Investing for Retirement

Chat about non-baseball topics. No political discussions!
Post Reply
User avatar
Tim
Consider him admonished
Posts: 8350
Joined: March 25 15, 9:59 am
Location: The South

Re: Investing for Retirement

Post by Tim »

Seems like this economy is absolutely clicking. At least my retirement accounts are. Some good news from Apple announced today. Wondering when it’s all going to come crashing down?

User avatar
Jocephus
99% conan clips
Posts: 63658
Joined: April 18 06, 5:14 pm

Re: Investing for Retirement

Post by Jocephus »

i was going to post something about this too. i got my quarterly assessment from my TIAA cref accounts a couple weeks back...and they certainly did have a good year. seems like it went up 5.4% for the quarter, 20 some % for the year, IIRC.
Last edited by Jocephus on January 18 18, 11:56 am, edited 1 time in total.

Michael
GRB Founder
Posts: 35384
Joined: December 31 69, 6:00 pm
Location: Chicago, IL
Contact:

Re: Investing for Retirement

Post by Michael »



[SHOW]
Keep your 3 fund portfolio asset allocations and don't time the market.

User avatar
Popeye_Card
GRB's most intelligent & humble poster
Posts: 29877
Joined: April 17 06, 11:25 am

Re: Investing for Retirement

Post by Popeye_Card »

I've had a 21% ROR over the past 12 months for my 401k. The only good thing about Trump's America thus far.

Waiting for the other shoe to drop.

User avatar
Tim
Consider him admonished
Posts: 8350
Joined: March 25 15, 9:59 am
Location: The South

Re: Investing for Retirement

Post by Tim »

Popeye_Card wrote:I've had a 21% ROR over the past 12 months for my 401k. The only good thing about Trump's America thus far.

Waiting for the other shoe to drop.
18% here

I’m with you

User avatar
Swirls
gone fission
Posts: 8308
Joined: December 11 07, 4:15 pm
Location: South Korea

Re: Investing for Retirement

Post by Swirls »

Tim wrote:
Popeye_Card wrote:I've had a 21% ROR over the past 12 months for my 401k. The only good thing about Trump's America thus far.

Waiting for the other shoe to drop.
18% here

I’m with you
22% here. The bubble will pop eventually... The only question is when.

User avatar
GeddyWrox
Caught you a delicious bass
Posts: 12947
Joined: April 20 06, 8:43 pm
Location: Please use blue font for the sarcasm impaired.

Re: Investing for Retirement

Post by GeddyWrox »

I'm down to ~47K left to pay off my house. We've been paying extra to pay down principle dramatically over the years and the idea of no longer having a house payment is exciting. I don't have enough in savings to pay it off entirely yet, though. Does it make sense to borrow against my 401K to pay it off? My interest rate is 4.125. Probably not, but I'm just curious.

User avatar
Tim
Consider him admonished
Posts: 8350
Joined: March 25 15, 9:59 am
Location: The South

Re: Investing for Retirement

Post by Tim »

GeddyWrox wrote:I'm down to ~47K left to pay off my house. We've been paying extra to pay down principle dramatically over the years and the idea of no longer having a house payment is exciting. I don't have enough in savings to pay it off entirely yet, though. Does it make sense to borrow against my 401K to pay it off? My interest rate is 4.125. Probably not, but I'm just curious.
Would you get a penalty?

User avatar
GeddyWrox
Caught you a delicious bass
Posts: 12947
Joined: April 20 06, 8:43 pm
Location: Please use blue font for the sarcasm impaired.

Re: Investing for Retirement

Post by GeddyWrox »

Tim wrote:
GeddyWrox wrote:I'm down to ~47K left to pay off my house. We've been paying extra to pay down principle dramatically over the years and the idea of no longer having a house payment is exciting. I don't have enough in savings to pay it off entirely yet, though. Does it make sense to borrow against my 401K to pay it off? My interest rate is 4.125. Probably not, but I'm just curious.
Would you get a penalty?
On which? The payoff, or the 401K loan? Either way, not sure... I'd have to look into it. I'm really just starting to kick the tires on the idea.

Michael
GRB Founder
Posts: 35384
Joined: December 31 69, 6:00 pm
Location: Chicago, IL
Contact:

Re: Investing for Retirement

Post by Michael »

GeddyWrox wrote:I'm down to ~47K left to pay off my house. We've been paying extra to pay down principle dramatically over the years and the idea of no longer having a house payment is exciting. I don't have enough in savings to pay it off entirely yet, though. Does it make sense to borrow against my 401K to pay it off? My interest rate is 4.125. Probably not, but I'm just curious.
'

Congrats on getting so close to paying off your mortgage!

That said, I acknowledge there are mental well being considerations, but I don't think paying down a mortgage early makes a tremendous amount of sense. What's the rush? The tax implications could be a mess. Also, 401k's are also a protected investment from things like creditors however a home is not. Additionally, today's mortgages are pretty nice because they are cheap money that hedges your overall portfolio/net worth against inflation.

Just leave your 401k alone, make regular contributions, and only withdraw if you have a horrible life event.


***Michael is not a licensed financial adviser and provides investment advice for entertainment purposes only. Not available in all 50 states. Void where prohibited.***
[SHOW]
I'd argue you shouldn't add extra payments to your mortgage until you've at least paid off high interest debt like CC, and maxed out both your 401k and Roth IRA. Even after that I'd open up a taxable account and buy index funds before I'd pay off my mortgage. :)
Last edited by Michael on February 26 18, 4:11 pm, edited 4 times in total.

Post Reply