New Finance Vehicles [what to invest in for retirement?]

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Rewards4Risk
Posts: 1
Joined: Wed Mar 07, 2018 12:33 am

New Finance Vehicles [what to invest in for retirement?]

Post by Rewards4Risk » Wed Mar 07, 2018 1:00 am

Hello Investors,

I'm 50 years and have 401K in FSNUX about 200K and 50K in cash again in 401K. Plus some 50K savings account. Me and my wife works and earn a combined salary of 120K

I read one has to save 8 to 10 times of their earnings for retirement. What are my best vehicles (Stocks, MFunds, Annuities, Life insurance policy etc) to save aggressively and have enough for my retirement life? Ready to take lil Risk for Rewards but not too risky.

I have a mortgage 650K, kids ready to start college in couple of years?

Appreciate your advice!

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WoodSpinner
Posts: 518
Joined: Mon Feb 27, 2017 1:15 pm

Re: New Finance Vehicles [what to invest in for retirement?]

Post by WoodSpinner » Wed Mar 07, 2018 11:28 am

Reward4Risk,

I would start with the WIKI Start Here.

In addition, I think you should figure out how much you can start saving and how? (IRA, 401K, Taxable? Etc.)

The Retirement Planning Wiki will also help.

Lastly, after poking around the WIKI, I think you can re-post with some additional details using the suggested format.

This will help you be ready to pick specific investments and financial plans.


Best of Luck

WoodSpinner 8-)

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ruralavalon
Posts: 13950
Joined: Sat Feb 02, 2008 10:29 am
Location: Illinois

Re: New Finance Vehicles [what to invest in for retirement?]

Post by ruralavalon » Wed Mar 07, 2018 11:45 am

Welcome to the forum :)

Rewards4Risk wrote:
Wed Mar 07, 2018 1:00 am
Hello Investors,

I'm 50 years and have 401K in FSNUX about 200K and 50K in cash again in 401K. Plus some 50K savings account. Me and my wife works and earn a combined salary of 120K

I read one has to save 8 to 10 times of their earnings for retirement. What are my best vehicles (Stocks, MFunds, Annuities, Life insurance policy etc) to save aggressively and have enough for my retirement life? Ready to take lil Risk for Rewards but not too risky.

I have a mortgage 650K, kids ready to start college in couple of years?

Appreciate your advice!
You can get detailed suggestions specific to your situation if you provide the information in the "suggested format" link which WoodSpinner gave you.

I suggest investing in very diversified stock mutual funds and bond mutiual funds, which have low expense ratios. Examples include:
1) Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) 0.04%;
2) Vanguard Total International Stock Index Fund Admiral Shares (VTIAX) ER 0.11%; and
3) Vanguard Total Bond Market Index Fund Admiral Shares (VBTLX) ER 0.05%.

I suggest saving and investing as much as is practical for you, keep your savings rate as high as you can comfortably sustain. There is no magic percentage of income you should use. A multiple of current annual income makes no sense.

Current annual earnings and annual retirement spending are very different things.

Instead figure your probable annual retirement spending (net of Social Security and any pension), and multiply times 25 to estimate the size of nest egg you may need if you retire at a normal retirement age.

This is a calculator which you might find useful: www.firecalc.com.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

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