| Just Beginning to Think About Retirement Planning |
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BBKT
Member
Cash: $ 4.30
Posts: 17
Joined: 02 Mar 2009
Location: WA
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| Just Beginning to Think About Retirement Planning |
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Hubby and I are working ourselves out of CC Debt and after we are done paying it off, we would like to start putting money away for retirement. Here's our situation:
-I'm 27, Hubby is 28
-I work for minimum wage plus tips, hubby is in the military and planning on doing 20 years and getting a retirement pension after that. He has almost 10 years in and has not started a Thift Savings Plan yet. I would like him to start investing in the TSP as soon as our CC Debt is paid off.
-We are on a tight budget, but manage to save about $300 a month in regular savings. We currently have $5,500 in regular savings and almost $2,000 total in laddered 5 year CDs that are growing regularly.
-We currently owe $7,300 in CC Debt at 0% and that will be paid off by June 2011.
-We own two homes. One we live in (worth about $200,000, but we are under water and owe about $260,000), and one we used to live in but now rent out for just over $900 a month (worth about $165,000 and we owe $140,000 on it). We plan on keeping these two homes and always having one as a rental that generates income for us, even after it is paid off. We are dead set against selling them for any reason as we see them as true long-term investments, even if we are currently under water in one.
-We have approx $82,000 in 5 student loans that we are paying early on. They will be paid off in 8-12 years.
-We are planning to try to get pregnant next summer with our first child. I want to get our retirement monthly savings set in stone before we have a baby, so we can factor that as part of our set budget and not as a possible "cut" if something changes later.
-We have health and life insurance through the military at no expense. I have extra disability, accident, hospital indemnity, and cancer insurance through AFLAC.
I'm thinking about opening up a Roth IRA to start, but I don't think I can put away much more than $150 a month right now. Does anyone have any good "beginning" advice on where to start? I know that every penny I can put away now will make a difference later on, but I'm worried that I won't be able to put away enough now and/of that we've started thinking about this too late. Ugh, I just don't know where to start!
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Mon Oct 25, 2010 7:56 am |
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nappy
New Member
Cash: $ 0.60
Posts: 3
Joined: 27 Oct 2010
Location: South Africa
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Just focus on earning first if I were you. Don't rush things. I know that you are planning on your future but take one step at a time. If you're already fully paid on your CC debt or all your debts then I think that's the time that you'll be able to do all that will secure you and your family. I admire the way you handle financial matters it is one thing that other can't do that's why they ended up having more debts.
[deleted]
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Wed Oct 27, 2010 12:56 am |
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Cena12
First Time Poster
Cash: $ 0.20
Posts: 1
Joined: 27 Oct 2010
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Retirement finances touch upon a motley of distinct subject areas or financial domains of client importance, including: investments (i.e. stocks, bonds, mutual funds); real estate; debt; taxes; cash flow income and expense analysis; insurance; defined benefits (e.g. social security, traditional pensions). From an analytic perspective, each domain can be formally characterized and modeled using a different class computer science representation, as defined by a domain's unique set of attributes and behaviors.[deleted]
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Wed Oct 27, 2010 4:28 am |
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patmil
New Member
Cash: $ 1.85
Posts: 9
Joined: 30 Sep 2010
Location: South Africa
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| A great start! |
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Most people of 48, and many of 58, haven't given retirement planning as much thought as you have. I agree that you shouldn't be too concerned initially where you are investing your money. Although some low cost ETF's may be a place to start.
However don't only look at traditional "investments" one of the most successful people I know invested in industrial property, while others have made good returns from residential property or investing in a business. These are good hedges against inflation and are less influenced by "irrational exuberation"!
I recommend that you understand as much as possible about the many investment options available and don't overlook the offshore opportunities.
I have no doubt that you will plan yourself into a position where in your later years you will be one of the few who have positive retirement options.
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Thu Nov 11, 2010 3:29 pm |
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