How/Are you saving for retirement?

Joe · Post by **Joe** » 2003-11-04 03:50pm

I have a Roth IRA, with $2,000 in it. I'm going to contribute another $2,000-3,000 to it in December. I'm also considering putting it into an index fund or something of the like, because the return I'm getting now is just fucking pathetic.

I also have a couple thousand dollars in bonds that I've received over my life from my grandparents, though I have no idea what my parents have done with them.

Of course I'm not out of school yet, and won't be until 2005 or 2006, depending on whether the Master's program accepts me, so I'm not so sure about what else I'll be investing in yet.

Lord Pounder · Post by **Lord Pounder** » 2003-11-04 05:47pm

The company i work for has a very good pension scheme which you can keep on when you leave the company. I also am quite a good saver lately. I've managed to save 200 quid a month since i started working regularly again.

Slightly off topic but WTF is an IRA, obviously very different to the IRA i know.

Tsyroc · Post by **Tsyroc** » 2003-11-04 06:57pm

Lord Pounder wrote: Slightly off topic but WTF is an IRA, obviously very different to the IRA i know.

Independant Retirement Account. Don't ask me exactly how they work but I think they are essentially a savings account that draws more interest than a regular account but you can't touch it without penalties until you hit retirement age. Plus, I think what you put in there comes out of your pay before taxes but I think you will pay taxes on it when you start drawing from it after you retire.

Incidently, a shipmate of mine was visiting relatives in Ireland when the discussion about what people in the US do for retirement. He said that it got dead silent when he mentioned IRAs without even thinking. This was back in the 80's.

Joe · Post by **Joe** » 2003-11-04 07:03pm

Individual Retirement Account, to nitpick.

There are two kinds of IRAs; Traditional and ROTH. Traditional IRA contributions are tax-deductible up to a certain amount, but fully taxable upon withdrawal. Roth IRA contributions are not tax-deductible, however there is no taxation when funds are withdrawn. The appeal of the IRA is pretty simple; tax-free investment buildup. There are all kinds of complex rules, phaseouts, and such for both, but I won't get into that (primarily because I don't know much about them).

Lord Pounder · Post by **Lord Pounder** » 2003-11-04 07:04pm

Thats a weight of my mind. I knew thr provies had a strong financial bond with America but to get the impression they where selling financial bonds had me worried for a moment.

Could be worse. I saw a program on TV where one guy kept calling IVF treatment UVF treatment.

Tsyroc · Post by **Tsyroc** » 2003-11-04 07:43pm

Lord Pounder wrote:Thats a weight of my mind. I knew thr provies had a strong financial bond with America but to get the impression they where selling financial bonds had me worried for a moment.

I never thought about it that way. That would be extremly fucked-up if that were the case (given the US' current anti-terrorism bent. That'd set whole new standards for hypocrisy if it were true). Plus the IRA would have a whole lot more money to throw around because a lot of people in the US have been using IRAs for awhile.

TrailerParkJawa · Post by **TrailerParkJawa** » 2003-11-04 11:44pm

There is another tip Id like to share. It is called the rule of 100. If you want to know how much your portfolio should be in stocks you can subtract your age from 100. For me (100-32)=68. This means 68% of my portfolio should be stocks. Now, this is just a guideline, but it is meant to keep people who are 5 years away from retirement being fully invested in stocks and getting reamed during times like this.

Joe · Post by **Joe** » 2003-11-04 11:46pm

80 percent stocks? Hah, no thank you, not now.

Solauren · Post by **Solauren** » 2003-11-04 11:54pm

Starting at age 30 or so (3 years), approx $10,000 a year into a RSVP, $5000 a year into a insured high interest account

TrailerParkJawa · Post by **TrailerParkJawa** » 2003-11-04 11:59pm

Durran Korr wrote:80 percent stocks? Hah, no thank you, not now.

Hehe, me either. Actually now might be the time to get back in, but Im only 50-60% stocks right now, and that was only because I put 5000 grand into a mutual fund in July.

The stories some of my co-workers have are crazy. I know a guy who lost 100,000 dollars.

And no, he cant afford it, he basically lost his chance to ever buy a home here.