Comments on: Money Mistake Monday – The Oh Crap I Waited To Long To Save For Retirement Syndrome. http://www.mytwodollars.com/2007/10/29/money-mistake-monday-the-oh-crap-i-waited-to-long-to-save-for-retirement-syndrome/ A place to discuss money...for the rest of us. Thu, 24 May 2012 00:38:41 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Carnivals And Festivals For The Week of November 5 2007 | My Two Dollarshttp://www.mytwodollars.com/2007/10/29/money-mistake-monday-the-oh-crap-i-waited-to-long-to-save-for-retirement-syndrome/#comment-23296 Carnivals And Festivals For The Week of November 5 2007 | My Two Dollars Fri, 09 Nov 2007 14:31:05 +0000 http://www.mytwodollars.com/2007/10/29/money-mistake-monday-the-oh-crap-i-waited-to-long-to-save-for-retirement-syndrome/#comment-23296 [...] Carnival of Money Stories #33 was hosted over at fellow M-Network member Moolanomy. My post “The Oh Crap I Waited Too Long To Save For Retirement Syndrome” was included. Thanks Pinyo! Share This You might also like:Carnivals And Festivals [...] [...] Carnival of Money Stories #33 was hosted over at fellow M-Network member Moolanomy. My post “The Oh Crap I Waited Too Long To Save For Retirement Syndrome” was included. Thanks Pinyo! Share This You might also like:Carnivals And Festivals [...]

]]> By: Carnival of Money Stories #33 - Autumn Beauty | Moolanomyhttp://www.mytwodollars.com/2007/10/29/money-mistake-monday-the-oh-crap-i-waited-to-long-to-save-for-retirement-syndrome/#comment-23199 Carnival of Money Stories #33 - Autumn Beauty | Moolanomy Tue, 06 Nov 2007 14:02:44 +0000 http://www.mytwodollars.com/2007/10/29/money-mistake-monday-the-oh-crap-i-waited-to-long-to-save-for-retirement-syndrome/#comment-23199 [...] presents Money Mistake Monday - The Oh Crap I Waited Too Long To Save For Retirement Syndrome. posted at My Two Dollars — David offers one piece of advice: “I know retirement seems a [...] [...] presents Money Mistake Monday – The Oh Crap I Waited Too Long To Save For Retirement Syndrome. posted at My Two Dollars — David offers one piece of advice: “I know retirement seems a [...]

]]> By: Fathersezhttp://www.mytwodollars.com/2007/10/29/money-mistake-monday-the-oh-crap-i-waited-to-long-to-save-for-retirement-syndrome/#comment-23140 Fathersez Mon, 05 Nov 2007 05:54:43 +0000 http://www.mytwodollars.com/2007/10/29/money-mistake-monday-the-oh-crap-i-waited-to-long-to-save-for-retirement-syndrome/#comment-23140 Yes, I agree. Starting early is the key. Starting at 28 and Mrs. Micah's 22, is excellent. At this age, most of us think we are indestructible. There is no thought on building a future. Maybe we may think of some promotions and stuff like that, but serious savings.... I missed the first boat, then the next few ones. But at least I started. Now my wife and I want to ensure that our children, will take the 1st boat, even if they have to be carried kicking and screaming. Thanks for this post. Fathersez Yes, I agree. Starting early is the key. Starting at 28 and Mrs. Micah’s 22, is excellent. At this age, most of us think we are indestructible. There is no thought on building a future. Maybe we may think of some promotions and stuff like that, but serious savings….

I missed the first boat, then the next few ones. But at least I started.

Now my wife and I want to ensure that our children, will take the 1st boat, even if they have to be carried kicking and screaming.

Thanks for this post.

Fathersez

]]> By: Davidhttp://www.mytwodollars.com/2007/10/29/money-mistake-monday-the-oh-crap-i-waited-to-long-to-save-for-retirement-syndrome/#comment-23046 David Wed, 31 Oct 2007 21:32:56 +0000 http://www.mytwodollars.com/2007/10/29/money-mistake-monday-the-oh-crap-i-waited-to-long-to-save-for-retirement-syndrome/#comment-23046 Thanks for the comment Creative Investor...I actually meant either or, as a basis for savings in general. But yes, if saving just for retirement, you should always consider the Roth for the reasons you listed over a regular mutual fund. Thanks for the clarification! Thanks for the comment Creative Investor…I actually meant either or, as a basis for savings in general. But yes, if saving just for retirement, you should always consider the Roth for the reasons you listed over a regular mutual fund. Thanks for the clarification!

]]> By: Creative Investorhttp://www.mytwodollars.com/2007/10/29/money-mistake-monday-the-oh-crap-i-waited-to-long-to-save-for-retirement-syndrome/#comment-23045 Creative Investor Wed, 31 Oct 2007 21:21:26 +0000 http://www.mytwodollars.com/2007/10/29/money-mistake-monday-the-oh-crap-i-waited-to-long-to-save-for-retirement-syndrome/#comment-23045 David, great post, but I wouldn't say "invest into Roth IRA or index funds," unless you meant index funds through your Roth IRA account. Besides the fact that Roth IRA would be funded automatically, so you don't need to decide each month whether you'd like to contribute this month or not, its biggest benefit lies in the fact that your money is being compounded tax-free: you will not be taxed on your gains when you invest with your Roth IRA account. Maybe that's what you meant as well, but I just wanted to clarify it for everybody. David, great post, but I wouldn’t say “invest into Roth IRA or index funds,” unless you meant index funds through your Roth IRA account. Besides the fact that Roth IRA would be funded automatically, so you don’t need to decide each month whether you’d like to contribute this month or not, its biggest benefit lies in the fact that your money is being compounded tax-free: you will not be taxed on your gains when you invest with your Roth IRA account. Maybe that’s what you meant as well, but I just wanted to clarify it for everybody.

]]> By: Thinking About Retirement - A Stroll Through My Blogrollhttp://www.mytwodollars.com/2007/10/29/money-mistake-monday-the-oh-crap-i-waited-to-long-to-save-for-retirement-syndrome/#comment-23033 Thinking About Retirement - A Stroll Through My Blogroll Wed, 31 Oct 2007 05:02:02 +0000 http://www.mytwodollars.com/2007/10/29/money-mistake-monday-the-oh-crap-i-waited-to-long-to-save-for-retirement-syndrome/#comment-23033 [...] My Two Dollars has ideas about waiting too long to save for retirement. [...] [...] My Two Dollars has ideas about waiting too long to save for retirement. [...]

]]> By: Davidhttp://www.mytwodollars.com/2007/10/29/money-mistake-monday-the-oh-crap-i-waited-to-long-to-save-for-retirement-syndrome/#comment-23024 David Tue, 30 Oct 2007 22:34:11 +0000 http://www.mytwodollars.com/2007/10/29/money-mistake-monday-the-oh-crap-i-waited-to-long-to-save-for-retirement-syndrome/#comment-23024 Thanks Debbie for all the info, and glad I seem to be doing OK! I hope these comments are an inspiration to everyone out there who has not started yet! Thanks Debbie for all the info, and glad I seem to be doing OK! I hope these comments are an inspiration to everyone out there who has not started yet!

]]> By: Debbiehttp://www.mytwodollars.com/2007/10/29/money-mistake-monday-the-oh-crap-i-waited-to-long-to-save-for-retirement-syndrome/#comment-23004 Debbie Tue, 30 Oct 2007 16:58:54 +0000 http://www.mytwodollars.com/2007/10/29/money-mistake-monday-the-oh-crap-i-waited-to-long-to-save-for-retirement-syndrome/#comment-23004 The great thing about index funds is that since they copy an index, no high-priced finance guys are required to do the stock picking. It's all automated. So the fees can be kept very low (although some aren't). So just find the ones with the lowest fees if you want to maximize your returns. (Vanguard and Fidelity are popular.) You can get one broad-based one to copy the market. Or you can separate your funds into different sectors that you rebalance periodically so that you're buying low and selling high. For example, you can keep half your money in a growth fund and half in a value fund. Or you can break it up into technology, health, utilities, etc. Me, I didn't start until I was 33. I thought I should pay off my student loans first. Then save for a car. Then save for a house. And then start saving for retirement. (Good goals, not the best order!) Even then, I was chicken and started with an amount I wouldn't mind losing (as if the stock market might crash into nothing). Finally at age 36, I started maxing out my IRA (which back then required only $2000/year(!), but which I have managed to keep maxing out). I have had forced pension savings since I was 27, but I surpassed those with my IRA savings at age 42. Then at age 44, I started contributing to a new Roth 403(b). My pension is totally awesome if I can just stick it out until I am 52 (it will pay for everything my salary now covers except mortgage payments, which will be over by then, and retirement savings), but meanwhile I am trying to save enough so I can retire at that age even if they change the rules on me or something. You're doing great. I know, because I'm doing better than everyone in my family, and you're doing better than me! Note: even teenagers can have IRA's if they have earned money. The great thing about index funds is that since they copy an index, no high-priced finance guys are required to do the stock picking. It’s all automated. So the fees can be kept very low (although some aren’t).

So just find the ones with the lowest fees if you want to maximize your returns. (Vanguard and Fidelity are popular.)

You can get one broad-based one to copy the market. Or you can separate your funds into different sectors that you rebalance periodically so that you’re buying low and selling high. For example, you can keep half your money in a growth fund and half in a value fund. Or you can break it up into technology, health, utilities, etc.

Me, I didn’t start until I was 33. I thought I should pay off my student loans first. Then save for a car. Then save for a house. And then start saving for retirement. (Good goals, not the best order!) Even then, I was chicken and started with an amount I wouldn’t mind losing (as if the stock market might crash into nothing). Finally at age 36, I started maxing out my IRA (which back then required only $2000/year(!), but which I have managed to keep maxing out).

I have had forced pension savings since I was 27, but I surpassed those with my IRA savings at age 42. Then at age 44, I started contributing to a new Roth 403(b). My pension is totally awesome if I can just stick it out until I am 52 (it will pay for everything my salary now covers except mortgage payments, which will be over by then, and retirement savings), but meanwhile I am trying to save enough so I can retire at that age even if they change the rules on me or something.

You’re doing great. I know, because I’m doing better than everyone in my family, and you’re doing better than me!

Note: even teenagers can have IRA’s if they have earned money.

]]> By: Laurahttp://www.mytwodollars.com/2007/10/29/money-mistake-monday-the-oh-crap-i-waited-to-long-to-save-for-retirement-syndrome/#comment-23002 Laura Tue, 30 Oct 2007 14:23:58 +0000 http://www.mytwodollars.com/2007/10/29/money-mistake-monday-the-oh-crap-i-waited-to-long-to-save-for-retirement-syndrome/#comment-23002 I found out the hard way that managed funds eat up your funds and don't even give returns to justify them. Index funds are the way to go. I found out the hard way that managed funds eat up your funds and don’t even give returns to justify them. Index funds are the way to go.

]]> By: davidhttp://www.mytwodollars.com/2007/10/29/money-mistake-monday-the-oh-crap-i-waited-to-long-to-save-for-retirement-syndrome/#comment-22990 david Tue, 30 Oct 2007 00:37:31 +0000 http://www.mytwodollars.com/2007/10/29/money-mistake-monday-the-oh-crap-i-waited-to-long-to-save-for-retirement-syndrome/#comment-22990 Index funds are just mutual funds that track certain index's such as the S&P 500 or the Wilshire 5000. Normally over time it's a solid investment, depending on the index. I am not an adviser so I don't want to give out specific funds, but personally I have an index fund that follows the S&P 500, for example. Index funds are just mutual funds that track certain index’s such as the S&P 500 or the Wilshire 5000. Normally over time it’s a solid investment, depending on the index. I am not an adviser so I don’t want to give out specific funds, but personally I have an index fund that follows the S&P 500, for example.

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