Steven Tari Posted August 14, 2011 Share Posted August 14, 2011 :unsure: Just wondering, if after working for a place for 30 years you hear from a good source that the place had sold out. You have 10 years left to retire and you hear that you get your retirement plus 30% more because you have over 20 years in. Would you start with the new company or retire? How would you devide the money for ERA's and other saving plans? Also, if you take up to 50 grand and you buy the perfect Guitar and amp you woul d really like without the worry of cost, plus some extra goodies. What would they be? I was told that some bank's or credit unions, insure up to 250,000. I haven't looked lately, but I only knew of it being 100,000. I hope the first is true. I'm looking for ideas on how to place it and make some money on it. Also please give me some insite into how you would plan on seperateing your money for retirement. After doing some research, It's sad that the young people won't get (at this time looking into the future), the same retirement the babyboomers will get. If they get anything. Link to comment Share on other sites More sharing options...
DanvillRob Posted August 14, 2011 Share Posted August 14, 2011 :unsure: Just wondering, if after working for a place for 30 years you hear from a good source that the place had sold out. You have 10 years left to retire and you hear that you get your retirement plus 30% more because you have over 20 years in. Would you start with the new company or retire? How would you devide the money for ERA's and other saving plans? Also, if you take up to 50 grand and you buy the perfect Guitar and amp you woul d really like without the worry of cost, plus some extra goodies. What would they be? I was told that some bank's or credit unions, insure up to 250,000. I haven't looked lately, but I only knew of it being 100,000. I hope the first is true. I'm looking for ideas on how to place it and make some money on it. Also please give me some insite into how you would plan on seperateing your money for retirement. After doing some research, It's sad that the young people won't get (at this time looking into the future), the same retirement the babyboomers will get. If they get anything. $250K is current limit, but years ago when the limit was $100K, I sold some property, plus my house, but didn't have another house in mind to buy just then, and I had to deposit many multiples of $100K, (California Real Estate, after all!), and the bank just changed the depositors order, (first me, then my wife.... then my wife and second me, both together, just me, just her, etc.). Link to comment Share on other sites More sharing options...
G McBride Posted August 14, 2011 Share Posted August 14, 2011 Be advised that this comes from a man who thinks that you should invest your money in Guns and Guitars. That is a nice chunk of money to get all at once. Your goal should be to seek ways to get the money without paying 30 to 40 percent of it in Federal Taxes. You are going to be one of those "Rich" Americans that Obama talks about and wants you to pay more than other in taxes. Tax planning first to be sure you don't do something irreversible. The money you save by proper planning will far outweigh the where to put it argument. I would suggest that maybe you should look into property. There are a lot of deals out there and interest on property is down. Cash purchases could bring you even better yields. If you are a fixer upper type you could find a few foreclosures, fix them up and put them on the market. That will give you something to do with your time if you decide not to seek other employment. If you go the property route, make it a business that you can protect your personal assets but yet write off the expenses or losses on your income taxes. Start a Band and go on tour. Link to comment Share on other sites More sharing options...
Searcy Posted August 14, 2011 Share Posted August 14, 2011 If it were me I would pay off my house and roll the rest into mutual funds and roth IRAs with proven 10 year track records. Vanguard is working well for me. Then I go work for the next 10 years at something I loved knowing I didnt have a house payment to worry about Link to comment Share on other sites More sharing options...
cookieman15061 Posted August 14, 2011 Share Posted August 14, 2011 One word GOLD. Link to comment Share on other sites More sharing options...
djroge1 Posted August 14, 2011 Share Posted August 14, 2011 One word GOLD. Actually - SILVER might be a better investment. I don't think I would spend more than $10,000 - $15,000 on new gear and I personally would love to have a Dumble amp.... but I'm still not willing to pay $40,000 + for one. Link to comment Share on other sites More sharing options...
DiamondJig Posted August 14, 2011 Share Posted August 14, 2011 :unsure: Just wondering, if after working for a place for 30 years you hear from a good source that the place had sold out. You have 10 years left to retire and you hear that you get your retirement plus 30% more because you have over 20 years in. Would you start with the new company or retire? How would you devide the money for ERA's and other saving plans? Also, if you take up to 50 grand and you buy the perfect Guitar and amp you woul d really like without the worry of cost, plus some extra goodies. What would they be? I was told that some bank's or credit unions, insure up to 250,000. I haven't looked lately, but I only knew of it being 100,000. I hope the first is true. I'm looking for ideas on how to place it and make some money on it. Also please give me some insite into how you would plan on seperateing your money for retirement. After doing some research, It's sad that the young people won't get (at this time looking into the future), the same retirement the babyboomers will get. If they get anything. Beware if you take your retirement pension as a lump sum you will be taxed on it as income, they will withhold 20% Fed tax and may still owe more Fed, State and local taxes. If you roll it over into an IRA directly then no taxes on the transaction. Can't touch an IRA till your 59 1/2 unless you do a 72T. Many of the IRA will give free financial advice and they will also manage the money for you for a price usually 1%. I would roll it over into an IRA talk to them and diversify your portfolio based on you risk level while it sits and grows while you work another 10 years in a job that gives another pension. Good Luck. Link to comment Share on other sites More sharing options...
bonzoboy Posted August 14, 2011 Share Posted August 14, 2011 I agree with a previous poster,silver is skyrocketing in value as it is used these days for so many things especially electronics that it's usefulness and value is surpassing that of gold.My brother in law bought silver when it was $18 an ounce and has made a killing on it but wisely has kept half because the value continues to climb daily. Link to comment Share on other sites More sharing options...
stein Posted August 14, 2011 Share Posted August 14, 2011 I am not a financial adviser, but you need to talk to one. There is a LOT at stake involving taxes and how you are taxed is determined on what you do with that money. The tax structure protects retirement funds from being taxed, but if you take the money out, you can be taxed at the time you do, and THEN you can also be taxed on the same money as income. Obviously, things that you might be thinking of as "investments" like guitars are not considered investsments by the government and the tax structure. Also, even if paying off your house seems like a good idea, you may be eliminating significant deductions from your taxes you are getting now. ADVISE: Get yourself someone QUALIFIED to help you place your retirement money, and do NOT consider it play money-you can end up with nothing left in a hurry. Link to comment Share on other sites More sharing options...
fl00dsm0k3 Posted August 14, 2011 Share Posted August 14, 2011 gold Link to comment Share on other sites More sharing options...
Searcy Posted August 14, 2011 Share Posted August 14, 2011 Gold is at an all time high. There's no way I would sink $350,000 in gold. Paying off the house (and other debt if you have any) is always more of an advantage than the tiny tax shelter it's interest may offer. Diversify. 25% Growth Stock Mutual Fund 25% Growth and Income Mutual Fund 25% Aggressive Growth Mutual Fund 25% International Mutual Fund is what works for me. You should adjust the percentages based on your needs. Link to comment Share on other sites More sharing options...
jaxson50 Posted August 14, 2011 Share Posted August 14, 2011 Searcy 25% Growth Stock Mutual Fund 25% Growth and Income Mutual Fund 25% Aggressive Growth Mutual Fund 25% International Mutual Fund That is a good plan! Be diverse, that is rule #1. Depending on you're age I would also recommend, a diverse portfolio of dividend stocks as long as you reinvest the dividends. 40% of all gains in the stock market since 1929 came from dividend stocks... MLPS have some very good advantages. Most MLPS are involved in energy..something we will always need, and because they are just deliver it they are immune to market volatility. I wouldn't buy gold now, unless it has large pull back. Silver is more volatile, it has industrial pressure and will react to market pressure, and silver has gone bust in the past. Gold is a currency with very little industrial pressure. Link to comment Share on other sites More sharing options...
Steven Tari Posted August 15, 2011 Author Share Posted August 15, 2011 On paper that's a huge amount, in real life its not that much over a long period of time so I would also do as suggested earlier. 1: Pay off the house 2: Pay off all credit cards and bills 3: Invest a portion into gold or silver 4: Roll the rest into a account and try to live on the interest if possible, and if I read you right get a part time job since you do not appear to be someone who will sit on your butt and waste the days away Finally try to stay away from the quick or impulse purchases that will bleed the money real quick. Thank you , Most of that was done 2 years ago. House,cars,and almost all the credit cards are paid off. I'm a coin collector so I have a lot of silver. Never got into the gold coins. I've been called stingy. So waisting money is not my way. Link to comment Share on other sites More sharing options...
Bob Marsh Posted August 15, 2011 Share Posted August 15, 2011 Sounds sorta like what I went through - My company moved from NC to Texas when I had 13 years in and about 6 years to retirement(I chose not to relocate) - Had a nice chunk in my 401K when the recession came and I lost about 30% of my savings. So I did something that most people would say is stupid - I put my remaining funds into CD's (Not audio - certificates of deposit) Interest rates are pretty puny but there are never any losses - only gains and it's like the ocean tides - inevitible. I don't trust Wall street any farther than I can fly, and, so sorry, I can't fly at all. FDIC insures accounts up to $250,000. After three years of not being able to find a job in my chosen field I'm working for a luthier doing inlay work and have a small Mom & Pop screenprinting operation that I operate with my wife and sons - Retirement? Maybe...Maybe not. I suspect that I'll retire when I fall dead face first into a screen full of plastisol ink while printing some family reunion t-shirt. Still, I feel fortunate to have that - a lot of people aren't doing well at all and my sympathy goes out to every one of them. Link to comment Share on other sites More sharing options...
TommyK Posted August 15, 2011 Share Posted August 15, 2011 Talk to a retirement planner, actually, talk to several. Most have an investment fund they want to sell you, which isn't all bad. They may give you good advice, or just want to sell you something. If this is a 401K, be careful how you accept the pay out. If you are given a check made out to you and you alone, you have a lot of deferred taxes to pay back. DO NOT DO THIS. You will want to roll it over into another retirement fund while: (this is important) not taking 'constructive receipt' of the money in order to avoid the tax liability of early withdrawal. What is 'constuctive receipt'? The company hands you a check, then you cash it. Even if your intent is to eventually roll it over into a retirement fund, you will still have to pay the back taxes on the 300K. A retirement planner can help you with this. Also, if the company you are working for are 'good guys', they will have someone in HR help you through the process. 300K sounds like a lot of money, but for a nest egg to use up during retirement, it isn't a lot of cash. Learn what that 300K could be worth if you just leave the egg in the nest for just another 10 years, especially if you keep adding to it. Good luck in your job search. Link to comment Share on other sites More sharing options...
Duende Posted August 15, 2011 Share Posted August 15, 2011 Me and saving have never seen eye to eye, so personally I would look upon spending the majority of it I'd help family and friends out, I would maybe get a nice flamenco guitar made by Rik Middlteon, eat out every day, buy a stock of red wine to enjoy IF I had to invest, I would invest it in shares (good time to buy?), maybe some collector type guitars, oh I don't know LOL. My saving and money skills are the equivalent to someone who has played guitar for 20 years and can play the Back in Black riff minus pull of run LMAO Matt Link to comment Share on other sites More sharing options...
jaxson50 Posted August 15, 2011 Share Posted August 15, 2011 Einstein once said the most important formula is compounded interest....and he was right! You do not have to "trust wall street" or settle for puny returns from bonds and cds to seek a safe place to park money and build on it.... Just do yourself a favor and do a Google search on the topic of DRIPS....many younger investors will shy away from this great opportunity but it is the simplest why to buy stocks in a company without going through a broker or worrying about the ups and downs of wall street. I won't go into much detail as it would be a bit boring for some but the benefit of a DRIP is you can buy directly from the company, after you buy a minimum (usually one share) at the market rate if the company offers a DRIP they will allow you to buy more (usually monthly or quarterly) at a 5 to 7% discount but here is the best part...all dividends generated buy you're investment goes back into company shares at a discount!!! The companies that offer DRIPS are large cap companies that have cash flow...Think DOW, DuPont, Disney, Coca-Cola, Pepsi, many utilities which are the absolute safest investment...ConEd, SDG&E. This is the same plan that the executives of those companies receive, the opportunity to buy stocks at a discount, build their holdings in that company at little or no cost (when you buy them with dividends you are playing with house money), you have the right to sell any amount at any time. You may want to research how dividends work, but as long as the company has greater cash flow then debt the dividends, if the price of the stock goes down the dividend will increase....it is the perfect shelter. I have a few of these plans that are paying with dividends over 17%! And have not been dinged at all by the market....do that with a c/d! Link to comment Share on other sites More sharing options...
Steven Tari Posted August 17, 2011 Author Share Posted August 17, 2011 Thank Y'all for that input. You've given me some new things to look into. The stock market scare's me after hearing of some of my friends losing so much money in the past years. I've never had anything to do with it and I'm going to stay there. If y'all have any other ideas please let me know. I'm doing a lot of research right now and new ideas are always welcome. Link to comment Share on other sites More sharing options...
jaxson50 Posted August 17, 2011 Share Posted August 17, 2011 Thank Y'all for that input. You've given me some new things to look into. The stock market scare's me after hearing of some of my friends losing so much money in the past years. I've never had anything to do with it and I'm going to stay there. If y'all have any other ideas please let me know. I'm doing a lot of research right now and new ideas are always welcome. I need to correct one thing I posted, "many utilities which are the absolute safest investment...ConEd, SDG&E." This is just my opinion. What I meant is power companies like ConEd, SDG&E and public utilities will never go out of business and are safer then the stock market, they have steady returns. They make money regardless of the price of oil or gas, they are the delivery system and their customers are locked in. MLP (Master Limited Partnerships) offer large dividends, they are mostly companies that own pipelines and the equipment that pumps natural gas from the wells to the shippers, they also have locked in customers. They offer MLPS before they go public. When they do IPO's the holders of the MLPS get a large buyout...but beware of taxes on the gains in MLPS.. That is what makes DRIPS appealing if you don't need to touch the money for 10 to 20 years. If you will be in the work force for 20 years they are a great way to go, I wish I knew about them when I was in my 20's. You can include them in a Roth and not pay taxes on gains till you retire and then pay taxes as you sell shares you earned with dividend payments or bought at discount. So the plan would be to sell x amount of the shares each year (depending on share price) and place the proceeds (gains) from the sale in to a money market account and use that to pay monthly expenses. I am not a financial advisor or a authority on investing but I have been doing it for 30 years for myself and have others invest for me.... My best advice is to do you're own research, there are some great online sources. Link to comment Share on other sites More sharing options...
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