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Number of Fidelity 401(k) millionaires hits record high

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Number of Fidelity 401(k) millionaires hits record high

 
Old 03-15-2019, 11:35 AM
  #121  
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Originally Posted by Gordon Shumway View Post
Don't get me wrong, I am not saying there is anything wrong with a 401K plan. In fact, I've always thought it is the greatest thing since sliced bread for most people. However, wait until all those 401K millionaires reach 701/2 years old, and the time comes to pay the piper. With RMD's and a big 401K/IRA , they are in for a shock. Not something that will put you in the poorhouse, but the tax on those RMD's, and likely double or worse Medicare Part B&D premiums can be quite the shock to the system when it actually happens. It's one of those I knew it was coming someday moments, but damn!
If you don't want to take out RMDs, and won't be using the money for a while, and/or want to leave part of it to your kids/estate....then a Roth IRA (conversion) is the way to go. Especially if you can tax-manage the upfront payment of taxes.

Pay it all off....own 100% of your (Roth) IRA....and then grow it for YOU 100%....not 70% for you and 30% for the government (or even 65%/35%).
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Old 03-15-2019, 11:57 AM
  #122  
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Even better than a 401k, is a SEP IRA...for the self employed. I can put away up to 25% of my net income up to $55,000 per year, TAX FREE. I put the most away that I can each year. Can't rely on Social Security for retirement.

Is it a big deal to have a net worth of $1,000,000 or more these days???

Last edited by Tri-Tip; 03-15-2019 at 11:58 AM.
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Old 03-15-2019, 01:45 PM
  #123  
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Originally Posted by Tri-Tip View Post
Even better than a 401k, is a SEP IRA...for the self employed. I can put away up to 25% of my net income up to $55,000 per year, TAX FREE. I put the most away that I can each year. Can't rely on Social Security for retirement.

Is it a big deal to have a net worth of $1,000,000 or more these days???
Bingo.

But I wonder if you can be employed and self employed (business on the side) at the same time and max out both retirement accounts? Not sure what the tax laws on this are...
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Old 03-15-2019, 01:50 PM
  #124  
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Originally Posted by Tri-Tip View Post
Is it a big deal to have a net worth of $1,000,000 or more these days???
I'm not sure what bragging rights 1 mil is worth, but my angle on this whole retirement thing is I'll be happy to maintain my current level of living standard after I cannot work anymore. Social security alone will NOT accomplish this, no way! But I don't think I'll even need 1 mil to do that, combined with SS benefits, combined with a small side business from home. There are lots of ways to skin this cat. Simply having 1 mil in a retirement account is kinda boring anyway...who wants to sit at home all day staring at the walls and an account with 1 mill in it?
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Old 03-15-2019, 03:58 PM
  #125  
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Originally Posted by htown81vette View Post
Simply having 1 mil in a retirement account is kinda boring anyway...who wants to sit at home all day staring at the walls and an account with 1 mill in it?
You need to either invest it with someone qualified or do it yourself. Either way, you need to know what you are invested in.

$1 MM should provide about $40,000 a year in annual income.
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Old 03-15-2019, 04:23 PM
  #126  
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Originally Posted by ZL1Vette View Post
You need to either invest it with someone qualified or do it yourself. Either way, you need to know what you are invested in.

$1 MM should provide about $40,000 a year in annual income.
I insist on doing it myself. I've been easily able to achieve between 10-15% on my own the last 10 years or so, and have triggers that kick me out of the market should it go south. I've never been happy with those "qualified" people managing my funds. Sure felt like alot of it was going directly into their pocket. When I started doing it myself I started getting WAY better results....
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Old 03-15-2019, 04:30 PM
  #127  
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Originally Posted by htown81vette View Post
I'm not sure what bragging rights 1 mil is worth, but my angle on this whole retirement thing is I'll be happy to maintain my current level of living standard after I cannot work anymore. Social security alone will NOT accomplish this, no way! But I don't think I'll even need 1 mil to do that, combined with SS benefits, combined with a small side business from home. There are lots of ways to skin this cat. Simply having 1 mil in a retirement account is kinda boring anyway...who wants to sit at home all day staring at the walls and an account with 1 mill in it?
The goal during retirement is to enjoy it, not sit home and look at your bank statement. If you have 25 times your annual take-home pay in a non retirement account or 25 times your annual gross pay in a retirement account, you can continue to spend as you were during your working years. Although in retirement, there is a lot of free time to be out doing things, travelling, etc. and that costs more for most than their budget for those items while they were in their working years.

If your take-home was $50,000 a year and you have $1,250,000 in savings, you can pull out $50,000 per year and expect that a normal rate of return will keep you at the same balance.
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Old 03-15-2019, 04:44 PM
  #128  
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Originally Posted by Tri-Tip View Post
The goal during retirement is to enjoy it, not sit home and look at your bank statement.
That is exactly what I was trying to convey.
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Old 03-15-2019, 04:49 PM
  #129  
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Originally Posted by Tri-Tip View Post
If your take-home was $50,000 a year and you have $1,250,000 in savings, you can pull out $50,000 per year and expect that a normal rate of return will keep you at the same balance.
4% is pretty conservative. I plan to make quite abit more than that, and have been doing for the last 10 years or so. I plan to keep my investments AGGRESSIVE through retirement. Just ask Warren Buffett he will tell you to do the exact same thing. Sure I've lost money here and there......just another bad day at the office.....but I never lose, I only LEARN.
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Old 03-16-2019, 06:19 AM
  #130  
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Originally Posted by Frankie the Fink View Post
It still makes you a 6%er....

I'm a 3%er and closing in on 2%; which doesn't make me sad or glad as I already have the lifestyle I want....my kid will be happy though...
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Old 03-16-2019, 07:53 AM
  #131  
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Iím late to getting to this thread and havenít read much of it yet, but I have trouble believing that there wasnít a noticeable dip or at least some flattening of the trend in 4th quarter of 2018 - unless they did some serious data smoothing.

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Old 03-16-2019, 08:01 AM
  #132  
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Originally Posted by Peva View Post
Iím late to getting to this thread and havenít read much of it yet, but I have trouble believing that there wasnít a noticeable dip or at least some flattening of the trend in 4th quarter of 2018 - unless they did some serious data smoothing.

Ummmmm, the chart ends at the second quarter of 2018.
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Old 03-16-2019, 08:58 AM
  #133  
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as predicted by edward d ones inc. as early as 1990, everyday for the last 15 years and also for the next 20 years, 10,000 individuals cross up into the over 1 milion in net worth category level .

the transefer of wealth due to nirmal generational death and inheitance is mind boggling

Last edited by BLZNSDL; 03-16-2019 at 08:59 AM.
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Old 03-16-2019, 09:37 AM
  #134  
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Originally Posted by htown81vette View Post
I must be close to having FU money because I have to suppress my FU tendencies everytime I walk into work. It sneaks out every now and then when I let my guard down, but I can't wait until the day I can walk in and say F you.....and you....and you....I'm out.....
Same here, I let it be known that I will not die in my office. I'm out come Dec 2020.
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Old 03-16-2019, 11:27 AM
  #135  
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Originally Posted by htown81vette View Post
I insist on doing it myself. I've been easily able to achieve between 10-15% on my own the last 10 years or so, and have triggers that kick me out of the market should it go south. I've never been happy with those "qualified" people managing my funds. Sure felt like alot of it was going directly into their pocket. When I started doing it myself I started getting WAY better results....
The market has been going UP for that amount -- 10-15% a year -- since 2008, the last 10 years.

The question is what do you do when returns are more normalized...or flat...or down.

If you don't NEED to live off your portfolio then asset allocation may not matter, dividend income may not matter, etc. But if you do, you should read up on the Rule of 4% and other retirement guidelines. Otherwise, if you do need the portfolio to live on, you could be faced with some tough choices when/if the market falls 20% or even 40% and then does NOT rebound quickly.

The point is...no need to GAMBLE with your retirement. You've already won if you have a nice nest egg, so don't risk it.

Last edited by ZL1Vette; 03-16-2019 at 12:10 PM.
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Old 03-16-2019, 11:37 AM
  #136  
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Originally Posted by Mr D. View Post
Same here, I let it be known that I will not die in my office. I'm out come Dec 2020.
I agree. I've got Nov/Dec 2020 on my radar and watching closely.
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Old 03-16-2019, 11:40 AM
  #137  
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Originally Posted by ZL1Vette View Post
The question is what do you do when returns are more normalized...or flat...or down.
I simply get out. I manage it on a day to day basis. No I don't always get out in time, but I've avoided some deep loses. You win some you lose some. I'd say I win at least 70% of the time, which ask any investor, is decent performance.
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Old 03-16-2019, 11:42 AM
  #138  
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Originally Posted by ZL1Vette View Post

The point is...no need to GAMBLE with your retirement. You've already won if you have a nice nest egg, so don't risk it.
That is exactly what the "qualified" people want you to think. So they can invest your money and skim off the top. The way I think, it's a bigger risk letting them do it for you, instead of educating yourself, and managing it yourself. By the way, last year I made 35%.

Last edited by htown81vette; 03-16-2019 at 11:42 AM.
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Old 03-16-2019, 12:24 PM
  #139  
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Originally Posted by htown81vette View Post
That is exactly what the "qualified" people want you to think. So they can invest your money and skim off the top. The way I think, it's a bigger risk letting them do it for you, instead of educating yourself, and managing it yourself. By the way, last year I made 35%.
Fees are very transparent, there is no way you are having someone "skim off the top" unless you are dealing with a disreputable firm/individual or you don't know what you are doing (which doesn't seem to be the case).
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Old 03-16-2019, 12:29 PM
  #140  
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Originally Posted by htown81vette View Post
I simply get out. I manage it on a day to day basis. No I don't always get out in time, but I've avoided some deep loses. You win some you lose some. I'd say I win at least 70% of the time, which ask any investor, is decent performance.
It seems like you are daytrading, which is very time-consuming and requires both skill -- and luck. And you probably won't want do do it 8 hours a day or 24/7 in your retirement years as even my friends who love the markets realize they want to spend whatever time they have left with F&F, grandkids, etc.

Just saying.......
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