Retirement Planning?

Discussion in 'Business Operations' started by BSDeality, Jan 24, 2006.


Do you have a retirement fund?

  1. Yes, I actively contribute to it

    10 vote(s)
  2. Yes, I have one but don't do much with it

    3 vote(s)
  3. No, explain.

    3 vote(s)
  1. BSDeality

    BSDeality LawnSite Silver Member
    Messages: 2,849

    How many of you have actually started a retirement fund and actively contribute to it?

    What is your estimated annual contribution?
  2. BufalinoLand

    BufalinoLand LawnSite Senior Member
    Messages: 400

    Im 33 years old, In the Biz for 7 officially.

    Roth Ira, 2000 a year for 2 years = 4000+ 911 hits turns into 2500

    No more of that nonsense

    Just closed on 7th rental property in a college town. when IM 50 theyre all paid for worth over 2mil$

    I try to buy one a year

    I like retirement I can touch
  3. topsites

    topsites LawnSite Fanatic
    Messages: 21,653

    This faces us, imho, MOST of us harder every year as we realize that every year brings us one year closer and every year we have less than we should... I mean, what is out there to truly invest in, that provides both a good percentage of growth and doesn't require a fortune to invest in? I see a lot of bs out there, most either provides little to no return revenue (like less than 2-3 percent), or it requires a minimum deposit of at least 10 thousand dollars, to complicate things further, to be tied up for 5-10 years at a time, and there is no way I can touch my money without encurring a substantial penalty.

    That, or it's VERY high risk, some new upstart (and these are a dime a dozen) needs funding and is willing to pay out 20 percent or some other ridiculous figure in return for less funds (just a few thousand is fine) over most any period of time... High risk, means I'll likely lose my money, maybe I'm better off in Atlantic City, or Vegas.

    The best I found thus far is US savings Bonds (in the days of the Clinton administration, I invested a few in I-series, which at that time returned 4 percent - 1 year minimum, amounts as small as 50 dollars, maybe 100). NO risk, I can walk into any bank and cash the bonds, thou it needs to age for a year for no penalty, and taxes are deferred until I cash them, at which time tax on the interest is due.

    Later, I found money market accounts... Minimum deposit is a thousand dollars but it also returns 3.75 percent and the money is readily available. Works just like a regular bank account but limited to 3 transactions per month, still, I can get my money anytime.

    How much? omg, not enough, nowhere near. At my age, I need to deposit near 5 thousand / year to make any gains, but way I see things, anything is better than nothing so I put in what I can.

    For everything else, I'll work until the day I die, but I realize with age this is a bit of a pipe dream, too... The pain of an aging body, not to mention we slow way down as we become brittle and our body just doesn't DO things the way it used to, well, I dunno...

    In conclusion it don't look good, if that's what you mean.
  4. pcc070197

    pcc070197 LawnSite Member
    Messages: 4

    Actually the best way to reduce risk in investing is through a diversified portfolio of stock (domestic & international), bonds (corporate and treasury) and cash. It’s also suggested that alternative investments like real estate should be added to a portfolio to further reduce risk. The exact percentages of each asset class should be determined by the individual's age and # of years to retirement. So what does this mean - leave it to the fund companies (Vangurad etc) have retirement funds that you can select based on your projected retirement date. These funds will provide the proper asset allocation based on the risk an individual should or wants to take and the potential for the individual to recover from losses in the market (for example a 25 year-old has more years to make up for losses than a 55 year-old). Over time, these funds continue to rebalance (more bonds and less stocks) as you reach retirement and thus can't take as much risk. I've also heard as a rule of thumb: you should have your age as % investment in fixed income or bonds and the remaining in stocks: for example if you're 35 - 35% bonds and 65% stocks? Also, starting young is key - even if its a few $100's because your investment returns compound over time.
  5. AL Inc

    AL Inc LawnSite Bronze Member
    Messages: 1,209

    Bufalino has the right ideapayup . I would love to do that. Right now, I just contribute the maximum to my Roth and whatever else I can into my mutual funds. Just bought a 1970 Olds 442, hopefully that will be a good investment.
  6. BSDeality

    BSDeality LawnSite Silver Member
    Messages: 2,849

    I'm 22, i've had a roth for about 6 years, I used to contribute to it a lot (pre-business days) then I had to put everything I had into the business so it went on hold. I have been putting money in slowly in the last couple of months.

    I will be meeting with my parents financial guy later this week or next to see what he can do for me. For the moment I have been putting some money into ING Direct, they offer 3.8% right now, and money is available next business day in emergency. They're running a special right now offering 4.75% for the next 85 days or so, then it drops back down to 3.8% (although it could be higher at that point). If you're interested in this please shoot me an email/PM as there is a referral process they have and you can get $10 to sign up with my referral.

    I would like to get into housing investments or flipping, but at this time its just not something I can afford to do.
  7. turf dog

    turf dog LawnSite Member
    Messages: 108

    Sep Ira, you can go directly to any fund company and set one up. Most have a min of $50 to $100 a month. All contributions are tax ded up to i believe $40,000 a year. Of course there is risk with any mutual fund be it a bond fund or stock fund. I use MFS funds. You can directly to them or you can use a financial advisor. Vanguard has some great no load funds. Just go to their website and read up about SEP ira retirement plans.
  8. specialtylc

    specialtylc LawnSite Bronze Member
    Messages: 1,656

    I have a SEP plan that I that I started 2 years ago and I put in $650 each month and a Life insurance policy that I put in $350 per month. You gotta plan ahead, I aint gonna be mowing when I'm 60.
  9. YardPro

    YardPro LawnSite Gold Member
    Messages: 3,570

    property property property...

    currently own about $500k worth... paid for......
    at the coast... all water view.... that's my nest egg.
  10. BSDeality

    BSDeality LawnSite Silver Member
    Messages: 2,849

    specialtylc, i see you're 45, you say you only started 2 years ago? this would lead me to believe you might be behind the eighball unless you have other assets?

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