I am 28, Emt, how do I save for Retirement?
I guess age is catching up with me and I have realized I have nothing for retirement. My company doesn't offer 401k, so what do I do? I have tried to look this up myself but i'm just puzzled when it comes to stocks, bonds, IRA's.. thanks!
Public Comments
- There are SO many factors to consider. Basically, if you were to retire today, they SAY you should have about a quarter mil in the bank to hold you through the rest of your years. That's assuming that your house is paid off, your kids are done with college, basically all you have to pay is property tax, food and utilities, and a new car every year. Yeah, right. Even today, you'd be better to have half a mil in the bank and by the time you retire, it'll probably be more like a cool mil. So, what to do? If you start now, getting a high savings account rate of 4%, you would need to put in $100 each and every week until you're 68, and that would give you half a mil. Interestingly, if you could double your rate to 8%, you'd cut your deposit by 2/3 down to $35 a week. And THAT's where it gets tricky in selecting your investments. A bank is not going to give you that kind of return. Nor will CD's and money market investments. Mutual funds MIGHT reach that high, but there is so much commission that you pay out just on the maintenance of them that you're losing a lot of your own money. Stocks and bonds have a higher rate of return, but everyone's ideas of which ones are different. You're best off to buy a couple books and learn a little about investment strategy from those who are successful. Also, do talk to a financial advisor about ideas. Just don't let him make your decisions for you as many of them try to do. (And I've seen some REAL stupid statements out of some of them!) The bottom line is, whatever you do, start it within the next couple years. As one person put it, compounding interest, or return on investment, is the 8th wonder of the world. Wait too long and there won't be enough time left.
- Look into a Roth IRA. For some really good information read a couple of Dave Ramsey books or go to his website. He is really good, plus he has a radio talk show, you can find the info on his website.
