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retirement advice for young professional?

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Money Talk > Retirement Planning

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brett444
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I m a young professional planing for retirement, what should be the best plan for me any suggestions..

Thanks in advance !!!
Post Mon Sep 06, 2010 7:22 am
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richrf
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I can tell you what I did 40 years ago and it worked well for me:

1) Work hard at what I did well.

2) Save more than I spent.

3) Take small risks and gradually learn from my mistakes.

4) Be patient. Compounding growth is the best way to make money long term.

5) Only invest in something I fully understood and ignore the professionals who had no skin in the game and were just looking to skin me.

Be smart and be patient! It will come.

Rich
Post Fri Sep 10, 2010 1:45 am
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oldguy
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I did what Rich did only it was 50 yrs ago. Smile

Back then there were no on-line companies, no index funds, no ETFs, no 401k's no IRA;s, no Roth's - that was all invented later (mostly after 1980). So we had to buy stocks or managed mutual funds from full-service (high fee) stock brokers. And, if you did it well, it worked.

But it is way easier now - eg, target funds are a recent product, they are a one-stop-shop, they are diversified, they auto-allocate to match your age, and the are sold by the major no-load mutual fund companies (low fees). If I was a young 30-yr-old, I would buy a Target2050 Fund from a company such as Vanguard, and put it in all 3 account types - ie, your posttax account, your pretax acoount, and your taxable account.

To give you an idea what to expect - $10,000/yr at 11%/yr for 30 yrs is about $2.2M. If you max the 401k limit (that's what I did) it will be about $3.6M. And if you take the ~$5000 tax break that you get from contributing $16,500/yr, and apply it to your Roth, you'll have $1.1M in that account (for free). And then it's a good idea to fund a taxable account so that you have some instantly available, pre-59 1/2 money for early retirement, for rental houses, cars, kid's college, etc.
Post Fri Sep 10, 2010 2:08 am
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financegenie
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It’s important to evaluate your current liabilities before you decide on a retirement planning strategy. Chart out how much of your income is spent on debt repayments, rent, household bills, and entertainment. Figure out how much interest you’re currently paying on credit cards, student loans, or other debts. It’s generally best to pay off high interest debt before investing in your retirement. For example, a $500 credit card balance with a high interest rate of 15 percent will cost you $75 in interest each year while a $500 investment earns only $40 a year, assuming an eight percent interest rate. In this case, pay off your credit card balance before you start investing. Debt payments that have low interest rates – such as student loans – shouldn’t keep you from investing now. Continue to pay your student loans on time, but invest other money in a retirement account where you’ll typically earn higher interest rates than what you pay in student loan interest.
Post Thu Sep 16, 2010 6:24 am
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harrywinston
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Wealth management is focused on the asset side of the balance sheet, usually. Financial advisors in determining the suitability of different investment tools to grow your wealth to achieve your goals and your clients need to have expertise.
Post Tue May 31, 2011 12:25 pm
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Corporate85
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15% in a 401k every year.

That's it.

I've been doing it and already have $50K @ 25 years old. Market's at a discount right now also... so get in.
Post Fri Jun 10, 2011 7:19 pm
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chrisgayle
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There are many ways to start the retirement planning. They are:
1.      Start Saving
2.      Use Your 401(k) Plan
3.      An Employer Matching Program Means Free Money!
4.      Don’t Forget The IRA’s
5.      A Roth IRA Could Be Even Better
Post Fri Jul 15, 2011 6:47 am
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James77
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Start saving small amount which helps you to do business or anything after retirement.
Learn from mistakes.
Keep patience whenever required.
Post Tue Aug 23, 2011 1:00 pm
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robmejia
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Investing on something you are passionate about would help instead of something you have no idea of. There are often some fad easy money making services in the market that almost never works so don't be fooled by those.

Also make sure a good health care policy is part of your retirement plan. Believe me, all of us will age and will need assistance so while you still have enough money to save for that, do so now.
Post Tue Dec 06, 2011 4:59 pm
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robmejia
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Investing on something you are passionate about would help instead of something you have no idea of. There are often some fad easy money making services in the market that almost never works so don't be fooled by those.

Also make sure a good health care policy is part of your retirement plan. Believe me, all of us will age and will need assistance so while you still have enough money to save for that, do so now.
Post Tue Dec 06, 2011 5:00 pm
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jame31kle
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1. Start Saving
2. Use Your 401(k) Plan
3. Should start new Business Strategy.
Post Thu Mar 08, 2012 6:11 am
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FiNQ
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quote:
Originally posted by chrisgayle
There are many ways to start the retirement planning. They are:
1.      Start Saving
2.      Use Your 401(k) Plan
3.      An Employer Matching Program Means Free Money!
4.      Don’t Forget The IRA’s
5.      A Roth IRA Could Be Even Better


Sounds about right, a good start I would say!
Post Fri Mar 16, 2012 3:03 pm
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debedwards
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I've chanced upon this. I hope this can help you plan for your future.

http://financialmentor.com/free-articles/retirement-planning/early-retirement-planning/12-tips-to-build-wealth-for-early-retirement

elder care specialist | long term care insurance costs | life line screenings
Post Fri Jun 22, 2012 2:37 pm
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