Anyone have investment tips to retire

Discussion in 'Business Operations' started by siklid1066, Dec 24, 2007.

  1. siklid1066

    siklid1066 LawnSite Member
    Messages: 148

    Just curious about self employment retirement tips for the future.IRA,CDS,what is the better route to take or invest?Any suggestions would be great.(Merry X-MAS to you and your love ones)
  2. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    First thing you have to do is save your money.
    And you really want to talk to your cpa, mine had some ideas far better than what I'm about to say :laugh:

    It's true, I'm not trying to get smart, you need to figure out how to put aside what you need to have, per year, so you can retire.
    In my case it's about 5g a year, on top of winter money and all of that.

    Because then it goes someplace, first I'd recommend just save it, however you can, any account is fine. Once you get up to 5g+ you'll want to look probably into a money market account, then much past 10g you can start looking into other investments.

    Because IRA / Roth / what have you... All that is just a term for tax purposes, you later decide if you wish to allocate your investment this way so taxes can be deferred but it's still invested in some form of an account (like a bank) see what I'm saying.

    That and you'll need something for yourself, that is, outside of that retirement clause, I like to say have a good 20g someplace that isn't marked for retirement per se... This is the money that stays there until you run into a drought or some other circumstance, emergency funds type of thing. Because it ain't gonna do you much good to have 50g in an IRA then all of a sudden we have a year long or worse drought and you got nothing you can use to survive on, hope that makes sense.

    Oh and consider investments along the lines of cost reductions as well, in my opinion it is just as good to spend the money to buy things that cut costs (such as electric or fuel) long term as this saves more money in the future in the way of ROI, but all that is another thread.

    Just how I do it.
  3. corey4671

    corey4671 LawnSite Silver Member
    Messages: 2,931

  4. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    One example:
    Right now I've been working on making my home an energy saver, I've probably spent a few thousand on this over the years so my electric bill is now 20-40 bucks lower per month. Water too, but this went back up this year but at least now it's not more than ever.
    See I have a dream concerning a solar electric plant but long before that I'll be replacing the heat pump, and so on.
    I'm not even close, first the attic insulation needs to be finalized (at r-20 now, was r-11), then the basement insulation is next.
    All that stuff ain't cheap, but in terms of savings it pays off just like banked money does over time.

    Either way it costs money, this I had to save, and keep saving.

    Just for ideas.
  5. SimonCX

    SimonCX LawnSite Senior Member
    Messages: 731

    How old are you because it depends what would work better for you.
  6. Pietro

    Pietro LawnSite Senior Member
    Messages: 855

    I was worried about that too. Im 24, and dont want to work forever. I took the civic service test and got hired by state corrections. Pension is the best. Mow on the side.
  7. cpel2004

    cpel2004 LawnSite Bronze Member
    Messages: 1,415

    Work smarter and save your money in a vehicle that bears interest.
  8. TSG

    TSG LawnSite Senior Member
    Messages: 444

    I am maxing a roth ira/ 403b.......................
    and invest in realestate "for the buisness"
    use the deductions,,,retire with proceeds

    DO not rely on an acct for retirement advise !!!!!!!!!!!!
    He sees things from a tax standpoint only.
    There are reasons that accountants don't do retirement seminars.
    You need a financial planner

    just .02

  9. IA_James

    IA_James LawnSite Silver Member
    from Iowa
    Messages: 2,592

    I'd call around and speak to financial planners at different places, and see which one I felt had the best options that suited me (risk, growth rate, etc etc.) and go with that one. Vanguard, Pacific Life, American Express (they changed to Ameriprise or something similar), John Hancock, one of the major investment houses. Set up properly, your account will diversify itself, with minimal (once a year or so) invovlement from you. There are many options as far as account type, 401k, IRA, Roth IRA, annuities, etc. Your planner will help you decide which one is best for you. You should be doing this on top of having 6 months of salary or so in a savings account or someplace you can quickly access it if you need it, without paying the huge penalties invovled for early withdrawl from an annuity or 401k type account..
  10. yungman

    yungman LawnSite Bronze Member
    from Calif.
    Messages: 1,274

    Before I say anything, I have to first state that I am not an expert on finance, I don’t know much about IRA, CD type of investments. I make my money in real estate. So my opinion is all one sided, please keep this in mind. That said.

    The first and foremost is to start SAVING. No money no honey!!!! Never say I make too little to save for anything big. In the early 80s, I live from paycheck to paycheck. I didn’t do bad, but just have the idea that how can you save anything. My then girlfriend now my wife since convinced me to put at least a little aside and start a saving account. And that was how it started. Commit yourself to at least put a little aside and save it. Learn to buy wisely, always look for sales, and never buy when you really need something. When you see a sale, stock up. Resist buying un-necessary stuff like video games, cars, new computers electronic gadgets etc. They can come later. I was surprise how much I can save, every penny add up. Before that, I never have more than $300 in my account.

    It took me 2 years to save enough money to put down payment on a house with my girl friend. We bought our first house in 1986 and got marry. Our first house was only $162K. We were very practical, no new cars, no new TV, everything just basic. When all our friends start buying BMWs and other nice stuff, we were still using furniture from both our first marriages. We bought our second house with an inlaw, stretching our income to the limit. We rent out our first house and the inlaw to help out the payments. We drove 2 car that don’t even worth $2500 at that time. After 2 years, we bought the third house and rent it out. That was 1989 and real estate crash, we work hard and hold on to our houses. As everything else, it went in cycles, after 6 years, the price gone up again. To make long story short, we sold our first house 2 years ago, for $675K. It all start out with the decision of opening the first saving account.!!!!

    Now get back to the investment. For me is real estate. This might not be a good time, save up money. As everything else, what goes up must come down, what goes down, will go up. You really cannot get too far putting money in the saving account. Mutual Funds and other higher yield account might not be insured by FDIC, there is still risk involve. I am not familiar with real estate in Long Island, you have to do research. I can only talk about buying residential house only, that’s all I know. If you own your house, good. If not, make that the first priority. You don’t necessary want to buy now because this is in down turn, keep that in mind, save money, wait for deal you cannot refuse. If buying rental property, always buy in the best neighborhood, best school district you can afford. Get a fixer upper, smallest in the best neighborhood you can afford. LOCATION LOCATION LOCATION. Make sure the foundation is good, house is not moving!!!

    Do not trust all the infomercials, there is not easy money, you have to earn it. It is a part time job even in rental business. This is not a good time to buy, I think in 3 years time, when the price bottom out, then start looking. Cycle is about 10 years from my observation. Start driving around, looking at open house in different neighborhood, get to know the area. Then slowly form your opinion. No short cut, you have to learn the neighborhood. Don’t necessary trust real estate agent either. I can’t start to tell you everything. As you see from my respond, how many times I mentioned, saving, start saving. I can go on and on. If you have more question, I might be able to answer. Merry Christmas.

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