Retirement

[TCRanch]

Don't underestimate conservative stocks & municipal bonds. Understand that whatever your investment(s), you will occasionally lose a ton of money - on paper. But it always bounces back. Eventually. Absolutely do not rely on the statement from your investment firm as your perceived retirement income. Talk to your CPA & anyone managing your money!!! Retiring without debt is a plus. And BTW, "retirement" is sometimes overrated (got the t-shirt!).

 

[504RP]

6/15/21
Average value of a 401k plan is currently $33,000
average age of 401k participants: 44

Average value of a Vanguard Retirement Fund is $130,000
account owner average age: unknown

Total Stock Market Index Fund year to date 13.76% 5 yr average 17.36%
Total Bond Index Fund ytd -2.02% 5 yr average 3.23% 10 yr 3.24%
Balanced Index Fund 60% stocks 40% bonds ytd 7.30% 5 yr 11.80%

Buying the dip: Total Stock Market Index Fund is up 43.97% from year ago

30% of adults have $0 saved in a retirement plan (other than social security)

How did you come up with the average 401k plan value being 33,000 ?

 

[Dave]

And BTW, "retirement" is sometimes overrated (got the t-shirt!).

I am retired and own a ranch. There is an oxymoron for you. Monday I helped gather and then brand the calves from a bunch of escapee pairs. Yesterday I worked on getting an old sprayer working. Today I hauled a load of mixed odd ball cows and calves to the sale for a couple neighbors. Tomorrow morning I will assist in branding 100 +/- calves. People who figure that they can just kick back and relax during retirement don't seem to last very long.

There is a 92 year old lady here. The family runs around 500 mamma cows. Grandma rakes very stem of hay they make. They winter on the hay fields. She drags every acre once the cows go out to range. During the winter she helps feed every day. That is my idea of retirement.

 

[Son of Butch]

How did you come up with the average 401k plan value being 33,000 ?

The same source as the average age of account owner being 44 yrs old, report on the IRS.

 

[504RP]

I would never thought that i have a 401k that i have had for around 25 years and have 450,000 in it the last time i checked it.

But even when i first enrolled in it. Seems like I was well over 33,000 after the first 4 or 5 years.

The thing about a 401 k plans growth is being vested in the right investments at the right time.

When i first enrolled in the plan I wasn't given a choice of choosing to manage the plan myself or letting the firm the plan was with manage it.

So i had to decide what funds and how much i wanted to invest in myself. Which was more guess work than knowing what i was doing.

That's about the way it was for the first 5 years after which we were given the option to give the investment firm an estimated retirement date as something to go by in order how much risk to take when they invested it.

Some of my co workers decided to keep managing their 401 themselfs. Most of which have regretted have going that route.

I turned mine over to the professionals and am glad I did. Although during the times of a bear market like what happened as a result of the presidential election. The thought of whether or not I done the right thing crossed my mind.

But I know now that unless your really knowledgeable about investments. That last thing you want to do is gamble with your money by not knowing anything about investing.

I have seen alot of people loose alot of money tring to be big shots.

 

[Caustic Burno]

Don't underestimate conservative stocks & municipal bonds. Understand that whatever your investment(s), you will occasionally lose a ton of money - on paper. But it always bounces back. Eventually. Absolutely do not rely on the statement from your investment firm as your perceived retirement income. Talk to your CPA & anyone managing your money!!! Retiring without debt is a plus. And BTW, "retirement" is sometimes overrated (got the t-shirt!).

Made a lot in municipals over the years.

 

[Son of Butch]

When i first enrolled in the plan....
I had to decide what funds and how much i wanted to invest in myself.
Which was more guess work than knowing what I was doing.

Long long ago, first Vanguard Fund I bought was the Windsor II because I liked
Canadian whiskey.

 

[TCRanch]

I am retired and own a ranch. There is an oxymoron for you. Monday I helped gather and then brand the calves from a bunch of escapee pairs. Yesterday I worked on getting an old sprayer working. Today I hauled a load of mixed odd ball cows and calves to the sale for a couple neighbors. Tomorrow morning I will assist in branding 100 +/- calves. People who figure that they can just kick back and relax during retirement don't seem to last very long.

There is a 92 year old lady here. The family runs around 500 mamma cows. Grandma rakes very stem of hay they make. They winter on the hay fields. She drags every acre once the cows go out to range. During the winter she helps feed every day. That is my idea of retirement.

Bingo! Hubby was 54, I was 40 when we "retired" and bought the ranch. Hardest work ever!

 

[Stocker Steve]

There is a 92 year old lady here. The family runs around 500 mamma cows. Grandma rakes very stem of hay they make. They winter on the hay fields. She drags every acre once the cows go out to range. During the winter she helps feed every day.

Sounds like a great catch!

 

[Caustic Burno]

Bingo! Hubby was 54, I was 40 when we "retired" and bought the ranch. Hardest work ever!

After the March 23, 2005 mess and dealing with government bureaucracy , I said I don't have to do this anymore.
When Deep Water blew out they called and wanted to know if I would come back to the refinery. My reply was are you nuts! I am still in recovery from the mad house.
My job was wonderful the alphabet government agencies were hell. Their right hand had no idea what the left was doing.

 

[shaz]

I would never thought that i have a 401k that i have had for around 25 years and have 450,000 in it the last time i checked it.

But even when i first enrolled in it. Seems like I was well over 33,000 after the first 4 or 5 years.

The thing about a 401 k plans growth is being vested in the right investments at the right time.

When i first enrolled in the plan I wasn't given a choice of choosing to manage the plan myself or letting the firm the plan was with manage it.

So i had to decide what funds and how much i wanted to invest in myself. Which was more guess work than knowing what i was doing.

That's about the way it was for the first 5 years after which we were given the option to give the investment firm an estimated retirement date as something to go by in order how much risk to take when they invested it.

Some of my co workers decided to keep managing their 401 themselfs. Most of which have regretted have going that route.

I turned mine over to the professionals and am glad I did. Although during the times of a bear market like what happened as a result of the presidential election. The thought of whether or not I done the right thing crossed my mind.

But I know now that unless your really knowledgeable about investments. That last thing you want to do is gamble with your money by not knowing anything about investing.

I have seen alot of people loose alot of money tring to be big shots.

Now the big thing is target date funds as the default for every 401K. I had the option of dumping those and buying whatever I wanted but only a specific number of funds could be used for automatic investment. FYI - I have Fidelity.

 

[504RP]

Now the big thing is target date funds as the default for every 401K. I had the option of dumping those and buying whatever I wanted but only a specific number of funds could be used for automatic investment. FYI - I have Fidelity.

I use Charles Schwab I think that's how you spell it. Every since I turned everything over to them. My 401k really took off.

 

[Caustic Burno]

I use Charles Schwab I think that's how you spell it. Every since I turned everything over to them. My 401k really took off.

I use Edward Jones, now with that said they all sell the same products. The search is more for the reputable advisers.
Great guy manages several family members and has done a fantastic job for all.

 

[Brute 23]

I use Edward Jones, now with that said they all sell the same products. The search is more for the reputable advisers.
Great guy manages several family members and has done a fantastic job for all.

Your right. If you have one that keeps your interests in mind... you are lucky. They make their money from the funds... not you... so it's real sketchy who they actually work for.

EJ and many others get caught in huge lawsuits regularly for pushing certain funds that the company wants them to because of how they get their kickbacks.

If you have received one of those checks from EJ and wondered why... it was a fund they shoved down you throat and got caught.

 

[bird dog]

Yep thats a trick they use. They sell decent performing fund that has high expenses. Maybe it matches or slightly beats the averages before expenses. The fund gives a kickback every year to the original seller of the fund.

Expenses are what separates the good from the also rans. If you want to try to beat the averages, go for it. Its almost impossible over the long run.
The best investments are very low expense index funds from Fidelity, Schawb or Vanguard. The Vanguard total stock fund and Total bond fund are a good choice. They both have expense of .05 versus the industry average of around .60.

 

[shaz]

Add to that- Index funds basically eliminate the fund manager as a decision maker. They have an index to mimic and buy and sell accordingly. The greater the market cap, the more the fund buys.

 

[Caustic Burno]

Your right. If you have one that keeps your interests in mind... you are lucky. They make their money from the funds... not you... so it's real sketchy who they actually work for.

EJ and many others get caught in huge lawsuits regularly for pushing certain funds that the company wants them to because of how they get their kickbacks.

If you have received one of those checks from EJ and wondered why... it was a fund they shoved down you throat and got caught.

Their all slimy no matter the name on the door. If you think there not your about to get screwed.

 

[Son of Butch]

Moody's created an economic Back To Normal analytics and currently rates the economy of the USA at 93% of pre-pandemic March 2020 level
7 states rate 100-109%
Florida
Idaho
Nebraska
Montana
Rhode Island
South Dakota (109) Gov. Kisti Noem criticized by NGA for refusing to lockdown
West Virginia

10 states are rated at 83-89%
California
Delaware
Hawaii
Illinois
Maryland
Massachusetts
Minnesota (89)
New Mexico
New York (83) Governor Cuomo, chairman of National Governors Association
Oregon

The remaining balance of the state economies rate 90-99%

p.s. bitcoin 35,287 down 9.8% from a week ago

 

[Son of Butch]

2019 Federal Reserve survey
Typical American household had an average of $5,300 in a bank account, but averages varied greatly with 1/3 unable to cover an unexpected $1000 expense.

Average savings by age group:
under 35 yrs $11,200
35-44 $27,900
45-54 $48,200
55-64 $57,800
65-74 $60,400
75-99 $55,600

 

[D2Cat]

Pretty sad statistics.