Important life lesson I've learned from working at a bank.

zapatohead408 said:
Op, honestly didn't read throufh the thread at all. Just Your post, would you recommend throwing more in your Roths (I think it's called something like that) account?
Click to expand...

Yeah. The thread is moreso about a retirement account and not so much a specific kind like mine (401k). If you have a Roth IRA then that's perfect!
 
mcflyaldin said:
Repped!

Learn about this in school from my Civics teacher for Millionaire May Month, and honestly 4 years of high I must say this is the most important life lesson. Just graduated h.s. s/o to all c/o '13 :smokin

He said that many Americans fail at saving money because they "Save to spend" and don't have any back-up plan for any emergency in life. The average savings for the a family is $500 because they save to spend. Don't do it. The whole purpose of this is to become a millionaire by age 60, and the way you achieve this is by saving your money in 3 pots. 1st pot is saving for basic needs, 2nd is retirement, and 3rd is rainy day fund. You should always save 5% monthly from your paycheck. Invest in a 401k, 403b, or a IRA. Invest your money, have your money work for you. 
Click to expand...

:pimp:

Sounds like you've got it down. Just make sure to execute it. I think that's another step worth talking about because there are those that don't know and those that do, but don't execute.
 
FrankMatthews said:
jumpmankb said:
That's why you diversify. Government securities, bonds, stocks, real estate, etc...
Click to expand...

Everything you just mentioned is credit related, not to mention increasingly speculative. Whether stocks or bonds, you are essentially financing organizations in return for claims on future productivity when those in charge of productivity have differing interests than your retirement account. Real estate, maybe. But it's still in a bubble, too expensive and I personally don't see how it escapes the impending collapse of credit markets. Fully owning real estate and renting it out is exactly the type of thing i meant by hard assets and cash flow. Even then unemployment, inflation and taxes could severely limit the earning potential.
Click to expand...
so what specific examples do you suggest?
 
Last edited:
OP is just outright wrong. 

Ask any wealthy <-------keyword, "wealthy" and they'll all tell you that real estate is the key to retirement. 

401k's are great but you're at the mercy of the market. With real estate, you're the mercy. Everyone has to live somewhere and if you have a house, duplex, multi-unit, then you're in a position to be paid for the rest of your life and never pay your own mortgage.
 
^ real estate investment isn't for everyone. the stuff OP is talking about is stuff any one can do.
 
great post OP. i just turned 26 and have been putting some serious thought into savings and the money i'm going to need to be comfortable as i age.

i already have an income producing property in my portfolio (3 units) and i am working on saving up cash to start a retirement account.

it's kind of pathetic that so much money goes through the hands of an average american and they have so little to show for it.
 
651akathePaul said:
No. I'm not. And we're not talking wealthy. We're talking a sufficient living when you're retired. The reason most fail isn't because they don't have real estate investments, but because they don't put enough away. They think 3% every paycheck will give them the retirement of their dreams.

I don't know what to tell some of you guys because I see this everyday. There have been habitual retirement savers who did what I've described and live a very comfortable retirement. It wasn't from grandiose investments either...Just simple hard work and saving.

I'm not discussing the depths of investing here...There's always better alternatives, but most people cannot just go out and invest in real estate and those that can may not have the knowledge to do so.

Trust me when I say that the other fallacy of those that fail is being stubborn and stricken in their own ways. There is NOT one way to have the retirment you desire.
Click to expand...
I'm not discounting ( i know it came out that way) but yes...you're right to a certain degree but you're selling 401k because of the products you've been trained to sell. My cousin is a private banker so I know how products/goals are embedded into your way of thinking. He was all about 401k but now we rent a house that pays for itself and has built 50k in equity in 2 years.

Like many of us have said, 50-60 year olds LOST their ***** in 2008-2010 with the recession and have pretty much nothing to speak of in their 401ks.

Real estate is NOT hard to invest in.
DeadsetAce said:
^ real estate investment isn't for everyone. the stuff OP is talking about is stuff any one can do.
Click to expand...
 
Last edited:
FrankMatthews said:
crcballer55 said:
That's my goal. I did the calculation of contributing a mortgage payment to my retirement and
eek.gif
. Seriously, there are so many ways for an ordinary person to become a millionaire without making a huge sacrifice it's ridiculous! I've calculated at least 3 ways, so the way I figure it, if 2 fail I'll still have 7 figures by the time I'm 65 which should equal about $70-80,000/yr. in passive income without even touching the principle.
Click to expand...
And what do you think a million dollars will buy you in 30 years?. You'll live average for 10-15 years max off that.
Click to expand...
What's your backup then? It won't go as far as it will today, but it'll go much further than the 40% over 45 who haven't saved ANYTHING.

If I have no house payment, all my necessities are purchased, and I have decent insurance plans, then I'm not going to need nearly as much as someone who has other obligations.
mcflyaldin said:
Repped!
Learn about this in school from my Civics teacher for Millionaire May Month, and honestly 4 years of high I must say this is the most important life lesson. Just graduated h.s. s/o to all c/o '13 
smokin.gif

He said that many Americans fail at saving money because they "Save to spend" and don't have any back-up plan for any emergency in life. The average savings for the a family is $500 because they save to spend. Don't do it. The whole purpose of this is to become a millionaire by age 60, and the way you achieve this is by saving your money in 3 pots. 1st pot is saving for basic needs, 2nd is retirement, and 3rd is rainy day fund. You should always save 5% monthly from your paycheck. Invest in a 401k, 403b, or a IRA. Invest your money, have your money work for you. 
Click to expand...
Smart guy with great advice. Just look at the "52 week money challenge" thread and most people in there are using their money to save for shoes instead of emergencies or long term needs.
RonsWeedRoom said:
OP is just outright wrong. 

Ask any wealthy <-------keyword, "wealthy" and they'll all tell you that real estate is the key to retirement. 

401k's are great but you're at the mercy of the market. With real estate, you're the mercy. Everyone has to live somewhere and if you have a house, duplex, multi-unit, then you're in a position to be paid for the rest of your life and never pay your own mortgage.
Click to expand...
I agree on Real Estate. After observing many wealthy people there were 3 main categories. Real Estate, Started their own business, or Executive. Most had fairly diverse and solid portfolios too.

Along with your point, people will always need consumer goods too. For the stock market to become a bad investment, you basically need 5000 companies in all sectors to all go downhill. I don't see that happening since we'll always need something whether it be medical care, construction, or high tech. That's why Warren Buffett has always invested heavily in consumer industries with a heavy "moat" around them like Coke, Insurance, & Transportation.
 
Last edited:
RonsWeedRoom said:
651akathePaul said:
No. I'm not. And we're not talking wealthy. We're talking a sufficient living when you're retired. The reason most fail isn't because they don't have real estate investments, but because they don't put enough away. They think 3% every paycheck will give them the retirement of their dreams.

I don't know what to tell some of you guys because I see this everyday. There have been habitual retirement savers who did what I've described and live a very comfortable retirement. It wasn't from grandiose investments either...Just simple hard work and saving.

I'm not discussing the depths of investing here...There's always better alternatives, but most people cannot just go out and invest in real estate and those that can may not have the knowledge to do so.

Trust me when I say that the other fallacy of those that fail is being stubborn and stricken in their own ways. There is NOT one way to have the retirment you desire.
Click to expand...
I'm not discounting ( i know it came out that way) but yes...you're right to a certain degree but you're selling 401k because of the products you've been trained to sell. My cousin is a private banker so I know how products/goals are embedded into your way of thinking. He was all about 401k but now we rent a house that pays for itself and has built 50k in equity in 2 years.

Like many of us have said, 50-60 year olds LOST their ***** in 2008-2010 with the recession and have pretty much nothing to speak of in their 401ks.

Real estate is NOT hard to invest in.
Click to expand...
I know we're all fighting over semantics now, but we're talking about people actually being disciplined enough to invest first. Once we get people to realize they can actually build some form of wealth over time, then we can actually start worrying about the best vehicles. Until then, our problem is one of people working all their life with little to nothing to show for it in the end because they weren't disciplined to sock away $100/mo. (or more) throughout their life
 
I'm not selling anything. :lol: What is my benefit for doing so? It's simply a lesson I've learned and sharing this thought with NT. I'm licensed and sell all sorts of investments, but the one thing that rings true on so many occassions is the lack of planning for retirement. That's more what this post is and not about specific retirment vehicles. Notice, time and time again I've mentioned retirement accounts and not a specific type.

You say you lost 50% of your portfolio during the recession...Did you pull out? Because if not then your money has been recouped. People panic and invest with emotion and it sounds like you sleep safer at night by going a different route. That's awesome! Truly...I preach that everday above anything else. At the end of the day, it has to be something that allows you to sleep comfortably, but most can't tolerate the ebbs and flows of the market...Doesn't mean in the long it's a failure.

You're getting it twisted thinking I'm out here selling this stuff. I sit down with average Joe's everyday and rarely talk about investments, but notice through conversations or delving into the bank account that people failed to plan or put enough away. I HEAR and SEE the stories. DAILY.
 
Last edited:
I need to point out that just someone who "lost everything" during the recession can be a bit misleading. What type of investor are they? Did they panic too and cash out at the bottom? Had they just retired or were a few days from doing so? You can't just fit one persons situation to all peoples, because a lot of folks out here stood pat and are doing more than just fine, they came out way ahead from that market correction.
 
Last edited:
NT: Take what you will from my post. Just sharing my experience free of any motive. Believe that at its own peril, but I don't want this argument to progress to a point where it takes away from my main focus, so I'm going to step aside.
 
teamfrenzy said:
Break down the taxes you have to pay when you are eligible to cash out your 401k.
Click to expand...

Traditional 401(k): When you take the money. On both the money invested (basis) and the gains. The amount in taxes you pay is relative to your tax bracket at the time of withdrawal.

Roth 401(k): The money you invest has already been taxed, therefore your money grows tax free, and by virtue, you do not pay any taxes when you take the money.
 
Maxing out a 401k and a Roth every year FTW. Already told future wifey we're doing a prenup for our retirement funds.
 
So, how we doing?

I'm guessing most read this post about a year ago and thought it was good info to put to use when they were "ready." Well, dudes...it's been almost one year since this post and have you done what you wanted to?...Exactly my point, because the majority answer is no and it will be for years to come until you cut off that mindset.

For those that see this as a new post then post your thoughts, but take heed in the advice...Your shoes look sweet and cozy in that closet of yours, but when you're 70 years old will it have been worth it?...
 
Last edited:
I just don't see the catch of 401k.

Mine has 50k in it over 5 years and I've only put in 21 out of my pocket.

I just don't see the downside because after taxes and my spending habits I would have tricked all that money anyways.
 
No catch, bro...Sounds like you're doing great! :lol:

That's awesome, man. The only possible "catch" is that it' is dependent on the market value and its fluxuations of what you're invested in, but with history as an indicator...You'll be ok regardless.
 
Honestly i dont even know what funds i have. My company matches up to 6% so I put that in because the way I see it the 6% they match is free money. Then they put 3% of my base in as profit sharing once a year.

Like how bad would the market have to crash for me lose even what I actually put into it?

A guy I work with told me if I don't put another dime into it and just left that money in market that if the market performed the next 30 years the way it has the last 30 years I'd be a millionaire by 65.

I had the eek face when he told me but I have no idea how true that is.
 
At least put in enough for the company match, free money. Invest aggressive when you're young, 80-20, then reverse as you near retirement age. Don't worry about market ups and downs, most of you are in your 20s and 30s. When the market is down, you're not losing money, you're buying low which is the goal.

Buy low, sell high.
 
SneakerPro said:
Honestly i dont even know what funds i have. My company matches up to 6% so I put that in because the way I see it the 6% they match is free money. Then they put 3% of my base in as profit sharing once a year.

Like how bad would the market have to crash for me lose even what I actually put into it?

A guy I work with told me if I don't put another dime into it and just left that money in market that if the market performed the next 30 years the way it has the last 30 years I'd be a millionaire by 65.

I had the eek face when he told me but I have no idea how true that is.
Click to expand...

If you don't know, you're probably in a target fund. A target fund is a cookie cutter portfolio, rather conservative, based on your expected retirement age. I'd look into it just so you know and at least do minimal research to get a feel of what you're doing with your money. Your return sounds great, so it's not so bad, but on the same token, it's been a good market since the crash and you'll want to make sure you're broadened so that if we crash again, your losses will be minimized.

To answer the question about how bad the market would have to crash for you to lose what you put in...pretty bad...asbad or worse than what we saw 6 years ago. Those don't happen too often though. You'll still want to make sure you're protected against something that when/if it happens (by protected I mean diversified enough to cushion the blow).

I wouldn't stop puttting money in though..That "guy" is basing that projection on the current market..Obviously we're not garaunteed the same returns tomorrow as we are having today....Then there's possible loss, so that's why you want to have balanced investments and why you should continually invest.
 
Last edited:
Try your bank first. See what they offer. Find out when their financial advisor will be in or schedule an appointment.
 
You must log in or register to reply here.

The ultimate sneaker enthusiast community.

NikeTalk was created as a way of giving back to both the sneaker enthusiast community and to the greater global community of which we are all a part.

NikeTalk is NOT affiliated with Nike Inc. in any way, shape, or form. All opinions expressed herein do not necessarily reflect those of Nike, Inc.

© 1999-2024 NikeTalk.com

Share this page

Back
Top Bottom