How are you getting by on your savings?

[keegs]

My sense is that the age distribution on TBN is somewhat north of middle age. If I'm right, there's gotta be some of you out there getting by on just SS and savings.

If so, how are you doing it...stocks, bonds, annuities, CD's? Are you rolling your own plan or do you use an advisor? Consuelo Mack and WealthTrack?

It seems that staying employed and accumulating assets may be easier than managing those assets to take us through retirement.

 

[300UGUY]

You might try this website: Early Retirement & Financial Independence Community

Lots of info.

 

[beemerphile]

You might try this website: Early Retirement & Financial Independence Community

Lots of info.

Good lead. Thanks

 

[jimmyj]

I have been saving in a middle of the road mutual fund. When the economy tanked the value went down in a big way. I'm only 45 and have to suck it up and just think long term but man, I feel for folks who were about to retire!

 

[Transit]

Yeah, this economy really sucks. I had good luck and got out before the crash. I dont think there will be any real improvement until we stop redistributing wealth or poverty if you wish, and start creating wealth by creating jobs in smoke stack industries. Think about it, how many college grads can Mickey D hire to flip burgers and what will you be doing?

 

[Storm56]

I was going to sell my business and retire a few years ago but after the dismal performance in the markets for the last 10 years we made a decision to hang onto the business a bit longer so we could build the retirement savings up to where we can be comfortable without much exposure to the markets.

So we have our retirement nest egg allocated to about 20% in the markets, 30% in tax free municipals and the remaining 50% in fixed cd type annuities that have a minimum guarantee of 4% interest. We also made some direct purchases in oil and gas drilling ventures with some discretionary savings we have.

It would really stink to retire, only to have to go back to work because the money runs out. So we changed our investments and recalculated our goals using safer lower yielding investments to achieve our target retirement nest egg. Means working a few more years but those are the choices.

 

[jinman]

I am one of those lucky folks who has double retirements. I have a military retirement with medical for me and my wife. I also took Social Security early at age 62. My wife has a city retirement. Those incomes easily cover our living expenses and gives us enough for a very good life. We both have recently sold property for a substantial profit and we have our 401k and additional savings for big projects. We still borrow money to buy cars because of the low interest rates and I have 7 years to pay off my home mortgage on a 5% loan. I just can't see paying those off with cash when I can keep my liquid assets working for me if I invest wisely. I said I feel lucky, but I should have said I feel blessed. I have a loving wife and a lovely life in retirement, more than I ever expected, and surely more than I deserve.

 

[300UGUY]

Yeah, this economy really sucks. I had good luck and got out before the crash. I dont think there will be any real improvement until we stop redistributing wealth or poverty if you wish, and start creating wealth by creating jobs in smoke stack industries. Think about it, how many college grads can Mickey D hire to flip burgers and what will you be doing?

To qoute Springsteen, "these jobs are going, boys, and they ain't coming back"

I don't have the answers, but once you close these big factories, the cost of building new ones is prohibitive. What I see called new manufacturing plants in this country are usually assembly plants, sticking together components made offshore.

 

[keegs]

Thanks all..

What I'm driving at here is if you're relying on savings to get you through...how are doing it? Did you purchase an annuity with some or all of your nest egg? Are you keeping a portion of your assets invested in stocks and bonds and if so how do you manage those in such volitile market conditions?

These are just some investment basics ahead of us and we're both feeling a bit stymied by just the basics.

There's lots of information out there but most of it is geared to selling you something rather than providing guidance.

I'm happy for all of you who've had the fortune of a defined benefit.

 

[sweettractors]

Thanks all..

What I'm driving at here is if you're relying on savings to get you through...how are doing it? Did you purchase an annuity with some or all of your nest egg? Are you keeping a portion of your assets invested in stocks and bonds and if so how do you manage those in such volitile market conditions?

These are just some investment basics ahead of us and we're both feeling a bit stymied by just the basics.

There's lots of information out there but most of it is geared to selling you something rather than providing guidance.

I'm happy for all of you who've had the fortune of a defined benefit.

To get through, I plan on working until I die or am no longer of good health. I got out of the market when it began to get volatile. Now, I am perusing a very conservative investment strategy and making sure that my family will be completely self sufficient, if it comes to that. Ken Sweet

 

[brin]

I am one of those lucky folks who has double retirements. I have a military retirement with medical for me and my wife. I also took Social Security early at age 62. My wife has a city retirement. Those incomes easily cover our living expenses and gives us enough for a very good life. We both have recently sold property for a substantial profit and we have our 401k and additional savings for big projects. We still borrow money to buy cars because of the low interest rates and I have 7 years to pay off my home mortgage on a 5% loan. I just can't see paying those off with cash when I can keep my liquid assets working for me if I invest wisely. I said I feel lucky, but I should have said I feel blessed. I have a loving wife and a lovely life in retirement, more than I ever expected, and surely more than I deserve.

Jim - Luck ? Luck is when opportunity and preparation come together...congrats...!:thumbsup:

 

[Egon]

Savings?? What Savings???:confused2::confused2:

Roadside bottle pickup seems to work.:thumbsup:

 

[mjarrels]

I'm like Jinman, love that Navy retirement pay and VA disability. I'm too young for SS, SS will probably be gone before I'm 62. Yep, eat more chicken than beef and nothing better on a cold night than a big pot of navy beans and cornbread, about a $2.00 meal with great leftovers. We get by.

mark

 

[MoKelly]

I'm no economist, but it seems to me the historical low interest rates are tough on retirees. I guess low interest rates are great for buying homes (and tractors), but for trying to generate investment income to live on ... well, its not so much fun.

This economy has got to get moving forward ... and it seems to me it won't until unemployment starts going down down down.

MoKelly

 

[keegs]

I'm no economist, but it seems to me the historical low interest rates are tough on retirees. I guess low interest rates are great for buying homes (and tractors), but for trying to generate investment income to live on ... well, its not so much fun.

This economy has got to get moving forward ... and it seems to me it won't until unemployment starts going down down down.

MoKelly

When interest rates are falling bond yields are rising and vis-versa...No?

 

[smstonypoint]

When interest rates are falling bond yields are rising and vis-versa...No?

True-- bond prices rise (fall) when interest rates fall (rise). The longer the bond term, the larger is the effect of the interest rate change on the bond's price. I have a portion of my IRA in Vanguard's Long-term Investment Grade Bond Fund: as of yesterday (10/4) the SEC yield is only 5.05%, but the Year-to-Date (YTD) Return is 15.10%. When interest rates go up, my YTD return is going to suffer.


But a lot of retirees rely on CD yields and they are hurting. According to CD Rates | Highest Yield Bank Certificate of Deposit Interest Rate, the average 5-year CD rate is only 2.4%.


Steve

 

[keegs]

what about holding corporate or gov bond(s) to maturity as opposed to investing in a bond fund (where i gather you need to be more concerned about int. rates)?

 

[Gem99ultra]

I took half of my combined pensions and rolled that into an IRA and took the other half in a monthly lifetime distribution.

At first the IRA was netting something like $200/day; life was good. But when the market crashed, so did my retirement nestegg. After 5 years, it's about 20% less than what I started with. The distribution portion is barely enough to cover my miscellaneous monthly expense but not my mortgage. In addition, I do collect a paltry sum from SS. That's enough to cover my mortgage.

So, the short answer to a complicated question is, I'm barely making it. As prices and taxes go up, the closer to not eating I get. And there is no SS cost of living adjustment this year. Eventually I'll have to cash out my IRA, paying a 10% early fund withdrawal penalty plus a 28% income tax (which is expected to go back to 33% next year).

So, after 50 years of working, I get the honor of dying bare bones broke with nothing to show for it. It's just not a pretty picture any way you look at it.

 

[smstonypoint]

what about holding corporate or gov bond(s) to maturity as opposed to investing in a bond fund (where i gather you need to be more concerned about int. rates)?

With individual bonds, you face the risk that the issuer will default. Think about GM. The primary advantage of a good bond fund is that it holds a diversified portfolio of bonds, so the effects of default by an individual issuer will not be catastrophic.

Here's a link that does a reasonable job in discussing the advantages of bond funds over individual bonds.

Litman Gregory - Bond Funds vs. Individual Bonds - October 9, 2009



Steve

 

[YanmarFever]

The cost of food is sky rocketing !!

This Is Starting To Get Very Real: Agricultural Commodity Prices Have Exploded And Now The Price Of Food Is Beginning To Rise Substantially In The United States And All Over The World