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mommy2be716
LIF Adult
Member since 1/16 2921 total posts
Name:
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Another finance spin off- investment question
Do you have an investment account, or accounts (aside from 529 accounts, retirement, IRAs, etc.)?
I was just speaking with someone in her mid-30s, with two kids and an average household income (one salary in the 70s, one is in the 80s). She said they have over 75k in investments right now. This is mostly due to an inheritance that one of them received awhile back, but it made me wonder how many people out there have a significant amount of $ in investments these days?
For me, I had about 30k in investments from an inheritance I received about 10 years ago. I pulled it and used it toward my house down payment, and now I have nothing besides a small roth IRA that I rolled over, my pension, and DD's 529 plan.
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Posted 2/18/20 8:42 PM  |
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Hofstra26
Love to Bake!
Member since 7/06 27915 total posts
Name:
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Re: Another finance spin off- investment question
We have a 401K and a lucrative stock options package (both through DH's job), our investment portfolio has grown tremendously in the last year due to a job promotion to VP that my DH took.
ETA - We're both 44.
Message edited 2/19/2020 9:40:28 AM.
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| Posted 2/18/20 9:03 PM |
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nycbuslady
LIF Adult
Member since 9/15 1063 total posts
Name:
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Another finance spin off- investment question
I feel like this is dependent on so many things. Did you have college debt? Did you live with your parents into early adulthood? How old are you now? Etc.
Yes, I have investments. I started when I was single and still living with my parents rent-free. But, this was in the 1990s, so I’ve had 20 plus years for it to grow. I took some out for a down payment on my first house. But, I’ve never emptied it. Sometimes just putting it away and not ever touching it is all you need to do. The key is starting early.
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| Posted 2/18/20 9:07 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19453 total posts
Name:
L
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Re: Another finance spin off- investment question
If you are in your 40s you are late to the party. As difficult as it is to save, you must do so and eventually max out your annual contributions. The average 401k balance has over 100,000 in it, so I would say you are really behind if you have nothing.
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| Posted 2/18/20 10:18 PM |
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MrsG823
Just call me Mommy.
Member since 1/11 5570 total posts
Name:
S
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Another finance spin off- investment question
We have very little in investment accounts. The bulk of our money is invested in my DHs business. The plan is to sell the company as a whole in the next 15 years. I have a retirement account through my job. Once I finish paying off my education I will focus on saving for retirement.
Every situation is different. It might help to talk to a financial advisor.
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| Posted 2/18/20 10:31 PM |
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lightblue
LIF Adult
Member since 1/17 2249 total posts
Name:
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Re: Another finance spin off- investment question
Yes we opened up an investment account through our bank, I think it's like a mutual fund...
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| Posted 2/19/20 8:59 AM |
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LuckyStar
LIF Adult
Member since 7/14 7272 total posts
Name:
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Another finance spin off- investment question
Just retirement though we both max out our contributions and always have. I also have a pension from a previous job but that isn’t much.
And a college fund for DD but that’s more of an us fund because unless we are very strapped at that point in our lives, we will pay for her college.
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| Posted 2/19/20 9:38 AM |
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NervousNell
Just another chapter in life..
Member since 11/09 54917 total posts
Name:
..being a mommy and being a wife!
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Re: Another finance spin off- investment question
DH has his pension, but he also has a deferred compensation plan that he would contribute to the years he worked- like a 401k (it's called something else though). He has quite a bit of money in there and it's growing nicely in the investments its in even though he isn't contributing to it anymore since he retired.
I have 2 401k's
And just a 529 for DD's college
And some IRA's etc .
Nothing crazy
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| Posted 2/19/20 9:43 AM |
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ali120206
2 Boys
Member since 7/06 17789 total posts
Name:
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Another finance spin off- investment question
We have an investment account. It’s comprised of stocks that we invested in over the years that had grown and part of my severance package from my old job.
We also have a lot of funds in retirement accounts and 529 and UTMA accounts for the kids
Message edited 2/19/2020 12:40:03 PM.
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| Posted 2/19/20 12:39 PM |
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mommy2be716
LIF Adult
Member since 1/16 2921 total posts
Name:
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Re: Another finance spin off- investment question
Posted by LSP2005
If you are in your 40s you are late to the party. As difficult as it is to save, you must do so and eventually max out your annual contributions. The average 401k balance has over 100,000 in it, so I would say you are really behind if you have nothing.
no thats not what I was saying. I was asking how many have investment accounts OUTSIDE of 401k or other retirement-based accounts. I have a NYS pension plus a 403(B) account that I contribute to and it is very large, but that is all retirement-based.
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| Posted 2/19/20 1:33 PM |
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nycbuslady
LIF Adult
Member since 9/15 1063 total posts
Name:
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Another finance spin off- investment question
Based on what's in the news, most people don't have much in investments. If they have anything, it's a small 401K.
I read somewhere that as a rule of thumb, you should have about 25 x your annual expenses saved at retirement. That makes sense because if you retire at 65, and you expect to live to 90, that's 25 years. So, you'll need 25 years worth of living expenses. So, assuming an annual salary of $80K, you'll need around $2 million. If you don't start early, you'll never get there.
This assumes, however, that you won't get a pension or social security. With that, then you would need less.
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| Posted 2/19/20 1:41 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19453 total posts
Name:
L
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Re: Another finance spin off- investment question
Posted by mommy2be716
Posted by LSP2005
If you are in your 40s you are late to the party. As difficult as it is to save, you must do so and eventually max out your annual contributions. The average 401k balance has over 100,000 in it, so I would say you are really behind if you have nothing.
no thats not what I was saying. I was asking how many have investment accounts OUTSIDE of 401k or other retirement-based accounts. I have a NYS pension plus a 403(B) account that I contribute to and it is very large, but that is all retirement-based.
yes, this would be in addition to your retirement accounts. I would hope everyone over 40 has an emergency fund, and other funds beyond money for kids and retirement. So yes, at 40 not having those things would make you behind where you need to be.
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| Posted 2/19/20 1:48 PM |
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LuckyStar
LIF Adult
Member since 7/14 7272 total posts
Name:
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Re: Another finance spin off- investment question
Posted by LSP2005
Posted by mommy2be716
Posted by LSP2005
If you are in your 40s you are late to the party. As difficult as it is to save, you must do so and eventually max out your annual contributions. The average 401k balance has over 100,000 in it, so I would say you are really behind if you have nothing.
no thats not what I was saying. I was asking how many have investment accounts OUTSIDE of 401k or other retirement-based accounts. I have a NYS pension plus a 403(B) account that I contribute to and it is very large, but that is all retirement-based.
yes, this would be in addition to your retirement accounts. I would hope everyone over 40 has an emergency fund, and other funds beyond money for kids and retirement. So yes, at 40 not having those things would make you behind where you need to be.
So you mean a savings account?
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| Posted 2/19/20 2:01 PM |
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nycbuslady
LIF Adult
Member since 9/15 1063 total posts
Name:
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Re: Another finance spin off- investment question
Posted by LuckyStar
Posted by LSP2005
Posted by mommy2be716
Posted by LSP2005
If you are in your 40s you are late to the party. As difficult as it is to save, you must do so and eventually max out your annual contributions. The average 401k balance has over 100,000 in it, so I would say you are really behind if you have nothing.
no thats not what I was saying. I was asking how many have investment accounts OUTSIDE of 401k or other retirement-based accounts. I have a NYS pension plus a 403(B) account that I contribute to and it is very large, but that is all retirement-based.
yes, this would be in addition to your retirement accounts. I would hope everyone over 40 has an emergency fund, and other funds beyond money for kids and retirement. So yes, at 40 not having those things would make you behind where you need to be.
So you mean a savings account?
I think the OP is referring to additional investments outside of a 401K and other retirement accounts, but not just a savings account. Things like mutual funds, stocks, bonds, etc.
To answer the original question, yes, my husband and I have those types of investments.
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| Posted 2/19/20 2:20 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19453 total posts
Name:
L
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Re: Another finance spin off- investment question
Posted by LuckyStar
Posted by LSP2005
Posted by mommy2be716
Posted by LSP2005
If you are in your 40s you are late to the party. As difficult as it is to save, you must do so and eventually max out your annual contributions. The average 401k balance has over 100,000 in it, so I would say you are really behind if you have nothing.
no thats not what I was saying. I was asking how many have investment accounts OUTSIDE of 401k or other retirement-based accounts. I have a NYS pension plus a 403(B) account that I contribute to and it is very large, but that is all retirement-based.
yes, this would be in addition to your retirement accounts. I would hope everyone over 40 has an emergency fund, and other funds beyond money for kids and retirement. So yes, at 40 not having those things would make you behind where you need to be.
So you mean a savings account?
not a savings account. I mean stocks and bonds outside of your 401k. You can put your emergency fund into a cd ladder to have access to money but earn interest safely. I think it is really important to have savings. Use the bogglehead 3 fund portfolio to start.
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| Posted 2/19/20 2:32 PM |
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valentinesbaby
LIF Adult
Member since 2/20 900 total posts
Name:
Valentines
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Re: Another finance spin off- investment question
Posted by LSP2005
If you are in your 40s you are late to the party. As difficult as it is to save, you must do so and eventually max out your annual contributions. The average 401k balance has over 100,000 in it, so I would say you are really behind if you have nothing.
These are actual numbers from Fidelity:
Twentysomethings (Age 20–29)
Average 401(k) balance: $11,800
Median 401(k) balance: $4,300
Contribution rate (% of income): 7%
Thirtysomethings (Age 30–39)
Average 401(k) balance: $42,400
Median 401(k) balance: $16,500
Contribution rate (% of income): 7.8%
Fortysomethings (Age 40–49)
Average 401(k) balance: $102,700
Median 401(k) balance: $36,000
Contribution rate (% of income): 8.5%
Fiftysomethings (Age 50–59)
Average 401(k) balance: $174,100
Median 401(k) balance: $60,900
Contribution rate (% of income): 10.1%
Sixtysomethings (Age 60–69)
Average 401(k) balance: $195,500
Median 401(k) balance: $62,000
Contribution rate (% of income): 11.2%
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| Posted 2/19/20 3:22 PM |
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valentinesbaby
LIF Adult
Member since 2/20 900 total posts
Name:
Valentines
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Re: Another finance spin off- investment question
Posted by LSP2005
Posted by mommy2be716
Posted by LSP2005
If you are in your 40s you are late to the party. As difficult as it is to save, you must do so and eventually max out your annual contributions. The average 401k balance has over 100,000 in it, so I would say you are really behind if you have nothing.
no thats not what I was saying. I was asking how many have investment accounts OUTSIDE of 401k or other retirement-based accounts. I have a NYS pension plus a 403(B) account that I contribute to and it is very large, but that is all retirement-based.
yes, this would be in addition to your retirement accounts. I would hope everyone over 40 has an emergency fund, and other funds beyond money for kids and retirement. So yes, at 40 not having those things would make you behind where you need to be.
"I would hope everyone over 40 has an emergency fund, and other funds beyond money for kids and retirement."
You hope but many people, especially living on LI live paycheck to paycheck.
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| Posted 2/19/20 3:24 PM |
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Mill188
LIF Adult
Member since 3/09 3072 total posts
Name:
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Re: Another finance spin off- investment question
Yes - I started investing in mutual funds in my late 20's. Started with a monthly investment of $25. Over the years, it's grown quite a bit, and I actually have stopped contributing to it at this point. We have a nice cushion for an emergency fund.
Our next big expense will be retirement, and we are putting away as much as we can towards that. DH has a great pension and 401(k). I have a really good 401(k) as well as some individual IRA's.
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| Posted 2/19/20 3:35 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19453 total posts
Name:
L
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Re: Another finance spin off- investment question
Posted by valentinesbaby
Posted by LSP2005
If you are in your 40s you are late to the party. As difficult as it is to save, you must do so and eventually max out your annual contributions. The average 401k balance has over 100,000 in it, so I would say you are really behind if you have nothing.
These are actual numbers from Fidelity:
Fortysomethings (Age 40–49)
Average 401(k) balance: $102,700
Median 401(k) balance: $36,000
Contribution rate (% of income): 8.5%
%
Thanks for the numbers backing up what I said. The average 401k balance for ages 40 to 49 is 102,700. That is what I said above, the average. Is Long Island expensive, yes. Only you will know what is right for your family. With that said there is no guarantee or entitlement to live where you grew up. We moved to do better for our family.
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| Posted 2/19/20 4:02 PM |
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jlm2008
LIF Adult
Member since 1/10 5092 total posts
Name:
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Re: Another finance spin off- investment question
Posted by valentinesbaby
Posted by LSP2005
Posted by mommy2be716
Posted by LSP2005
If you are in your 40s you are late to the party. As difficult as it is to save, you must do so and eventually max out your annual contributions. The average 401k balance has over 100,000 in it, so I would say you are really behind if you have nothing.
no thats not what I was saying. I was asking how many have investment accounts OUTSIDE of 401k or other retirement-based accounts. I have a NYS pension plus a 403(B) account that I contribute to and it is very large, but that is all retirement-based.
yes, this would be in addition to your retirement accounts. I would hope everyone over 40 has an emergency fund, and other funds beyond money for kids and retirement. So yes, at 40 not having those things would make you behind where you need to be.
"I would hope everyone over 40 has an emergency fund, and other funds beyond money for kids and retirement."
You hope but many people, especially living on LI live paycheck to paycheck.
I think your fairly new here, but you will soon find everyone is super rich on this chat board and they think 75k is an average salary where if I made that I'd be living like a queen. I just roll my eyes and move in. But yes, there are plenty of us who support ourselves on LI and live paycheck to paycheck.
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| Posted 2/19/20 6:21 PM |
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bunnyluck
LIF Adult
Member since 1/14 3196 total posts
Name:
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Another finance spin off- investment question
I do. I started young (21) with an etrade account and it's grown and shrunk and grown since then. I have a broker account that I do not self manage and contribute to monthly and 529s for my two kids (I put what I can in there and all their bday gifts, etc.). But in fairness, my ex and I were two professionals so we probably did better than the average and were able to save...Fortunate in that respect.
I am also the queen of credit card points and miles lololol I play that game hard and well (not exactly an investment but essentially is free money earned on money I'd be spending anyway).
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| Posted 2/19/20 7:52 PM |
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mommy2be716
LIF Adult
Member since 1/16 2921 total posts
Name:
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Another finance spin off- investment question
well damn then we must be poor lol..
As far as retirement goes, we're set. I'm not concerned in that respect. I am a tier 4 teacher and don't even make contributions to retirement anymore now that I have 10 years in (you only need to contribute for 10 years for tier 4 NYS retirement). I have a TDA that gets 7% fixed interest and I contribute 11% of every paycheck to that, and plan to continually increase the percentage as I get raises (You can contribute a max of $18,500 per year). Additionally, Dh has 102k in his 401k right now (He is 33).
So i feel OK with retirement accounts. For DD's college, we contribute monthly to DD's 529, and both sets of grandparents also have 529s for her.
I just feel like we are behind when it comes to other investments. I have a savings account of course, but I'm not investing in stocks or anything right now. After reading the comments that LSP2005 made, I really feel like we're WAY behind
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| Posted 2/19/20 8:15 PM |
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LSP2005
Bunny kisses are so cute!
Member since 5/05 19453 total posts
Name:
L
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Re: Another finance spin off- investment question
It is better to know, and do something about it. If you are under 40 then you have way more time than someone older and that is the key to success.
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| Posted 2/19/20 8:21 PM |
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Re: Another finance spin off- investment question
Posted by mommy2be716
well damn then we must be poor lol..
As far as retirement goes, we're set. I'm not concerned in that respect. I am a tier 4 teacher and don't even make contributions to retirement anymore now that I have 10 years in (you only need to contribute for 10 years for tier 4 NYS retirement). I have a TDA that gets 7% fixed interest and I contribute 11% of every paycheck to that, and plan to continually increase the percentage as I get raises (You can contribute a max of $18,500 per year). Additionally, Dh has 102k in his 401k right now (He is 33).
So i feel OK with retirement accounts. For DD's college, we contribute monthly to DD's 529, and both sets of grandparents also have 529s for her.
I just feel like we are behind when it comes to other investments. I have a savings account of course, but I'm not investing in stocks or anything right now. After reading the comments that LSP2005 made, I really feel like we're WAY behind
You have a pension though, so standard retirement numbers don’t apply to you. Especially as a nys teacher.
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| Posted 2/19/20 8:48 PM |
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MrsT809
LIF Adult
Member since 9/09 12167 total posts
Name:
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Re: Another finance spin off- investment question
Posted by mommy2be716
well damn then we must be poor lol..
As far as retirement goes, we're set. I'm not concerned in that respect. I am a tier 4 teacher and don't even make contributions to retirement anymore now that I have 10 years in (you only need to contribute for 10 years for tier 4 NYS retirement). I have a TDA that gets 7% fixed interest and I contribute 11% of every paycheck to that, and plan to continually increase the percentage as I get raises (You can contribute a max of $18,500 per year). Additionally, Dh has 102k in his 401k right now (He is 33).
So i feel OK with retirement accounts. For DD's college, we contribute monthly to DD's 529, and both sets of grandparents also have 529s for her.
I just feel like we are behind when it comes to other investments. I have a savings account of course, but I'm not investing in stocks or anything right now. After reading the comments that LSP2005 made, I really feel like we're WAY behind
As teachers, we'll have similar retirement pensions, we have 403Bs, and 529s for each kid. We have an emergency fund. We'll pay off our house within the next 10 years. Maybe I'm a dummy but what am I using this investment money for? We don't max out our 403b contributions so I feel like I'm better off putting everything I can toward that first, no? Maybe if we were able to do that (when I'm no longer sah) we'd be able to think about taking things to the next level.
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| Posted 2/19/20 8:53 PM |
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