Skip to content
Do you have adblock enabled?
 
If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(Some Investor)   'I'm a 39-year-old single dad with $600,000 saved - I want to retire at 50 but don't know how. What should I do?'   (flashnews11.com) divider line
    More: Interesting, Retirement, Pension, Ageing, Individual Retirement Account, Life annuity, present retirement plan, forms of funding accounts, Social security  
•       •       •

342 clicks; posted to Discussion » on 10 Jul 2022 at 3:25 AM (20 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



45 Comments     (+0 »)
View Voting Results: Smartest and Funniest
 
2022-07-10 1:09:47 AM  
First, get a million dollars...

bluebattinghelmet.files.wordpress.comView Full Size
 
2022-07-10 1:12:23 AM  
Phase out the avocado toast and you can retire right now.
 
2022-07-10 1:17:17 AM  
https://www.marketwatch.com/story/im-a-39-year-old-single-dad-with-600-000-saved-i-want-to-retire-at-50-but-dont-know-how-what-should-i-do-11628199905


Firs, farking consider that a Marketwatch article "First Published: Aug 6, 2021 at 6:00 a.m. ET / Last Updated: July 9, 2022 at 3:50 p.m. ET" and either plagiarized or robotranslated and rehosted (go on, Google it

https://www.google.com/search?q=I%E2%80%99m+a+39-year-old+single+father+of+1+16-year-old+son.+I%E2%80%99ve+%2470,000+in+liquid+financial+savings,+%24530,000+invested+in+particular+person+retirement+accounts+and+owe+%24210,000+on+a+house+price+%24500,000.+I+additionally+owe+about+%2420,000+on+my+automotive.)

on TOTALLY REPUTABLE NEWS SITES like moneysenator.com, flashnews11.com, and worldnewzinfo.com, but at least the original Marketwatch article from last farking year was the fourth thing to come up as a result, before interreviewed.com which is totally not typosquatting. But hey, no paywall, amirite? I'll bet they've got more budget to vet their advertisers than rinky-dink operators like Marketwatch.
 
2022-07-10 1:32:31 AM  

Demetrius: First, get a million dollars...

[bluebattinghelmet.files.wordpress.com image 500x375]


If I Had $1,000,000 - Barenaked Ladies [BEST ONE]
Youtube LHacDYj8KZM
 
2022-07-10 1:50:08 AM  
Don't buy a boat.
 
2022-07-10 3:01:59 AM  
If you're 39 and you have 600k "saved", then firstly you're lying your ass off. You didn't invent the toaster, the HTTP protocol, or crypto. Tell the truth, jackass - you were GIVEN a sh*tload of money. Just another capitalist pig, born on third base and think you hit a home run.
 
2022-07-10 3:44:16 AM  

Demetrius: First, get a million dollars...

[bluebattinghelmet.files.wordpress.com image 500x375]


Fark user imageView Full Size
 
2022-07-10 4:45:23 AM  

Stephen_Falken: If you're 39 and you have 600k "saved", then firstly you're lying your ass off. You didn't invent the toaster, the HTTP protocol, or crypto. Tell the truth, jackass - you were GIVEN a sh*tload of money. Just another capitalist pig, born on third base and think you hit a home run.


Take a chill pill Marx, that isn't exactly FU money.  An engineer or IT professional that started working right out of school and was frugal with their paycheck could absolutely save that much over almost 20 years, probably more.
 
2022-07-10 4:54:54 AM  
Real estate
 
2022-07-10 6:02:35 AM  

Beta Tested: Stephen_Falken: If you're 39 and you have 600k "saved", then firstly you're lying your ass off. You didn't invent the toaster, the HTTP protocol, or crypto. Tell the truth, jackass - you were GIVEN a sh*tload of money. Just another capitalist pig, born on third base and think you hit a home run.

Take a chill pill Marx, that isn't exactly FU money.  An engineer or IT professional that started working right out of school and was frugal with their paycheck could absolutely save that much over almost 20 years, probably more.


Spot on.  I did the military route and started later (but debt free), but let's consider parents that support a kid with community college/finish as state school with an IT/engineering degree.  Age 22, debt free.  Don't make dumb purchases (get small house, simple car, et al).

To simplify, let's use the 17 years of saving of approximately 19k for 401k (high, but ignores match or 401k retirement kick-in) plus 6k Roth IRA (25k per year) = 425k.  Again, that's assuming someone who saved the max each year.

Then add the #1 investing asset:  Time + compound growth.  Simplify by assuming the long term 10% market average.  Using those assumptions, this person only has half the money saved that they could.

I lived frugally, maxxed out my investments every year after I graduated, but started out very ignorant about investing and got taken advantage of, so I was more in line with the article amounts as well.  I started broke without a car, just a plane ticket to basic training.  Someone with a little help and guidance would do much better than me (or the person in the article).

I expect to retire safely at 60, without any crypto, without inventing the toaster or http -- just long term boring vanguard investing.  My friends all bought bigger houses, bigger/newer trucks or cars, boats, et al.  I'm buying time to enjoy life.  I also educate all the new college hire coworkers who are unaware of things like 401k matching, HSA accounts, et al, and help ensure they will do better than me and be able to retire at age 50.


Fark user imageView Full Size
 
2022-07-10 6:13:54 AM  
Keep working, because that's not going to go very far.
 
2022-07-10 7:32:25 AM  
get rid of the kid
 
2022-07-10 7:35:18 AM  
Put it all on a horse
 
2022-07-10 7:49:59 AM  

Biledriver: Put it all on a horse


Bet on black.
 
2022-07-10 7:55:30 AM  

cretinbob: Keep working, because that's not going to go very far.


That's a good point, so I ran another set of numbers.  Let's use their existing balance, assume the individual puts in less than the maximum (only $20k), and average annual growth is 2% lower than historical, running at 8%.

Yes, this year is doing poorly, But last 3 years the S&P average is 24% per year (not dividend re-invested) or 26.2% per year (dividend re-invested).  I would expect future lower years to return to the long-term average, so 8% is a decent compromise.
https://en.wikipedia.org/wiki/S%26P_500#Returns_by_year

His take home is $7,200 monthly, $86.4k per year, so we'll assume $125k just for a pre-tax total salary number that I very roughly guessed.  (i.e. adding back in taxes, 401k contribution, benefits like medical, et al).  By age 50, that's roughly what he can expect to generate in investment gains.  Working to age 55 cements the deal, especially if major bills are paid off (then a house).

Plus at age 50, let's estimate what other paycheck "expenses" are gone
-- Saving $20k per year in a 401k, because you're now living off the returns.   Thus a $125k salary without making the contribution is equivalent to only needing $105k for the same standard of living
-- If the house is paid off, but you the that could be another $12,000 per year that isn't due.  Let's say you still want to put money away for major repairs, so a $8k per year 'savings'
-- If the car is paid off, but you want to put away money for repairs or replacement, let's call that about $325/month or 4k per year savings.
-- That brings the needed income down to $93k

I'd still work a few more years to build an extra buffer for the increased costs like personal medical insurance.  But also savings on commuting to work.  Lot of variables but definitely by age 55, retirement looks viable.  I'd get a fiduciary, fee-based, professional financial advisor to give a better review, not a write-in column.


Fark user imageView Full Size
 
2022-07-10 8:20:09 AM  

Stephen_Falken: If you're 39 and you have 600k "saved", then firstly you're lying your ass off. You didn't invent the toaster, the HTTP protocol, or crypto. Tell the truth, jackass - you were GIVEN a sh*tload of money. Just another capitalist pig, born on third base and think you hit a home run.


It's really not that hard to save, say, $250k - $600k over 15-20 years (my numbers are a large range because everyone's base income is different.)  "Saving" also means investing the money, which compounds.

I haven't been GIVEN shiat and I've done a good job over the past 10 years.  The previous years before that being in bad financial relationships, but I've jettisoned that dead weight.

Maybe this dude just doesn't buy shiat he doesn't need.
 
2022-07-10 8:45:52 AM  

CrazyFark: Beta Tested: Stephen_Falken: If you're 39 and you have 600k "saved", then firstly you're lying your ass off. You didn't invent the toaster, the HTTP protocol, or crypto. Tell the truth, jackass - you were GIVEN a sh*tload of money. Just another capitalist pig, born on third base and think you hit a home run.

Take a chill pill Marx, that isn't exactly FU money.  An engineer or IT professional that started working right out of school and was frugal with their paycheck could absolutely save that much over almost 20 years, probably more.

Spot on.  I did the military route and started later (but debt free), but let's consider parents that support a kid with community college/finish as state school with an IT/engineering degree.  Age 22, debt free.  Don't make dumb purchases (get small house, simple car, et al).

To simplify, let's use the 17 years of saving of approximately 19k for 401k (high, but ignores match or 401k retirement kick-in) plus 6k Roth IRA (25k per year) = 425k.  Again, that's assuming someone who saved the max each year.

Then add the #1 investing asset:  Time + compound growth.  Simplify by assuming the long term 10% market average.  Using those assumptions, this person only has half the money saved that they could.

I lived frugally, maxxed out my investments every year after I graduated, but started out very ignorant about investing and got taken advantage of, so I was more in line with the article amounts as well.  I started broke without a car, just a plane ticket to basic training.  Someone with a little help and guidance would do much better than me (or the person in the article).

I expect to retire safely at 60, without any crypto, without inventing the toaster or http -- just long term boring vanguard investing.  My friends all bought bigger houses, bigger/newer trucks or cars, boats, et al.  I'm buying time to enjoy life.  I also educate all the new college hire coworkers who are unaware of things like 401k matching, HSA accounts, et al, and help ensure they will do better than me and be able to retire at age 50.


[Fark user image image 500x567]


My old roommate claimed to have saved up 400K by 35. He had a job at the age of 22 paying enough to cover bills twice over, and literally his only hobbies include t.v., video games and fishing.

Like, t.v.

And fishing.

Eating and sleeping.

Video games.

Family? Vacation? Vehicle? Appliances? Tools? Clothes? Laundry? Mowing Lawn? Shoveling snow? Having dishes? Paying for shoes?

Nothing. He exists. If it wasn't for the games, fishing, and food and job, he would only exist as a name somewhere in the county register.

It's a type of zen of seclusion that only exists on T.V. shows making fun of people with Autism. If his personality isn't literally one in a billion, it is not out of the realm of possibility someone somewhere picked up a white collar bullshiat job making 6 figures a year having that much saved up.
 
2022-07-10 8:48:46 AM  

CrazyFark: cretinbob: Keep working, because that's not going to go very far.

That's a good point, so I ran another set of numbers.  Let's use their existing balance, assume the individual puts in less than the maximum (only $20k), and average annual growth is 2% lower than historical, running at 8%.

Yes, this year is doing poorly, But last 3 years the S&P average is 24% per year (not dividend re-invested) or 26.2% per year (dividend re-invested).  I would expect future lower years to return to the long-term average, so 8% is a decent compromise.
https://en.wikipedia.org/wiki/S%26P_500#Returns_by_year

His take home is $7,200 monthly, $86.4k per year, so we'll assume $125k just for a pre-tax total salary number that I very roughly guessed.  (i.e. adding back in taxes, 401k contribution, benefits like medical, et al).  By age 50, that's roughly what he can expect to generate in investment gains.  Working to age 55 cements the deal, especially if major bills are paid off (then a house).

Plus at age 50, let's estimate what other paycheck "expenses" are gone
-- Saving $20k per year in a 401k, because you're now living off the returns.   Thus a $125k salary without making the contribution is equivalent to only needing $105k for the same standard of living
-- If the house is paid off, but you the that could be another $12,000 per year that isn't due.  Let's say you still want to put money away for major repairs, so a $8k per year 'savings'
-- If the car is paid off, but you want to put away money for repairs or replacement, let's call that about $325/month or 4k per year savings.
-- That brings the needed income down to $93k

I'd still work a few more years to build an extra buffer for the increased costs like personal medical insurance.  But also savings on commuting to work.  Lot of variables but definitely by age 55, retirement looks viable.  I'd get a fiduciary, fee-based, professional financial advisor to give a better review, not a write-in column.


[Fark user image image 486x586]


So not only is he contributing more than the max to his retirement accounts (the limits increase with inflation, he wasn't putting $19k into a 401k 15 years ago) he's also continuing to contribute after he retires? (You know, that time when most people are withdrawing from their retirement accounts.)

User name checks out.
 
2022-07-10 8:56:52 AM  

AppleOptionEsc: CrazyFark: ...It's a type of zen of seclusion that only exists on T.V. shows making fun of people with Autism. If his personality isn't literally one in a billion, it is not out of the realm of possibility someone somewhere picked up a white collar bullshiat job making 6 figures a year having that much saved up.


That's not living, that's existing.  Except for the fishing--we do a bunch of outdoor things and the kids loved fishing.

While saving, we've been all over the USA, around the world, done cruises, et al.  It can all be done without being extravagant.  Sporting events?  Minor leagues are cheaper and more fun for kids.  In Europe?  Rent the smallest, cheapest car you can.  They're fun and make memories.  While the in-laws do $25k Disney cruises with a balcony (pre-covid), we did Caribbean island hopping in the smallest, cheapest room without a window--it was a place to sleep, shower, change clothes.  The islands (or ship events) were where the fun was. And they have a lot of debt while we have savings.

Don't spend all your time saving for "the perfect time"--you might get in an accident, get a disease, et al, and never get to enjoy the money, never make those family memories.  Or, if you just isolate yourself, you'll never have a family (even if all you want is a spouse/no kids).
 
2022-07-10 9:07:16 AM  

CrazyFark: AppleOptionEsc: CrazyFark: ...It's a type of zen of seclusion that only exists on T.V. shows making fun of people with Autism. If his personality isn't literally one in a billion, it is not out of the realm of possibility someone somewhere picked up a white collar bullshiat job making 6 figures a year having that much saved up.

That's not living, that's existing.  Except for the fishing--we do a bunch of outdoor things and the kids loved fishing.

While saving, we've been all over the USA, around the world, done cruises, et al.  It can all be done without being extravagant.  Sporting events?  Minor leagues are cheaper and more fun for kids.  In Europe?  Rent the smallest, cheapest car you can.  They're fun and make memories.  While the in-laws do $25k Disney cruises with a balcony (pre-covid), we did Caribbean island hopping in the smallest, cheapest room without a window--it was a place to sleep, shower, change clothes.  The islands (or ship events) were where the fun was. And they have a lot of debt while we have savings.

Don't spend all your time saving for "the perfect time"--you might get in an accident, get a disease, et al, and never get to enjoy the money, never make those family memories.  Or, if you just isolate yourself, you'll never have a family (even if all you want is a spouse/no kids).


Not to shiat on your life, but my friend group doesn't exactly experience travel. Having 5 grand saved up for medical bills makes you a financial wizard. Some years, all you can afford to do is exist. At best, you go camping 2 hours away for your 2 day weekend. Drinking and going out to eat is a special event. Vacations across international borders is looking to be once in a lifetime. Literally.
 
2022-07-10 9:19:25 AM  

CrazyFark: cretinbob: Keep working, because that's not going to go very far.

That's a good point, so I ran another set of numbers.  Let's use their existing balance, assume the individual puts in less than the maximum (only $20k), and average annual growth is 2% lower than historical, running at 8%.

Yes, this year is doing poorly, But last 3 years the S&P average is 24% per year (not dividend re-invested) or 26.2% per year (dividend re-invested).  I would expect future lower years to return to the long-term average, so 8% is a decent compromise.
https://en.wikipedia.org/wiki/S%26P_500#Returns_by_year

His take home is $7,200 monthly, $86.4k per year, so we'll assume $125k just for a pre-tax total salary number that I very roughly guessed.  (i.e. adding back in taxes, 401k contribution, benefits like medical, et al).  By age 50, that's roughly what he can expect to generate in investment gains.  Working to age 55 cements the deal, especially if major bills are paid off (then a house).

Plus at age 50, let's estimate what other paycheck "expenses" are gone
-- Saving $20k per year in a 401k, because you're now living off the returns.   Thus a $125k salary without making the contribution is equivalent to only needing $105k for the same standard of living
-- If the house is paid off, but you the that could be another $12,000 per year that isn't due.  Let's say you still want to put money away for major repairs, so a $8k per year 'savings'
-- If the car is paid off, but you want to put away money for repairs or replacement, let's call that about $325/month or 4k per year savings.
-- That brings the needed income down to $93k

I'd still work a few more years to build an extra buffer for the increased costs like personal medical insurance.  But also savings on commuting to work.  Lot of variables but definitely by age 55, retirement looks viable.  I'd get a fiduciary, fee-based, professional financial advisor to give a better review, not a write-in column.


[Fark user image 486x586 ...


That's great when you're privileged.
 
2022-07-10 9:26:14 AM  

cretinbob: Keep working, because that's not going to go very far.


Yeah, if he needs $4k/month just to cover his bills and feed the family (guessing the kid isn't that old) then his money won't last that long.  Say for the sake of argument his current $600k ends up around $1.8M-$2M at age between what he has doubling and whatever else he adds on in the meantime that still a good 30 years he has to cover. Hopefully he has a 529 or something set up for the kid so they're not funding college or whatever they do on their own.
 
2022-07-10 10:03:30 AM  

Ken VeryBigLiar: cretinbob: Keep working, because that's not going to go very far.

Yeah, if he needs $4k/month just to cover his bills and feed the family (guessing the kid isn't that old) then his money won't last that long.  Say for the sake of argument his current $600k ends up around $1.8M-$2M at age between what he has doubling and whatever else he adds on in the meantime that still a good 30 years he has to cover. Hopefully he has a 529 or something set up for the kid so they're not funding college or whatever they do on their own.


One of the big things that gets left out is insurance. If you retire before you can get on Medicare, you are going to have to pay through the nose for private insurance until you do.
 
2022-07-10 10:21:38 AM  

Stephen_Falken: born on third base and think you hit a home run.


I like that phrase. Good enough to steal.
 
2022-07-10 11:02:03 AM  

Sawdust and Mildew: Stephen_Falken: born on third base and think you hit a home run.

I like that phrase. Good enough to steal.


It should say "triple" not "home run", but yeah, it's a good one!
 
2022-07-10 11:18:03 AM  
I use marketwatch to keep an eye on some of the stuff in my portfolio. I used to look for links for individual stocks. Now all they show is "such-and-such stock under- or over-performed the market yesterday" and they go to two- or-three paragraph bot-written nothingburgers; or possibly links to Motley Fool "articles," and if you put any trust in them, why not just do whatever the bald guy in short sleeves tells you to do, or just set it on fire?

Every other link on that site is junky clickbait. They especially love gossipy crap like this. They post this kind of stuff because obviously it gets clicks. I don't understand people.
 
2022-07-10 11:51:59 AM  

OdradekRex: Ken VeryBigLiar: cretinbob: Keep working, because that's not going to go very far.

Yeah, if he needs $4k/month just to cover his bills and feed the family (guessing the kid isn't that old) then his money won't last that long.  Say for the sake of argument his current $600k ends up around $1.8M-$2M at age between what he has doubling and whatever else he adds on in the meantime that still a good 30 years he has to cover. Hopefully he has a 529 or something set up for the kid so they're not funding college or whatever they do on their own.

One of the big things that gets left out is insurance. If you retire before you can get on Medicare, you are going to have to pay through the nose for private insurance until you do.


Yeah, that will be a kick in the teeth for 15 years. Unless he picks up consultant gigs to keep him from getting bored and have some walking around money this just sounds like a crappy plan in his part.
 
2022-07-10 1:21:18 PM  
Get rid of your debt. Find a Fiduciary. Stop with the internet help desk BS. You'll need a form of reoccurring revenue. What that looks like is an unknown for everyone on the internet and known only to you. You won't be living on your nest egg, you'll need that later on when RMD kicks in at 72. But you might be locking up part of it in return for lifetime income. You'll need to set aside 6 figures in a liquid account. Just an in case of emergency and discretionary spending account. You need 5k quick, you've got it and can slowly replace it overtime. You'll try not to spend down this account. Pay everything in full where possible and pay yourself back with interest. Don't pay interest to anyone except yourself. Use C/C that offer money back. Points are for suckers. Pay off the balance in full every month. Use it to buy and pay bills for everything you can for monthly expenditures.
I retired at 52. No debt, living poor by California standards. I get bored but it's a trade off between that or deal with pandemic lunacy. I'll take boredom and my own brand of lunacy. What you want to do is get richer as you get older. SS, RMD, all contribute as you age. My income will almost double, maybe more, by the time I hit RMD age.
 
2022-07-10 2:20:45 PM  

Ken VeryBigLiar: OdradekRex: Ken VeryBigLiar: cretinbob: Keep working, because that's not going to go very far.

Yeah, if he needs $4k/month just to cover his bills and feed the family (guessing the kid isn't that old) then his money won't last that long.  Say for the sake of argument his current $600k ends up around $1.8M-$2M at age between what he has doubling and whatever else he adds on in the meantime that still a good 30 years he has to cover. Hopefully he has a 529 or something set up for the kid so they're not funding college or whatever they do on their own.

One of the big things that gets left out is insurance. If you retire before you can get on Medicare, you are going to have to pay through the nose for private insurance until you do.

Yeah, that will be a kick in the teeth for 15 years. Unless he picks up consultant gigs to keep him from getting bored and have some walking around money this just sounds like a crappy plan in his part.



Or just go live almost anywhere else on the planet.

You can get the same quality healthcare in Panama for $50/month.
 
2022-07-10 3:27:39 PM  
Nothing is guaranteed.

Last month my retirement fund had $500k in it.  T Rowe Price index fund, three decades of deferred comp investing, just automatic payroll eduction in a "safe" fund, let it ride, don't try to time the markets. That was for us to live on plus my pension for the next two decades.

Putin invaded. This month, my retirement money is farking gone. Pretty much the entire nest egg. We put a tourniquet on the remaining dregs, parked them in T bills until we can get an advisor to draw up a survival plan. Looking at I-bonds at nine percent. Got some money from an estate that comes in quarterly, a meager few grand, thinking about putting that in defense stocks (but not Boeing). In retrospect, when I retired was the time to pull the funds and put them in a lock box in CD's or bonds, but the investment company was happy to keep us in the dark, and we failed to question it.  Learn from my mistake and from time to time, segment off your gains into safe little silos, so you have a place to re-spawn from if  the markets frag you.  In your 60's is too late to start from scratch.
 
2022-07-10 4:00:24 PM  

Any Pie Left: Nothing is guaranteed.

Last month my retirement fund had $500k in it.  T Rowe Price index fund, three decades of deferred comp investing, just automatic payroll eduction in a "safe" fund, let it ride, don't try to time the markets. That was for us to live on plus my pension for the next two decades.

Putin invaded. This month, my retirement money is farking gone. Pretty much the entire nest egg.


Uh, what? What was the $500k invested in that could go to nearly zero in that span? Were you leveraged?
 
2022-07-10 4:26:54 PM  

Any Pie Left: Nothing is guaranteed.

Last month my retirement fund had $500k in it.  T Rowe Price index fund, three decades of deferred comp investing, just automatic payroll eduction in a "safe" fund, let it ride, don't try to time the markets. That was for us to live on plus my pension for the next two decades.

Putin invaded. This month, my retirement money is farking gone. Pretty much the entire nest egg. We put a tourniquet on the remaining dregs, parked them in T bills until we can get an advisor to draw up a survival plan. Looking at I-bonds at nine percent. Got some money from an estate that comes in quarterly, a meager few grand, thinking about putting that in defense stocks (but not Boeing). In retrospect, when I retired was the time to pull the funds and put them in a lock box in CD's or bonds, but the investment company was happy to keep us in the dark, and we failed to question it.  Learn from my mistake and from time to time, segment off your gains into safe little silos, so you have a place to re-spawn from if  the markets frag you.  In your 60's is too late to start from scratch.


You're saying that a T Rowe Price indexed fund lost 100% of its value? Kinda think that would have hit the news in foot-tall screaming headlines, or rather, the bigger story of a total global economic collapse would have.

Those I-bonds are only at 9% until October, when the inflation-based part of the rate is recalculated and will almost surely go down. Not saying that I-bonds are a bad investment, just that the yield is crazy high this current six-month period.
 
2022-07-10 6:58:46 PM  

Scanty Em: Any Pie Left: Nothing is guaranteed.

Last month my retirement fund had $500k in it.  T Rowe Price index fund, three decades of deferred comp investing, just automatic payroll eduction in a "safe" fund, let it ride, don't try to time the markets. That was for us to live on plus my pension for the next two decades.

Putin invaded. This month, my retirement money is farking gone. Pretty much the entire nest egg. We put a tourniquet on the remaining dregs, parked them in T bills until we can get an advisor to draw up a survival plan. Looking at I-bonds at nine percent. Got some money from an estate that comes in quarterly, a meager few grand, thinking about putting that in defense stocks (but not Boeing). In retrospect, when I retired was the time to pull the funds and put them in a lock box in CD's or bonds, but the investment company was happy to keep us in the dark, and we failed to question it.  Learn from my mistake and from time to time, segment off your gains into safe little silos, so you have a place to re-spawn from if  the markets frag you.  In your 60's is too late to start from scratch.

You're saying that a T Rowe Price indexed fund lost 100% of its value? Kinda think that would have hit the news in foot-tall screaming headlines, or rather, the bigger story of a total global economic collapse would have.

Those I-bonds are only at 9% until October, when the inflation-based part of the rate is recalculated and will almost surely go down. Not saying that I-bonds are a bad investment, just that the yield is crazy high this current six-month period.


Um last i hear i bonds will most likely go up. Inflation is sticking for a while.
Worst thing to do in a down market it take money out. Gains and losses aren real untill you do so.
 
2022-07-10 7:02:57 PM  

Ken VeryBigLiar: OdradekRex: Ken VeryBigLiar: cretinbob: Keep working, because that's not going to go very far.

Yeah, if he needs $4k/month just to cover his bills and feed the family (guessing the kid isn't that old) then his money won't last that long.  Say for the sake of argument his current $600k ends up around $1.8M-$2M at age between what he has doubling and whatever else he adds on in the meantime that still a good 30 years he has to cover. Hopefully he has a 529 or something set up for the kid so they're not funding college or whatever they do on their own.

One of the big things that gets left out is insurance. If you retire before you can get on Medicare, you are going to have to pay through the nose for private insurance until you do.

Yeah, that will be a kick in the teeth for 15 years. Unless he picks up consultant gigs to keep him from getting bored and have some walking around money this just sounds like a crappy plan in his part.


Funny thing about the ama.. it caculates cost based on taxable income.
If your living on retirement money you may not have a lot of "income".  Roth ira / 401k can help here.
Im not saying its right but that is how it works.
 
2022-07-10 7:03:55 PM  

Stephen_Falken: If you're 39 and you have 600k "saved", then firstly you're lying your ass off. You didn't invent the toaster, the HTTP protocol, or crypto. Tell the truth, jackass - you were GIVEN a sh*tload of money. Just another capitalist pig, born on third base and think you hit a home run.


lowqualitybait.jpg
 
2022-07-10 7:34:21 PM  
Until Single Payer arrives retiring before Medicare is a biatch.
Saving enough to retire at 50 is hard (probably need $1.5M minimum). Paying for an ACA silver plan for 15 years probably pushes the needed amount up to $2M.
 
2022-07-10 8:26:29 PM  
Because all you need to do is make a plan.  Once you've got that, just follow it.  Nothing will ever affect it, because the plan is there.  The important thing is to WRITE IT DOWN.  That's the main thing.  Then you don't have to worry.
 
2022-07-11 12:13:50 AM  
AppleOptionEsc:
Not to shiat on your life, but my friend group doesn't exactly experience travel. Having 5 grand saved up for medical bills makes you a financial wizard. Some years, all you can afford to do is exist. At best, you go camping 2 hours away for your 2 day weekend. Drinking and going out to eat is a special event. Vacations across international borders is looking to be once in a lifetime. Literally.

No offense taken.  We have a coleman tent, inflatable mattress, and get out several times a year, usually on our way to a drivable destination in a car.  Living in the southwest, there's a lot of cool things to see and a lot of open camping on packed dirt roads (we have a 2002 2wd SUV used sparingly and 2010 Nissan car).  We had 4 kids in a 1300 sq ft house with bunk beds (doing better now). Destination vacations (even when inexpensive) are not common; if we do make it to Hawaii next year, it will be our first distance trip in I think 6 years--and I'm again looking to do it inexpensively.  Our last event was paddle-boarding with a groupon, unless you want to count day hiking.

But while you're pointing out yourself/friends struggling to financial survive in your above comment, the original comment I responded to was your roommate with 400K by 35.  That's roughly double where I was at that age.  And with a roommate, sounds like he's keeping expenses low and adding to his savings.  If accurate, then he's not financial struggling to exist. Sounds like he has work / life / outdoor life, and many people would envy that life.  I love my family, but have a single friend my age and we both joke about how the other's life looks appealing (I envy the freedom and quiet he gets sometimes, he never found the right woman to marry/have kids, but has always dated).

I was similar to your roommate in my late 20's (swap fishing for backpacking), but sought out groups of outdoor people, volunteered at habitat for humanity, got behind the scenes at a zoo, et al, all of which lead to dating opportunities with people that had shared interests and understood giving back, and eventually marriage/kids.

I'll run that same simple spreadsheet again.  Your roommate, age 35 (assumed 2022), 400k, adding only 10k per year to his investments, and earning an average of 7% per year in low cost S&P tracker.  All conservative estimates.  If the market average holds, he will be in an enviable financial position.  For those earning less--I get the struggle.  I started out tossing newspapers, yard work, and night janitor.  I still pull night watchman for extra money (which is why I was posting in the middle of the night) and tell my kids every time until they're sick of it -- "eating out is extra money, not part of the budget."  Their cost of the meal is listening to dad.

For your other friends that are struggling--keep fighting.  Go to community college, add skills (I still take training classes, my last kid is in her first CC year).  Keep applying to other jobs (threat of moving just got me a raise).  Invest what you can and be able to envision 20, 30 years down the road.  Low regulation capitalism sucks and I do fear a market bubble wiping me out someday, but it's the best path to be able to retire.  Good luck.

Fark user imageView Full Size
 
2022-07-11 1:01:30 AM  
"You're saying that a T Rowe Price indexed fund lost 100% of its value? Kinda think that would have hit the news in foot-tall screaming headlines, or rather, the bigger story of a total global economic collapse would have."


It kinda did. You might have missed the articles about how over a trillion dollars in savings by people like me vaporized, between covid and Ukraine.
 
2022-07-11 1:07:33 AM  

mcmnky: CrazyFark: cretinbob: Keep working, because that's not going to go very far.

That's a good point, so I ran another set of numbers.  Let's use their existing balance, assume the individual puts in less than the maximum (only $20k), and average annual growth is 2% lower than historical, running at 8%.


mcmnky: So not only is he contributing more than the max to his retirement accounts (the limits increase with inflation, he wasn't putting $19k into a 401k 15 years ago) he's also continuing to contribute after he retires? (You know, that time when most people are withdrawing from their retirement accounts.)

User name checks out.
...


mcmnky's comment is more difficult to respond to.
- They quoted the part where I use the article's stated existing balance. My assumption it was for 2022.
- But mcmnky's comments appear to be upset with a different post I made earlier.

I'll go with the "didn't read either comment closely/hit reply too quickly" and assume the response was supposed to go to my Weeners.

The part mcmnky is upset about appears to be a result of ignoring what I said:
"To simplify, let's use the 17 years of saving of approximately 19k for 401k (high, but ignores match or 401k retirement kick-in) plus 6k Roth IRA (25k per year) = 425k.  Again, that's assuming someone who saved the max each year."

So yes, the amount I used was not perfectly matched to the 17 years, but:
-- I don't know what year they started, so while the table could be closer, it still wouldn't be perfect
-- I don't actually know how much they put in each year, and of course amounts not invested (article mentions a large cash position) don't grow at the same rate, if at all.
-- Obviously, the market return per year is not a flat rate, and if this is recent then I'm a little low.  (5 year return is annualized 14.02%, 10 year is 12.94%, 15 year is 10.71%, 20 year is 11.55%)
-- I acknowledged/stated the 19k was was high for those reasons
-- I also said it ignored company match, or company retirement 401k kick in which adds 12% at my job, and some of my friends get up to 20%
-- I searched and the 401k limit for 2005 was 14k, and in 2006 it was 15k.  The IRA was likewise 4k.  If you want to do the work and build a full investment table, I'll acknowledge it's more accurate, but will be too low due to missing company match or company retirement kick-in.  Don't forget to use the correct annual return, and contact the individual to find out if they put all the money in during January, dumped in all in the year following April before taxes, or if they slide it in a little month by month--all of which will have an outsized effect on the return generated per year.  I chose to simplify instead because the discussion was only if it was possible to acquire that much money without a genetic lottery, actual lottery, or lucky tech investment, and I clearly stated "To simplify."

Lastly, the comment about "contributing after he retires."  The first table started at age 22 (assuming 4 year degree) and ran 25 years to age 47.  It was simply to show it's possible to have 600k by the time you're 35.  I ran it out a little further to show future effects.  The person wanted to retire at 50, so I actually cut it short.  It's possible mcmnky is confusing the two different posts, where in the second table I was addressing a different issue with a different set of assumptions.  There I started at the current age of 39 (age 39 is not age 22) and ran it to 65 because that's when many people choose to retire due to medicare.  It shows the total they could possibly have at each age, because the question is "can I afford" and the effects of working extra years is important.  Obviously the punch-out year would be the last year the individual contributed.  Two different charts, two different sets of assumptions, two different starting ages, two different return rates, two different annual kick-ins (mcmnky didn't point out I didn't increase it for future growth).  I was assuming the average Fark reader was smart enough to figure it out, and most of seemed to get it.

Instead of a snarky comment via my user name, see my earlier comments about continuing education and growing skills--to include the soft skills.  Find what you need, practice continuous improvement for yourself, get some good financial education and advice, and be your best person.  Good luck.
 
2022-07-11 1:30:06 AM  

Any Pie Left: "You're saying that a T Rowe Price indexed fund lost 100% of its value? Kinda think that would have hit the news in foot-tall screaming headlines, or rather, the bigger story of a total global economic collapse would have."

It kinda did. You might have missed the articles about how over a trillion dollars in savings by people like me vaporized, between covid and Ukraine.


YTD as of 7/8/2022 per https://investor.vanguard.com/etf/list
The worst Vanguard YTD return is -30.03% and thats the Extended Duration Treasury ETF.

S&p 500 tracker VOO is down -17.58%.  I have some money in VUG (S&P Growth) and it's down -26.67%, hurt by the rising interest rates.  All the growth funds are harder hit, while value funds (includes banking) lost but performed better.

T-Rowe Price is similar.
• ETF:  https://www.troweprice.com/personal-investing/tools/fund-research/etf
• Funds: https://www.troweprice.com/personal-investing/tools/fund-research

There is one outlier -- T-rowe price "Emerging Europe" which is down -86.67% YTD
• https://www.troweprice.com/personal-investing/tools/fund-research/TREMX

Assuming no leverage, if you had 100% of your investment/retirement in "Emerging Europe" (Eastern Europe/Former Soviet countries), then you were investing very risky and it's possibly you lost 86% of  your investment.
 
2022-07-11 7:05:13 AM  

Any Pie Left: "You're saying that a T Rowe Price indexed fund lost 100% of its value? Kinda think that would have hit the news in foot-tall screaming headlines, or rather, the bigger story of a total global economic collapse would have."


It kinda did. You might have missed the articles about how over a trillion dollars in savings by people like me vaporized, between covid and Ukraine.


I didn't miss any articles, and I have money of my own, which I track daily, in a few indexed funds. I am fully aware of how their value stands today compared to a year ago. I'm also fully aware of how some stocks, where I have only a small percentage of my net worth, have declined by 50% or more in the past two years. T Rowe Price's site shows that, of their indexed funds, the worst hit has lost 29% in the past year. Not 100%. 29%.

Is 29% kinda 100%?
 
2022-07-11 9:15:04 AM  
To retire 15 years early, you're going to need a lot more than 600k.
 
2022-07-11 12:23:35 PM  

AppleOptionEsc: My old roommate claimed to have saved up 400K by 35. He had a job at the age of 22 paying enough to cover bills twice over, and literally his only hobbies include t.v., video games and fishing.

Like, t.v.

And fishing.

Eating and sleeping.

Video games.

Family? Vacation? Vehicle? Appliances? Tools? Clothes? Laundry? Mowing Lawn? Shoveling snow? Having dishes? Paying for shoes?

Nothing. He exists. If it wasn't for the games, fishing, and food and job, he would only exist as a name somewhere in the county register.

It's a type of zen of seclusion that only exists on T.V. shows making fun of people with Autism. If his personality isn't literally one in a billion, it is not out of the realm of possibility someone somewhere picked up a white collar bullshiat job making 6 figures a year having that much saved up.


This is exactly what I imagine most of these "retire early" or "become a millionaire by 30" projections expect you to do. Either A) be born incredibly rich, or B) eschew most of the things that make life enjoyable like travel, hoard your money like Smaug, then reach an age where you're so set in your ways you'll just continue living like that forever but maybe you'll splurge on a corvette because you've got a mountain of cash saved up and you feel you've gotta do something with it.

Just sounds like a terrible way to live.
 
2022-07-11 1:42:48 PM  
 
Displayed 45 of 45 comments

View Voting Results: Smartest and Funniest

This thread is archived, and closed to new comments.

Continue Farking




On Twitter


  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.