Another retirement question

[muddydog]

You should diversify that 401K plan out over several other funds instead of the 100% in just one thing.
I found out a long time ago that you could lose everything by keeping everything in just one bucket.

I would agree with diversity but a SP fund is very diversified. My investing has proven to me personally that if a SP is down, all stocks are down. If the top 500 companies in the markets fail, all will. I won't invest in single stocks anymore. I much prefer a ETF or index. Even Warren Buffett recommends a SP index. I am looking into other Bond funds as well to supplement the Treasuries. I haven't had these long term and will see how they do when the interest rates drop like they are expecting. I know alot recommend using a financial pro but I've done my research and can't justify paying someone to manage my finances. Seems like they all will tell you something different.

[muddydog]

Would you possibly be able to live off of the interest from one or the other? As a young man at 29 years old retirement confuses me. I just don’t see myself ever able to retire with the current state of affairs in this country.

This is the answer I see all the time! If you have a plan at work, contribute at least 10%. If you don't have this, open a E-Trade Roth IRA. When you retire.....you will be in good shape! Please feel free to PM me if you need help!

[Huntingfool]

I'm nearing my retirement in a couple years. I'm invested in a 401k and Roth 401 at work. I'm 100% invested in a SP 500 index. I also have a separate IRA invested in Treasuries. My question is on distribution. I'm liking the yields currently with the IRA. So use the yields and make up the difference in selling the SP? Or leave the SP alone, spend the yields and the Treasuries first and replenish with the selling of SP funds? Spent a lifetime making the money, now I gotta learn how to manage and spend it wisely.

Sir - find yourself a professional financial advisor - DIY on financial stuff can be a disaster - ask your friends, family, etc. who they use and go from there - pretty simple and basic advice that works

[locolobo]

I have let the good folk @ Fidelity manage mine for over 35 yrs. They asked how they should invest. My answer was as safe an investment as possible. I'm mostly in bonds. I have more money there now than I'd thought possible when I started investing. I retired almost 4 years ago and did not touch it because I didn't really need to.
Good retirement program and good SS benefits plus no long term payments to anybody. Decent $ in our savings and contribute to them regularly We bought a new vehicle just as we retired and had it paid off in a year.About a year ago I took a 10K draw for some home improvement projects and started a $1000/month to my checking acct. Just cause I didn't want to leave it all to my children. They are all doing good so they say, have good steady jobs and saving on their own.The inflation is eating some of this up but we still are doing great. And I still have as much in my 401k as I did the day I retired.

[tdwinklr]

I would agree with diversity but a SP fund is very diversified. My investing has proven to me personally that if a SP is down, all stocks are down. If the top 500 companies in the markets fail, all will. I won't invest in single stocks anymore. I much prefer a ETF or index. Even Warren Buffett recommends a SP index. I am looking into other Bond funds as well to supplement the Treasuries. I haven't had these long term and will see how they do when the interest rates drop like they are expecting. I know alot recommend using a financial pro but I've done my research and can't justify paying someone to manage my finances. Seems like they all will tell you something different.

I understand that but its US companies only, and is still only one fund.
I'm saying include International, Developing Technologies, Income, etc. with it. If the US blows up,
these others will keep you afloat where you likely don't lose everything.
I agree on the single stocks too, that strategy has long gone.

Good luck!

[muddydog]

I understand that but its US companies only, and is still only one fund.
I'm saying include International, Developing Technologies, Income, etc. with it. If the US blows up,
these others will keep you afloat where you likely don't lose everything.
I agree on the single stocks too, that strategy has long gone.

Good luck!

Yes Sir, Thank you. I was diversified for many years in target date funds, after crunching numbers the SP funds outperformed them by a significant amount. Upon retirement, I will convert the 401k to a IRA which will have better investment option choices. The SP fidelity fund at work is the best option that's offered now. It has out performed the target dates funds by 5 % or more. The average returns in SP 500 is 10% dating back since it's beginning. It is very hard to beat a SP fund. Companies have to compete to meet qualifications to be in this index. I will not bet against my country. America has the strongest economy in the world. Said this I fully expect a very big drop in the future and will use that to up my contribution to lower my cost averages.

[Black Ice]

Would you possibly be able to live off of the interest from one or the other? As a young man at 29 years old retirement confuses me. I just don’t see myself ever able to retire with the current state of affairs in this country.

Start now and you will be way ahead of the rest. I did not start until 32 and wished I would have started at 22. At 32 I was investing 3% into my 401k and I was putting it into the savings account plan in my 401k making 1%. Had 26k in my 401lk 10 years ago.

[Monark]

Yes Sir, Thank you. I was diversified for many years in target date funds, after crunching numbers the SP funds outperformed them by a significant amount. Upon retirement, I will convert the 401k to a IRA which will have better investment option choices. The SP fidelity fund at work is the best option that's offered now. It has out performed the target dates funds by 5 % or more. The average returns in SP 500 is 10% dating back since it's beginning. It is very hard to beat a SP fund. Companies have to compete to meet qualifications to be in this index. I will not bet against my country. America has the strongest economy in the world. Said this I fully expect a very big drop in the future and will use that to up my contribution to lower my cost averages.

I was all in on the SP 500 index fund when I self managed. I turned it over to a great financial advisor and she has me in very little SP 500 to my surprise. She has me in about 37 different stocks, EFTs, mutual funds, bonds. She rebalances every 60 days. I'm retired & extract $8k per month after taxes & my balance continues to go up. I am sorry I didn't let a professional handle my money earlier. Her fee is %1 or %0.7 depending on how much you have with her. She is independent but under the Ameriprise umbrella.

I did have to interview several advisors before I found one I was happy with.

[M16]

I guess we've all been brainwashed into investing in the stock market or bonds etc. I did things all wrong I guess. I'll always remember reading an article in a magazine in my high school days. It was about the richest families in Texas. One thing they all had in common was banking and real estate. I figured if it was good enough for them it would be good enough for me. So instead of being heavily in the stock market I bought and sold real estate and invested in local banks. I've never lost a single penny in either. I've been retired 15 years and my spending can't come close to keeping up with my investment income. There are other investments than the stock market.

[rockyraider]

Yes Sir, Thank you. I was diversified for many years in target date funds, after crunching numbers the SP funds outperformed them by a significant amount. Upon retirement, I will convert the 401k to a IRA which will have better investment option choices. The SP fidelity fund at work is the best option that's offered now. It has outperformed the target dates funds by 5 % or more. The average returns in SP 500 is 10% dating back since it's beginning. It is very hard to beat a SP fund. Companies have to compete to meet qualifications to be in this index. I will not bet against my country. America has the strongest economy in the world. Said this I fully expect a very big drop in the future and will use that to up my contribution to lower my cost averages.

I agree with you, I'm an S&P investor and have almost all of our invested retirement funds invested this way. I have a small portion in an index bond fund, but at our age we are almost all in on growth equities (S&P). If the S&P isn't diversified enough for you, I don't know what to say. Add in its tax efficiency, low turnover rate, historical returns, etc... and it's a winner IMHO. I've read a lot about index investing vs active investing, read and listened to a lot of the world's best including John Bogle, Warren Buffett, etc. and I'm confident things will turn out good. I will probably consider rebalancing into a different asset allocation (more fixed income) at 10yrs and 5yrs before actually needing the money.

[muddydog]

I agree with you, I'm an S&P investor and have almost all of our invested retirement funds invested this way. I have a small portion in an index bond fund, but at our age we are almost all in on growth equities (S&P). If the S&P isn't diversified enough for you, I don't know what to say. Add in its tax efficiency, low turnover rate, historical returns, etc... and it's a winner IMHO. I've read a lot about index investing vs active investing, read and listened to a lot of the world's best including John Bogle, Warren Buffett, etc. and I'm confident things will turn out good. I will probably consider rebalancing into a different asset allocation (more fixed income) at 10yrs and 5yrs before actually needing the money.

Good plan! Even during retirement I'll keep a 70/30 split with SP 500 and Treasuries. I can live totally off the Treasuries for 9 years and let that SP fund double!👍

[BrianL]

Correct investment strategy is specific to the person their asset makeup, yearly income requirements, and personal tax situation. I would get with a fiduciary financial planner can get a plan. It's to important to get it wrong.