View Full Version : Pay yourself first

10-03-2000, 01:28 AM
Just wondering how many of you are planning on cutting untill retirement and if anyone has started saving for it with IRA or other means. I've read in past threads that guys are working 7 days a week and having a hard time making money. I don't know if their joking or what, I would like to believe most people in this business are making money and saving for their future.


10-03-2000, 01:54 AM
Yes i have a IRA. Start one today if you wait until you think you can you never will.Start small snd give it a raise every year it will surprise you how fast it grows and how little you miss it.

10-03-2000, 02:35 AM
Try the roth ira will benifit you in the long run. You pay the tax upfront but you dont pay on you returns. Where a regular ira you dont pay upfront but you will pay later. You will make much more money on your returns.

10-03-2000, 08:46 PM
I'm planning for retirement. I started an IRA 4 years ago and put in 2 grand a year. By the time I'm done, there should be a nice chunk of change hanging out waiting for me.


10-05-2000, 01:05 AM
I can't see working till you're 60-something and then depending on Unc Sam to pay the bills. I put money away consistantly, and hope to have plenty when I retire (40 years away!!).

10-05-2000, 01:07 AM
My wife and I have 2 IRA's and her company 401k plan we are in our early 30s real tight now but by 60s we will be well off.

10-05-2000, 01:23 AM
Im 18 and started a roth IRA. Each year I set aside 2K to drop into it and I plan to keep doing that until im 59 and then i will take my million dollars and have some real fun. Did i hear a proposal to increase the amount you can put into it or was i just dreaming?

10-05-2000, 03:09 AM
I see that you are all looking to the future. This is really a great thing. If you are in business for yourself and do this full time you really need more than just the 2000 that an regular or roth IRA will give you. If you can afford to put more away you should look a little deeper into another investment strategy. I have set up a SIMPLE IRA which would allow me to set aside up to $12000 a year before taxes. The formula is that you can set aside 3% up to $6000 maximum and the company can match what you set out up to the $6000. This is available at most financial institutions. There is nothing that has to be filed with the government other than what goes on the 1040. When you set this up you must make it available to your employees with the same rules. There are some other criteria that can be changed and I have given maximum amounts alloted. There are other factors that must be taken into account and your taxman should be able to tell you about those (especially if you have a pension plan from another income source). There are other vehicles like a SEP IRA,or a keogh plan. Don't be drawn into the IRA only thing. There are many other ways to save for your retirement.

10-06-2000, 01:08 AM
Its refreshing to see some of you are planning for your future, rather than waiting until your 55 and you only have $1000.00 saved.

Morturf, I just started the Simple IRA last year. This is a great plan to complement our IRA and monthly savings plan. I'm really trying to save now to give myself the option to retire at 56 or 57. In 20 years I'll know if it worked.

10-06-2000, 07:59 AM
To you young guys...

Don't get me wrong, saving younger is better, but relying only on a $2000/year IRA is not going to cut it. Sure, when you are 65 you will have over a million, BUT, 45 years from now, a million dollars will not buy as many goods and services as it will today.

Also, keep in mind that you cannot spend that million. If you do, you will not have any money left working for you making interest. The interest is what you will have to live off of.

So, in reality, in 45 years, you will need more than a million just to sustain the same lifestyle as you had prior to retirement.

I think that everyone should see a chart that I saw years ago, called the "Cost of procrastination". It detailed dollar amounts of saving $X starting at age 18, 24, 30... It is amazing the difference that a few years can make.

Bottom line is, The more, the eairler, the better.

10-06-2000, 07:32 PM
Either next year or later they are going to start letting you put more money into your Roth IRA. I can't remember the amount or when. But I know it will be soon

10-07-2000, 11:44 PM
you can have a retirement plan in place and still contrbute to a roth. i have a simple and a roth. my wife is staying home with the kids, we put away i her ira. save now, or work a lot later.

Vibe Ray
10-08-2000, 12:24 AM
I don't ever want to retire!!! I mean as soon as you can't work anymore...what's the point??? Working is a great thing to do and I think I wouldn't want to ever stop it. I'd rather die than live and not work!!!Seriously.

10-08-2000, 12:51 AM
I am paying off debt first. Why save at 10-12% and pay out 18-24% on the Visa cards? Next year I will be debt free except for the mortgages. 3 years and those will be gone also. And my mother in law wants to know when i'm going to get a real job. HA! :)

10-08-2000, 10:41 AM
The maximum amount allowed for contribution to your plan should continue to increase as cost of living does, so you should end up with with a higher figure than anticipated.

Vibe Ray,
I agree, who wants to stop. If I am on a two week vacation I get antsy by the second week. I plan to work PT after 65 if I live that long. A person needs a reason-purpose each day. The savings will help the retirement budget.

10-08-2000, 04:29 PM
i'm in the same boat as eslawns on the credit cards and the MOTHER-IN-LAW!

10-09-2000, 10:04 PM
Anyone here invest in mutual funds? How about the Stock Market? [taking more of a chance COULD give more returns!]


Marquis Lawn
10-10-2000, 06:59 PM
If you think saving a million $$ will cut it... think again. I retire in 35 years, with 3% inflation, that equals only $355,000 in real money. Alot to some, but not an amount you could live comfortably on.

You probably need closer to $3 million when you retire to live on interest only and not draw on the principal.

I agree that you need to pay off high interest debt first. Shame on you for getting it in the first place, but pay it off asap!

Play your IRA money relatively safe too. All you need is the market average to retire nicely. Don't take unneeded risk for bigger gains, it's not worth losing a big chunk to make a few extra points. Invest in well-diversified mutuals or do some research and do it yourself.

Better yet... build a huge biz in a few years and sell to Chem-lawn for millions!