The New Exchange » Dow Hits 20000 for First Time

The Man · 1/25/2017 5:04 pm

I don't put much stock (pun intended) into the performance of the market, good or bad, on any President. As long as it trends up on average until I retire in 20 years, I'm happy. It's done well since I've started saving and investing 23 years ago at 16 years old. No one gets hurt on a roller coaster, unless they jump off.

tennyson · 1/25/2017 5:34 pm

The Man wrote:
I don't put much stock (pun intended) into the performance of the market, good or bad, on any President. As long as it trends up on average until I retire in 20 years, I'm happy. It's done well since I've started saving and investing 23 years ago at 16 years old. No one gets hurt on a roller coaster, unless they jump off.

Not exactly true.

If you are invested in 401K like most Americans are at a certain age you MUST start minimum distributions which IF you live long enough escalate to 50% of the value of your account. So big downturns and slow recoveries can devastate a retirement savings very quickly and most are NOT contributing after a certain point so the only way back up is with the market (at the same time you are pulling money out) and it makes it even doubly hard to recover.

The Man · 1/25/2017 6:01 pm

tennyson wrote:
The Man wrote:
I don't put much stock (pun intended) into the performance of the market, good or bad, on any President. As long as it trends up on average until I retire in 20 years, I'm happy. It's done well since I've started saving and investing 23 years ago at 16 years old. No one gets hurt on a roller coaster, unless they jump off.
Not exactly true.

If you are invested in 401K like most Americans are at a certain age you MUST start minimum distributions which IF you live long enough escalate to 50% of the value of your account. So big downturns and slow recoveries can devastate a retirement savings very quickly and most are NOT contributing after a certain point so the only way back up is with the market (at the same time you are pulling money out) and it makes it even doubly hard to recover.

I believe 70 years old is the age when withdrawals are mandatory from a 401k. Even so, if the average person starts investing 10% of their income from the time they start working, they will be set by the time they are in their 60s. They won't even need Social Security, that would just be icing on the cake, play money. With a 401k, it is necessary to adjust investments as you age, from less stocks to more stable investments.

tennyson · 1/25/2017 6:28 pm

The Man wrote:
tennyson wrote:
The Man wrote:
I don't put much stock (pun intended) into the performance of the market, good or bad, on any President. As long as it trends up on average until I retire in 20 years, I'm happy. It's done well since I've started saving and investing 23 years ago at 16 years old. No one gets hurt on a roller coaster, unless they jump off.
Not exactly true.

If you are invested in 401K like most Americans are at a certain age you MUST start minimum distributions which IF you live long enough escalate to 50% of the value of your account. So big downturns and slow recoveries can devastate a retirement savings very quickly and most are NOT contributing after a certain point so the only way back up is with the market (at the same time you are pulling money out) and it makes it even doubly hard to recover.

I believe 70 years old is the age when withdrawals are mandatory from a 401k. Even so, if the average person starts investing 10% of their income from the time they start working, they will be set by the time they are in their 60s. They won't even need Social Security, that would just be icing on the cake, play money. With a 401k, it is necessary to adjust investments as you age, from less stocks to more stable investments.

Well, let's hope you don't hit what I laid out in your retirement years. It is interesting also what people think are stable investments but that will have to be a different topic (I say this because those that think bonds are stable may have taken a beating recently).

Rongone · 1/25/2017 6:33 pm

The Man wrote:
tennyson wrote:
The Man wrote:
I don't put much stock (pun intended) into the performance of the market, good or bad, on any President. As long as it trends up on average until I retire in 20 years, I'm happy. It's done well since I've started saving and investing 23 years ago at 16 years old. No one gets hurt on a roller coaster, unless they jump off.
Not exactly true.

If you are invested in 401K like most Americans are at a certain age you MUST start minimum distributions which IF you live long enough escalate to 50% of the value of your account. So big downturns and slow recoveries can devastate a retirement savings very quickly and most are NOT contributing after a certain point so the only way back up is with the market (at the same time you are pulling money out) and it makes it even doubly hard to recover.

I believe 70 years old is the age when withdrawals are mandatory from a 401k. Even so, if the average person starts investing 10% of their income from the time they start working, they will be set by the time they are in their 60s. They won't even need Social Security, that would just be icing on the cake, play money. With a 401k, it is necessary to adjust investments as you age, from less stocks to more stable investments.

How old are you? When did you start investing?
70-1/2 is the age at which you must begin to make required withdrawals from your IRA. You must transfer your 401k into an IRA type investment plan upon leaving your employer. Adjusting investments is not so much due to age, but due to your risk tolerance. Most people move from equity investing to income producing investments. Some equities provide a stable income producing revenue stream through healthy dividends. Believe me, you'll probably need your social security, unless you're an executive with a large corporation, or a retired public employee . . . As long as your pension plan is fully funded, and none are.

The Man · 1/25/2017 6:45 pm

Rongone wrote:
The Man wrote:
tennyson wrote:
Not exactly true.

If you are invested in 401K like most Americans are at a certain age you MUST start minimum distributions which IF you live long enough escalate to 50% of the value of your account. So big downturns and slow recoveries can devastate a retirement savings very quickly and most are NOT contributing after a certain point so the only way back up is with the market (at the same time you are pulling money out) and it makes it even doubly hard to recover.

I believe 70 years old is the age when withdrawals are mandatory from a 401k. Even so, if the average person starts investing 10% of their income from the time they start working, they will be set by the time they are in their 60s. They won't even need Social Security, that would just be icing on the cake, play money. With a 401k, it is necessary to adjust investments as you age, from less stocks to more stable investments.

How old are you? When did you start investing?
70-1/2 is the age at which you must begin to make required withdrawals from your IRA. You must transfer your 401k into an IRA type investment plan upon leaving your employer. Adjusting investments is not so much due to age, but due to your risk tolerance. Most people move from equity investing to income producing investments. Some equities provide a stable income producing revenue stream through healthy dividends. Believe me, you'll probably need your social security, unless you're an executive with a large corporation, or a retired public employee . . . As long as your pension plan is fully funded, and none are.

I'm 39, on track to retire comfortably when I'm 60, average to slightly above average income. With a 401k, the key is to invest at least 10% of your income as soon as you start working, even into an IRA at your first part time job when you're a teen, and never stop. Start high on stocks, 90-95% stocks, until you reach 40, then gradually step the stocks down into more stable funds. Also, diversify your mutual funds. It really isn't that difficult, just discipline. The vast majority of people won't put away 10% of their income even if they easily can.

Last edited by The Man (1/25/2017 6:48 pm)

tennyson · 1/25/2017 7:00 pm

The Man wrote:
Rongone wrote:
The Man wrote:

I believe 70 years old is the age when withdrawals are mandatory from a 401k. Even so, if the average person starts investing 10% of their income from the time they start working, they will be set by the time they are in their 60s. They won't even need Social Security, that would just be icing on the cake, play money. With a 401k, it is necessary to adjust investments as you age, from less stocks to more stable investments.

How old are you? When did you start investing?
70-1/2 is the age at which you must begin to make required withdrawals from your IRA. You must transfer your 401k into an IRA type investment plan upon leaving your employer. Adjusting investments is not so much due to age, but due to your risk tolerance. Most people move from equity investing to income producing investments. Some equities provide a stable income producing revenue stream through healthy dividends. Believe me, you'll probably need your social security, unless you're an executive with a large corporation, or a retired public employee . . . As long as your pension plan is fully funded, and none are.

I'm 39, on track to retire comfortably when I'm 60, average to slightly above average income. With a 401k, the key is to invest at least 10% of your income as soon as you start working, even into an IRA at your first part time job when you're a teen, and never stop. Start high on stocks, 90-95% stocks, until you reach 40, then gradually step the stocks down into more stable funds. Also, diversify your mutual funds. It really isn't that difficult, just discipline. The vast majority of people won't put away 10% of their income even if they easily can.

Good luck in your next 21 years to achieve your goal. Your ideas are right on, but even given that expect the unexpected. Too bad more do not sock the same amount away. Last advice - stay healthy (some things however are not in your control anyway) as it can also create real unexpected financial downfalls.

Rongone · 1/25/2017 7:05 pm

The Man wrote:
Rongone wrote:
The Man wrote:

I believe 70 years old is the age when withdrawals are mandatory from a 401k. Even so, if the average person starts investing 10% of their income from the time they start working, they will be set by the time they are in their 60s. They won't even need Social Security, that would just be icing on the cake, play money. With a 401k, it is necessary to adjust investments as you age, from less stocks to more stable investments.

How old are you? When did you start investing?
70-1/2 is the age at which you must begin to make required withdrawals from your IRA. You must transfer your 401k into an IRA type investment plan upon leaving your employer. Adjusting investments is not so much due to age, but due to your risk tolerance. Most people move from equity investing to income producing investments. Some equities provide a stable income producing revenue stream through healthy dividends. Believe me, you'll probably need your social security, unless you're an executive with a large corporation, or a retired public employee . . . As long as your pension plan is fully funded, and none are.

I'm 39, on track to retire comfortably when I'm 60, average to slightly above average income. With a 401k, the key is to invest at least 10% of your income as soon as you start working, even into an IRA at your first part time job when you're a teen, and never stop. Start high on stocks, 90-95% stocks, until you reach 40, then gradually step the stocks down into more stable funds. Also, diversify your mutual funds. It really isn't that difficult, just discipline. The vast majority of people won't put away 10% of their income even if they easily can.

I'm 70. I've invested up to 15% of my salary into 401k's. Invested money when I sold business & properties. With the ups & downs in the market, you win some and you lose some. You sound like you've bought into whatever your broker has told you. That's not a bad thing . . .i was once a licensed registered representative with Merrill-Lynch so I understand the talk and try to understand the market. From my experience, nobody knows where it's going to go, but everybody has an opinion. Your advice on diversity is the most valuable. Good luck with your future investment and savings.

The Man · 1/25/2017 7:06 pm

tennyson wrote:
The Man wrote:
Rongone wrote:

How old are you? When did you start investing?
70-1/2 is the age at which you must begin to make required withdrawals from your IRA. You must transfer your 401k into an IRA type investment plan upon leaving your employer. Adjusting investments is not so much due to age, but due to your risk tolerance. Most people move from equity investing to income producing investments. Some equities provide a stable income producing revenue stream through healthy dividends. Believe me, you'll probably need your social security, unless you're an executive with a large corporation, or a retired public employee . . . As long as your pension plan is fully funded, and none are.

I'm 39, on track to retire comfortably when I'm 60, average to slightly above average income. With a 401k, the key is to invest at least 10% of your income as soon as you start working, even into an IRA at your first part time job when you're a teen, and never stop. Start high on stocks, 90-95% stocks, until you reach 40, then gradually step the stocks down into more stable funds. Also, diversify your mutual funds. It really isn't that difficult, just discipline. The vast majority of people won't put away 10% of their income even if they easily can.
Good luck in your next 21 years to achieve your goal. Your ideas are right on, but even given that expect the unexpected. Too bad more do not sock the same amount away. Last advice - stay healthy (some things however are not in your control anyway) as it can also create real unexpected financial downfalls.

Thanks Tennyson. Yep, unexpected financial hardships can hit anyone, but saving money and borrowing minimally (preferably not at all) minimize the hardships. And health problems, that's a good point as well. We can plan all we want, but God, fate, or whatever higher power that one believes in (or no higher power at all) may not agree with our plans. I guess we can't plan for everything (unless we're wealthy, and even then probably not), just have to do the best that we can.

Last edited by The Man (1/25/2017 7:08 pm)

The Man · 1/25/2017 7:11 pm

Rongone wrote:
The Man wrote:
Rongone wrote:

How old are you? When did you start investing?
70-1/2 is the age at which you must begin to make required withdrawals from your IRA. You must transfer your 401k into an IRA type investment plan upon leaving your employer. Adjusting investments is not so much due to age, but due to your risk tolerance. Most people move from equity investing to income producing investments. Some equities provide a stable income producing revenue stream through healthy dividends. Believe me, you'll probably need your social security, unless you're an executive with a large corporation, or a retired public employee . . . As long as your pension plan is fully funded, and none are.

I'm 39, on track to retire comfortably when I'm 60, average to slightly above average income. With a 401k, the key is to invest at least 10% of your income as soon as you start working, even into an IRA at your first part time job when you're a teen, and never stop. Start high on stocks, 90-95% stocks, until you reach 40, then gradually step the stocks down into more stable funds. Also, diversify your mutual funds. It really isn't that difficult, just discipline. The vast majority of people won't put away 10% of their income even if they easily can.

I'm 70. I've invested up to 15% of my salary into 401k's. Invested money when I sold business & properties. With the ups & downs in the market, you win some and you lose some. You sound like you've bought into whatever your broker has told you. That's not a bad thing . . .i was once a licensed registered representative with Merrill-Lynch so I understand the talk and try to understand the market. From my experience, nobody knows where it's going to go, but everybody has an opinion. Your advice on diversity is the most valuable. Good luck with your future investment and savings.

Thanks Rongone. I know that nothing is a certainty. I just know that on average, if you save and invest without stopping, you will win. Of course that's not fool-proof, but I can guarantee that if you don't save and invest at all, on average you will not win.