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How do I retire with money?

Posted on 4/26/10 at 11:44 am
Posted by trident
Member since Jul 2007
4766 posts
Posted on 4/26/10 at 11:44 am
I work for the government( I know dont rag me). I am currently only in the 401K plan which I am currently giving 5% with 4% match. I know it depends on how much money I am making for the perecentage to count ( $50K). What are good retirement investments? I am 25 so I got some time to think about it.
Posted by Haughton99
Haughton
Member since Feb 2009
6124 posts
Posted on 4/26/10 at 11:46 am to
attend this Financial Peace University I bet you can find a class in your area. I WISH I would have taken it when I was 25.

Posted by LSURussian
Member since Feb 2005
127235 posts
Posted on 4/26/10 at 11:48 am to
quote:

I work for the government( I know dont rag me). I am currently only in the 401K plan
If you work for a government agency, you are not in a 401(k) plan. Most likely a 457 plan.

quote:

What are good retirement investments?
A diversified portfolio of stocks.
Posted by Tigris
Mexican Home
Member since Jul 2005
12441 posts
Posted on 4/26/10 at 11:48 am to
You can contribute to a Roth in addition to your 401K.
Posted by TheHiddenFlask
The Welsh red light district
Member since Jul 2008
18384 posts
Posted on 4/26/10 at 12:03 pm to
quote:

I work for the government(I know dont rag me).


Statistically, the best jobs to have. Government employees are consistently overcompensated for their work load and ability. (Not, knocking you, just saying)

quote:

I am currently only in the 401K plan which I am currently giving 5% with 4% match.


10% contribution is pretty good, but I would consider trying to throw some extra cash in a Roth IRA and invest it in growth index funds.

Also,

quote:

If you work for a government agency, you are not in a 401(k) plan. Most likely a 457 plan.


This is correct.

quote:

What are good retirement investments? I am 25 so I got some time to think about it.


For reference, if you continue investing the way you are right now and assume the following:

Retirement age - 65
Average ROI - 10%
Payments - 5,000/year

Then your retirement account value, at the time of your retirement will be about 2.2 million dollars (inflation unadjusted)

If inflation averages 5% a year, then the inflation adjustment factor will be about 7, so your inflation adjusted value will be about 315,000 dollars.

However, if you keep investing 10% of your income, your payments will adjust themselves to the inflation rate, helping to reduce this effect.
Posted by AUFanInSoCal
Orange County
Member since Nov 2007
1616 posts
Posted on 4/26/10 at 2:05 pm to
Do you get a pension?
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