Nice retirement for a sweet, humble, smart Wal Mart couple

[Mac1958]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

 

[EdwardBaiamonte]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

seems like a lot of money but at todays interest rates how do you live on it?

 

[Mac1958]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

seems like a lot of money but at todays interest rates how do you live on it?

They both have full social security and we've set them up at a 5% annual withdrawal. Totals about $56,000 a year for the rest of their lives plus cost of living increases, with plenty of emergency funds.

That's more than they've been making.

Portfolio invested conservatively to replenish withdrawals.

Easy as pie.

.

 

[EdwardBaiamonte]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

seems like a lot of money but at todays interest rates how do you live on it?

They both have full social security and we've set them up at a 5% annual withdrawal. Totals about $56,000 a year for the rest of their lives plus cost of living increases, with plenty of emergency funds.

That's more than they've been making.

Portfolio invested conservatively to replenish withdrawals.

Easy as pie.

.

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

seems like a lot of money but at todays interest rates how do you live on it?

They both have full social security and we've set them up at a 5% annual withdrawal. Totals about $56,000 a year for the rest of their lives plus cost of living increases, with plenty of emergency funds.

That's more than they've been making.

Portfolio invested conservatively to replenish withdrawals.

Easy as pie.

.

so about $30,000 from SS?

 

[Mac1958]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

seems like a lot of money but at todays interest rates how do you live on it?

They both have full social security and we've set them up at a 5% annual withdrawal. Totals about $56,000 a year for the rest of their lives plus cost of living increases, with plenty of emergency funds.

That's more than they've been making.

Portfolio invested conservatively to replenish withdrawals.

Easy as pie.

.

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

seems like a lot of money but at todays interest rates how do you live on it?

They both have full social security and we've set them up at a 5% annual withdrawal. Totals about $56,000 a year for the rest of their lives plus cost of living increases, with plenty of emergency funds.

That's more than they've been making.

Portfolio invested conservatively to replenish withdrawals.

Easy as pie.

.

so about $30,000 from SS?

Yeah, as I recall.

.

 

[Andylusion]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

Gotta hate those rich wealthy Walmart Corporate types with over half a million. Evil wealthy retired scum-bags. They were supposed to be living off government, and voting for Democrats under the fear republicans would beat them senseless and leave them for dead in the street.

How dare they retire on their own hard work! Scum sucking Americans being independent and crap.

 

[Andylusion]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

seems like a lot of money but at todays interest rates how do you live on it?

Well.... huh? What does interest rate have to do with it?

The money isn't in a CD I would assume. It's more likely at Edward Jones, earning dividends on a mutual fund.

My mutual fund at American Funds, earned 12% year over year. It's called "wise investment".

So lets assume conservatively, that they earn 8% on their investments.

8% of $585K is roughly $46K a year. Can you live off $46,000 a year? Yeah, I think so. I sure could.

 

[EdwardBaiamonte]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

seems like a lot of money but at todays interest rates how do you live on it?

Well.... huh? What does interest rate have to do with it?

The money isn't in a CD I would assume. It's more likely at Edward Jones, earning dividends on a mutual fund.

My mutual fund at American Funds, earned 12% year over year. It's called "wise investment".

So lets assume conservatively, that they earn 8% on their investments.

8% of $585K is roughly $46K a year. Can you live off $46,000 a year? Yeah, I think so. I sure could.

well if people could safely earn 8% they would not invest trillions at one or two % and recently in Europe at negative interest.

 

[Andylusion]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

seems like a lot of money but at todays interest rates how do you live on it?

Well.... huh? What does interest rate have to do with it?

The money isn't in a CD I would assume. It's more likely at Edward Jones, earning dividends on a mutual fund.

My mutual fund at American Funds, earned 12% year over year. It's called "wise investment".

So lets assume conservatively, that they earn 8% on their investments.

8% of $585K is roughly $46K a year. Can you live off $46,000 a year? Yeah, I think so. I sure could.

well if people could safely earn 8% they would not invest trillions at one or two and recently in Europe at negative interest.

There is no "safe" investment. All investment has risk.

With risk, comes the rewards. Is there a chance I could lose some money? Sure. In fact I did.

During the 2008 melt down, I lost money on my portfolio. How did I deal with that? I poured as much money as possible, every spare dollar I had, into the stock market, even as it was crashing.

In the first year, I made 28% plus some, on my investment. I almost doubled my money in three years.

Now, allow me to clarify. Because I just said in the prior post, that I made 12% year over year.

That's true. In 2008, I was in a private 401K plan. I did not buy the American Funds mutual fund until 2011. So from 2008, to 2010, I made a massive 28% on my money. From 2011 to today, I've made 12% year over year.

What's my point? If you want the reward of a good return on investments, you have to take the risk.

The reason people buy bonds, and CDs, and money market funds, with absolutely terrible 0.5% interest rates, is because they are trying to avoid all risk.

Avoiding risk, is a great way to go broke. Yeah, $500K invested in sub-1% interest rate bonds, you can't live off that. And many people do that, and that's dumb.

Wisely invest into good mutual funds with long track records, with decent rates of return on your investment, and you'll do fine.

 

[SteadyMercury]

well if people could safely earn 8% they would not invest trillions at one or two % and recently in Europe at negative interest.

People cannot safely earn 8%, and nobody in this thread has claimed that is possible.

 

[EdwardBaiamonte]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

seems like a lot of money but at todays interest rates how do you live on it?

Well.... huh? What does interest rate have to do with it?

The money isn't in a CD I would assume. It's more likely at Edward Jones, earning dividends on a mutual fund.

My mutual fund at American Funds, earned 12% year over year. It's called "wise investment".

So lets assume conservatively, that they earn 8% on their investments.

8% of $585K is roughly $46K a year. Can you live off $46,000 a year? Yeah, I think so. I sure could.

well if people could safely earn 8% they would not invest trillions at one or two and recently in Europe at negative interest.

There is no "safe" investment. All investment has risk.

With risk, comes the rewards. Is there a chance I could lose some money? Sure. In fact I did.

During the 2008 melt down, I lost money on my portfolio. How did I deal with that? I poured as much money as possible, every spare dollar I had, into the stock market, even as it was crashing.

In the first year, I made 28% plus some, on my investment. I almost doubled my money in three years.

Now, allow me to clarify. Because I just said in the prior post, that I made 12% year over year.

That's true. In 2008, I was in a private 401K plan. I did not buy the American Funds mutual fund until 2011. So from 2008, to 2010, I made a massive 28% on my money. From 2011 to today, I've made 12% year over year.

What's my point? If you want the reward of a good return on investments, you have to take the risk.

The reason people buy bonds, and CDs, and money market funds, with absolutely terrible 0.5% interest rates, is because they are trying to avoid all risk.

Avoiding risk, is a great way to go broke. Yeah, $500K invested in sub-1% interest rate bonds, you can't live off that. And many people do that, and that's dumb.

Wisely invest into good mutual funds with long track records, with decent rates of return on your investment, and you'll do fine.

I think thats bad advice. Nobody knows what a good fund is and on average they do worse than a monkey throwing darts. THe best general advice is buy index funds that charge little .

 

[Mac1958]

We don't invest retirees' money for 8% or higher growth, those days are in the past for them.

We target 5.5% or so. Start at 5.0% for income, allow for inflation increases.

Not terribly difficult if you know what you're doing.

Which we do.



.

 

[EdwardBaiamonte]

We don't invest retirees' money for 8% or higher growth, those days are in the past for them.

We target 5.5% or so. Start at 5.0% for income, allow for inflation increases.

Not terribly difficult if you know what you're doing.

Which we do.



.

most impartial experts suggest index funds-right??

 

[Mac1958]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

Gotta hate those rich wealthy Walmart Corporate types with over half a million. Evil wealthy retired scum-bags. They were supposed to be living off government, and voting for Democrats under the fear republicans would beat them senseless and leave them for dead in the street.

How dare they retire on their own hard work! Scum sucking Americans being independent and crap.

Yep. You never hear this side of things, because it doesn't fit into the narrative.

There's nothing magic about this.

.

 

[Mac1958]

We don't invest retirees' money for 8% or higher growth, those days are in the past for them.

We target 5.5% or so. Start at 5.0% for income, allow for inflation increases.

Not terribly difficult if you know what you're doing.

Which we do.



.

most impartial experts suggest index funds-right??

Yeah. I don't, though, I like actively managed funds that can react to changes in conditions, so you really have to research.

That's a big debate in my industry.

.

 

[Roadrunner]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

seems like a lot of money but at todays interest rates how do you live on it?

Well.... huh? What does interest rate have to do with it?

The money isn't in a CD I would assume. It's more likely at Edward Jones, earning dividends on a mutual fund.

My mutual fund at American Funds, earned 12% year over year. It's called "wise investment".

So lets assume conservatively, that they earn 8% on their investments.

8% of $585K is roughly $46K a year. Can you live off $46,000 a year? Yeah, I think so. I sure could.

I have everything I want, and live off $30,000 a year.

No debt, own one house, and just made an offer on half of another one with my GF.

It is all about living within your means, and not setting expectations higher than what you can meet.

 

[boedicca]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

seems like a lot of money but at todays interest rates how do you live on it?

They both have full social security and we've set them up at a 5% annual withdrawal. Totals about $56,000 a year for the rest of their lives plus cost of living increases, with plenty of emergency funds.

That's more than they've been making.

Portfolio invested conservatively to replenish withdrawals.

Easy as pie.

.

Very nice. One question: How many years does this income plan last?

 

[Mac1958]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

seems like a lot of money but at todays interest rates how do you live on it?

They both have full social security and we've set them up at a 5% annual withdrawal. Totals about $56,000 a year for the rest of their lives plus cost of living increases, with plenty of emergency funds.

That's more than they've been making.

Portfolio invested conservatively to replenish withdrawals.

Easy as pie.

.

Very nice. One question: How many years does this income plan last?

It's built to last forever, with the income increases I mentioned. The growth in the portfolio, over time, will replenish withdrawals.

When they're gone, it goes to the kids.

I have clients who have been taking 5%+ income for years and have more in their account than when they began.

.

 

[Andylusion]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

seems like a lot of money but at todays interest rates how do you live on it?

Well.... huh? What does interest rate have to do with it?

The money isn't in a CD I would assume. It's more likely at Edward Jones, earning dividends on a mutual fund.

My mutual fund at American Funds, earned 12% year over year. It's called "wise investment".

So lets assume conservatively, that they earn 8% on their investments.

8% of $585K is roughly $46K a year. Can you live off $46,000 a year? Yeah, I think so. I sure could.

well if people could safely earn 8% they would not invest trillions at one or two and recently in Europe at negative interest.

There is no "safe" investment. All investment has risk.

With risk, comes the rewards. Is there a chance I could lose some money? Sure. In fact I did.

During the 2008 melt down, I lost money on my portfolio. How did I deal with that? I poured as much money as possible, every spare dollar I had, into the stock market, even as it was crashing.

In the first year, I made 28% plus some, on my investment. I almost doubled my money in three years.

Now, allow me to clarify. Because I just said in the prior post, that I made 12% year over year.

That's true. In 2008, I was in a private 401K plan. I did not buy the American Funds mutual fund until 2011. So from 2008, to 2010, I made a massive 28% on my money. From 2011 to today, I've made 12% year over year.

What's my point? If you want the reward of a good return on investments, you have to take the risk.

The reason people buy bonds, and CDs, and money market funds, with absolutely terrible 0.5% interest rates, is because they are trying to avoid all risk.

Avoiding risk, is a great way to go broke. Yeah, $500K invested in sub-1% interest rate bonds, you can't live off that. And many people do that, and that's dumb.

Wisely invest into good mutual funds with long track records, with decent rates of return on your investment, and you'll do fine.

I think thats bad advice. Nobody knows what a good fund is and on average they do worse than a monkey throwing darts. THe best general advice is buy index funds that charge little .

Really? Nobody knows what a good mutual fund is?

What exactly was my advice? I said pick good mutual fund(S), with long track records.

If you have a fund that has 20 to 40 years, of decent growth, are you telling me that isn't a good pick?

You say they do worse, but my first fund has done 11.4% year over year for the past 30 years. My second fund, has done 13% year over year for the past 40 years.

They both have consistently out done the index funds, and there is nothing wrong with index funds either.

For comparison, I checked out Vangard Index 5.8% since inception. Fidelity has a number of index funds, ranging from 6% to 10%. Not bad at the top end.

So.... why is this bad advice again?

Are there index funds with long track records with consistent growth? Sure. That would be consistent with my advice.

But to say that having lower fees is important.... ah... not so much. I have almost doubled my money using mutual funds that charge fees.

See, when you look up the prospectus of the mutual fund you are considering buying, the key is:

Average annual total returns
For the periods ended December 31, 2013 (with maximum sales charge):

Notice, Maximum sales charges. So the returns listed, include the highest possible sales charges. Then you look at what that return is. 13.67%.

If I'm earning 13.67% on my money WITH sale charges,

and you are earning 6% with your index fund WITHOUT sales charges,

Which of us is doing better? Obviously I am. So just because a fund has low, or no sales charges, doesn't automatically mean it's a good fund.

So my advice again is simply.... find mutual fund(S), with long track records, and good returns on investment, and you'll be fine.

What's wrong with that? If you have an index fund with a long track record and good returns, great. If you find another fund with a long track record and good returns, great.

And don't only buy ONE fund. Buy several.

 

[Andylusion]

Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.

They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.

Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10

Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58

Total retirement portfolio: $584,743.77

After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.

So long Wal Mart, hello striped bass.

.

seems like a lot of money but at todays interest rates how do you live on it?

Well.... huh? What does interest rate have to do with it?

The money isn't in a CD I would assume. It's more likely at Edward Jones, earning dividends on a mutual fund.

My mutual fund at American Funds, earned 12% year over year. It's called "wise investment".

So lets assume conservatively, that they earn 8% on their investments.

8% of $585K is roughly $46K a year. Can you live off $46,000 a year? Yeah, I think so. I sure could.

I have everything I want, and live off $30,000 a year.

No debt, own one house, and just made an offer on half of another one with my GF.

It is all about living within your means, and not setting expectations higher than what you can meet.

You are buying a house with your girlfriend? What happens when she moves her new boyfriend in your house? You know without being married, she has just as much right to it, as you do, and she can do exactly that, and there is nothing you can do about it.