Reply to I am X years old and have X saved in a retirement fund

Forum Index » Money and Finances

Reply to "I am X years old and have X saved in a retirement fund"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]37 - zero $ - does not make sense to save if you have loan/mortgage as you're "saving" with borrowed money. In the process of paying of mortgage in record speed, then will save.[/quote]

It actually does make sense because you cannot retroactively save in an IRA or 401K.  There are limits on both of those.  So if you wait until you are 45, for example, to start saving for retirement, you are going to have to put a lot away per year, but you can only put $5500 in an IRA and $17.5K in a 401K.  If you pay off the loan and save for retirement at the same time, you won't have that problem.  Also, are you giving up a free 401K match?[/quote]

Agree with you on this and have thought about that. Problem is inflation. Have a look at this:

http://www.davecoker.info/blog/wp-content/uploads/SPX-CPI-1983-2013-V1.jpg

...if it was not for inflation, I would have done as you said, but due to inflation, putting money in paper (like in the bank) or paper assets (stock), the diminishing value of ones savings is higher than any benefit I would be getting including free 401k match. Now, if was 10 years from retirement then I would be less concerned. As for the IRA/401 limits, I would have to save more outside the IRA/401 retirements vehicles when that time comes.

I know I'm going against the herd on this one but on the flip side we're paying off our 30yr mortgage in 8-9 yrs with calculated (nominal) $225k less interested paid.

Happy to hear opposing views.

[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics