Well, I’m only in my mid 30’s. So, I haven’t bothered to look at my Retirement accounts. I have this notion that one day they will return back on a positive note. I think Shtinkykat has got me thinkin’ about my retirement. (Thanks! – lol!)
So, I decided to check my accounts and gasped. Okay, well I was expecting a big drop. And I was right. Well, it stung a bit. I may only have $13,000 in my account(s) and I lost $5,000; leaving me with a grand total of $8106! Geesh!. Actually its my dang AIG Valic account! Losing approximately 23% per quarter. I know, the name says it all and I should have changed its allocations loooooooonnnnnnnnggggg ago. Especially since they are probably partying on my funds.
My TIAA-CREF account is wonderful. Have only lost approx. 7% per quarter. I can hang with that!
Anyhow, I finally changed my AIG Valic asset allocations to a fixed account earning a guaranteed 3%, possibly 3.75%. I can live with this change. I really should have done it long ago! I don’t longer contribute to that account. Stopped that awhile back when I opened my TIAA-CREF account. I would role it over, but I have a loan balance with AIG Valic. Ya, one day I will pay it off, but its on the bottom of the list because of the low interest rate.
Then this got me thinking about my 401b, IRAs, Real Estate, and other types of investment accounts. Arising questions like: how am I to fund my 401b and fund an IRA, too? I have an IRA with $0 balance through ShareBuilder/ING. And another question like: am I up to par on my savings?
Time to check into CNN Money’s online Retirement Calculators. Of course, I chose the one labeled, Can You Retire Early? The senerio is to: See how much you should already have if you want to retire by age 60. Plugged in my numbers and found out that, at this time, I need $104,000 if I want 80% of my annual retirement income. That would mean I am standing -$96,894. Hmph…
Now remember to plug in the “current salary” with notion as to what you want your 80% retirement income to be. I did use my current salary and would be okay w/ 80% of that. At least for this exercise. So, boost it up to approx $96,000 if you plan on having $75,000 as your 80% or whatever X number you put in.
Okay, so that is not my case, right now. What about seeing, What I Will Need to Save? Plugged in my numbers, again. I need to save $10,205 per year at a savings rate of 15.7%.
I figured the numbers: I am of course short. I realized that I currently save 4% of my income. That is a no-no. Need to boost.
If I want to meet these #s then I need to put approx. $400 away per month. Sounds like a lot, right? But, I see it this way. I will gradually increase these funds. Today, I elect to raise my contributions +$50 bimonthly. And will continue to do so at intervals. Remember, we are paying down our debt. Which means I can increase my contributions to my retirement account.
Then, when I get to a greater point, its time to look at investment options. Like real estate. It is soooo affordable in our area and it bums me that I can take advantage of that! Thanks to my past debt! But, its okay…that is why I am doing all this (blogging, etc…) to GET OUT OF DEBT! Then, I will take advantage of bigger investment options. 🙂
So, I leave you with these questions: