I have had some ups and owns over the last 10 years or so but I am now in a position to really start putting away for retirement I have about 15 years I would say. I am in the retirement plan at work but don't have much since I had to cash out a couple of years ago. Should I be maxing that out? What other things should I be looking about as far as maybe stocks or savings? Is there a percentage I should saving and or investing? Thanks for any feedback.
You should be maxing out 401K at work, especially if they have a matching program. If you don't you're losing part of your paycheck, basically. Max out 401K first...or any other tax efficient retirement accounts you have available at work. Build up a liquid emergency fund...this should be equal to 6 months of take home pay. Now max out a Roth IRA (or Traditional IRA if you don't have a 401k at work) Pay off high interest revolving credit next. After that, if you don't have to save for college, I'd start a brokerage account and start investing in a portfolio that fits your risk portfolio. You can put the bulk in things like S&P 500 ETFs, but if you have enough, you can keep some "play money" around for active investments into high risk growth stocks or moonshot like companies. Some people would say pay off mortgages, but with historic low rates, its basically better to carry some debt at low rates and let your money work. I don't know about percentages...what this amounts too. Any 401k and Roth IRA investments I make are automatic and I don't even count those in my "income"...I just don't touch that money. After that, I always make sure to pay myself first (save) before I buy anything...if I can. Every $1 is a little soldier that earns money for you forever.
OP .... 15 years isn't a long time. My suggestion would be to max out your 401K to the extent that you can.
Here ya go: https://www.cnbc.com/2019/06/21/heres-how-much-money-americans-in-their-50s-have-in-their-401ks.html (tells you how much you need to be saving into 401k)
Save money with everything you do (ex) buy a nice but inexpensive used car that gets good mileage with cash -- lower insurance, no monthly payments, etc. Pay off debts ASAP - don't use credit cards if you can't pay it off every month -- evaluate all the monthly payments you're making and determine which can be eliminated or lowered (phone/cable/streaming services/etc). Obvious stuff you may already be doing so just throwing it out there.
This. This is pretty much the plan I am on, with the exception that once I get passed paying off high interest credit, instead of getting into brokerage accounts, I try to invest is income producing real estate. I don't have an opinion on which is better (brokerage accts vs. real estate) than the other, it's just what I am familiar and comfortable with. Accumulating income producing real estate will help generate a source of cash flow while also building up assets with high equity value as you enter your retirement years.
How much should I start a brokerage account with? And remember I am a school teacher but have some side gigs and income.
For anyone else reading the thread that it may help ... start early learning about investing... like in your teens or 20's. Nothing beats time because it can make up for mistakes and compound your successes. Saving $1,000 when you're 20 is worth a lot more than saving it when your'e 50. Just sayin'...
TRS? **** retirement. Live fast, kill your first marriage, find a new sucker wife who’s 20 years younger than you to support you in your old age. At least, that’s what my dad did.
You know I really need to see exactly what is in my retirement package, because I don't really know how all of that is defined.
