Are you saving for retirement?

We each started with an IRA a few years ago and then started a SIMPLE IRA through our company. (We're both 49.) I have a very little bit of money in the Texas Teachers Retirement fund but I don't plan to teach in public school again so I probably should just roll that into an IRA. We have an S-Corp but are planning to unincorporate and go back to being a sole proprietor so I guess I'll need to start a SEP IRA instead (still have to check into that.) I work part-time so I get no retirement options at work.

Our IRAs are mostly in mutual funds so the value changes from day to day but between us, it adds up to around $100,000. We also have about 13 years left on our mortgage. I have no idea if this is enough for us later. My husband insists he's never going to retire -- even though his job is still quite physical, age limitations and health problems happen to other people, don't you know? I can teach for a long time but we're not talking big bucks here, especially as an adjunct.

Anyone use a good online calculator to help you decide if you're saving enough for retirement?

Vanguard and Fidelity are two good sites.

Some financial planners will say you need 70-80% of your current income for retirement.

...example...if you currently need $50,000/yr. to live on now, you will need $40,000/yr(in todays dollars) to live on when you retire. If cost of living increases at 3%/yr, $40,000 today will be $72,000 in 20 yrs., $97,000 in 30 yrs....and so forth.

One rule of thumb(I believe called the rule of seven) is if some figure increases 7%/yr in 10 yrs it will double. The flip side of that is if some figure increases by 10%/yr in seven years it will double. A lot of investors were sucked it during the boom years of the nineties thinking the "modern day" stock market would have an average increase of 12% per year. That was possibly true for the decade of the nineties, but prudent investors looked at longer historical stock market returns when planning their investments....ie, 10% being more realistic(I'm speaking strictly of stocks)

One thing to keep in mind, as a person gets older more of their investments need to be in fixed income(bonds, Cd's, t-bills, etc) as opposed to stocks. There is less risk involved in fixed income, but also less opportunity for large gains. So, when planning your investments, keep in mind your potential return will be less when your 70 than when your 50.

I hope to have no debt. Have my house paid off.
I won't retire. I will probably die at my business...but it's a fun job and I enjoy it, so it will be okay unless I get sick or something.

even though my husband has a very high income we have to help our five adult children and their families to survive in this awful economy and also have to help neighbors who fall on hard times...can't eat dinner knowing the neighbors have none...so, even though we have an excellent income, we never have an extra penny.

all you can. I hope we can help our kids if they need it.

we moved down here. San Diego is just too darn expensive, all of our friends are struggling paying the mortgage. Housing is going through the roof down here now too, so although there are compromises to make, I'm glad we got in about 10 years ago when we did.

Heh you guys, I hear people are moving to Nicaragua.

Other than that, Mike has FERS which is good, and some money money accounts, nothing lavish. I guess I'll always be a beach bum.

a good place to retire...Do you feel (or did you at first) "at home"?...Guess it's a good idea to speak Spanish, huh?...Are there many Americans nearby?

We will accept all offers....

battling cancer.

I decided to go back and finish my bachelor's, have applied to grad programs and plan to die in the saddle teaching. :toast:

What are you planning to teach, and at what level?

All the best to you.

as a government employee (i won't say which government), i have a nice pension coming in about 5 years (yes!!!!!!). still, i plan to have my little home business for extras. that, my home, and SS :-( will be the only thing keeping me from being a bag lady, so i'm pretty lucky in that respect.

give thanks!

I was a real estate agent. I am not too familiar with them, but if you are 62 with only a small mortgage on your home, you can be paid a monthly income. Of course the bank gets the house when you die. However, anything left goes to your heirs after the money you received is paid off. How this is helpful. Most of us are cash poor, and equity rich, but of course I live never San Francisco, and have seen our property increase 200% in 6 years.

We have a little over 200K in our 401Ks but we're in our late 40s and should have over 500K to be on track for our retirement goals. We bought our current house in 2001 and refied in 2003, so we still have 28 years on the mortgage. Luckily for us, our home has appreciated, so our LTV is under 50%. The biggest factor for us is college for the kid who will be entering high school next fall. We have some savings and he may qualify for a sports scholarship, but we need to spend the next four years focusing on that rather than our retirement. I think we will be ok, but who knows.