Saving for retirement

  • BCSwimmer

    Posts: 209

    Oct 19, 2011 12:59 AM GMT
    How comfortable are you that you are preparing well for your retirement?

    In the book The Wealthy Barber http://en.wikipedia.org/wiki/The_Wealthy_Barber it is suggested that we put away 10% of our pretax income for retirement investments if you want to be comfortable (and he also suggests you want to get a rate of return of 10% - while that seemed reasonable when the book was first published in 1989 it is currently laughable to think of getting that type of return on secured investments).

    With the decline in market investments I wonder what recommendations any of you have for secure investments for retirement.

    What are you doing to prepare for your retirement?
  • commoncoll

    Posts: 1222

    Oct 19, 2011 2:50 AM GMT
    No one is preparing for retirement?
  • BCSwimmer

    Posts: 209

    Oct 19, 2011 3:20 AM GMT
    commoncoll saidNo one is preparing for retirement?


    Too funny, I was wondering the same thing myself.
  • Posted by a hidden member.
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    Oct 19, 2011 3:24 AM GMT
    I'm already retired. I'd like to buy a foreclosure in Wilting Manners Fla.
  • Import

    Posts: 7190

    Oct 19, 2011 3:26 AM GMT
    beneful1 saidI'm already retired. I'd like to buy a foreclosure in Wilting Manners Fla.


    LOL, I get it
  • Jerebear

    Posts: 329

    Oct 19, 2011 3:54 AM GMT
    The following post is sort of Canada specific, just so you all know...

    I would feel a little more comfortable if my employer had a pension plan or even offered an RRSP contribution plan, but I save what I can and I use a TFSA instead of an RRSP as my investment vehicle.

    I try to max out my yearly contribution. Within that I invest in index funds, have some safety with GICs, and also cash for emergencies. Everything I earn in my TFSA is completely tax free, and I wont pay taxes on what I take out later, unlike an RRSP.
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    Oct 19, 2011 4:36 AM GMT
    Jerebear saidThe following post is sort of Canada specific, just so you all know...

    I would feel a little more comfortable if my employer had a pension plan or even offered an RRSP contribution plan, but I save what I can and I use a TFSA instead of an RRSP as my investment vehicle.

    I try to max out my yearly contribution. Within that I invest in index funds, have some safety with GICs, and also cash for emergencies. Everything I earn in my TFSA is completely tax free, and I wont pay taxes on what I take out later, unlike an RRSP.



    OT... you're really slimming downicon_biggrin.gif
  • Jerebear

    Posts: 329

    Oct 19, 2011 4:42 AM GMT
    beneful1 said
    Jerebear saidThe following post is sort of Canada specific, just so you all know...

    I would feel a little more comfortable if my employer had a pension plan or even offered an RRSP contribution plan, but I save what I can and I use a TFSA instead of an RRSP as my investment vehicle.

    I try to max out my yearly contribution. Within that I invest in index funds, have some safety with GICs, and also cash for emergencies. Everything I earn in my TFSA is completely tax free, and I wont pay taxes on what I take out later, unlike an RRSP.



    OT... you're really slimming downicon_biggrin.gif


    Thank you, I've still got a long way to go though.
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    Oct 19, 2011 4:55 PM GMT
    My parents went thru WW2 before emigrating to Australia , they knew how to enjoy life and be financially safe . I have been raised and taught that way .
    I have saved and invested safely since my first job , and am totally debt free . The solution for me was, never buy anything that i couldn't afford .icon_biggrin.gif
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    Oct 19, 2011 4:59 PM GMT
    Houses are on sale for 50% off all across the country.
    - Buy one, use it for a rental.
    - Buy a duplex, live in one side and rent out the other side; their rent will close to pay for your mortgage.
    - Buy a house close to a college campus, rent it to college students.
    - Buy a fixer-upper for cheap, do a small/medium/large rehab/retouch, sell for a little under market value, and make a good profit.

    Rinse and repeat... and retire.
  • HndsmKansan

    Posts: 16311

    Oct 19, 2011 5:09 PM GMT
    I'm a financial advisor, I advise people on their retirement considerations.

    For me, I do $500.00 a month into my nonqualified mutual fund account,
    contributions into my SEP and do a Roth IRA as well.
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    Oct 19, 2011 5:10 PM GMT
    NakedBudd saidHouses are on sale for 50% off all across the country.
    - Buy one, use it for a rental.
    - Buy a duplex, live in one side and rent out the other side; their rent will close to pay for your mortgage.
    - Buy a house close to a college campus, rent it to college students.
    - Buy a fixer-upper for cheap, do a small/medium/large rehab/retouch, sell for a little under market value, and make a good profit.

    Rinse and repeat... and retire.


    This is essentially my partner's strategy right now.

    I wonder a lot if we are preparing adequately for retirement. I started systematically saving at around 27. Between my 401k and IRA, I put away about 14% of my pretax income which is more than many people I know but I still feel like I should be putting away more.