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Retirement Plans 401k, Roth, Pension  
User currently offlinecasinterest From United States of America, joined Feb 2005, 4590 posts, RR: 2
Posted (1 year 3 months 2 weeks 4 days 6 hours ago) and read 1306 times:

All,
Thought I would start a thread to see what everyone is currently doing towards retirement.

1. How many of you have a 401K? Roth?Pension? IRA?
2. What percentage do you put in each month/annually. Company Match
3. Do you actively manage it, or just put it away and worry about it later?
4. Satisfied with your broker or retirement plan options?
5. Any particular funds you are really happy with?
6. Any pearls of wisdom from your fund managers/brokers on upcoming market trends?
7. Years to expected retirement


For me

1. I have a 401K and a Roth
2. 13%?with a 50% company match up to 6%
3. I manage it and like to balance it out at least once a year and look for any lagging funds
4. Fairly satisfied, wish the website was a bit better.
5. I love Janus Triton Small Cap right now.
6. My Broker has been saying that bonds are going to get worse and worse and that it is time to go heavy on stocks
7. 30


Older than I just was ,and younger than I will soo be.
17 replies: All unread, jump to last
 
User currently offlineMD11Engineer From Germany, joined Oct 2003, 14011 posts, RR: 62
Reply 1, posted (1 year 3 months 2 weeks 4 days 6 hours ago) and read 1284 times:

We don´t have 401K plans in Gernany, but I´m thinking of setting up a portfolio of various shares as third leg of my old age pension additionally to the normal mandatory government old age pension and a stock fonds which I got into through my employer and an insurance company he is cooperating with.

Jan


User currently offlineDreadnought From United States of America, joined Feb 2008, 8840 posts, RR: 24
Reply 2, posted (1 year 3 months 2 weeks 4 days 5 hours ago) and read 1273 times:

Quoting casinterest (Thread starter):
1. I have a 401K and a Roth

How aspirationally capitalist of you. Not much faith in government paying your way in your old age?

Quoting casinterest (Thread starter):
My Broker has been saying that bonds are going to get worse and worse and that it is time to go heavy on stocks

All kidding and our usual politically based bickering aside, I'd be careful. By all objective measures, the US stock market is way overvalued, held there by artificially low interest rates. Buying stocks now, I think would be like buying mortgage-based securities in 2007 ("They've been good so far, right?")

Unfortunately you are asking the question at or near the crest of the wave.

I would recommend puting your money in foreign currency stocks (split into several tranches). Not the Euro, not the Yen. Put it in the currency of a country that has controlled deficits and inflation, stable government, and a relatively staid but steady stock market. When the Dollar gets revalued and the stock market tanks, you'll be protected from both, and in fact might make money while everyone else loses it.

In any case, as far as retirement funds go, I would never, ever put more than 50% of my money in stocks, unless I was under 35 or so. Too high risk. Solid AAA rated bonds from profitable companies, metals should take up the rest.



Veni Vidi Castratavi Illegitimos
User currently offlinebhill From United States of America, joined Sep 2001, 966 posts, RR: 0
Reply 3, posted (1 year 3 months 2 weeks 4 days 5 hours ago) and read 1260 times:

The 50% rule is good advice...But keep in mind how valuable those rating agencies are..................MBS's used to be "good as gold and bullet proof"....Trust your broker and go easy on the Day Trading.


Carpe Pices
User currently onlinefr8mech From United States of America, joined Sep 2005, 5400 posts, RR: 14
Reply 4, posted (1 year 3 months 2 weeks 4 days 5 hours ago) and read 1259 times:

Quoting casinterest (Thread starter):
1. How many of you have a 401K? Roth?Pension? IRA?

I have a defined pension and I have a 401K. I have a 401K qualified brokerage account. I also have, a non-tax deferred brokerage account in which my employer deposits my bonus (in stock) every year. The dividend is re-invested. This account is how I plan to pay for my kids' (or at least the bulk) college education.

My wife has a 401K.

We do not qualify for a Roth.

Quoting casinterest (Thread starter):
2. What percentage do you put in each month/annually. Company Match

12% for me. 15% for the wife. The company matches 3% for me.

Quoting casinterest (Thread starter):
3. Do you actively manage it, or just put it away and worry about it later?

About quarterly I look at the 401K's. The 401K qualified brokerage account I actively buy and sell stocks. Not a day trader type thing, but I keep an eye on my positions and sell or buy as I see fit...within the parameters of the plan.

Quoting casinterest (Thread starter):
7. Years to expected retirement

I am eligible to retire in 10.5 years. I hit 59 1/2 in 15 years. My youngest gets out of college (assuming I don't kill him first) in 15 years. So, I guess I retire in 15-20 years.

I'd be real careful with that advice. While stocks are riding high, as Dread indicated, I believe the high is artificial. Remember, the stock market is a decent indicator of the mood of the nation (economically), I do not believe it is a good indicator of the health of the economy. There is too much cheap money out there. I've been slowly moving my positions away from some of the more volatile stocks (tech, transport, service) and moving into some international stuff and bond funds.

Also, I expect the market will experience a correction in the next few months and as high as it's been riding, that correction is going to hurt. Those stocks with a high Beta are gonna feel it.

Oh yeah, I also have Social Security.   

[Edited 2013-05-17 12:35:51]


When seconds count...the police are minutes away.
User currently offlinecasinterest From United States of America, joined Feb 2005, 4590 posts, RR: 2
Reply 5, posted (1 year 3 months 2 weeks 4 days 5 hours ago) and read 1246 times:

Quoting Dreadnought (Reply 2):
All kidding and our usual politically based bickering aside, I'd be careful. By all objective measures, the US stock market is way overvalued, held there by artificially low interest rates. Buying stocks now, I think would be like buying mortgage-based securities in 2007 ("They've been good so far, right?")

Unfortunately you are asking the question at or near the crest of the wave.

I am not so sure about the overvalued portion. By all counts it is still a bit undervalued(historically). However the major run up in the last 6 months has to get a lot of folks thinking of locking in some gains for the year. http://finance.yahoo.com/blogs/micha...great-just-6-months-164843820.html


However it also would seem that the US market is proving itself to be growing,(slowly). So is a correction coming and should I try to time it? Not so sure. Especially when my retirement is years away. The stock market has historically outperformed cash and bonds, and this being a retirement account discussion, the goal is growth.

Quoting Dreadnought (Reply 2):
ever put more than 50% of my money in stocks

When I get within 15 years of retirement I may hold this view, but while I am young I am going to hold around 75% in stocks. I really like Templeton Global . It is a well managed fund.

Quoting Dreadnought (Reply 2):
I would recommend puting your money in foreign currency stocks (split into several tranches). Not the Euro, not the Yen. Put it in the currency of a country that has controlled deficits and inflation, stable government, and a relatively staid but steady stock market. When the Dollar gets revalued and the stock market tanks, you'll be protected from both, and in fact might make money while everyone else loses it.

Your plan is better than mine, perhaps because it is a 401K I am limited to 20 different fund choices, and of that 3 are foreign, One is a index fund, one is a basket, and one is a foreign growth fund

Quoting fr8mech (Reply 4):
Oh yeah, I also have Social Security.
Quoting Dreadnought (Reply 2):

How aspirationally capitalist of you. Not much faith in government paying your way in your old age?

I bet on having something. Don't know how much after all the draw downs and law changes that will come around , I currently have 28% of my pay going to retirement. With company matches included. Hopefully I will have something to retire on.



Older than I just was ,and younger than I will soo be.
User currently onlineFlighty From United States of America, joined Apr 2007, 8498 posts, RR: 2
Reply 6, posted (1 year 3 months 2 weeks 4 days 5 hours ago) and read 1245 times:

Quoting Dreadnought (Reply 2):
Not the Euro, not the Yen.

I just sold a bunch of Yen stuff that had been stagnant for 5 year. Oops. The Nikkei is incredible this year, by Japanese standards anyway.


User currently offlineflymia From United States of America, joined Jun 2001, 7156 posts, RR: 9
Reply 7, posted (1 year 3 months 2 weeks 4 days 5 hours ago) and read 1243 times:

At 23 I have a Roth IRA. Have a few dividend low risk stocks and will most likely not pay much attention for years and reinvest the dividends. I will check it and reevalute holdings a few times a year. It will be decades until I take anything out so really even if the market is over inflated right now, which I think it certainly, is it does not make much of a difference for me. Where else would I put my money? In a CD and make $2 a year on interest! 


"It was just four of us on the flight deck, trying to do our job" (Captain Al Haynes)
User currently offlineAeroWesty From United States of America, joined Oct 2004, 20563 posts, RR: 62
Reply 8, posted (1 year 3 months 2 weeks 4 days 5 hours ago) and read 1242 times:

Quoting casinterest (Thread starter):
My Broker has been saying that bonds are going to get worse and worse and that it is time to go heavy on stocks

He's right and wrong. First we need to make sure you understand how a bond works.

All bonds are issued with a face value of $1,000, and have an interest rate. On a zero coupon bond, you buy it at a fractional price which will net you $1,000 upon maturity when the interest is added on. (Bond prices trade in what look like stock prices, since the prices quoted are the percentage of the face value—e.g. a bond price of 80 is actually $800.)

We're basically at the top of the market right now though, because interest rates are so low. If you were to buy a bond for $1,000 with a 2.5% coupon, and interest rates went up so that similar bonds are being issued with a 5% coupon, your 2.5% bond will fall to 50 (or $500) in order for a buyer to net the same 5%. (It's a little more complicated than that, it's actually the yield-to-maturity which is calculated, not the straight yield, but you get the idea.)

An exception to the rule are convertible bonds. These will convert to a set number of shares of stock of the issuing company. This gives you some downside protection, since regardless of interest rates, the bond will have a floor of what the price of the underlying value of the stock is times the number of shares it's worth. So if that hypothetical 2.5% bond in the above example is worth 25 shares of a stock selling for $25, instead of falling to 50 if interest rates go to 5%, the convertible will sell for 62.5, since its underlying stock is worth $625. Converts also have enormous upside potential if the underlying stock continues to increase in value. I've seen bonds which had a yield-to-maturity value based on its coupon of 75 or less be worth 200 just on its stock value.

(I used to construct, trade, and make a market in convertible bond derivatives, so I know a wee bit about them.   We'd buy convertibles, then sell the underlying value of the stock short, so if the short went against us, we'd just convert the bonds into stock to close out the short, but we had a huge upside potential sitting there shorting and rebuying the stock over and over. You need a stable interest rate market to do this, though, so you have a known downside risk on the value of the bond itself. We did really well where the bond traded on both its yield-to-maturity and stock value simultaneously.)

Best advice: Invest $100 or so in the Series 7 stockbroker license training manuals, before you listen to a stockbroker. You'll learn how the markets work and how each security works as well, so you can ask intelligent questions.



International Homo of Mystery
User currently offlineaa757first From United States of America, joined Aug 2003, 3347 posts, RR: 8
Reply 9, posted (1 year 3 months 2 weeks 4 days 1 hour ago) and read 1206 times:

Quoting casinterest (Thread starter):
1. How many of you have a 401K? Roth?Pension? IRA?
2. What percentage do you put in each month/annually. Company Match
3. Do you actively manage it, or just put it away and worry about it later?
4. Satisfied with your broker or retirement plan options?
5. Any particular funds you are really happy with?
6. Any pearls of wisdom from your fund managers/brokers on upcoming market trends?
7. Years to expected retirement

1. 403(b), which is essentially the same thing as a 401(k)
2. My employer contributes 3.5% of my salary, regardless of what I do. I'm scheduled to start contributing 3%. Thinking that should probably go higher.
3. Haven't started contributing yet.
4. It's done through TIAA-CREF. No reason to be dissatisfied yet, but I haven't done enough research into retirement planning to know what's really good and what isn't.
5. 90% of my fund goes into something called Target 2055, which is a fund for someone planning to retire in or around that year. 10% goes to real estate.
7. 42.


User currently offlinerightrudder From United States of America, joined Aug 2008, 158 posts, RR: 0
Reply 10, posted (1 year 3 months 2 weeks 4 days 1 hour ago) and read 1204 times:

I am waiting for another conversion to come around like the one in 2010. Sounds like a great deal if you can split the ROTH contribution into two years instead of one.

http://usatoday30.usatoday.com/money...xes-roth-ira-conversion/53179054/1



"Time flies like an arrow. Fruit flies like a banana".
User currently onlinefr8mech From United States of America, joined Sep 2005, 5400 posts, RR: 14
Reply 11, posted (1 year 3 months 2 weeks 4 days ago) and read 1185 times:

Quoting aa757first (Reply 9):
Thinking that should probably go higher.

Yeah, you should go higher. You're young. The earlier you go in the better off you are. Figure out what you're comfortable with and do it. Hell, if you can max it out, do it.

42 years is a longtime.

You have a lot of risk tolerance built into your age. You can probably go a little more aggressive than a target date type fund. Keep money going into it, but I would certainly explore some riskier options.



When seconds count...the police are minutes away.
User currently offlinethreeifbyair From United States of America, joined Aug 2007, 675 posts, RR: 1
Reply 12, posted (1 year 3 months 2 weeks 3 days 17 hours ago) and read 1133 times:

Quoting casinterest (Thread starter):
1. How many of you have a 401K? Roth?Pension? IRA?
2. What percentage do you put in each month/annually. Company Match
3. Do you actively manage it, or just put it away and worry about it later?
4. Satisfied with your broker or retirement plan options?
5. Any particular funds you are really happy with?
6. Any pearls of wisdom from your fund managers/brokers on upcoming market trends?
7. Years to expected retirement

1. 401(k) from my old job and Roth IRA. No pension.
2. Not eligible to contribute to a 401(k) at my new job because I will be working on a temporary contract for the summer. Planning to max out Roth IRA for 2013.
3. Actively monitor it, but I don't make many tactical changes
4. I use Fidelity for my Roth IRA - good selection of mutual funds.
5. I've got a pretty wide collection of funds across various asset classes. Pretty happy with Harbor International, Templeton Global Bond, T. Rowe Price Equity-Income, and T. Rowe Price International Discovery recently.
6. Bearish on US fixed income, neutral on US equities. I'm liking my international exposure right now, but I'm already at ~45% international so I don't want to increase my allocation even more.
7. 35-40


User currently offlinecasinterest From United States of America, joined Feb 2005, 4590 posts, RR: 2
Reply 13, posted (1 year 3 months 2 weeks 9 hours ago) and read 1030 times:

Quoting AeroWesty (Reply 8):
Best advice: Invest $100 or so in the Series 7 stockbroker license training manuals, before you listen to a stockbroker. You'll learn how the markets work and how each security works as well, so you can ask intelligent questions.

I might look into those. However It seems like quite a bit of these trades require a little more thought and time than I can put into it. But you are correct that understanding when and why traders are going to buy might help out a bit in my decisions.

[Edited 2013-05-21 08:29:55]


Older than I just was ,and younger than I will soo be.
User currently onlineFlighty From United States of America, joined Apr 2007, 8498 posts, RR: 2
Reply 14, posted (1 year 3 months 2 weeks 8 hours ago) and read 1006 times:

Quoting casinterest (Reply 13):
But you are correct that understanding when and why traders are going to buy might help out a bit in my decisions.

It is also important to know that most stockbrokers (imo 95%) are not financial professionals. Certainly they are not legal fiduciaries whose _duty is to help you_.

Their duty (as salesmen) is to sell you products. And their expertise/talent is social networking and grooming of relationships.

Their goal is to meet you, groom you, and then manage your psychology while they extract 50% of your wealth over your lifetime. That is their expertise - and it is a highly paid skill.

If you have serious financial planning needs, hire a _fiduciary_. They cost money. Even $1000 or $5000 is sooo cheap compared to what "money guys," "wealth managers," "financial planner" salesmen types cost you.

Part of the expertise of the brokerage industry is to obfuscate fairly simple concepts to intimidate you psychologically, while also disguising the ways they steal from you (completely legally) over long periods of time.

Just get, or buy, a reliable friend in the industry, or handle the planning yourself.

Just saying.


User currently offlineAeroWesty From United States of America, joined Oct 2004, 20563 posts, RR: 62
Reply 15, posted (1 year 3 months 2 weeks 7 hours ago) and read 994 times:

Quoting casinterest (Reply 13):
But you are correct that understanding when and why traders are going to buy might help out a bit in my decisions.

When I was preparing for my Series 7 test I was an experienced investor, but as I was flipping through the workbook I kept repeating to myself, "good lord, I wish I'd known this ten years ago." What I learned the most:

• What the differences are between each type of security, publicly and privately traded
• Correctly understanding the terminology in use
• How securities are traded (by whom and where)
• How to calculate ROIs correctly (during the test you have to calculate yields by hand or on a pocket calculator)
• How to assess risk tolerance and the appropriateness of securities and strategies for different investment goals. ("Know your client" is Rule #1 in the brokerage business, or at least it's supposed to be)

One of the things I'd never known before is that just as a generic stockbroker, you may legally hang out a shingle offering your services as an investment advisor without any further knowledge or training. It's that complete.

Everyone who's taken my advice over the years and studied the Series 7 training guides have said they haven't regretted it, so I continue to recommend it to both experienced and inexperienced investors alike, if they've an interest in understanding how the financial markets work.

And remember, buy on the rumor, sell on the news!  



International Homo of Mystery
User currently offlineKaiGywer From United States of America, joined Oct 2003, 12242 posts, RR: 35
Reply 16, posted (1 year 3 months 2 weeks 7 hours ago) and read 990 times:
AIRLINERS.NET CREW
FORUM MODERATOR

1. I have a Traditional IRA converted from a couple of former employer 401k plans. I also have a pension and a 457(b)
2. Nothing into my IRA. My pension I put in 9.3% and my employer 13.5% of my gross every paycheck. I put $30 every paycheck into the 457(b)
3. My IRA is set into Target Date funds. The pension is managed by my employer. The 457(b) is also Target Date.
4. Sure
5. I use Schwab 2040 and 2045 on my IRA.
6. Nope
7. If I want full pension, I have to go for 29 more years.



911, where is your emergency?
User currently offlineAlias1024 From United States of America, joined Oct 2004, 2755 posts, RR: 2
Reply 17, posted (1 year 3 months 1 week 6 days 21 hours ago) and read 948 times:

1. 401(k), Roth IRA, and traditional IRA from previous employer's 401(k) plans

2. I contribute 4% to the 401(k), as that is the maximum my company will match, though it's a 100% match and fully vested immediately. I contribute at minimum another 4% to the Roth IRA, but often more than that based on how my monthly budget is turning out.

3. I actively manage it. Doesn't mean I change funds often or trade much, just that I keep an eye on things and make adjustments when I feel they are necessary.

4. I have been somewhat more satisfied with the 401(k) investment options since they added an S&P 500 index fund, though I'm annoyed at the lack of both short and long term bond funds. Not that I'm interested in long term bonds right now, but it should still be an option.

5. I am a big fan of index funds, as they have much lower expense ratios than actively managed funds. I have a significant part of my retirement in S&P 500 index funds. A percent a year over a few decades can be a big chunk of money.

6. No wisdom to pass on from "experts", but I'll tell you what I've been doing in my non-retirement brokerage account. I've been adding financial and insurance stocks since last year. Right now both are being hurt by low interest rates, which I don't expect to last forever. I'm happy to add these stocks to my portfolio and collect some dividends for a few years while I wait for interest rates to rise.

7. 35 years until mandatory retirement.



It is a mistake to think you can solve any major problems with just potatoes.
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