For the young folks here

Discussion in 'The VIP Lounge' started by capsuleri, Aug 15, 2017.

  1. Chris Slade

    Chris Slade Active Member War Zone Member Top Poster

    These threads are interesting but so tough to deal with. I am 40, I save, have investments, am self employed, one child, and a wife with a good job. Is that enough info for someone to lay out my financial plan? I seriously wish it was.
  2. Phil A

    Phil A Active Member Top Poster

    Someone good will look at them and then you need to set goals (retirement, education costs for your child, etc.) and risks you are willing to take. Some investments carry more risk but can get you more gains. Not everyone is the same.
  3. Rick C

    Rick C Active Member

    Chris I hear you and agree they are tough to deal with. I have no answers for you but sitting now at 65 I made a plan when I was your age. It made assumptions on the market, college costs, expectations on my earning power, life duration, inflation and future expenses. I knew most assumptions would end up being wrong but it gave me a benchmark to measure against year by year. I knew where we had been and where we hoped to go. It brought some clarity to turmoil and was something I updated quarterly.

    My version of my plan had a dashboard that allowed me to change assumptions and eventually as computers improved run simulations. No one can forecast the future but you can get comfortable having a plan and a range of outcomes. I hope that helps.
    capsuleri likes this.
  4. capsuleri

    capsuleri Well-Known Member War Zone Member

    Chris I agree. But one needs to start somewhere with certain assumptions and set targets. Review the plan ideally yearly or after any major life change and reset the assumptions and the targets. I think Rick has planned very well (disclaimer I am no Financial Adviser). I did something like that but in my head. I used 8% inflation to everything for my targets.

    Earlier you start easier it is in the long run simply because of compounding factor.
    Last edited: Aug 28, 2017
  5. Mike

    Mike Bon Vivant Top Poster

    I clicked on this thread knowing damned good and well it was not for me. I was hoping for some lurid pics.....LOL
  6. capsuleri

    capsuleri Well-Known Member War Zone Member

    Sorry to disappoint you Mike! :)
    Mike likes this.
  7. Barry_NJ

    Barry_NJ Well-Known Member War Zone Member

    Don't know what your income level is, but will you not want to travel and buy toys when you're retired and not spending most of your waking hours at work? I have a feeling I may want as much or more to spend...
  8. GHilinski

    GHilinski Active Member War Zone Member

    Having attempted the semi-retirement consulting thing at 48, here is what I learned. Your spending may be curtailed a bit, but you will spend more than you think, going out to lunch, travel, short jaunts, delayed home projects all cost money and you will spend it purely because you have more time on your hands. What further exacerbates this issues is your working friend base continues to spend as normal but you have no income coming in the door. You will think twice about those $250 dinners.

    The second thing to consider is when you take off and travel the world and that becomes boring and you get back to a settled life and see how much you burned through, the solution is to get back into the workforce at some capacity. At say 50 it was hard but at 57-58, it is nearly impossible because companies know you will only stick for a few more years.

    Finally, fully funded health insurance is a killer. I was paying $1,300 a month for a high deductible plan to cover three people vs. what I was paying while employed.

    Everyone has chimed in well. My only advice is to build a long term strategic plan for your money and create various scenarios to figure out how much you need to really retire. My model said I would be fine but would not be able to spend x on new cars or elaborate vacations and showed a more moderate lifestyle.
    Mike and Barry_NJ like this.
  9. John Celardo

    John Celardo Well-Known Member Donor

    At 70, Maureen and I have been doing things we never could when we were in the rat race. She's younger and still working from home, but has a flexible schedule. We travel, but do it economically. I have my 4-wheeled toy, but it's 25-years-old and not that expensive to run. We're not rich, but we're having fun without dumping pots of cash. It can be done, especially since Maureen is such a GREAT travel agent.
    Mike and DYohn like this.

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