The underlying truth that everyone has to understand is the time value of money, $50 today is not worth $50 tomorrow. You do not plan for the future by putting back money that will allow you to live for today, you have invest money that will allow you to live at a later date. The fun is determing how much to invest and at what rates so you at least eclipse inflation.
Elderon:
Our retirement plans will be valued appropriately, they will just be valued at a future curreny rate, whether that is good or bad has yet to be determined.
Removed portion that restated another's point /sigh
Edited, Wed Apr 19 13:44:04 2006 by Kronig
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I can't speak for everyone, but my 401k allows me to designate what the money is invested in. I keep about a quarter of it in the company I'm working for if they're doing well, but keeping it all there would be foolish, because if they practice creative accounting and tank you're left without an income or a retirement plan.
Thumbelyna the Hand wrote:
I think you're correct Joph. Most companies though that have a 401(k) though invest in their own stock. So if your company is doing great, so is your 401(k). But if your company tanks, there goes your retirement. Think Enron, WorldCom, etc. Which is why it is always good to diversify.
I got hit pretty hard by the recession before which was just when I started investing so it was kind of disappointing to say "Hey! My account is up $600! Oh, wait.. I put $900 in this period" but now its actually showing some growth and improvement.
Belkira wrote:
Wow. Regular ol' Joph fan club in here.
Kronig wrote:
Elderon:
Our retirement plans will be valued appropriately, they will just be valued at a future curreny rate, whether that is good or bad has yet to be determined.
Our retirement plans will be valued appropriately, they will just be valued at a future curreny rate, whether that is good or bad has yet to be determined.
Anything can happen. With the current direction of the administration, I'd be more than slightly concerned. The other angle to consider as well is if you live on $50K / year now, be prepared to live on $75-150K later in life for 2 reasons. 1) You will hopefully make more money in 10 years than you do today. 2) Inflation (be it true inflation or fuel cost type driven inflation).
Lot's of things to consider. I brought this up because the sooner you get a plan started, the better off you will be in the long run.
Elderon wrote:
That's exactly what I'm talking about. Will the American go the way of the Peso one day, since work is getting farmed out to Asia and the Chinese economy is picking up steam? What happens if Saudi-Arabia decides to foreclose on the money that is owed to them by the US?
Anything can happen. With the current direction of the administration, I'd be more than slightly concerned. The other angle to consider as well is if you live on $50K / year now, be prepared to live on $75-150K later in life for 2 reasons. 1) You will hopefully make more money in 10 years than you do today. 2) Inflation (be it true inflation or fuel cost type driven inflation).
Lot's of things to consider. I brought this up because the sooner you get a plan started, the better off you will be in the long run.
Anything can happen. With the current direction of the administration, I'd be more than slightly concerned. The other angle to consider as well is if you live on $50K / year now, be prepared to live on $75-150K later in life for 2 reasons. 1) You will hopefully make more money in 10 years than you do today. 2) Inflation (be it true inflation or fuel cost type driven inflation).
Lot's of things to consider. I brought this up because the sooner you get a plan started, the better off you will be in the long run.
Well we can make predictions about US currency values and debt foreclosure, but that is a little tough to guess at.
I'm going the safe way, investing in gold and oil baby!
Granted metals have been doing pretty crappy the past few years from what I remember and oil/gas has a tendency to go from boom to bust in a short amount of time, I figure I have 40 or so years to balance out and come out ahead.
***** that actually, municipal bonds ftw!!!
Kakar the Vile wrote:
We have the same problem in the US with Social Security, it's been widely believed for some time that SS will run out of funds long before I reach my retirement age.
Ha ... working for the City of Los Angeles I don't have to pay SS. I've got me a retirement fund and I've also started a deferred comp fund. They take out money pre tax from every pay check. It's nice.
I would just like to clairify that I don't pay SS.
On the assumption that i complete my 22 year commission in the Navy and i achive Chief petty Officer in that time (Realistic) i will get a pension at 43 that is more than sufficient if put away to enable me to retire at 55 easily.
Since the military pension is index linked at 55 and i will have 12 years worth put into various investment and i will have no morgage by then and no kids at home.
It's the reason i put up with the collosal amount of bullsh*t i take on a day to day basis.
It's hard to put into raw figures since it will be based on my wage on leaving the Navy (which is 13 years away yet.) but if i was leaving today i would get approx £13,000 ($23,500 ish) per annum.
Since the military pension is index linked at 55 and i will have 12 years worth put into various investment and i will have no morgage by then and no kids at home.
It's the reason i put up with the collosal amount of bullsh*t i take on a day to day basis.
It's hard to put into raw figures since it will be based on my wage on leaving the Navy (which is 13 years away yet.) but if i was leaving today i would get approx £13,000 ($23,500 ish) per annum.
I forgot to mention, that I also have a backup retirement plan. If all else fails, I'm going to win the lotto.
Elderon the Wise wrote:
I forgot to mention, that I also have a backup retirement plan. If all else fails, I'm going to win the lotto.
Oh yeah, my backup plan is to impose on my children via their Filipino heritage.
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