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Discussion in 'Business Operations' started by siklid1066, Nov 26, 2007.
Anyone have a decent plan on how to retire after all is said and done.
Its called individual investments, I invest in real estate , mutual funds, etc. I also work with an investor that really gives me great insight on future investments! Have fun an think ahead George
Start young with a IRA I started when I started the biz when I was 18... Nice 4K deduction yearly...
Figure out how many years you plan on working. Then figure out how much money you would like to have available when your not working. Then figure out how much you have to save yearly X how many years your going to work.
If your not good with investments get a professional. A good investor should be able to gain 10-12% yearly on investments(stock/mutual funds/bonds, etc..) over a long period of time....
Find a buyer for your company that is will to pay top dollar when you want out...
retire, nahhh, I'll have a heart attack pass out and drive into the middle of the highway and be hit by a semi, don't need no retirement.
Otherwise I have different investments to carry me through.
Talk to a investor about a roth Ira it takes after tax dollars to invest so when it grows it is already taxed.
I'm counting on lottery tickets, betting on an early heart attack so I can rip off the life insurance company but I keep filling up a Roth IRA and buying property just in case the first two don't pan out.
First you have to live within your means and reduce your costs.
Do that until you're able to save money.
A budget helps.
Oh yeah, don't get married.
The IRA's, the stocks (though risky), The funds, and some of the other things,....they all work, but when you are doing things like real estate, though it is building something for a retirement, that really isn't building a retirement for this business. In order to build a retirement from this business, as just like any other business, you must build a business - something of worth. In other words, you real need to build something that is self sustaining. One of the key ingredients is having a business big enough with enough accounts that you have something worth the resale. This essentially leave out the solo operations. There is no way of having a large enough business to have enough worth to equal enough for a true retirement. Besides, by this time, your production is not going to be what it was in the younger days. It is practical and essential to have a grown business - complete with enough production being done by employees, and better yet, being able to run with or without you (proper managers in place). The worth of a business like this can be built infinitely.
By this time, if a business is not built to a worth like this, you are not selling a business. You are selling a job - with a bunch of old equipment; hardly a comfortable retirement. Like I say,...use your time ....BUILD a business. A vast majority on here are essentially - in for a rude awakening - especially if they don't have some other plan IN PLACE. I emphasize this, because so many people say "Yeah, yeah,...I've gotta build this thing up and do something." But they rarely ever do.
Thats what we have, is roth ira's, my wife has one and i have one plus other investments. we meet every 6 month with our ed jones guy and go over our accounts. as my dad always told me " always pay yourself now or pay for it later".
max out a roth ira. stocks are not risky in the long run... stocks fluctuate over the short term.. but over periods of 15 plus years they don't. average return is ~10%/year over the last 100 years.
invest in plain vanilla index funds that cover the whole world like the whilshire 5000 and the MSCI EAFE... first one is ALL american stocks, second is most stocks from the rest of the world. once/if your within 10 years of retirement you should have 40-60% bonds... may i suggest the lehman aggregate bond index... its basically every bond from the usa all in one. these are very cheap options.
check out a retirement calculator like this one http://www.thrivent.com/planning/tools/dinkytown/Retire401k.html
i personally have it set to contribute $7500/yr .. at 10% return , from age 26 to 60, with an annual expected salary increase of 2% = $2,354,800 at age 60. some of that is in a cash account because of the contribution limits.
compare that to the 5% you could get with a money market = $850,000
notice how half the return give you 1/3 the end result. without stocks its pretty impossible for investments to go up enough to retire. just be diverse and invest in the whole world ... being diverse, and controlling cost are the ONLY free lunches in investing. try to beat the market long term and you'll end up with less.
so play around with the calculator, you cant have any realistic plan without knowing what you need to save. and then open up a cheap online brokerage account. i suggest firstrade, and use ETF'S if you are starting with under $5000 ... and vanguard if you have over that.