Comments on: Non-Scientific Poll: Retirement Options

By: Colin D. Devroe

Colin D. Devroe — Fri, 01 Apr 2005 07:09:32 +0000

I’m already retired, I just have a few hobbies.

By: skidder

skidder — Fri, 01 Apr 2005 00:39:08 +0000

One thing I did this year was open a Roth IRA and throw fair amount of money in there, never to be touched again. I invested it all in a S&P500 index fund. While I’ll never touch it again, by the time I can touch it, the magic of compound interest will have done beautiful things.

I suggest others that can do the same. Technically, you can always take out the principal tax-free, its just the capital gains you can’t touch.

By: Maxine

Maxine — Thu, 31 Mar 2005 21:47:51 +0000

Yes, it is much more important to address this question if you are a “non-corporate type”. Because I’ve never done anything really except work for myself I’ve always had to keep the future in mind – ie, I didn’t have an employer to force me into superannuation. But I’ve also always had that means I’m happy with the trade off I’ve made between security (often so bogus in the corporate world anyway) and self determination.

You’re doing exactly the right thing by seeing a finanacial planner, *but*, when you see this person make sure you’ve got your bullshit detector turned up to full, and don’t be afraid to trust your own instincts as well. Get a recommendation from someone you trust and don’t be afraid to walk out the door without siging on for anything.

By: Andrew K

Andrew K — Thu, 31 Mar 2005 21:38:52 +0000

Besides making very healthy contributions to my super annuation fund (which my employer matches and my government adds to), my main plan is to retire with a bonsai nursery. I have been training bonsai since I was eighteen and my collection now includes some seriously valuable plants.

They’re a risky investment, but incredibly rewarding along the way :)

By: Greg

Greg — Thu, 31 Mar 2005 19:22:53 +0000

Invest in California real estate.

By: Kirk

Kirk — Thu, 31 Mar 2005 19:10:35 +0000

You’re asking the right question at just the right time. The earlier you start planning the better off you’ll be later in life. Investment experts will tell you that it’s all about ‘time in the market’. Even a few years can make a huge difference in the long run.

If you’re self-employed you have a few options. A KEOGH or a SEP IRA would be similar to an employers 401k – except you’ll be contributing all the money yourself. Find a good accountant. He/she will help you get the best tax break on your contributions.

In general, it’s a good idea to sock a way as much as you can. You’ll thank yourself later (when it turns out that Social Security no longer exists AND the Bush plan doesn’t work out).

I’m kind of surprised by how many people missed the point of your question. We’re all fortunate enough to be doing something we really love for a living. Still, it’s good to have choices later on and not be forced to work forever.

I second the earlier recommendation on fool.com. It’s a good starting point with a lot of information.

Oh, and because I can’t stop expounding on this issue (maybe I chose the wrong career). Watch out for mutual funds. If you aren’t investing in individual stocks then look into ETF’s (exchange traded funds). They’re like indexed funds, but the administrative expenses are generally MUCH lower. It adds up over time.

By: Scrivs

Scrivs — Thu, 31 Mar 2005 18:57:15 +0000

So this retirement thing seems pretty easy for you folks with corporate jobs. Anybody non-corporate care to chime in?

By: Jennifer Grucza

Jennifer Grucza — Thu, 31 Mar 2005 18:52:59 +0000

I have a 401k through my current employer, a Roth IRA I set up myself, and a Rollover IRA from my first job’s 401k. Those are my retirements savings. I also have an investment account where I’m investing in a Vanguard index mutual fund, for the shorter-term. Oh, and I have some employee stock from my first job, but it’s worthless now. I agree with the person who said not to invest in individual stock – too risky. Mutual funds are better.

The Motley Fool (fool.com) is a good resource for learning about this stuff.

By: Lea

Lea — Thu, 31 Mar 2005 18:38:12 +0000

In Canada, you invest in RRSP (Registered Retirement Savings Plan) and my current employer gives me a small percentage of my earnings towards my RRSP and I contribute a set amount per month as well. Haven’t done much else except put my money into high-interest savings accounts and my RRSP. Still need to contact my dad’s financial advisor (yay, free consultation cause i’m family!) to get an investment plan going to get into the stock market and other things.

I hear you should try to put 25% (or more) of your gross paycheck/earnings towards savings/investments if you want to retire rich, according to several financial gurus like Suze Ormon and David Bach (who has really lucid, practical and great advice). And of course, before ANYTHING else, get rid of ALL your debt. Oh, and OWN a home if you can (I don’t count mortgages are a debt, despite being a liability–I count them as investments). Get your equity up there. Also, we all know that the real estate market is pretty hot right now so, if you do everything right selling that baby in a few years can turn you a really nice profit (and more money for your retirement and other playtime).

Of course, make sure you can get as much deducted from your taxes as possible, and invest part (or all) of your returns towards savings/investments.

So far, this is working for me. And of course, start as young as you can, but it’s never too late.

By: Andrew

Andrew — Thu, 31 Mar 2005 18:31:58 +0000

I have about 50 years to just randomly run into money and that as much planning as I’ll do.