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lsewwww
Member since Feb 2009
327 posts

Retirement help
I'm 42 and have no active retirement account and am nervous.
My current assets are:
10k in savings
9k in Lousiana teachers retirement account
25k (current value) in utilities stocks my dads uncle left me in 1992

Only debt is I owe 57k on student loans at avg interest rate of 5%
Gross income 75,500.
My job has a 401k with 3% match but the Edward Jones advisor is in early stages of dementia and was totally confused by the simple stuff when I set the account up. Best friend is solid advisor at Ameriprise but I don't want to pay the fees.

I want to start a Vangaurd 401k account and roll over the louisiana money into it and max contibute to that. Any thoughts?


Perception
Southern Fan
Member since Sep 2017
50 posts

re: Retirement help
No offense but I would b nervous too. U looked f*cked. Keep ur head up and try to pick up a side job and just stash it away. I have Edward Jones and it’s worked well for me.


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88
Mingo Was His NameO
LSU Fan
318
Member since Mar 2016
7311 posts

re: Retirement help
Did you just not pay student loans for 20 years or did you somehow accumulate like $150k in loans to become a techer? I'm confused.


EA6B
Navy Fan
TX
Member since Dec 2012
7923 posts
 Online 

re: Retirement help
Save as much as you can, and consider retiring somewhere in Honduras or Guatemala, at your age without substantially increasing your income there are not many options.


jimbeam
USA Fan
University of LSU
Member since Oct 2011
49184 posts

re: Retirement help
You're definitely behind the ball, but the best day to start is today. I'd recommend the vanguard rollover.


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10
lsewwww
Member since Feb 2009
327 posts

re: Retirement help
Not a teacher- but thats what they called it at the time. Yes, racked up 142 k in loans and been making double payments on the 6.8 segment of them. 1/3 are at 4.5 % and 1/3 at 2.75%


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makersmark1
Auburn Fan
earth
Member since Oct 2011
5699 posts

re: Retirement help
The “match” is free money. I would do that.

VAnguard rollover is fine.

Just put something away every check.


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30
Tigerlaff
LSU Fan
Member since Jan 2010
14197 posts

re: Retirement help
You're pretty much fricked.


Golfer
LSU Fan
Member since Nov 2005
70330 posts

re: Retirement help
quote:

You're pretty much fricked.


Nah. It’s not going to be easy for him but he can turn it around. No clue what his career is but he’s got 30+ working years left in him at least if he stays healthy and motivated.


ineededanewname
Houston Astros Fan
Anywhere but here
Member since Nov 2017
228 posts

re: Retirement help
Retire and live off taxpayers, sell everything you have, buy a tiny home and live in the profits


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71
Paul Allen
Notre Dame Fan
Montauk, NY
Member since Nov 2007
54547 posts

re: Retirement help
He’s 42, not 52


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70
blzr
Auburn Fan
Bham
Member since Mar 2011
23542 posts

re: Retirement help
Jesus Christ you have student loans?


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Teddy Ruxpin
LSU Fan
Austin, TX
Member since Oct 2006
32323 posts

re: Retirement help
quote:

Nah. It’s not going to be easy for him but he can turn it around. No clue what his career is but he’s got 30+ working years left in him at least if he stays healthy and motivated.



If someone told me at 42 I'd have to work 30 years to retire I'd just say frick it and travel the world doing odd jobs.


Golfer
LSU Fan
Member since Nov 2005
70330 posts

re: Retirement help
quote:

If someone told me at 42 I'd have to work 30 years to retire I'd just say frick it and travel the world doing odd jobs.


I doubt I’ll ever “retire” I can’t stand sitting around.

I was simply pointing out that he’s got plenty of time to catch up. And if he keeps himself in good health, he’ll be fine.


Teddy Ruxpin
LSU Fan
Austin, TX
Member since Oct 2006
32323 posts

re: Retirement help
quote:


I doubt I’ll ever “retire” I can’t stand sitting around


I agree that if you can't find stuff to do for after retirement you probably never should in the full traditional sense.

That'll kill you too.

But really, I see only two ways of doing life/retirement. Either you get it right or you do my suggestion.

I honestly don't see much of a point in just struggling for decades to live off social security. Of course, caveats galore but we'd be here for a week going through all that.

BTW OP I think reading some of what the FIRE early retirement people do may help motivate you. Find ways to cut costs to boost your savings/investing and catch up. Don't take it as gospel but there's some good ideas in there.
This post was edited on 12/7 at 11:40 pm


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22
AndyJ
Member since Jul 2008
1404 posts

re: Retirement help
Get your company match and pay off the high interest rate loans.

You’re not in that bad shape at all. And compared to most Americans your age, you’re probably in the top 15% at all.

Wtf is wrong with some of the contributors here? You have plenty of time to turn this around.


ScottieP
LSU Fan
Baton Rouge, LA
Member since Feb 2004
1905 posts

re: Retirement help
If your boss came in and said I'm giving you a $2250 raise would you say no?

Then you need to put at least 3% into your employer 401K. They want to give you an extra $2250 a year and you're saying no.

Start there.

If you want to do more (and you should) do more. If not put some money somewhere else. But please take the free money.


lsewwww
Member since Feb 2009
327 posts

re: Retirement help
Update:
-Started a Roth IRA this week and put in max yearly amount to get started and get 2017 on board
-Will max out 401k at work with match
-La teachers retirement is a pension and can't be rolled over- it has to sit until i'm 59 1/2 if I understand right> If I withdraw now for any reason, even roth ira, I pay capital gains on it I think, so its gonna ride at a measly 8.65% return for FY

thanks for all replies. Harsh replies are reality and got a fire lit under my ass.


gpburdell
Georgia Tech Fan
ATL
Member since Jun 2015
405 posts

re: Retirement help
OP, you mentioned an Edward Jones 401k adviser. Is your 401k at Edward Jones? I hope not..

You need to be wary of funds that have high fees/expense ratio as that can significantly reduce your returns over the years. I'd avoid anything that is over 0.5%.

Hopefully, you'll have some good low cost index funds available to you. If not, then you might consider not maxing the 401k.. Just depends on what options are in there. Does your company offer a HSA?

You mentioned your best friend is a financial advisor at Ameriprise, but you'd pay fees to get advice? Not sure if that's a best friend... Even if he didn't charge you, I bet he'd want you to invest money with him using Ameriprise products which will have high fees (and he'll get paid from that).

Anyway, no need to pay someone. If you're willing to do some reading; you can do this on your own. Start here:
https://www.bogleheads.org/wiki/Main_Page
This post was edited on 12/27 at 7:01 pm


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matthew25
Ole Miss Fan
Member since Jun 2012
9425 posts

re: Retirement help
Solid troll

Much respect.

Sorant, well played.


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