| Looking for help with my plan |
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makingbacon
New Member
Cash: $ 0.65
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Joined: 20 Mar 2008
Location: AZ
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| Looking for help with my plan |
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Ok I am 38 here shortly. I wish to start my savings plan out with 30k and end up with 500k at age 45. How much money do I have to put in a month using say a Vanguard money market account as my mode of saving? Is there a site that can help me or a program or.....?
Thanks
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Thu Mar 20, 2008 5:02 pm |
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makingbacon
New Member
Cash: $ 0.65
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Joined: 20 Mar 2008
Location: AZ
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Well As far as I know it is the best way to make a certain percent on my money without me having to buy stocks myself. Really just looking for a 8 to 10% return on my money.
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Fri Mar 21, 2008 4:19 am |
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oldguy
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bacon. You are setting up for a loss - savings accounts, MMFs, CDs, pay about 3% or 4%. Inflation eats uo about 3% and you'll pay about 1% or your return to taxes, ie, you'll get a zero return. Savings products are designed to provide risk-free storage of your money, nothing more. Don't use them for wealth-building.
You didn't give yourself much time - if you put your $30k into a 12% investment and added $4000/m for 7 years you would have $500k.
Ironically, it would be much easier, with a higher probability of success, to end up with a million at age 55. You would do that by max-ing a 401k with $15,500/yr - if your company has matching you would get to $1M sooner. (Actually, that is what I did, took me about 16 yrs to get my 401k to $1M - and that was w/o 'matching'). If this investment is in addition to your 401k, use a taxable account at Vanguard and invest the extra $15,500/yr there.
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Fri Mar 21, 2008 4:25 pm |
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makingbacon
New Member
Cash: $ 0.65
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Joined: 20 Mar 2008
Location: AZ
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ok it wasn't a money market fund I was looking at it was a Mutual Fund account. 401k I cant really do since I am self employeed. Even the Roth IRAs I cant do because I make too much. SEP account is an option but I would like to access the money before I am 60. Any suggestions?
PS Would love to saav on taxes too as Uncle Sam takes about 4 to5k a month..We have soo few deductions 
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Fri Mar 21, 2008 7:13 pm |
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pf101
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If you want to save on taxes (now), you should do the SEP. If you want to have access to the money before retirement age, you should do a taxable (though you can set up a SEPP plan if you're younger). Best bet is to do a combo of the two.
Is this your only savings? Why $500k by 45? How much are you planning on contributing each year? $30k -> $500k in 7 years will be virtually impossible in this market (or any other) using mutual funds (and also pretty much using anything else too) unless you're planning on contributing a big chunk of your own money. Assuming a 7% return for the next 7 years, you'd have to contribute almost $55k/year to your starting $30k in order to get to your goal.
If you give a whole picture instead of just a small piece of your plan it'll be easier to give you suggestions.
Personal Finance 101
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Sun Mar 23, 2008 8:30 am |
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jweschman
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Location: Houston, TX
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PF101 is right about the required contribution levels (nearly $55,000/yr) if you're serious about getting to $500k by age 45.
At these contribution levels, even if you intend to "split" your savings between tax-deferred and taxable vehicles, a SEP may be too limiting. You may want to take a look at a Self Employed 401(k) plan instead (a.k.a. "Solo 401(k)" or "Solo-K" plan). These are now available as very low cost fill-in-the-blank plans through Schwab, Fidelity, T-Rowe Price and others... and may, depending on your self-employment income, allow you to make much larger tax-deferred contributions than the SEP.
There are (of course) scads of financial/retirement calculators out there that you can play with. For starters, you might try this one... http://moneycentral.msn.com/retire/planner.aspx
I'd also suggest that you get some investment advice early on from a professional in your area.
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Mon Mar 24, 2008 8:18 pm |
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bannerbuzz09
Contributing Member
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if we choosing a any plan in retirement plan and other then we have many possibility to choose it as per our requirement.
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Thu Jan 27, 2011 7:57 am |
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Marcelbrowner
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| Re: Looking for help with my plan |
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quote:
Originally posted by makingbacon
Ok I am 38 here shortly. I wish to start my savings plan out with 30k and end up with 500k at age 45. How much money do I have to put in a month using say a Vanguard money market account as my mode of saving? Is there a site that can help me or a program or.....?
Thanks
I dont think it's a down to earth expectation.
470k $ in just 7 years... not in this life time  .
Cheers!
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Thu Jan 27, 2011 3:06 pm |
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teena.robert
Preferred Member
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Joined: 25 Apr 2011
Location: UK
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I think so you should start online businesses, where you can really make some money for your future, or you can start forex or stock investment where you earn money then you can start saving also. There are many online businesses where you can really make huge money and you can survive your life well.
Forex Trading | Learning Forex
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Thu Apr 28, 2011 3:11 am |
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