Retirement Targets

[Mr.G.Spot]

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Raising the SS cap may actually lower the amount of money going into SS because people making above $160,000 a year would just register an S Corp, negotiate job offers to be Corp to Corp, and pay themselves "reasonable compensation" as w2 income and take the rest as a distribution that bypasses FICA / Self Employment taxes. The vast majority of people making those salaries are already businesses, and the types of people who are making that much as employees are the ones in high demand who could negotiate that employment setup.

You need a lot of workers to take care of children and the elderly. I'm sure they'll try to remove the cap, but it won't help and Social Security will still be completed f'd unless we somehow fix the demographic problems of having so few workers be of working age or something like AI takes over the entire economy and makes worker productivity unimportant. Otherwise you just don't have enough workers to support the non-workers.

The US Population Is Aging

www.urban.org

As a 30 something year old I'm taking my retirement into my own hands and assume social security won't do anything for me in retirement.

That is the correct attitude to have. Please remember though, 30 year-olds were saying that in the 60's, 70's, 80's and so on. Same story, different time.

 

[yowza]

How did you all do in 2023? Heck of a market run in November and December.

 

[clonedude]

How did you all do in 2023? Heck of a market run in November and December.

Thanks Joe!

 

[yowza]

Trying to figure out what that right $$$ figure is. Law of 4% says it is millions... So I guess the day I hit that is the day I can retire. Only if we finally fix healthcare in this country, or it will mean we cannot retire until we can get medicare.

The 4% thing depends a great deal on what you leave funds invested in. I plan to maybe start with that and adjust as years play out, but I am not gonna sit in CDs or T Bills.

 

[KnappShack]

The 4% thing depends a great deal on what you leave funds invested in. I plan to maybe start with that and adjust as years play out, but I am not gonna sit in CDs or T Bills.

Foot on the gas until I hit the grave.

 

[DSMCy]

The 4% thing depends a great deal on what you leave funds invested in. I plan to maybe start with that and adjust as years play out, but I am not gonna sit in CDs or T Bills.

If you retire at 65, you could still have your retirement funds invested for 20+ years. Obviously need funds that are liquid or in a fixed investment, but you could still have a good portion in stocks/SP500, hopefully returning well above 4%.

I've viewed the 4% rule as a great way to identify a goal of what you'll need to retire. It's easy math to do no matter what age you are. But I really hope I'll get better than a 4% return in retirement.

 

[mkadl]

The 4% thing depends a great deal on what you leave funds invested in. I plan to maybe start with that and adjust as years play out, but I am not gonna sit in CDs or T Bills.

We signed on with an advisor in November. Too much stress. One nice thing was she did not want to rebalance our portfolio. I was stunned. That is what was causing my portfolio angst.

 

[yowza]

We signed on with an advisor in November. Too much stress. One nice thing was she did not want to rebalance our portfolio. I was stunned. That is what was causing my portfolio angst.

I know. I watch stuff every single day and probably overthink a great deal even though over time I have done well.

 

[TitanClone]

How did you all do in 2023? Heck of a market run in November and December.

Just shy of the S&P 500 on my 401k, almost a 26% return. Keep that up and I'll be on a beach at 50

 

[yowza]

I have seen the guesses on CNBC by quests of a 10% to 12% gain in S&P in 2024 with market broadening out beyond the Mag 7 which is inflating the PE of the unweighted S&P.

March generally regarded as the first time the Fed will decrease rates. I believe assumption is a quarter point.

 

[nfrine]

My plan is to have the last check I write to be to the undertaker for my funeral...and that that check bounces.

 

[yowza]

Thanks Joe!

Only 58% of persons own stocks though (what Axios showed back in Oct 2023). Not everyone benefitting.

 

[ISUCyclones2015]

I hit 26% on my 401k and my company stock did 57% (without the 10% Stock Purchase Plan discount).

 

[frackincygy]

21% in my 401(k); 17.2% in my Traditional IRA (rolled over 401(k) from previous employer); 32.7% in my Roth.

I really need to give up my addiction to small/mid-cap biotech stocks

 

[DesertClone1]

My plan is to have the last check I write to be to the undertaker for my funeral...and that that check bounces.

You and my dad are the same damn person

 

[KnappShack]

401k - 30.7%
Roth - 47.25%
Traditional - 19.93%

Guess which account I'm more conservative in?

Younger investors. Hit the damn gas!

(Not investment advice and if you're taking financial advice on here you better have your goddam house paid for)

 

[nfrine]

You and my dad are the same damn person

Is that good?

 

[DesertClone1]

Is that good?

it's good, just hilarious that you both say the same things lol

 

[KidSilverhair]

How did you all do in 2023? Heck of a market run in November and December.

My federal retirement fund was fully in an “Income” fund for most of the year, which is conservatively distributed among stock/bond/cash funds for those nearing or already in retirement. I moved my funds out of that and into the straight cash G fund a couple of times during the year, during the Speaker/debt ceiling chaos in January and again in October with the shutdown frenzy.

Even so, I pulled down over 8% for the year. I was pretty happy with that, especially compared with the disaster that was 2022.

(Note to those pulling down 20-25% or more this year: I’ve been retired for five years and will start pulling money out of my retirement fund this year to, you know, live. I can’t afford to be too aggressive at this point … 8% is great, lol.)

 

[CycloneSpinning]

If you retire at 65, you could still have your retirement funds invested for 20+ years. Obviously need funds that are liquid or in a fixed investment, but you could still have a good portion in stocks/SP500, hopefully returning well above 4%.

I've viewed the 4% rule as a great way to identify a goal of what you'll need to retire. It's easy math to do no matter what age you are. But I really hope I'll get better than a 4% return in retirement.

I don’t think it’s that you only need to earn 4%. Don’t you have to earn 4% plus the rate of inflation (so probably a little over 7% on average)? That’s how I understood it…