Retirement and investing your money.

onanysunday

onanysunday

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So I turned 62 last month. Wife is a few years younger and we are both going to retire at the same time. Curious about opinions and where to invest your money. I have been a Realtor for 33 years and have had a fair amount of experience with hard money lenders and real estate. One option for us is to become a hard money lender. Interest earned in the 10-12% range. But of course there is some risk like anything. For the project you invest in you want to be sure the LTV numbers are good but things can go sideways with the best intentions. I have seen it first hand in 2006 and had to resell several homes for an investor with carryback financing. At least one of those went sideways a second time and had to be sold again. Then there is having an investment advisor just invest in the markets. I have some money doing that now and he has done well with it. From what I am told 4% is a pretty safe number interest earned on dividends and you don't touch your principal. I believe you can push that percentage a little bit. But the return is still low for my liking. Of course at my age now I see constant investment opportunities on Facebook and different companies with returns in the 12%-18% range. Very skeptical of all of that. Told my wife we could just pay cash and do a flip house here and there but I really don't want to work that hard. Curious what others have done and any ideas to look into.
 
You can tell your money guy what you want....more return = more risk....Nothing is a sure bet. Our Edward Jones guy is a friend and we set what type of risk tolerance we have and go from there. The market is pulling back again...so once it's down is a good time to jump in. I don't want to work that hard for my returns, but I don't want to be poor either.
 
I wish I could even think of retirement but Not in the Cards as I will probably die at work someday but My Hat is off to all those who can retire and live a good life
 
It all depends on your risk tolerance. If you want to maximize your returns, you might want to hire an advisor to actively manage your account. Your portfolio should be mostly individual stocks, bonds, etc. if you are using a financial advisor. You can adjust your risk level using an advisor but I wouldn't use an advisor if you are risk adverse. I would just park it in an ETF for long term growth and not pay an advisor for a passively managed account.

I am fortunate that I have a pension and max SS that covers all my needs so I am able to tolerate more risk. I have a good advisor that is worth every penny I pay her. I managed my portfolio until I retired 6 yrs ago and resisted hiring an advisor but a couple buddies used this advisor and she did well by them And so far she has done an outstanding job investing my portfolio on a moderate aggressive risk level. Her and I talk as needed and I have input on trades. I own about 20 stocks across many categories and some funds such as gold, crypto, and money market.

I actually think an investment thread on GD.com would be interesting since there are some very successful members here with experience on this subject.
 
THD said:
It all depends on your risk tolerance. If you want to maximize your returns, you might want to hire an advisor to actively manage your account. Your portfolio should be mostly individual stocks, bonds, etc. if you are using a financial advisor. You can adjust your risk level using an advisor but I wouldn't use an advisor if you are risk adverse. I would just park it in an ETF for long term growth and not pay an advisor for a passively managed account.

I am fortunate that I have a pension and max SS that covers all my needs so I am able to tolerate more risk. I have a good advisor that is worth every penny I pay her. I managed my portfolio until I retired 6 yrs ago and resisted hiring an advisor but a couple buddies used this advisor and she did well by them And so far she has done an outstanding job investing my portfolio on a moderate aggressive risk level. Her and I talk as needed and I have input on trades. I own about 20 stocks across many categories and some funds such as gold, crypto, and money market.

I actually think an investment thread on GD.com would be interesting since there are some very successful members here with experience on this subject.
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Your perceptions are interesting...

The main reason I have and advisor is that I am absolutely against putting my funds at risk!

At 68 years old and retired, I want someone that manages money for a living handling MY money.

Dealing with financial investments is definitely not in my wheelhouse.

Although...

I've made a few bucks on Cloudflare, and a few other tech stocks, I've personally felt Very confident about. 😎
 
Look at mutual funds - like VOO...it and others like it are a "Stock" that is collection of fortune 500 companies, and it will drop and add companies as they do good, bad, etc. Pretty low risk, but depending upon how much you have to invest, it can be safeish gamble. Sell 4% to 6% a year.

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62 years old is more of a state of mind than it is an age, your 62 is different than my 62. For me the emphasis is on not having to recreate wealth doing something I don’t want to do because an investment didn’t perform as expected.
I did find it interesting though meeting with financial planners after my contract ended with my company and I moved my retirement assets out of my company’s plan. A common theme amongst the planners seemed to be making you a rich 90 year old.
I think to truly answer your question you’d have to delve into your legacy goals, is leaving a honey pot on the table for beneficiaries a priority?
I ended up using a bank to “house” my retirement in a more or less “canned” investment vehicle that isn’t actively managed. The investment products aren’t subject to commission and there is a low “flat fee” service charge.
I plan on beefing somewhere between 78 and 83 years old with enough dough to pay cash for assisted living if needed and a few properties that are paid off. By no means is my plan sexy for those looking to build wealth in their latter years but true wealth comes in many forms, for me wealth is doing what I want with as little hassle as possible.
 
BaBaBouy said:
62 years old is more of a state of mind than it is an age, your 62 is different than my 62. For me the emphasis is on not having to recreate wealth doing something I don’t want to do because an investment didn’t perform as expected.
I did find it interesting though meeting with financial planners after my contract ended with my company and I moved my retirement assets out of my company’s plan. A common theme amongst the planners seemed to be making you a rich 90 year old.
I think to truly answer your question you’d have to delve into your legacy goals, is leaving a honey pot on the table for beneficiaries a priority?
I ended up using a bank to “house” my retirement in a more or less “canned” investment vehicle that isn’t actively managed. The investment products aren’t subject to commission and there is a low “flat fee” service charge.
I plan on beefing somewhere between 78 and 83 years old with enough dough to pay cash for assisted living if needed and a few properties that are paid off. By no means is my plan sexy for those looking to build wealth in their latter years but true wealth comes in many forms, for me wealth is doing what I want with as little hassle as possible.
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exactly, Save just enough dough for some hot nurse to wipe your ass in a home while you die. And then spend the rest while you are healthy and can still get your dik hard.
 
BaBaBouy said:
62 years old is more of a state of mind than it is an age, your 62 is different than my 62. For me the emphasis is on not having to recreate wealth doing something I don’t want to do because an investment didn’t perform as expected.
I did find it interesting though meeting with financial planners after my contract ended with my company and I moved my retirement assets out of my company’s plan. A common theme amongst the planners seemed to be making you a rich 90 year old.
I think to truly answer your question you’d have to delve into your legacy goals, is leaving a honey pot on the table for beneficiaries a priority?
I ended up using a bank to “house” my retirement in a more or less “canned” investment vehicle that isn’t actively managed. The investment products aren’t subject to commission and there is a low “flat fee” service charge.
I plan on beefing somewhere between 78 and 83 years old with enough dough to pay cash for assisted living if needed and a few properties that are paid off. By no means is my plan sexy for those looking to build wealth in their latter years but true wealth comes in many forms, for me wealth is doing what I want with as little hassle as possible.
Click to expand...

Seems perfect to me.

One of my customers at JMS Racing was a financial advisor.

He told me...

"Look, we all (planers) have the exact same access to the exact same tools. It's not magic, it's just research and homework. For the client, it's all about who you trust with your money."

Sage advice. 👍🏼
 
rivermobster said:
Seems perfect to me.

One of my customers at JMS Racing was a financial advisor.

He told me...

"Look, we all (planers) have the exact same access to the exact same tools. It's not magic, it's just research and homework. For the client, it's all about who you trust with your money."

Sage advice. 👍🏼
Click to expand...
Nothing is as time proven in investing for retirement as contributions, diversification and time.
I did a full 6% match on my employee’s 401K contributions + profit sharing, I’d call employees into my office that weren’t contributing at least 6% and ask them if they were smart enough to work here.
 
BaBaBouy said:
Nothing is as time proven in investing for retirement as contributions, diversification and time.
I did a full 6% match on my employee’s 401K contributions + profit sharing, I’d call employees into my office that weren’t contributing at least 6% and ask them if they were smart enough to work here.
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We always did 20% on TSP and 401k for our entire career except around 2006 plus when times were tough and we almost lost everything. Even then we kept it at matching to get that company contribution.

Both of us are fully vested and will retire next Oct at 56/54.
Full benefits, Pension, Healthy Retirement Funds and SS at 62 will just be icing on the cake.

Real Estate will be left for the kids, money maybe...it changes with our mood LOL.

Time to enjoy life is coming quick.

Been to everytype of Retirement Seminar in the past 2 years and had countless free steak dinners and coffee donuts at various public libraries, etc. At the end they are all products sold, whether a one time cost or ongoing. Your end goal and tax situation are the most important factors to help you decide.

We are still weighing a few options.


Great thread.
 
BaBaBouy said:
Nothing is as time proven in investing for retirement as contributions, diversification and time.
I did a full 6% match on my employee’s 401K contributions + profit sharing, I’d call employees into my office that weren’t contributing at least 6% and ask them if they were smart enough to work here.
Click to expand...

Yep. When I was an employee, first thing I did was, tell em to take out the max contribution.

Never missed it. Worked well.
 
rivermobster said:
Yep. When I was an employee, first thing I did was, tell em to take out the max contribution.

Never missed it. Worked well.
Click to expand...
wow, first thing we agree on.

$23,500 personal contribution cap a year or 70k combined. That shit compounds and after 30 years it gets to some really decent money. I started when i was 19 and its a great feeling later in life.
 
I will be retiring in 4 years at 62, I am pretty diversified and confident in our financial health. One thing that gets over-looked is taxes, remember to talk to your accountant and plan for that as well.

I was self-employed until 8 years ago, then I got a 401K with 6% matching. In 8 years, I have accumulated $500k, wish I would have had that when I was 25 years old.
 
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