Investment ideas to save for retirement

@freedomg (1684)
United States
June 30, 2008 12:44pm CST
O.k I'm 31 and have never had the $ to start any sort of savings before. Heck I was lucky to keep my lights on half the time. Well now we are doing a little better and I want to start saving for retirement. I know if it weren't for living with me my poor dad would have had to work until the day he died and I don't want to end up like that. So I'm trying to learn about investing. (we aren't doing good enough to afford the pros yet). What do you do to save for the future if you are doing anything yet?
2 people like this
10 responses
@ch88ss (2270)
• United States
1 Jul 08
I don’t have any savings, but I manage to get lucky and worked for a company that offer 401K and so I just squeeze it and put the money into 401k and hoping that the money will still be there when I retire. Though I fear the worse, but it is the best I can do right now. I already cannot depend on the social security because of the ways the economy is going.
1 person likes this
@Juduka (118)
• Finland
1 Jul 08
It's always smart to start gathering a nest egg of your own, so that you have more control over the money. Do you plan to work rest of your life for the same company?
1 person likes this
@freedomg (1684)
• United States
1 Jul 08
Is it one of those 401K plans that roll over to the new company if you change jobs?
@ch88ss (2270)
• United States
2 Jul 08
Yes it is. It follows you where ever you go. Most companies will match your contribution, for example if you put one dollar into that account, some companies will match that so you end up with $2 in your account. However after 9/11 many offers started offering a smaller match. Some offer you to match 50 only. The contribution is before tax so you pay less taxable income. But it also means less money on your check, it is an easy way to save. The money is then put into an investment account or interest earned Certificate of deposit. Which accrue interest and values over the years. You cannot withdraw this money until you reach retirement age. Or if you choose to withdraw, you pay a tax penalty for early withdrawal. Hope you find this information helpful.
1 person likes this
• United States
1 Jul 08
It wouldn't be a mistake to open a Roth IRA either. You make post tax contributions to your account (which means you only pay taxes on the interest you earn with the account) and you can use a Roth for some investments, real estate, etc. A Roth is a great investment tool and unlike a 401K, you can borrow the money you've put into it, without penalties and taxes.
@Juduka (118)
• Finland
1 Jul 08
That's an American thing is it? Sounds smart enough. You can borrow money put in, but can you also get out the interest on a ROTH ?
1 person likes this
@freedomg (1684)
• United States
1 Jul 08
Thank you very much. I think that will be one I will for sure have to look into.
• United States
2 Jul 08
You can take out the interest, but it is taxable. The money that a person puts into the fund has already been taxed, therefore can be used anytime, for anything. Roth IRA's do have some great investment benefits built into the program and it's just one great way to save some money for retirement... money that can be invested as a fund, to earn faster than a straight savings account.
1 person likes this
@Juduka (118)
• Finland
30 Jun 08
I've read lots of tips on investing and given a fair share of them aswell. Bear with me. This might turn out to be a long post. First of all, congratulations on making this post to seek financial education. Financial education is something especially the author Kiyosaki often speaks of. That is a great place to start. Knowing and understanding economics will certainly strengthen your financila situation. There are many places to invest in accounts, funds, stocks, building a business of your own and yourself. I like the last one greatly. In this exciting times it's good to know that you can always create new wealth. I have a couple of friends who are very worried about losing their money... But there is no reason to worry if you know won't lose it for long ;) So classes to better yourself, learn new traits, languages, professions and skills can be priceless. Self development should be a lifelong process. Building a business and investing in it is one, but I won't go to that at this this discussion. Stocks are my favourite. You get to buy a part of the company, sharing in it's profits. One smart thing to consider in buying stocks is that you actually do become an owner and a shareholder of the company and at least in Finland corporate governance dictates that corporations must hold annually a shareholders meeting and usually the owners (that would mean you) want to have a great time so excellent servings are also included. I myself have made a long time ago an invesment of some 800 euros to a real estate company and so far it has offered me two meals at the price of 100 euros at least and dividends worth 400 euros. Not a bad invesment so far ;) Always buy to own. Trading with small amounts of stock/cash will not get you anywhere. Funds are an easy way to diversify. But I dislike them. All sorts of hidden expenses and lack of control. I prefer to know where my money is. Accounts for short term can be a smart investment. Make sure you're getting more in interest that the inflation is! I never keep amount bigger than 1000 euros laying around in my bank account. How to choose investments then? Well buy to own. What companies do you like? Are they doing good? Improving service? Would you like to work for them? Choose companies you know about. Long text. I could go on for hours about the subject. If you want to know more, or links to great resources, drop me a PM.
1 person likes this
@freedomg (1684)
• United States
30 Jun 08
OMG great post. Thank you. I will be sending you a friend request. Please add me I would love to talk to you more. What do you think about CD's?
1 person likes this
@freedomg (1684)
• United States
30 Jun 08
P.S. I have my associates degree in commercial and graphic arts and will be starting classes in medical billing and coding in Aug. so I totally agree when it comes to investing in yourself and having many trades to fall back on.
@freedomg (1684)
• United States
25 Nov 08
I must say that I totally agree with you right now. I am terrified that I would put our $ into something only to have it disappear.
@MsTickle (24752)
• Australia
8 Jul 08
Hello...Firstly, open up a special savings account. If you can get one that rewards you for deposits if you make no withdrawals, that would be good. I'm guessing you already have a budget...it's imperative that you have a budget and stick to it. You might have to go without a few things at first but it's your long term goals your heading for. Make a long term goal...like you want to invest $1000 dollars in a year. Break that down into months or weeks and put away as much as you need to reach your goal. If you can do better than a thousand, go for it. Keep it simple though and don't overstretch yourself. Also remember you cannot have it all. You cannot drive a fancy car, go on holidays, buy the latest fashions, or indulge in beauty treatments or fancy haircuts, watch the newest release movies and do takeaway or eat out every week. Good luck
1 person likes this
@freedomg (1684)
• United States
8 Jul 08
We are very thrifty people. If we go out on holiday we go camping, and the cars are used,as for eating out we very rarely do it. We are trying to keep our lives as simple as we can. And I do the families haircuts always have.Our main thing is that I am a stay at home mom so we are doing everything on a single income, but I really need to be at home with the kids for many reasons. I will look into a savings account that does the rewards for no wihtdrawls I didn't know those were out there. Thanks.
@MsTickle (24752)
• Australia
17 Jul 08
It's the only way to go...thriftyness I mean. The best of things are still free but it still must be hard for you if you have children at school. The pressure on people to spend! spend! spend! these days is obscene. Even a tiny saving of one or two dollars is something and it will add up. If nothing else, it will be there for an emergency. Some short term investments can be made with as little as $500...the secret is to keep it rolling over and letting it grow. I don't know how old your kids are but encourage them now to look for paying jobs when they can. People who learn these saving techniques and work ethics are the ones who are successful in life...then your kids can give you a stately old age...
1 person likes this
@MH4444 (2161)
• United States
6 Jul 08
Take 10 percent of every check and set it aside in a savings account. Put that in a CD at the bank once you have enough to start one and when that matures: divide and re-invest into two cd's repeat this process until you have enough to take some risks. If you work has a retirement plan then get that into something that is actually earning money. Zero risk. Hope that helps.
1 person likes this
@freedomg (1684)
• United States
8 Jul 08
Thanks it does. I'm looking for a good interest rate on cd's right now.
@MH4444 (2161)
• United States
8 Jul 08
Sounds like you are right on track then. Best wishes on your future.
1 person likes this
• India
9 Jul 08
I have some savings which i am making for the past 15 years since i got a job.. some of it is in the form of Insurance,, and some in the form of deposits.. and some in Saving bank account. But i wish.. i must increase the savings per month so that i can have a good and happy retired life.
1 person likes this
@freedomg (1684)
• United States
17 Jul 08
Yeah I did some research and found that if I hope to retire comfortably wiht my hubby then I need to be saving about $400 a month. That's a lot for me as we are living off one income and then what ever I make online is what I save. I do not make any where near that much a month online.
@snowy22315 (30140)
• United States
8 Jul 08
CDs are always a safe thing to do if you have some extra money. You dont make alot of money on them but it is a safe investment and you cant lose anything. Sometimes individuals at your bank or credit union can be helpful in that regard.
1 person likes this
@freedomg (1684)
• United States
9 Jul 08
Thanks for your post.
• United States
2 Jul 08
Here's the thing about 401K accounts...Uncle Sam does not have his piece of your money...yet! And should Uncle Sam want to raise tax rates, he can take a bigger bite out of your nest egg than you planned on. The government also tells you that you need to start withdrawing on the account at a certain age...remember, Uncle Sam wants his cut. Even if you haven't retired, you must start diluting your 401K account and continue taking money OUT every year after! With a 401K account, if the company doesn't match, you are better off saving your money elsewhere, Roth IRA, stock market, etc. If your company matches only to a certain amount, contribute until you reach that amount and when your company stops matching, consider a Roth or the market. A 401K could be a good investment, but if you are younger, in your late 20s, early 30s, who knows what happens when the largest segment of the Baby Boomers are forced to begin withdrawing from their 401Ks. (and of course begins collecting Social Security) It is a good thing to begin saving for your future, just look into all the options that are out there. The earlier you begin saving, the better off you'll be when it comes time to retire.
1 person likes this
@freedomg (1684)
• United States
2 Jul 08
Thank you. I am trying to learn about the different options out there. That was sort of the reason behind this post. I wanted to see what other people pop up with then I can research it. The company does match our 401K so we thought it would be a good idea. My grandfather keeps telling me to get cd's.
@mentalward (14716)
• United States
2 Jul 08
I know absolutely nothing about investing, but wanted to share this little tidbit. When I inherited some money, I put it in a Money Market account right away. They have MUCH better interest rates than a regular savings account. Once you decide where you want to invest, you'll have a little bit more to do it with.
• United States
13 Nov 08
Don't get ahead of yourself and make things too complicated when you are just starting out. Keep it simple and basic and be disciplined. My best advice is to open a completely separate account. An account without checks or a debit card or a credit card on it. This is an account that "money only goes into". Then be disciplined and put in a little every month. Whatever amount you are comfortable with and leave it be. Remember money only goes into this account. Once you have built up a decent amount look a diversified mutual fund and build from there.
@freedomg (1684)
• United States
25 Nov 08
Thanks for the post and for the advise. I am sorry it took me so long to respond. I hope you know it was nothing personal. I just get very busy.