Good point.
Not really. I don't even want to do my own taxes.
I just moved about $5000 from the stable mutual fund to "Freedom fund 2045". I'll give it a few months and see what happens before risking more.
Has retirement changed due to employment?
- Thread starter Thespeckledkiwi
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Good point.
Not really. I don't even want to do my own taxes.
I just moved about $5000 from the stable mutual fund to "Freedom fund 2045". I'll give it a few months and see what happens before risking more.
A few months won't really be a long enough snapshot to make this judgement meaningful, though obviously, if it's naturally a higher yield fund than you were previously in, that's a good start.
A better option would be to figure out what overall asset allocation you need to meet your financial goals. Once you know that, then you can choose what funds will meet that allocation.
Of course, figuring your financial goals isn't always straightforward, and the algorithms for figuring out asset allocation can be obscure. But even if you don't have someone to analyse it for you and advise you, there are enough generic asset allocation calculators online to give you a rough idea.
bro will have better advice, I'm sure, but that would be my personal starting point: know where you want to go, then figure out what assets you need, then pick the investment vehicles... rather than going at it in the precise opposite direction. Personally, I now let someone else pick the assets and just set the goals, because a) I've realised I'm better at strategy than tactics; and b) I trust the people I use enough to do this.
I am only a minimum wage temp and i can't see that ever changing so i can only afford to put just over £48 a month in to a pension fund which i know is not enough so i am going to end up in trouble when i am older.
I hear that. College was a waste of my damned time, as far as I'm concerned. At least for now. Maybe when the economy recovers it won't be.
I am only a minimum wage temp and i can't see that ever changing so i can only afford to put just over £48 a month in to a pension fund which i know is not enough so i am going to end up in trouble when i am older.
IIRC, you're pretty young. If you keep this going regularly, increasing your contributions in line with inflation every year, and the fund has a reasonably modest annual net return, my back of envelope very very very rough calculations suggest that you'll earn something equivalent to the state pension (in today's money) if you retire at 65. Of course, who knows whether the state pension will still be around when you retire and whether it keeps pace with inflation (currently it is linked to a price index not necessarily indicative of the real-life inflation rate a pensioner might face). That's not much, but doubling what the state will give you isn't a bad start. Assuming your income grows as the years pass, and so you can increase your contributions, you'll build up a reasonable pot for a modest but still helpful extra income. It won't make you rich, but will soften the retirement.
Of course, the above assumes you have no debt, and keep it that way, but since it sounds like you're starting out on the right foot (young, and already contributing to a pension)...
Don't forget the trades! When your toilet won't flush, you don't want an engineer, doctor, lawyer, IT tech, etc. You want a frakkin' plumber! And a good one.
Heck, we had a 40-50 foot tree taken down a few years ago (it was a bad tree, mostly due to the city chopping it away from wires). The guys who came out--2 brothers around 45-50yo who learned from their dad, and the son of one of the brothers--had it down quickly and safely. Talking with them, one said he took home about $70K-80K a year. Took home that much.
There's nothing wrong with a job like that. We couldn't've done it anywhere near as well or as quickly, and someone doing it half-assed could've caused some serious damage.
Heck, we had a 40-50 foot tree taken down a few years ago (it was a bad tree, mostly due to the city chopping it away from wires). The guys who came out--2 brothers around 45-50yo who learned from their dad, and the son of one of the brothers--had it down quickly and safely. Talking with them, one said he took home about $70K-80K a year. Took home that much.
There's nothing wrong with a job like that. We couldn't've done it anywhere near as well or as quickly, and someone doing it half-assed could've caused some serious damage.
I think a lot of people are thinking more abouts trades these days.
I know west notts collage has opened a new training center near me an from what i hear the courses are always full.
I'd put it all in and let it ride, but that's just me.
In all seriousness, if you're just "trying it out" you'll always find a reason why it isn't right or doesn't make sense.
Over 90% of investor return is from proper asset allocation. Chasing returns only means you're going to buy high and sell low.
There are any number of self regulatory organizations that would frown on me giving it here, though.
That's actually where I'd start: what do you want retirement to look like, what's it going to take to make that reality happen, what do you need to do between now and then to make it happen, and how do you do it.
Once you know the answers to those questions, it's easier to set out on the path.
It's like flying. You wouldn't set out on a trip from Washington D.C. to Detroit without looking at a map, filing a flight plan, checking the range on the plane, knowing where you can refuel if necessary, checking the weather along the route, and knowing what to do if there's an emergency. Once that's all set, you can take off and make necessary corrections in flight if need be.
As do I. I know the asset managers are smarter than me in this area by at least an order of magnitude.
I graduated from college in December 2008 with a Bachelor of Science in Computer Science degree. Still haven't found a job. I'm in debt from student loans, working the same part time job I have had since high school, and living in my parents basement. It is very depressing to know that at 26 years old, I am still not able to support myself.
I only get a face-to-face job interview maybe every 4 months on average. I can't find any entry-level jobs and everything requires years of experience. I feel like I have been shut out of the system because of my lack of experience, and not-so-great social skills. I am also afraid that if I where to loose my current retail job, that I would not be able to find another one, because my degree makes me too experienced.
I only get a face-to-face job interview maybe every 4 months on average. I can't find any entry-level jobs and everything requires years of experience. I feel like I have been shut out of the system because of my lack of experience, and not-so-great social skills. I am also afraid that if I where to loose my current retail job, that I would not be able to find another one, because my degree makes me too experienced.
I suppose I'm approaching it as a bit of a game for now. 5k isn't going to make or break anything. I have other assets which are professionally managed; I'll just use this little chunk to play around a bit and see what happens.
Worst case, I learn I really do need to pay someone else to look after it.
I'm 25 and have yet to even reach what used to be considered "decent" for a guy my age. As it is I work by the hour for both my dad and what is supposed to be my main job. Good thing, I have a decent amount of job to do, bad thing is I'm not making that much by the hour to start with. And it's pretty intense manual labor a lot of the time.
The business I got an education for and that I want to work in, film, basically went from tricky to get a job in but you can do it to everyone just hanging on for dear life to the jobs they've got. All during while I was going trough my education. So now I've got loans to pay of for that, and I'm not even working in the field. And at this rate not likely to.
As for retirement my plan was to work up money on my own, the one given to you by the government via the jobs you do in your life, is likely not to be around when I retire.
The business I got an education for and that I want to work in, film, basically went from tricky to get a job in but you can do it to everyone just hanging on for dear life to the jobs they've got. All during while I was going trough my education. So now I've got loans to pay of for that, and I'm not even working in the field. And at this rate not likely to.
As for retirement my plan was to work up money on my own, the one given to you by the government via the jobs you do in your life, is likely not to be around when I retire.
The big problem right now for anyone who's trying to break into the job market is the huge number of very experienced, very talented people who have found themselves unemployed in the last five years.
Five years ago, an employer might have said "I'd really like someone with experience, but I understand that for $25,000 a year, recent college grads looking for their first job are pretty much all I'm going to get." Now that same employer is likely to find a large pool of experienced, capable people who are willing to take a job for a salary that, five years ago, only an inexperienced 20-something would have been willing to accept.
Five years ago, an employer might have said "I'd really like someone with experience, but I understand that for $25,000 a year, recent college grads looking for their first job are pretty much all I'm going to get." Now that same employer is likely to find a large pool of experienced, capable people who are willing to take a job for a salary that, five years ago, only an inexperienced 20-something would have been willing to accept.
There's a username I haven't seen in a while!
You're a computer scientist or mathematician or something like that, aren't you? If you do like math, and want to have some "fun" while learning about asset allocation and planning for your retirement, look up Modern (and Post-Modern) Portfolio Theory. Wikipedia doubtless has a rudimentary introduction to start you off with.
I don't understand a symbol of any of it beyond a vague (and purely intuitive rather than mathematical) understanding of the Markowitz Frontier, but I'm told the mathematics behind it all is amusing enough for those who like this sort of thing.
(if you enjoy that, move onto the Black-Scholes Equation...)
The concepts of work for a company for your adult life, then retire with a gold watch, health care and a pension have not been reality for most Americans for quite some time now.
The top one or two percent, sure, they'll have a cushy retirement. The middle class? What middle class? The GOP during the Bush era took care of that. Your house ain't worth shit, assuming you haven't lost it to foreclosure already.
I believe the whole concept of employment has changed. It's every person for themselves now. You are a one-person corporation, so you better figure it out for yourself and don't expect the Corporation or the Government to take care of you.
Forget trying to find little pussy jobs. Start your own business and employ yourself. Find a way to generate revenue and live on what you earn. That means developing a marketable skill, whatever that may be. Become a dentist, a plumber, a real estate agent, mechanic, insurance agent, computer geek, etc. The clue is become self employed.
Am I self employed? Yes and I have been almost my whole adult life, for better and for worse. I know that my future security is due to my own skills, not being a drone for a corporation that will merge, fire me, downsize me, or screw me in any way they can after they've used me up.
The top one or two percent, sure, they'll have a cushy retirement. The middle class? What middle class? The GOP during the Bush era took care of that. Your house ain't worth shit, assuming you haven't lost it to foreclosure already.
I believe the whole concept of employment has changed. It's every person for themselves now. You are a one-person corporation, so you better figure it out for yourself and don't expect the Corporation or the Government to take care of you.
Forget trying to find little pussy jobs. Start your own business and employ yourself. Find a way to generate revenue and live on what you earn. That means developing a marketable skill, whatever that may be. Become a dentist, a plumber, a real estate agent, mechanic, insurance agent, computer geek, etc. The clue is become self employed.
Am I self employed? Yes and I have been almost my whole adult life, for better and for worse. I know that my future security is due to my own skills, not being a drone for a corporation that will merge, fire me, downsize me, or screw me in any way they can after they've used me up.
Well, one month in, and I'm certainly finding it more fun to watch the numbers turn green and red than the constant, changeless black that I had before. I've got my 401k split now, with the bulk of it in Freedom 2045, Sel Defense, and Value Strategies. I've also reallocated my contributions to go into my company's stock, Fidelity Diversified International, and two other Freedom Funds in addition to the above.
So far so good. Some days things go up, some days they go down, but my year-to-date return is already over 3% and I've only had this allocation for a month.
I suppose I am being a bit uncautious; I gave the various funds I invested in only a cursory glance through the rather daunting prospectus. But I guess I'll find out.
I only regret not doing this a year ago, when the market was dirt cheap.
So far so good. Some days things go up, some days they go down, but my year-to-date return is already over 3% and I've only had this allocation for a month.
I suppose I am being a bit uncautious; I gave the various funds I invested in only a cursory glance through the rather daunting prospectus. But I guess I'll find out.
I only regret not doing this a year ago, when the market was dirt cheap.
Bears Discover Fire said:
Yup. I worked for what was Hughes Aircraft/Raytheon, in their calibration department. At one time, there were over 100,000 people in the company. How many were calibrating laser power/energy detectors? TWO. Then the contracts ended and layoffs and selloffs and restructuring and such and how many did they need, in a company of maybe 50,000 people? ONE. Not me.
Kestra said:
True, but that happens in almost any major.
Scout101 said:
I posted about the positiveness of going into a trades profession. You need to be trained up in it, but that would be instead of a bachelor's.
the 4th hanson bother said:
I owe--owed--a nice amount in my student loans (less than $20K total). Hubby and I have managed to save money, but even in a cd, it's not making the 6.8% interest I'm accruing. So we hit the savings and paid a big chunk of the loan off. We probably saved about $1000 on how we were going to repay it--or $5000+ had we repaid by Sallie Mae's schedule.
I hate Sallie Mae--even their website sucks. My other loan got bought by the DoE. Better website--at least it's easier to navigate.
As for finding a job? Many others from my class who did pass the Bar last year found jobs, but some are being paid as paralegals rather than as attorneys. Others are still looking for a job. I'm working on passing the Bar. I'll worry about the rest after that.
It's still pretty cheap with upside to come (though we may get a short-term pullback as the dust settles from the SEC's charging Goldman)
