Retirement account(s)

Without getting too personal how are you structuring retirement funds?
I was watching Suzi Orman and she said a full matching 401k not a % more. And then an after tax Roth. However some people invest in other things. I work for wages and help from my employer is all I can do with a 401k. Haven't started the Roth and maybe I'm too old now at 53.

 

Is Suzi still on? I thought she went off a few years ago.
What do you mean by "help from my employer is all I can do"? Are they contributing to your account? Is there a percentage match?
Don't pass up any "free" money that you can get in a match.
And I guess I agree with Suzi overall because the above is exactly how we have our retirement accounts structured.

 

Yes,my employer matches up to 6 %, ends up being dollar for dollar up to 3$s, and my account grew 6 1/2% thus far for this year. Also I willbe debt free in 10 yrs. Providing nothing happensto change that.

 

You might consider the asset allocation mix in the 401k if you have that flexibility. How much in stocks, bonds, money market, real estate, fixed or variable annuities, etc. At a younger age, you might want more in stocks with greater growth potential. As you get older, the focus might be more on retirement security with less risk and reallocating a greater percentage to guaranteed (annuity) and fixed income (bonds) and the various options within each.

My retirement fund is a TIAA-CREF 403b (limited to employees of educational institutions and 501(c)(3) organizations) and I meet with a financial adviser annually to review the performance and discuss the asset allocation.

 

You all are talking way over my blue collar head. That's okay though. . In my fantasy my world is rich with reduced meals and social services life is good.

 

I have a mate who is a financial planner. In Oz, the government mandates that all employers pay 12% of employees salaries into a retirement fund (Superannuation). By and large this is placed into indexed funds, though the employee (or whoever manages their money) ca tweak it for higher risk etc. It is possible to pay extra into this (there are tax benefits and government matching of some non-compulsory contributions).

Anyway, my mate reckons you are better off paying down debt (in my case the house mortgage) before making contributions to this. Mine is already a decent chunk of money, just from the employer contributions. Hoping the mortgage will be gone shortly - then the building a retirement nest egg begins a bit more in earnest.

Definitely the earlier you start the better off you are, but starting now is better than not starting at all

 

I read my mortgage truth in lending statement, on a 30 yr mortgage a borrower pays double of the Capitol and pays the lender first. As an American home owner the maintenance and taxes and insurance is also our responsibility. My particular home on one acre has gone down in value. I can see paying down or off debt being better than retirement contributions. Depending on other things. I will never get the money back that I have put in. In ten more yrs I will have paid 1/4 of a million dollars for something worth about 80000$. The American dream must be the dream of a Banker. It's a fucking nightmare to me.

 

We've passed our quarter mil goal between the 401k and and ira accounts. Goal is 1m by 55/60.

 

I don't have anything like a 401k/IRA/Superannuation or equivalent, since I never paid into any of these schemes.

Having worked in income tax-free countries while receiving decent compensation packages, it was pretty easy to save up a significant % of income. A small amount is in cash savings while the rest is spread out on mostly properties located in stable, low-growth economies, 1 investment property in a high-growth market, and equity stakes in 2 companies.

Other than that, I'm not really planning on any long-term investments. Maybe a bit in the stock markets here and there just to see.

Honestly, if Iran's international political status was much better, I would instantly liquidate 75% of my assets and deposit it all in a bank account there. No joke.

 

Iranian banks have a mechanism for a guaranteed 20% p.a. return on savings and currently more than 20 years of track record to go with it. I lived there for a short time as a teen and am still connected with the German-Iranian community; everyone with wealth makes use of this mechanism to some degree. The mechanism also applies to any USD and EUR deposits, so exchange rates aren't much of a consideration. The combined stability and growth it provides is certainly very tempting.

However, my rationale isn't based on financial merits, but on politics. Iran's a country to stay far away from, especially when you're involved with Gulf business interests and do military contracting with the Americans.

Sigh.

 

Iran signed a contract with Boeing to purchase 100 new planes, maybe that info can help.

 

Thanks Popeye. Unfortunately, big corporations have very different considerations than a private individual. Especially when you are major US defense contractor, the business dealings are valued at $17bn+, and are directly approved by the US government.

While relations have improved a lot since the nuclear deal with Iran, the ongoing Syria situation has the US military and consequently their personnel still look at Iran as a very hostile party, a mentality which extends to the US contracting officers as well.

 

Living in the country all these years has been great, raising my own chickens. But I am considering selling my home and moving to Tulsa. This will change my retirement plan. My son being here is changing everything.