I bought a house 2 years ago and I'm buying a new car this week. I'm right at or slightly below the US median (posted in another thread) income for single adults. But I still max out (10% of my salary) my 401K every pay period and have yet to dip into it for any reason.
What's so great about 401k's? The "poll" from the link only asked about 401k. I put some of my extra money into a couple of houses that I rent out (I get positive cash flow). I will fully own those houses by the time I'm 60 and plan on buying more. How is that worse than a 401k?
I've been on that one for over 45 years! Seriously....according to my investment guy, if I stay at my current job, I will be able to retire at age 59. If I get another job that pays more, then I will be able to retire earlier. If I get laid off, and have to go work at WalMart, my retirement will be delayed for a wee little bit.
Absolutely. No doubt about it- Oh wait. I thought the title was "Can Yao afford to retire". If we're talking about me, then no.
Nothing wrong with that! I'll buy a house and new car in the next few years. I am referring more to people who buy houses they can't afford, upgrade their cars every 2 years, or buy houses to try to "flip" them, all while being swamped in credit car debt.
There is higher risk. There is a lot of fear about a housing bubble, and if the market crashes it can really screw you up. You can diversify in a 401 (k) into a lot of different sectors.
I know people who do this and you get about 7.5% yearly on your return depending on taxes, and such. The best way is to buy a house, rent it out till you get it paid for and then sell, unless the housing market is really low. It's an ok idea to do that, but not the end all be all. good luck.
the good think about the 401K is the tax break and the market typically gets more than 7.5% but of course there risks there too.
I am 46 and I am betting by 62 I could retire from full time work, Maybe work part time for 10 or so years. That's the plan.
ya know..you kinda "get to know" people on a message board. you and i have talked a billion times here. i had no idea you were 46! i don't mean that in any way insulting or anything..not good or bad..it's just not what i pictured!
I hope to have the option to retire in my 40's. A lot of retiring depends if you do not mind leaving in a trailer park and driving one $500 beater after another. I saw on the TV where people are retiring to Costa Rica for 40-60% of US costs. You would live in a small villa with house keeper, gardner, etc. Healthcare is less there too, but you might get what you pay for. I suspect that that kind of retirement is for the more adventuresome.
