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If I skipped this, please forgive me... didn't see it on the first page or two, or this last one. I used the bankrate calculator listed in the OP; I wasn't sure what to put for an expected rate of return, since I've only been putting money in for a few years I'm not sure what to plan for. Second, I'm not sure how much I need. At my current investment rate, if I receive a 5% rate of return and retire when I'm 65, my wife and I will only have 600k. If that rate is 10%, that jumps up to 2.4 million. How much should I plan on needing?
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May 13, 2009 02:16
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Can anyone look at my question earlier on this page, as well? I might've been skipped... I'm just trying to find out how much I need. I know what it says I'll be at, but I don't know if there's a % of my normal current expenses to plan on, etc. Also, what rate of return should I work with on these calculators?
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May 19, 2009 18:22
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Is there a site that helps me figure THAT part out? Stupid newbie at all of this, and I'd rather make sure I'm right.
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May 19, 2009 19:41
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I've been reading quite a bit, but I'm slightly confused by a few things. If anyone can shed some light, that would be great. - My wife and I pay gross ~100k per year - We currently pay 9% of our income into a 401k - We will be out of credit card debt in February I've looked at retirement calculators and I'm just not sure of a few things: 1) What should I assume the rate of return will be? 2) How much should I plan on having per year at retirement? They ask for a percentage, but I don't know if there's a good rule of thumb. We will have our house paid off in another 20 years, so we shouldn't have tons of bills or anything. 3) What ROTH should I use? I've heard Vanguard is great, I believe. Putting in 15% is sufficient? Sorry for all of the questions. I can put it in it's own thread (if I don't get any answers, I guess I will!). Thanks guys.
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Sep 23, 2009 19:52
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I base this off of my gross and not net, then, correct? If I make 100k, I put in 15k per year? Or do I put in 15% of the 60k (or whatever # it is) that we make? If I currently pay 9% into 401k, and I open a Roth, would we only need to put 6% in for the 15% goal, or is this in addition to that? I'm sorry for being so clueless. I need to buy a few books and learn what the heck I'm doing.
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Sep 24, 2009 15:01
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My wife's self-directed retirement fund at work has around 15k in it currently. I'm looking at the allocations and realize neither of us has any clue how they should be set up. Right now it's 50% into Allegiant Treasury Money Market Fund, and 50% into PIMCO Total Return Fund. There's about 20 other options as well. How the hell do I know which one I want? I want to get this and our 401k's set up correctly, and then finish it off with a ROTH IRA. I figure with our 2 401k's, this retirement account of hers and a ROTH, we should be okay for retirement. I really hope so at least. Anyway, anyone able to shed some light on this for me? I can list the options if it would help, but I don't want to spam unnecessarily. EDIT: For what it's worth, our performance YTD has been 5.93%, which I'm assuming probably isn't that great? 3-month is 2.86%. Solaron fucked around with this message at 21:45 on Dec 2, 2009 |
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Dec 2, 2009 21:43
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SecretFire posted:Don't try and make decisions based on performance, just develop a plan for how you want your assets allocated, and find the lowest-fee method of sticking to that plan. As for developing a plan, the first post can help you with that. Just read the article. I think my problem is figuring out what the hell the difference really is, so I just go off of past performance! Sounds like it's a bad idea. Let me check some of the information out in the OP and see what I can figure out. Thanks!
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Dec 3, 2009 03:15
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80k posted:I'm guessing it is a qualified tax-deferred account, so the default choice should be to rollover to a Rollover IRA (which is a traditional IRA) and only convert to Roth if it makes sense (i.e. you are in a low tax bracket and you are able to pay the tax bill with money outside the account). If you're too clueless for Vanguard and don't want to gently caress something up horribly, are there other options with more guidance? If not, I guess I get to learn to not be as clueless. Probably a good idea in the long run, but my time is precious.
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Dec 14, 2009 15:56
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Our 401k at work finally switched over (it's been a months-long process as Vanguard takes over our retirement accounts, our pension and retirement plans changed, etc). If you guys could help me out I would appreciate it. Here's my existing 401k asset mix: 93% short term reserves, .7% bonds and 6.3% stocks. I've only got 2 funds that I'm putting money in which is Vanguard Retirement Savings Trust IV and the Vanguard Target Retirement 2050 Fund. The majority of my balance is in the first, which, from the description, appears to be very conservative. I'm 30 and don't plan on retiring until 65 (if I can). I put 6% of my income to the 401k, the company matches 5% and I have another 3% of my salary contributed to a self-directed retirement plan by my company as well. This is just how my funding transferred over to Vanguard, I can change the allocations and funds easily, but I don't know which ones to look at or target. My wife's mixture is totally different, but she's been at this company a lot longer than I and has more money in her account. Neither of us understand enough to know if we've got our allocations set correctly. I don't know what to aim for - Vanguard says 'Hey, you'll want 85% of your income in retirement' which my calculators say is just not going to happen without me throwing in a poo poo ton more money every month. Where should I go to learn more about what to do? Thanks.
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Feb 23, 2012 14:51
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nelson posted:As far as allocations go, you'll want mostly domestic stock (S&P 500, Russel 2000), some foreign stock and some bonds/fixed income (the rule of thumb is your age in bonds). A good starting place would be age% in bonds, then divide the rest equally among the other 3 index funds. We have debt, but not a lot compared to our income. We make ~130k/yr together, we each save ~14% of our income via 401k/employee match and the self-directed retirement plan. Our debt is $50k in student loans between the two of us, $65k on a home and $20k between our 2 cars. I've changed the allocations to be more stock heavy and move out of some of the short-term things we had. Vanguard has a 2045 Retirement Fund that appears to be a decent deal - I assume those work out pretty well, since as we get closer to the retirement date the fund will gradually move from stocks to more bonds, etc, yes? Thanks for your help. 
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Feb 23, 2012 16:02
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2 questions. Please forgive me if they're incredibly dumb (hint: they are). 1) 'emergency' backup: is it ok to consider credit cards an emergency reserve? we have a few grand in the bank, but no credit card debt now and, with good interest rates and very high limits, would plan on using those in a bad situation. Our money now is going to pay off student loans, house/car/medical bills, etc. 2) Aren't 401k and these other retirement options fairly new? I know the whole 'past gains/future returns' thing, so nothing is guaranteed anyway, but how many generations of Americans have retired using these as their income source and how reliable are they long-term? Maybe that question doesn't make sense. I worry a lot about retirement, more than I probably should since I'm only 30.
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Mar 13, 2012 20:10
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Guy Axlerod posted:The company I work for got bought out a few months ago. Now they are going to combine the 401(k) plans into one new plan. My company was purchased a few years ago (along with a few other big companies) and they're finally integrating all of the financials/benefits/etc into the parent companies, as of last month. My wife's and my 401k was moved from PNC to Vanguard. The funds mapped over pretty well and it was very painless and smooth. They definitely can and will move your investments around, but you -should- have ample time to decide what allocations you want and get things figured out.
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Mar 29, 2012 14:12
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