For investment, take advantage of index funds. Either from Vanguard or from Fidelity Sparta. They are low cost and not been matched by other funds. They have a solid return over LONG term.
Retirement Planning for ex-JW's
by Simon 37 Replies latest social family
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kaik
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prologos
Save $1,000 a month for 25 years and get 7% returns and you will have nearly $1m to retire on over and above any state provisions you may be entitled to. Simon.
Many savers can not reach that goal of 7% not when the prime is .5 % and the banks give mortgages under 3%. Too much saving might cost you in reduced government guaranteed old age supplements. Move to a country with publicly financed health care. apply to be a refugee.
Be wary of mutual funds, charging 2% per year, In 25 years it will eat away half your investments, compounded.
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kaik
Expenses on 401K, ROTH IRA, and Mutual funds do indeed eat a significant portion of the saving. Bank interests on deposits are ridiculously low. Also there is not guarantee on 7% growth on specific funds. Even BRIC funds are big losers, and they barely generate growth on long term due volatility. 7% return on investment is desirable, but difficult to achieve consistently. Vanguard and Fidelity have a good index funds matching overall economy and they have so far the best return. Also today's 1 million will have purchasing power of 625,000 in 25 years or so. -
Simon
Many savers can not reach that goal of 7% not when the prime is .5 % and the banks give mortgages under 3%
Saving doesn't have to be high-street bank accounts. I gave examples of peer2peer lending which can achieve 6% on cash deposits. Stock market investments should hopefully earn more over a longer period.
Getting good returns is part of the trick - if you save a small fortune but only earn 0.5% interest then really your money is shrinking and being eaten away by inflation (2-3%)
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prologos
I gave examples of peer2peer lending which can achieve 6% on cash deposits. Stock market investments should hopefully earn more Simon yeah, If you do not have to cash out your energy stock when oil prices are down.
A 6% return is doable, in real estate related papers. I know of a $ 70 000.- account that has given the mandatory senior payout of 7000,- per year for a decade, and has still 50 000 in the balance. money is magnetic, it attract money.
The best retirement advice imo: get a government job, municipal, federal, state, province. invest your disposable income in real estate; buy and rent out, when you sell,-- you hold the mortgage, double your selling income. If you are the money person, do not get divorced.
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Simon
If you do not have to cash out your energy stock when oil prices are down
Part of investing is to make sure you don't have to do that. As you get closer to retirement you transfer funds into less volatile investments.
If you don't then there is always a chance that the stock market takes a tumble just before you plan to retire and you have to postpone your plans.
If you are the money person, do not get divorced.
Ah, true love, LOL
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kaik
There is a huge truth for people not divorce if they want to build a wealth. The only winner in the divorce is gold digger, but common divorce, division of equity, layers, moving, etc, it its grenade on your finances. Two people manage better expenses, utilities, housing, and tax deduction.
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Simon
Another option to consider is micro-loans to entrepreneurs in 3rd world countries.
I don't know what the typical rater of returns are but at least your money might be doing some good along the way.
http://www.worldvisionmicro.org/
There's even an Atheist lending team: