I'm 30 and I have $17,000 in 401K + $255 added to it a month. Do you think this is a good savings plan? I don't have enough play money to invest in any other options.
2006-07-07 03:22:10 · 8 answers · asked by Anonymous in Business & Finance ➔ Investing
It's all depend on you. With 10% rate, you'll have $830,000 when you're 60. Do you think it'll be enough? Honestly, I don't think so. By 60, I expect a bit more for myself. Not saying I am greedy but you must look the value of your money by then. $830,000 looks big now (imagine what can you buy with this amount of money)!!! But $830,000 in 2036 may not buy you a lot after taking into account the effects of the inflation!!!!
Well, I don't think you'll keep on adding $255 a month indefinitely until you're 60 rite? It'll surely go up a bit by bit. You might want to add more to this monthly savings plan, say increase in $300 (won't hurt you much rite?). If you can't, you can start thinking other options. Invest aggresively, i.e. put more in equity. It'll pay off better in the LONG run (e.g. over 10 years). And, buy some investing guide book. My suggestion is FT's Guide to Investing.
2006-07-07 07:16:57 · answer #1 · answered by -Gosal- 1 · 1⤊ 0⤋
At 10% return you will have about $830,000 at age 60. At 12% you will have $1.3MM.
This assumes that you keep putting in $255 per month. This indicates that you have a good start.
I'd suggest that you start increasing the $255 per month. Taht way, you will have a nice retirement fund when you are ready to stop working.
2006-07-07 11:54:45 · answer #2 · answered by Ranto 7 · 0⤊ 0⤋
It sounds like you are off to a good start. The key is having a complete plan that will take into account your goals and risks in your life as well as with your investments. No one here can really provide those answers without your providing all of your personal information.
Go talk to a financial planner.
LAP is the south end of a north-bound moose.
2006-07-07 10:52:51 · answer #3 · answered by insuranceguytx 5 · 0⤊ 0⤋
Your savings approach is good. Keep at it and live below your means. An area you may want to consider is Disability Insurance. Not all employers offer it and it may be better to carry your own so that you can take it with you when you change jobs. I've had it for about 30 years and luckily I've never needed to use it. But according to the experts, most people will eventually need it.
2006-07-07 12:24:35 · answer #4 · answered by fastfrank7 5 · 0⤊ 0⤋
For a start it's a good savings plan. But for your age you should be talking about investment not savings. Invest in startup companies and sell your shares mostly after one,Real estate etc.
2006-07-07 12:18:21 · answer #5 · answered by roli 2 · 0⤊ 0⤋
I would take aggressive risks in order to enhance your returns. Invest in start-up drug companies, stock options and internet companies. Also buy Lotto tickets and visit the race track once a week.
2006-07-07 10:33:13 · answer #6 · answered by lawrenceP 2 · 0⤊ 0⤋
That is a great start. Keep saving and when you get raises, try to live on only a percent of the increase and save the rest. You're doing great.
2006-07-07 10:27:04 · answer #7 · answered by Thrasher 5 · 0⤊ 0⤋
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2006-07-07 10:49:56 · answer #8 · answered by ϻϢ b size= 2 · 0⤊ 0⤋