Retirement planning- where are you?

[Bandito440]

Since one of the other threads devolved into 9/11 conspiracies, I'll start this to keep a single topic. There are a wide variety of people here, and I'm curious to see what sort of retirement planning different folks have.

Please list the combined breakdown of all retirement funds and number of years remaining before your first planned withdrawal.

I'll share first.

17-20 years left

Retirement:
50% Domestic large cap index fund
35% Domestic small/mid cap index fund
15% International developed market index fund

Rainy day fund:
VSCH Short term corporate bond ETF

I contribute to all of these from each paycheck.

Please keep thread-locking politics and conspiracies to yourself. I'm genuinely curious what people are doing to plan for the future, and I'd like this one to stay open.

 

[SwampSurvivor]

Chasing 1/4 of a percent in the market makes no sense when I have student loan debt.

Once I get the student loans taken care of, or down to a more reasonable level ...

Before that, I plan on buying a two family house. That should lessen my burden.

 

[A_Harman]

I'm spread across probably 25 different mutual funds in the 3 major 401K's I've had at various employers. 90% stocks, 10% bonds. Plus employee stock shares at each of the companies, augmented by the company match. I've been saving since the mid-90's. Current savings rate is 15% pre-tax. I'll probably live to regret making my savings pre-tax, but it was more a vote of confidence in the future when I decided to do that. I'm about 12-15 years from retirement. When I get 5 years away, I'll start transitioning into funds that are less prone to market fluctuations.

 

[Mr Nice]

20% gross income: 80% index funds and 20% company stock in my IRA and 401K
10% gross income: voluntary pension
Company pension: Approx $5K per month when I turn 60

About $20K this year in Vanguard Total Stock Market Fund. Might dump some money in Vanguard Energy ETF in near future as it keeps getting beat up.

 

[Bandito440]

Originally Posted By: Miller88
Chasing 1/4 of a percent in the market makes no sense when I have student loan debt.

Thank you for contributing. Please consider that equities have averaged 8% annualized returns over the long term. I don't know what's making 0.25%, maybe a basic savings account? In any case, paying off debt is a good thing, as long as you're not missing out on an employer-matched retirement account. The first 5% of contributions that I make are matched by my employer. That's free money.

 

[dishdude]

Originally Posted By: Miller88
Chasing 1/4 of a percent in the market makes no sense when I have student loan debt.

Once I get the student loans taken care of, or down to a more reasonable level ...

Before that, I plan on buying a two family house. That should lessen my burden.


Do you have an employer sponsored retirement plan that matches your contributions? That is an immediate return.

If not, you might want to look at opening a Roth IRA that allows you to withdraw your contributions at any time.

Not saving anything is a bad idea, even if you have current debt.

 

[Eddie]

I am retired now for 15+ years. Individual stocks ~ 55%, Mutual funds ~ 25%, Tax free Munies ~ 10%, Annuities ~ 5% and CD for liquid at ~2%. The tax free municipal are running long term at 5-6% for years and although other said no-way at the beginning, it turned out to be a blessing in the long run. Edward Jones has been my advisor for many years now and although generally conservative, I do not get concerned when the market goes in the [censored]. Ed

 

[Pop_Rivit]

We have about 3 years of spending in short term reserves (bank accounts, CDs, home safe, etc.). It doesn't earn much, but the aim is to finance our spending for 3+ years, especially if other investments should tank during that time. The short term reserves are refilled by current income from business ventures and salaries. Overages beyond the 3-year benchmark are used for charity donations.

About 20% of our assets are invested in business' that both my wife and I own-the profits go to keeping our short term reserves filled.

About 60% of our assets are in various diversified investment vehicles-mutual funds, etc. I don't remember the exact mix off the top of my head-it's around 30% in large-cap, 10% in small-cap, 40% in bonds, and the balance in commodity funds. Any income is reinvested into the same or similar investments.

20% of our assets are in individual stocks. These are stocks that were part of a compensation package when I sold a business, as well as stocks that I've purchased on my own. Most are buy and hold, but on occasion I've bought and sold short term just to see what I can do. Dividends are used to help keep our short term reserves full and used for charity donations.

 

[slo town]

IMO, when one nears retirement they need to make debt reduction their top priority. My wife and I are "regular" people but we have worked hard and have been fortunate to have long careers for good companies (no pensions, however).

Over the last 10 years we have concentrated on debt reduction. We own two homes free and clear; our small ranch smack dab in the middle of vineyards in the Central Coast Wine Country and a nice condo in Silicon Valley. Cars are paid for, etc. We have zero debt.

We did this by being on a strict budget, and I have to tell you it got really old sometimes. Even with our hard work, budgeting, and good fortune, the thought of retirement scares the [censored] out of me.

We do have a fair amount of cash as well (100% cash with zero stocks, etc.), but our retirement income will be Social Security.

Though we feel very fortunate, I confess to laying awake at night wondering if our debt free, pension-less, no stocks financial model is a train wreck in the making.

Seriously complicating the matter is that we have a disabled son who still lives with us (he's 28) and will never live on his own. We cannot sell off and use up our assets because we must leave them to him in a trust fund of some sort. It may sound harsh, but if it were not for him I feel like my wife and I would be in pretty good shape retirement-wise.

Scott

 

[IndyIan]

Originally Posted By: Bandito440
Originally Posted By: Miller88
Chasing 1/4 of a percent in the market makes no sense when I have student loan debt.

Thank you for contributing. Please consider that equities have averaged 8% annualized returns over the long term. I don't know what's making 0.25%, maybe a basic savings account? In any case, paying off debt is a good thing, as long as you're not missing out on an employer-matched retirement account. The first 5% of contributions that I make are matched by my employer. That's free money.

Also if you have flexibility in the student loan payments, I'd put more money into a mutual fund when the stock market is going down like it is now.
I probably should have put more into my funds 10 years ago, and paid less off on the house, given the low interest rates we've had for so long now.

I am set to retire pretty well at 65 with my work pension and the Canada pension plan, etc..., but its going to be tricky to retire at 55-57 without eating up too much savings and missing those 10 years of saving.

 

[surfstar]

Investment summary: 15-20 years from planned retirement:
80/20 split 80% invested in index funds that mimic the total stock market, ~30% international. 20% 'bond' is 4% stable value fund. Cash savings are separate.


35, would like to retire at 50 and am planning for that; but soon to be fiancé would like a kid, so maybe 55 is more realistic.

Will have local gov't pension, but that will be small if/when I retire early and don't hold out to 62+. So I started to save and invest in addition. No SS, though.

Have a 457b (basically gov't version of 401k) and Roth accounts. Expensive fund options in the 457, and no match, unfortunately.
Am ~80/20 stock/bond. (although my 'bond' is fixed income in a 4% stable value fund in our 457, b/c bond returns are too low)
Plus I have some of the online debit card accounts for general cash savings, that earn ~5% (Mango Money and Netspend, look them up if you're keen).

My plan is to keep my asset allocation at 80/20 until age 40, then start ramping it down ~2% a year, so that by retirement age it will be 60/40.

I've been able to max out the 457 and Roth the last couple years, but that may change if a kid pops up, which may require that we look into buying a condo or something in this crazy overpriced area. So for now, we save as much as possible to front-load our retirement accounts and let compounding do its work.

We live below our means, but also take advantage of our weekends and seem to be more active than most people. Surfing, climbing/camping trips, SCUBA diving, etc. Those are our priorities over new cars, eating out at fancy places, buying needless clothes, etc. Never had a car payment. No CC debt. Simple things like that

Leaving next week for 3 weeks in NZ!

 

[CKN]

My wife and I are both retired. I retired at 55. The wife is a little older than me and gets a pension from California where we used to live. We purchased four rental condos 30 years ago while I was a successful Industrial salesman. She stayed home until the kids stayed in school all day and got her teaching credential.

The condos provide a rental income. All properties including our home is paid for and our cars are a 2012 Subaru Legacy and a 2011 Chevrolet Silverdao and a 30 foot travel trailer.

Everything is paid for and we are enjoying retirement.

 

[LoneRanger]

I guess I'm on the right track. I'm 52 and my job has a defined benefits plan, i.e. lifetime pension based on years of service. I also have contributed to a 457B since 1996. Don't owe much on my house and would pay it off before retiring whenever decide to. I'm vested in the pension plan currently approaching 27 yrs on the job, the pension "maxes" at 32. Our organization also offers free health insurance to all retirees, it is the same insurance employees pay for. All employees pay a stipend off their check to fund the retiree insurance. Will not receive Social Security. Pension fund is state administered and quite healthy... for now.

Currently unmarried (widowed 2012), our son is married and out in life, and only responsible for myself right now but that will change whenever I meet the right woman again.

 

[chiefsfan1]

Guess Im Ok.
I have a 401K. currently putting in 10% of my salary. employer match of 6%.
I need to take a look at where I am out. Stock heavy, some bonds.
28% large cap vanguard Instut Index
25% multi cap vanguard Morgan Growth
23 mid cap TRP mid cazp
19% small cap. vanguard small cap.
Rest is company stock.
Im sure I can do better. Im 49 and wonder if we have enough..

15 years left on house.

 

[Crashbox]

Worked for the same employer for over 36 years, public sector. Defined benefit pension which will produce about 85% of my current salary if I retire at 62 which is less than seven years away. Also have a Section 457 plan with no matching funds from my employer but it's mainly a supplement.

House is paid for. Vehicles are paid for. Very little debt.

 

[turtlevette]

Originally Posted By: Crashbox
Worked for the same employer for over 36 years, public sector. Defined benefit pension which will produce about 85% of my current salary


I hate to be a downer. Some of these state pensions have been way too optimistic for a long time. The rules are being rewritten. People aren't going to pay 30% state tax to fund pensions. We'll have a modern day version of the tea party before we get taxed to the poor house.

Retirement is a very hard thing to plan. Do you assume you'll live to 95 and live like a pauper or live it up a bit and let the money run out, then get a job at Walmart as a greeter?

 

[fdcg27]

I'm not too worried.
Where you put money and whether it's pre-tax or not is not nearly as important as having some to put somewhere.
We're sitting pretty good with no debt at all as well as substantial financial assets.
I also have a defined benefit plan to rely upon although I won't be able to collect Social Security.
My wife has a defined benefit plan of her own as well as Social Security and a substantial ESOT holding.
It comes not so much from smart investing as it does from living below your means during your working life.
Spend less than you make and retirement just kind of falls into place.
Spend more and save less and no amount of smart investing will likely save you.

 

[supton]

Not sure on the mix, some sort of moderate mix. Apt to shift largely to a Vanguard 2040 Target, give or take. Another year once I get some debt dealt with I will look into matters more, but right now I get 5% from the company for a match and contribute 6%.

Will be 39 before long and expect to retire at 70. Did not fund my 401k very much for the first thirteen years.

 

[Crashbox]

Originally Posted By: turtlevette
Originally Posted By: Crashbox
Worked for the same employer for over 36 years, public sector. Defined benefit pension which will produce about 85% of my current salary


I hate to be a downer. Some of these state pensions have been way too optimistic for a long time. The rules are being rewritten. People aren't going to pay 30% state tax to fund pensions. We'll have a modern day version of the tea party before we get taxed to the poor house.

Retirement is a very hard thing to plan. Do you assume you'll live to 95 and live like a pauper or live it up a bit and let the money run out, then get a job at Walmart as a greeter?







I keep a very close eye on the soundness of our state pension. It is actually doing much better than a lot of other states, mainly because of reforms that took place before I was hired. Additionally, the courts in our state- Warshington- ruled back in 1956 (Bakenhus vs. Seattle) that once a pension benefit is granted, it is considered constitutionally guaranteed and cannot be revoked without replacing it with a benefit of equal value.

I'm not sweating a thing, nor will I ever have any reason to WRT my pension.

 

[javacontour]

I'm on track. Every time I get a raise, I increase my 401(k) contribution rate.

Should probably up it again if it looks like this sudden sale on equities will go on a while. I'm well diversified in US and International issues.

I have 15-17 years to retirement. I do expect to be the millionaire next door a few times over.

I was talking to my 16 year old about the 401(k) today when she was home from school. She got a prospectus from her job at Starbucks. I told her to put in at the very least enough to get the full company match when she turns 18. Don't leave the free money they offer on the table. Put it to work for her early, so it has time to grow.

Looks like Starbucks is offering the Vanguard targeted retirement funds. Given her age, her target is the 2060 fund.

Gotta get her in that habit early so she has time to learn it and appreciate the growth potential.