O/O retirement funds

I won’t give you my exact numbers, but I will tell you a Solo(individual) 401K is a great part of working for myself. I personally max out my Roth IRA and Roth 401K with an over 50 catch-up for both. The business also contributes to a traditional Solo 401K. The page I posted lists a few points of the Solo 401k.

 

food for thought..... the social security admn. suggests that s.s. should be 1/4 of your retirement income. plan accordingly

 

Couple of ways to skin that cat, but typical saving rate should be between 10 and 20% of your taxable income.

Several possible vehicles help to keep the tax man’s grubby fingers off. The individual IRA’s limit is $6,000 per year. ($7,000 over 50). You can go much higher with a SEP (simplified employment pension plan), a solo 401(K), or a SIMPLE plan. The SIMPLE and SEP are the simplest and cheapest to set up. I think our SIMPLE plan costs $30 per year at Vanguard.

Of course, nothing wrong at all with saving for retirement by buying income producing real estate. Or a mix of both stocks and real estate.

 

the real question is how much will the things you buy or plan to do in retirement cost in 10,20,40 years with inflation and how much will income rise to compensate for that inflation, sadly we already know that answer.

 

I’m not sure what you are trying to say, but the inflation monster is on everyone’s mind.

Inflation is the main reason to INVEST in ASSETS rather than CONTRACTS. That is, invest in companies (stocks in mutual funds, specifically) and real estate, rather than LENDING your money to a bank (savings, money market, or CD) or a company or the government (bonds). The price of assets rises with inflation, the price of contracts falls with inflation.

 

If you are not aware, one can do all 3 and I do. IRA, Solo Roth 401K and the business side of the Solo 401K. You are not limited to one. The reason I personally do all 3 is to maximize my after tax contributions (Roth) which you don’t pay taxes later on the growth, but don’t receive a tax deduction on the current investment amount. The business side of the 401K has to be traditional and not after tax (Roth).

 

Try to put away atleast a couple hundred bucks a month away into an IRA I have set up