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No NAD. Putting retirement money first?
- Thread starter BowserGriff
- Start date
Got layed off (again) at 63 and I was happy that I had prioritized my retirement. 
No, that’s not argumentative, that’s a personal opinion based on your experience. We’re cool here.
Well, if you are investing say , $200 dollars a month compounded by the S&P average rate of return, how much money would you have accumulated in 35 years?
I will agree transportation and housing is expensive, although public transportation is relatively inexpensive in Japan. However, housing is not. That said, housing and transportation are manditory. You have to have a place to sleep and have the ability to get to a job. My “short sighted” suggestion are not mandatory but discretionary outlays. Big difference. I’m no way recommending giving up housing or transportation to fund a retirement.
However for best results for the OP’s concern, how to fund a retirement, is to start as soon as possible with whatever he can afford as the real miracle is the compound rate of return over time. Hence, where can we find money to invest now? Looking at all the options available, based on 30 years experience of offering financial advice, 9 times out of ten, there are resources that can be allocated. My two suggestions are the most common.
Have a good one Socknroll1
Good on you for starting to save now!
As a professional math tutor, the most important thing I can ever teach my students is compound interest. That includes what it is, how it works, the math behind it, and its real world applications. My teenage students are always amazed when I show them real world examples of what could happen if they start investing early and often. They teach compound interest in school, but they don't put enough real world emphasis on it, which is a HUGE disservice. The parents love it too because it gives them food for thought about their finances.
The best advice I can give you, OP, is to open a Roth IRA, try to max it out every year until you retire, and put all your money into a single low cost fund (like VTI or VOO). I'm a lazy minimalist when it comes to investing because dealing with complicated investments is too hard and costly. Why make things more complicated than they have to be?
I have sacrificed many opportunities to buy new basses and gear now and in the past so I can max out my Roth IRA every year. I'm in my early 30s and I know that I need time and money to compound so I can retire. THIS is one of the real reasons why I have only four basses instead of "n+1".
As a professional math tutor, the most important thing I can ever teach my students is compound interest. That includes what it is, how it works, the math behind it, and its real world applications. My teenage students are always amazed when I show them real world examples of what could happen if they start investing early and often. They teach compound interest in school, but they don't put enough real world emphasis on it, which is a HUGE disservice. The parents love it too because it gives them food for thought about their finances.
The best advice I can give you, OP, is to open a Roth IRA, try to max it out every year until you retire, and put all your money into a single low cost fund (like VTI or VOO). I'm a lazy minimalist when it comes to investing because dealing with complicated investments is too hard and costly. Why make things more complicated than they have to be?
I have sacrificed many opportunities to buy new basses and gear now and in the past so I can max out my Roth IRA every year. I'm in my early 30s and I know that I need time and money to compound so I can retire. THIS is one of the real reasons why I have only four basses instead of "n+1".
Wow! Thanks for your support everyone! Finances and especially investing and pensions were never taught when I was in school in the UK and was quite taboo around my friends and family. Basically, talking about money was always a touchy subject, but it's. probably one of the most important things to talk about. It's taken me 38 years to figure out money! Having a little steadily coming in has helped with that! On the topic of the SB300, I went to the flagship store in Tokyo today to take it for another spin. I think I've convinced myself out of it . . .
Japanese Investment Options:
For anyone who is interested, as far as savings go, in Japan there are basically 2 popular options, I don't know the system in America (or even my native UK!) so I can't compare:
iDeco: you get tax deductions on income tax based on how much you put in, however you pay tax on your returns when you take it out. It is also locked away until you are 65.
NISA: Tax free investing. Take out at any time.
Depending on the broker, both of these let you invest in the S&P500, but I've gone for a whole world fund which actually consists of 60% S&P500 companies. Although the S&P has historically brought more in than the whole world I chose, I wanted the diversity for protection.
Japanese Real Estate
Some have mentioned real estate. That offers huge deductions on income tax if it's a commercial property (like renting it out), but that is waaaaay out of reach of someone like me. The property market here is strange. The land holds the value. And the state of some of the old properties here is quite shocking, some houses are metal sheds, thin wood, nothing you'd be happy to live in with the extreme climate changes throughout the year. Winter will be freezing and summer will be relentlessly hot. Cool if you're into knocking down houses and starting from scratch but it ain't. for me.
My Context
A bit about my context: My mortgage will be paid off at 65. I have a retirement figure in mind and I'm naturally a frugal man anyway so paying myself first through savings and then using leftover money suits me just fine! My needs are a bit high at 65% of my earnings, savings around 25% and the rest is fun money. I'm very fortunate to become financially aware and be able to put some aside just in the nick of time. Any later and I think I'd be in trouble.
Back to the Amp
As far as amps go, maybe something smaller and a cab with some decent size will help achieve what I;m after. There's a heavily discounted Ashdown LB-30 here, but I can't try before I buy soooooo, maybe not. After convincing myself out of the SB300 today, I'm also considering a solid state. Maybe a GK, which tickled my fancy before.
Japanese Investment Options:
For anyone who is interested, as far as savings go, in Japan there are basically 2 popular options, I don't know the system in America (or even my native UK!) so I can't compare:
iDeco: you get tax deductions on income tax based on how much you put in, however you pay tax on your returns when you take it out. It is also locked away until you are 65.
NISA: Tax free investing. Take out at any time.
Depending on the broker, both of these let you invest in the S&P500, but I've gone for a whole world fund which actually consists of 60% S&P500 companies. Although the S&P has historically brought more in than the whole world I chose, I wanted the diversity for protection.
Japanese Real Estate
Some have mentioned real estate. That offers huge deductions on income tax if it's a commercial property (like renting it out), but that is waaaaay out of reach of someone like me. The property market here is strange. The land holds the value. And the state of some of the old properties here is quite shocking, some houses are metal sheds, thin wood, nothing you'd be happy to live in with the extreme climate changes throughout the year. Winter will be freezing and summer will be relentlessly hot. Cool if you're into knocking down houses and starting from scratch but it ain't. for me.
My Context
A bit about my context: My mortgage will be paid off at 65. I have a retirement figure in mind and I'm naturally a frugal man anyway so paying myself first through savings and then using leftover money suits me just fine! My needs are a bit high at 65% of my earnings, savings around 25% and the rest is fun money. I'm very fortunate to become financially aware and be able to put some aside just in the nick of time. Any later and I think I'd be in trouble.
Back to the Amp
As far as amps go, maybe something smaller and a cab with some decent size will help achieve what I;m after. There's a heavily discounted Ashdown LB-30 here, but I can't try before I buy soooooo, maybe not. After convincing myself out of the SB300 today, I'm also considering a solid state. Maybe a GK, which tickled my fancy before.
38 years to Learn about money. Considering that next to one’s heath, knowing how to manage money will have the greatest impact on your quality of life. One would think this would be a major component of our educational curriculum.
My theory concerning money has always been that if I spend half of my income on wine, women, and song, it's OK to spend the other half foolishly.
Jazzdogg
Less barking, more wagging!
When I retired I had no idea that, between Covid and political turbulence, inflation would mean my retirement savings wouldn't have as much buying power as my financial advisers had predicted in the decades leading up to my retirement.
These days, depending on where you live and your post-retirement goals, two million doesn't go nearly as far as we thought it would twenty years ago.
Even though we have a diversified portfolio that includes several sources of passive income, we still handle money deliberately and thoughtfully.
Poor people stay poor by spending as though they were rich. Rich people stay rich by spending as though they were poor.
Avoid debt, temptation, and the feeling that you have to impress other people with the things you own. He who dies with the nicest toys is still dead.
These days, depending on where you live and your post-retirement goals, two million doesn't go nearly as far as we thought it would twenty years ago.
Even though we have a diversified portfolio that includes several sources of passive income, we still handle money deliberately and thoughtfully.
Poor people stay poor by spending as though they were rich. Rich people stay rich by spending as though they were poor.
Avoid debt, temptation, and the feeling that you have to impress other people with the things you own. He who dies with the nicest toys is still dead.
Jazzdogg
Less barking, more wagging!
You said your mortgage will be paid by the time you're 65. I would strongly recommend that, whenever possible, you make additional payments toward the principal. This makes it possible to pay off your mortgage sooner, and can significantly reduce the total mortgage interest paid.
Exactly! I live in California and they JUST NOW made a semester of Personal Finance a graduation requirement starting with the senior class of 2031. Better late than never I suppose...
When refinancing our 2nd [current] home we did a 15 year loan. The amount of $$ saved over the term was staggering. Not to mention the feeling of owning your own home outright years before retirement. Just adding 1 extra payment a year reduces your loan to just over 20 vs 30 years.
Four decades ago my wife & I had 3 credit cards maxed out while on our honeymoon. We swore to do something about it. And for the next 40 years we NEVER paid cc interest.
No outstanding cc balance, 15 year mortgage, stashing away as much pretax income [especially w/ employer matching contributions], investing in HSA's & Roth IRA's, & paying cash whenever possible, are all the simple, yet not easy, tools to a successful retirement. Just like when mom told you to eat your veggies. Delayed gratification is a great habit to develop.
Seems odd to me. (that you were caught off guard). This has ALWAYS been the case. "Future Money' having LESS Buying power. (losing value over time).
(Not sure exactly what your 'Financial Advisor' told you).
This is EXACTLY why Rich people invest in 'THINGS (that store wealth) and not just keep money in the bank. Any ROI with money might 'look like' a return, but once inflation is figured into the equation, they'd be lucky to break even.
If you look up 'value of money' over time, (US Dollar this time) it ALWAYS loses. (Quite depressing, even the value over past 15-20 yrs, never mind the loss of value over 70-90 , 120 yrs).
I won't go into the reasons why, as that borders/intertwines with 'Politics'.
Sorry, I'm rambling now. Plenty of vids out there though.
T$
My broker is "pushing" to convert 401k funds to Roth IRA so as saturate the the void up to $100k (more attractive tax rates...if that's even possible).
Do not covet: I see expensive cars, houses, trinkets, vacations, whatever. What you don't see is they're usually in hock up to their armpits.
Riis
Jazzdogg
Less barking, more wagging!
I will refrain from making any comments that might be deemed political. But, the current political situation has been much worse than anticipated in many ways.Seems odd to me. (that you were caught off guard). This has ALWAYS been the case. "Future Money' having LESS Buying power. (losing value over time).
(Not sure exactly what your 'Financial Advisor' told you).
This is EXACTLY why Rich people invest in 'THINGS (that store wealth) and not just keep money in the bank. Any ROI with money might 'look like' a return, but once inflation is figured into the equation, they'd be lucky to break even.
If you look up 'value of money' over time, (US Dollar this time) it ALWAYS loses. (Quite depressing, even the value over past 15-20 yrs, never mind the loss of value over 70-90 , 120 yrs).
I won't go into the reasons why, as that borders/intertwines with 'Politics'.
Sorry, I'm rambling now. Plenty of vids out there though.
T$
I played with State legislator in a praise and worship band and at practice I was whooped from work (7 appointments with people in various degrees of financial mess). Sam asked me about my condition and told him I was getting tired of doing financial reclamation projects and it would be nice if personal finance was taught in school. Two week later he had a bill on the house floor and it was passed into law.
While I am glad that some states are catching up this, one semester is not nearly enough. Teaching the basic arithmetic is easy. The consequence of making bad financial decisions takes more time to set against an imbedded culture of buy now and pay later.
I’ve said about as much as I can about this subject without broaching the rules regarding political content.
Thank you for your post.
This, coupled with the warning that by the time you reach this older age, you probably won't be able to lift and move a big tube amp around without a road crew. Just sayin....
I would counter that now would be the perfect time for me to own an SVT, with 2 cabinets. As my gigs are all ampless, I would never move them, making their weight irrelevant.
But yeah, my basses are all under 8 pounds, and that is not by chance.
buldog5151bass
Kibble, milkbones, and P Basses. And redheads.
I'm 60. All my life, I probably saved more than the average person, thanks to my parents.
At 60, I wish I had saved more.
At 60, I wish I had saved more.
Thank you for your post! That is wonderful news! Way to leverage your connections with your bandmate.
You're right. One semester is a start, but at least one year would be ideal.
I tried my best not to break the rules about political content!
