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Longterm investment for retirement
Posted on 12/21/11 at 9:53 am
Posted on 12/21/11 at 9:53 am
Quick question...maybe not a quick answer.
35 years old, 6 figure income...fully funding 401k. I'd like to start some kind of account where I put down 10K or so and then fund $1000/month for 20 years or so...then, get monthly distributions as supplemental retirement income. Not something risky...
What kind of investment vehicles should I be looking at? some sort of deferred annuity? something different?
35 years old, 6 figure income...fully funding 401k. I'd like to start some kind of account where I put down 10K or so and then fund $1000/month for 20 years or so...then, get monthly distributions as supplemental retirement income. Not something risky...
What kind of investment vehicles should I be looking at? some sort of deferred annuity? something different?
2
Posted on 12/21/11 at 11:00 am to Ex-Popcorn
Insurance products are way more expensive in the long run.
Get a portfolio of dividend paying stocks with a history of raising the dividend every year for 20 years or so. Set them to reinvest dividends. Buy the same positions every month to take advantage of dollar cost averaging.
Don't worry about short term (1-2 years in your case) fluctuation in the individual securities. Change out a position if needed based upon the economic situation of that company (ie no longer a valid business model, like Kodak).
There is a reason insurance companies can pay guarantees and still make money. With a long enough time span you will do better than the insurance contract.
I would use a Roth for this, either because you are eligible or via the nondeductible IRA conversion loophole.
Get a portfolio of dividend paying stocks with a history of raising the dividend every year for 20 years or so. Set them to reinvest dividends. Buy the same positions every month to take advantage of dollar cost averaging.
Don't worry about short term (1-2 years in your case) fluctuation in the individual securities. Change out a position if needed based upon the economic situation of that company (ie no longer a valid business model, like Kodak).
There is a reason insurance companies can pay guarantees and still make money. With a long enough time span you will do better than the insurance contract.
I would use a Roth for this, either because you are eligible or via the nondeductible IRA conversion loophole.
Posted on 12/21/11 at 11:23 am to Ex-Popcorn
With 20+ years to go until retirement, you need to be in equities. Max out your IRA and Roth for the next 15 years and when you're 50 you can bump up your contributions using the catch-up provisions. Put the rest in a taxable no-load large-cap mutual fund.
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