Saving for retirement

Discussion in 'Business Operations' started by JasonPC, Mar 1, 2003.

  1. JasonPC

    JasonPC LawnSite Member
    Posts: 79

    I was reading an article in one of the trade mags about saving for retirement and how few of us do this. Our sales are around $240K a year and I'm able to save after all my personal bills and business expenses about $10000 - $12000 of that each year for retirement. I'm wondering if this is a reasonable amount or if it seems like the business isn't performing as well as it should be. We have two full timers and my wife and I run the operation together.

    I just don't know if we could do any better working for someone else in another field. What do you all thinks? Any input would be greatly appreciated!

    Jay
     
  2. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Sounds pretty good to me. Congrats!
     
  3. heygrassman

    heygrassman LawnSite Senior Member
    Posts: 509

    That is very respectable. Just make sure that money is working for you as well. $10K per year at nominal interest of 5-7% per year should leave you a very nice nest egg.
     
  4. bruces

    bruces LawnSite Senior Member
    Posts: 648

    Hopefully, all or a good portion of that is in retirment accounts, (IRA, Simple IRA or something of the like) so that your retirement funds are growing tax free.

    But, that sounds like a pretty good chunk. Keep that up and you should accumulate a good retirement account.
     
  5. KenH

    KenH LawnSite Bronze Member
    from CT
    Posts: 1,622

    Insurance is going to be a killer when I retire.
     
  6. Daleman

    Daleman LawnSite Member
    Posts: 90

    I think it depend how old you are to say if that is a suffice amount. If you are 20 years old I'd say heck yeah you will be a millionare. If you are 62 and going to retire in 3 years you may need to save considerably more.
     
  7. HOMER

    HOMER LawnSite Gold Member
    Posts: 3,183

    Your whoopin' my azz:(
     
  8. DLS1

    DLS1 LawnSite Bronze Member
    Posts: 1,619

    JasonPC, I hope you get it in a Mutual fund that is making money and not loosing money. If your loosing money you might as well put it in a money market an then just keep even with inflation hopefully.

    People are always looking for bargains everyday (i.e. shop at Wal-mart) but as soon as they invest in a mutual fund they forget about it and a year later check on it and they may have lost 20% of their investment.

    Currently in this lousy stock market environment we got ALL our 401K in Strong Government securities (bond fund - STVSX symbol) and is making average 9.7% each year over last 3 years.
     
  9. adrianvbarrera

    adrianvbarrera LawnSite Member
    Posts: 163

    For investments.......nothing beats annuities.

    Some earn so much money that the IRS penalizes them if they earn too much in the first 7 years.

    When you win the lottery....they ususally give you a cash option or double the money over a period of 20 years. They usually use an annuity to do the twenty year thing.




    Adrian
     
  10. GraZZmaZter

    GraZZmaZter LawnSite Senior Member
    Posts: 740

    Daleman has it right. If your 20, 30 years old your doing great!

    If your almost ready for social security, you may be in trouble.
     

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