late start.

[ptilda]

I'm 38 and just starting my real focused rebuilding of my retirement portfolio. I make only around $37k all in. I am interested in hearing from others who did it at this age.

[mongstradamus]

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@ptilda wrote:
I'm 38 and just starting my real focused rebuilding of my retirement portfolio. I make only around $37k all in. I am interested in hearing from others who did it at this age.

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If possible at an bare minimum put in 401k up to employer match,it pretty much free money, and secondly try to put in full $5500 in to IRA 

I am in same boat being way behind in retirement portfolio. 

[ptilda]

How long ago did you start rebuilding? Are you able to max out yet? I think I'll come very close on the IRA this year, and am doing a consistent 10-15% (guess that's not, by definition, consistent, but you know) in my 401K, and was going 5% ESO, but will raise that to the 15% max as long as I can manage, since it allows me to buy stock at a 15% discount from the lowest price of the quarter, and is 100% vested on day 1. Seems stupid not to do it.

My problem is that I'm hoping I'm doing it right and that I'll see measurable results in 24 months. I know I won't be able to retire off of what I have in 24 months, and I know that the growth is sure as long as I keep puting in, but I am always concerned about "unknowns" as well. I like to be prepared just in case.

[mongstradamus]

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@ptilda wrote:

How long ago did you start rebuilding? Are you able to max out yet? I think I'll come very close on the IRA this year, and am doing a consistent 10-15% (guess that's not, by definition, consistent, but you know) in my 401K, and was going 5% ESO, but will raise that to the 15% max as long as I can manage, since it allows me to buy stock at a 15% discount from the lowest price of the quarter, and is 100% vested on day 1. Seems stupid not to do it.

My problem is that I'm hoping I'm doing it right and that I'll see measurable results in 24 months. I know I won't be able to retire off of what I have in 24 months, and I know that the growth is sure as long as I keep puting in, but I am always concerned about "unknowns" as well. I like to be prepared just in case.

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retirement isn't for short term goals imo , you have to look at the big picture 15-20 years down the road. I try to put in as much as i can afford to. I don't leave much money in my checking account. Ths is probably an little bit too risky, i try to put as much as i can to get by. I do have my emergency fund, but i try my best not to have to touch it ever.

[wa3more]

what mongstra said.

You are young and have 20-25 years of saving and compounding to do.

I was laid off few years ago in my late 40's then bought a business with my life savings that did not make it. Also got divorced. Wife later moved back with daughter.

Save as much as you can in 401 or whatever vehicle you choose. Use index funds . Contribute monthly and keep it simple.

You will be fine if you keep it simple. I wish i was 38 again....

Retirement is long term plan. A marathon not a sprint.

[ptilda]

Enrollment just opened, so I just changed my SPO to 15% (from 5%) and moved my 401k to 5% ROTH, 1% regular (down from 10%/5%). That maxes out my employer benefits (they match the first 4%, and I get 15% discount on up to 15% into the SPO).

My secondary areas are to max out my IRA and keep biweekly deposits into my high yield emergency fund savings act.

I think I'm in good shape. We'll find out in a couple years if I'm on track!

[bettercreditguy1]

Put as much as you can afford into an IRA or Roth IRA. Time is what makes it grow. Kinda fo get about it so you don't ever borrow from it. It will grow, slow at first and then more rapidly. Congrats on addressing the issue early in your life.

[wa3more]

PT - you are on right path. You will be ok in long run.

+1 to what Bettercredit said.

Remember, keep it simple, use index funds, forget the noise you will hear and live below your means.

Plenty of financially independent people out there who never made more than 40 or 50k. It's not how much you make it's how much you keep.

[SamsungHDTV]

If I were you, I would go ROTH as much as possible first. ROTH 401k if offered, for sure ROTH IRA.

You're saving as much as you can so you're doing the right things. 

If I were you I would go aggresive in your funds you choose. But this is my opinion because you have awhile before you retire. My 401k is in 100% stock funds, but I'm in my late 20s and have plenty of time to recover when the market crashes again (it will crash again, i think anyway). I'll switch to to less aggresive as I approach 50.

[wa3more]

Samsung,

you are young and the chances of a 1929/2008 type of crash happening again is 100%. Maybe more than once in your lifetime.

Just look at what has happened since 2000. Tech bubble, housing collapse, stock collapse.

With the fed in control of printing money and a government that can't get out of it's own way, who knows what will happen.

Just have cash on the side when these opportunities come along.