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6 Critical Rules For Successful Retirement Investing

Sunday, November 24, 2013 - 6:02 AM
Retirement planning is the process of identifying your long term income, determining your intended lifestyle and defining how to reach those goals. When planning for retirement, you’ll need to consider a variety of factors, such as when you’ll retire, where you’ll live and what you’ll do. Keep in mind with each additional year you hope to retire early, your investment needs greatly increase.

ShorebreakShorebreak2,671 posts since
Apr 6, 2010
Rep Points: 14,479
1. Sunday, November 24, 2013 - 11:04 AM
Not sure if anyone knows the correct amount to save. It all has to do with returns. I know that both my husband and I did fine but my husband and all of his co-workers contributed 20% of their wages to their self funded multi-employer retirement plan plus the non match 401 K after it was started in the late 80's for the 7 years until he was disabled. They all contributed double that when they had overtime income and I fully funded my IRA since 1979 and for my husband when it was lawful. I think that was in 1980 or 1981. I did this even  for the 10 years it was not deductible and then to Roth's until I retired in 2008. For the last 10 years I was able to join the 401K at one of my jobs.  At first  I was able to contribute 10% then 20% to the 401K that was matched at 3%. The 2nd job we both had did not have retirement plans. Just a short time were we in the market and mostly GIC's with my husband's pension plan and were mostly in CD's especially the IRA's. I could switch the match of my 401K  the next day and went to their account that was similar to a savings account. Only in 2008 did I play in the market with the company stock (bank) because it was very volatile and we could trade until 3:55 every day. So it was a no-brainer. 

It is so hard with the depressed wages today to live below your income to be able to contribute so much for retirement. Also hard to find a second job. 

I think we did OK cuz I saved all my babysitting, paper route and grocery store wages saved and had 30% downpayment for our first house when we married at 18 and after we paid for land and paid off the house we built our second house and contracted out some of it. We moved in the basement the day they hit water and had heat 12 months later. We took baths in laundry tubs and heated water on the one burner that worked on the electric stove. But have never regretted it. Our children learned to appreciate things. 
Ally6770Ally6770930 posts since
Jan 16, 2010
Rep Points: 2,706
2. Monday, November 25, 2013 - 1:32 PM
"You can improve your chances of enjoying a comfortable future if you make the effort to learn about your investing choices, start planning early, keep your emotions in check and find help when you need it."

I have a strange suspicion that the highlighted portion was the goal this artcile was aiming at.

Anyhow, I think that it is prudent to talk to the no-fee finacial advisor from one's 401K portfolio; e.g., my Fidelity 401K advisor.  The problem with me is that I have some doubt that they will tell me anything that I do not know already; and I do not invest by the common rules.

51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427