big business decision as others on here will attest).
c) Realigning my Thrift Savings
d) Buying back my military time.
Yep, yep and yep.
Not retired just yet, but soon. The 21+ years of military time I bought back will pay for itself in the very first year of retirement. E-7 pay compared to GS-14 (equivalent) at high 3 was a no brainer. My wife has her own pension (over 20) and TSP.
Quote:
Originally Posted by JohnnyLackland
g) Switching my Thrift Savings in late August from the C fund to G. I am going to call it luck.
I considered it and lagged.
Down about 90K before I caught it. They limited the change inputs to every two weeks.
Worst: Partnering with an old couple to build a spec house. They had a history of conniving people and we innocently got caught in their web. Took us for everything, after laboring over a year building the house with our own hands. NO PARTNERS!!!
Best: Choosing a retirement we could afford in South America.
Along with that, living below our means prior to retirement, by living in a mobile home rather than build that dream home; which was a 10-yr. blow to my ego, but I survived. Ending up with no debt or mortgage.
Our income is low, but it is all disposable, so it seems like a lot more.
Hi,
This is a general question which I always wanted to ask for people who have retired or have enough to retire.
What was the best or worse financial decision you took in your life which eventually helped your retirement?
This is more like a lesson for someone like me who is looking as to what are few financial things needs to be done which will decide our retirement.
TIA
Not retired yet, that is (about) eleven years off. We shall see how long I can stand this rat-race of work, but ten more years of 401K and other savings should polish it off plus set me up for early SS, at 62.
Best financial situation, then as now, will be the house I bought some years ago in metro Seattle. It is perfect for 30-somethings with several kids, the usual demographic in my neighborhood. Similar to previous paragraph, I'm not "sure" what it will be worth, but I am virtually certain I am bolting this place an hour after I'm ready and should be at least a million in the clear, perhaps a million-five. If we continue the SF-like prices here and the market will bear it, two million in which case I'm in freakin' fat city.
The smart move was buying when I did ("when there's blood in the streets, buy land") though it was scary at the time due to massive uncertainty in markets. What wasn't uncertain: the neighborhood, location, and generally great condition of the asset. This town will always be valuable, it has not lost one iota of it's cache then to now, and I don't see why it would in the future.
I bet I'll need to peel off $10-25K to clean the rough edges, years from now, but who cares? That shouldn't take more than a month, spring of 2029, and by about May 1 this sucker is listed and (maybe) sold quick, I'm homeless, and on the road who knows where on a monthly budget for the rest of my life. A-ok with me.
PS (the complete opposite: worst decision(s)): to me, wives and children are sheer fiscal idiocy. I have seldom, if-ever, met a woman who is willing to fully partner with me, at my (substantial) salary or more, to build a dual equity base. In every case, *I AM* her retirement plan. Cannot stress enough how unacceptable this is to my long-term fiscal happiness.
Overall best decision was marrying an earner and having no children. Next best decision was jumping in on IRA's (using Mutual Funds) for as much as we could and stop playing with risky stocks at the same time. Best financial event (though not exactly planned) was buying a home for $180K and selling it 6 years later for $480K. Hit that bubble perfectly.
In my mid 20s, parental admonishment. Observing there was no further education ambition, action was needed. General two year degree not a springboard to future financial comfort, the Carry Trade was introduced. Deep conversations ensued. Never rely on Social Security.
Terrified yet enthusiastic, the noggin began to launch out of elementary slumber. Shaping of a formula (written plan), growing a high information base, understanding earnings vs performance propelled a decades long education in how to save.
Logic was, when you pay cash you can only pay as much money as you have available.
Decisions equate to money preparedness. Understanding Roth, IRA and tools to identify sources, for your ongoing advantage will literally pay off. Having a grip on inflation, skillfully invest and taxation will make life more interesting. Patience to never dip into these accumulations, constantly compounding, lead to early retirement.
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