I'm looking for financial advice from someone who is successful at investing in mutual funds. I'm 54 and broke, but have $12k to start as an initial investment and also am going to add in 15% of my work pay every month (about $1000). I'm hoping to have enough in the account to retire with when I reach 65. I would need any info to be dummied down to a poor guy level, because if I already knew how to do it then I would be rich already.. Does anyone here know about this stuff? I'd previously posted this question in another car forum and got no help because all the other car guys were just as poor as I was because they spent all their money on their car hobby. So I'm just giving this a shot...
Is anyone rich here?
- Thread starter tom999w
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There are lots of online calculators where you can plug in your info and it will tell you how much you need to save per month or what your savings or income will be when you retired. You don't need an advisor for that. As for investing....I can't help you there. I like guaranteed income certificates right now 
mopar head
Well-Known Member
Become a politician at the federal level, you`ll be a millionaire in no time.
either that or the lotteryBecome a politician at the federal level, you`ll be a millionaire in no time.
mopowers
Well-Known Member
I'm far from rich, but I'm not dumb either. Based on a $12k initial investment and $1k additional per month, you'll have about $316k in 11 years based on a somewhat optimistic 12% average annual return. Is that going to be enough to retire off of? Only you can answer that question.
My only advice would be to pay attention to the expense ratios and fees of whatever mutual fund or ETF you choose to invest in. Some of them are pretty high and will cut significantly into your bottom line.
My only advice would be to pay attention to the expense ratios and fees of whatever mutual fund or ETF you choose to invest in. Some of them are pretty high and will cut significantly into your bottom line.
Scody21
Just send it
Go to TreasuryDirect.com setup your account and buy T bills like all the bankers are doing right now as the market is taking a lickin right now…
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You'll want to estimate your anticipated retirement expenses as accurately as possible to come up with how much you'll need to retire. Depending on what you're able to save between now and then, you may need to alter your lifestyle.
Do you have a 401k program at work that matches funds? If so, maximize your allowable contributions, at least to the matched amount. All contributions earn tax free until you withdraw. You may get a bit of a snowball effect from that.
Will you have any other retirement income like Social Security or a pension? If you are counting on Social Security, consider working until age 70. You'll receive a good deal more than if you claim at 65, which is below your full retirement age as defined by Social Security.
One issue you'll be confronted with is you'll be tempted to invest in high return investment vehicles. Advisors often encourage moving towards safer investments as you approach retirement age to minimize risk to preserve savings.
I'd still recommend contacting an advisor like Fidelity. They'll probably have a strategy meant for someone in your situation. They will charge a fee, but my experience has been that they earn all of it.
I'm not rich, but I'm comfortable, and my Son spent several years as a wealth management advisor before moving into a different area in banking.
Good luck!
Do you have a 401k program at work that matches funds? If so, maximize your allowable contributions, at least to the matched amount. All contributions earn tax free until you withdraw. You may get a bit of a snowball effect from that.
Will you have any other retirement income like Social Security or a pension? If you are counting on Social Security, consider working until age 70. You'll receive a good deal more than if you claim at 65, which is below your full retirement age as defined by Social Security.
One issue you'll be confronted with is you'll be tempted to invest in high return investment vehicles. Advisors often encourage moving towards safer investments as you approach retirement age to minimize risk to preserve savings.
I'd still recommend contacting an advisor like Fidelity. They'll probably have a strategy meant for someone in your situation. They will charge a fee, but my experience has been that they earn all of it.
I'm not rich, but I'm comfortable, and my Son spent several years as a wealth management advisor before moving into a different area in banking.
Good luck!
Muad'Dib15
Well-Known Member
There's an app that you can download called autopilot. It's a stock app that links to your investment app and follows the top traders in the stock markets as their trades are disclosed.
www.joinautopilot.com
Autopilot - The Investment App
Invest alongside world-class investors, directly in your broker. $100M+ invested. 2.5M+ trades. 35K+ investors.
www.joinautopilot.com
I would recommend real-estate. Investment property. If you got the credit? Then buy a small rental house. Have renters make the mortgage payment. Especially if you are handy with home repairs and maintenance. After 5 year. Use equity as collateral to buy a 2nd property.
More millionaires are made by real-estate than any other process.
I'm as rich as I can get...
You have a really tough road ahead of you but it is better to start now than to not start at all. The best answer over the last several decades has been to invest in low cost index fund. The best index fund for you is probably a S&P 500 fund but there are other ones. It is important to only buy a low cost fund from a highly reputable firm. I recommend Fidelity but check to see what is available in your area. You should stay away from anyone that wants to charge you 1% or 2% fee every year to "manage" your money.
Be careful of those bearing gifts with offers of high return rates. There's no easy way (fast way) unless you get lucky. And, luck is not the strategy I would want to rely on in this stage of life. Good luck.
I'm rich like that too....2 granddaughters.
Do they still have "no load" mutual funds???
replicaracer43
Grumpy Old Man
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If a $1000 a month is 15% of your pay, I'd say your way richer than 99% of the rest of us
I have a distrust of advisors, brokers and funds in general. They want to slap your money in a fund and get their commissions rolling. That said I would pay 10% fee or more if they netted more than their competitors.
Listen or read Dave Ramsey, very easy to follow. Some people don’t think much of him but I read several of his books and listen to him on am radio periodically. Most of his advice deals with people in your same boat.
HankRearden
Well-Known Member
I'm not rich.
The only thing I can add to this is do not have debt. Do not pay interest on any debt. Typically the interest you pay is more than you make saving.
I myself took way too long to figure that out
The only thing I can add to this is do not have debt. Do not pay interest on any debt. Typically the interest you pay is more than you make saving.
I myself took way too long to figure that out
And that is exactly why there is a “housing shortage “ ! Tax structure to encourage wealthy to gobble up all the housing then rape the young , elderly and lower income families !
There are hundreds of empty rental houses here in Boise that they would rather have sit empty rather than lower the rent . Also pushed the price of buying to the point that if you make less than 100k you aint buying a house … even a 900 sq ft fixer upper !
like_A_pike
that's not factory
DONT DAY TRADE!
I think 15% is what the government will let you sock away pre tax as a sort of catch up strategy in a traditional 401k account based on your age. Shop around for the best fee structure and investment packages. First see if your employer has anything and if they will match some of your savings. The key here is pre tax!
I think 15% is what the government will let you sock away pre tax as a sort of catch up strategy in a traditional 401k account based on your age. Shop around for the best fee structure and investment packages. First see if your employer has anything and if they will match some of your savings. The key here is pre tax!
HankRearden
Well-Known Member
That is happening across the country but where you are misinformed is who owns these rentals. It is not the mom and pops like the O.P. that own half a dozen rentals who can afford to let them sit.
It is the **** eating corporations and wall street investment funds. If they don't make a profit the fedsor stockholders bail them out.
If you and I lose money on a rental we have to bail ourselves out.
Currently giant hedge funds and international corporations are buying up rentals and trailer parks as fast as they can get funding.
I often laugh at the people who make fun of "trailer trash" without realizing their 401k is invested in trailer parks.
jos51700
Green Bearing thread connoisseur
Yeah no. I bought a platinum wedding band the first time I got married. Platinum hasn't increased hardly at all in the two decades since. You're better off stealing catalytic converted.
Don't forget, those owners get to write off those losses.
OP:
First, ANY employer match you have, make sure you max it out. This is likely a 401K, and they're pretty safe. You can contact the fund and talk to them about active management. You sit back and trust them, and they try not to make bad decisions that will cost them all their jobs.
OP, you can lose your nuts buying stocks. Buy mutual funds. This is telling someone else, here's $X, spend it like it's yours, because your pay depends on how much it increases in value. Let them dick with moving it around.
Example: I bought Smile Direct Club stock. Then they went out of business. Now, I have one share of nothing. That was $3 wasted and those pricks at invisalign are ruling the market.
I also bought 693 shares of Peyax (a fund type) at $20/share. It's unlikely that they'll go out of business, because they have hundreds of stocks. Their value goes up, it goes down, but if Krispy Kreme (for example) files for bankruptcy, the fund doesn't go broke because that's only a small part of what they're invested in. They'll have more in Krispy Kreme than your entire net worth, but it's small to them. My Peyax is now $34.97/share so I've made $10,374 on it. I have all dividends (money they pay you to own their stock, that they pay at various time intervals) set to reinvest in the fund, so that money increases my net stock value.
Be careful with dividends. You can get some OXLC and it pays nice dividends, but if they fold, you're left holding the bag. You want to make sure that the stock doesn't slowly go to zero. Let's say you buy $5k in OXLC. Are you going to make $5k in dividends if the stock goes slowly to zero in two years? Not likely. 3M also has dividends. They're not as high as OXLC, but they're more stable. I can buy 3M products (and I do, actually), but I can't buy OXLC branded anything at the store. OXLC is reinvesting my money and I'm hoping they don't run off with it.
Best advice, contact a fiduciary. Get that they're a fiduciary in writing. They will put your needs first.
And remember, it's only a loss if you sell it at a loss. Don't sweat markets going up n down unless you need that money right now.
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swisswill
Well-Known Member
I'm a CFP and do financial and tax planning. Lifestyle is going to drive your ability to retire with that savings rate: debt paid off, lifestyle expenses, idea/vision for retirement, car parts/project. A number of factors to consider and without knowing your specific situation most are guessing or throwing out generic advice. If you have a good social security income at full retirment age, and it's not cut by XX%, you could be okay with that savings rate. Some of the tips here are good: use funds, not individual stocks; mutual funds or ETF's, both have advantages/disadvantages; get match in company retirement plan if you have one; use Roth 401k/IRA when possible; avoid annuities; treasuries won't get you there. Alot of good low/no cost broker houses out there and a lot of advisors that aren't just taking comission and genuinely want to help people. Definitely talk with a CFP (or other fiduciary) to get guidance; an initial conversation shouldn't cost you a thing, but specific advice and/or planning could. If you want to chat off-thread, feel free to message and I'll help however I can.
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