no hope of freedom 55....

B

barnaby

Dryer sheet wannabe
Joined
Dec 4, 2011
Messages
10
hello to all---i am new here. i am a registered nurse, aged 54, who had always dreamed of freedom 55. thanks to the downturn in the markets in the past number of years, my $$$ situation won't provide me with the ability to leave employment until i am 60. i work part time---80%---and my pension plan is not a defined benefit one. it is a matched contribution plan that i can choose asset allocation of.
my three boys are (finally!) out on their own and although they owe me $$$, totalling between them almost 30K, i am not planning on that $ when i make my retirement plans. when they can repay it, if they can repay it, i'll consider it bonus at the time. despite working hard over 35 years, saving whatever i could afford, not making big $$ thru my lifetime, i have put away 250K. not a fortune, to be sure, but better than nothing. i HAD over 300K but during that last major market drop, my account showed 100K in losses....but it has rebounded to 250 now.
i am frustrated in my financial advisors. yet i do not feel confident enough on my own to take complete control of my investments without their advice. however, i am not sure that i feel that i CAN completely trust the advice i am getting (paying for) so am looking for whatever guidance i can get here.
thanks
barnaby:cool:
 
Hi barnaby, welcome to the forum. You're sure to get lots of advice around here, even more if you ask for it.:) Most forum members have had similar investment challenges and I'm sure you will find people here that can help you learn and take control of your financial life.
 
Welcome, barnaby!

Glad you found this board. Lots of great people here - some are retired and some are 'on the way".

omni
 
i am frustrated in my financial advisors. yet i do not feel confident enough on my own to take complete control of my investments without their advice. however, i am not sure that i feel that i CAN completely trust the advice i am getting (paying for) so am looking for whatever guidance i can get here.
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You can do it. It is not as hard as they would have you believe. Look at this. Read his little book. The Coffeehouse Investor | Helping Investors Build Wealth, Ignore Wall Street and Get On With Their Lives

You want simple? Wellesley (VWINX): VANGUARD WELLESLEY INCOME FUND Fund Chart - Yahoo! Canada Finance

Sure, the NAV (Net Asset Value. AKA the price) goes down from time to time, but the dividends keep coming:
VWINX Historical Prices | VANGUARD WELLESLEY INCOME FUND Stock - Yahoo! Canada Finance
3.63% yield is pretty good these days, too. That is only about $9k/yr today. You would have lean times until SS kicks in.

What do you want to do in retirement? Maybe $9k will be enough for you.
 
:cool:hi everyone and thanks for the welcome! ed the gypsy---you are correct...it is only a loss upon selling. but it sure as heck FEELS like a loss when, on paper, $$$ disappears.
yikes! it stings something fierce.
as for the rest of my story---i will receive about 110k from that pension i mentionned earlier, which, being not defined benefit, my advisor tells me he can have it moved and available. plus i will get a severance of approximately 14k. again, surely not a fortune but some is better than none.
i want to still do some work, as a work-camper, off and on while we travel around in our trailer. if nothing else, it will provide free accommodations in campgrounds.

i WILL check out the booklist. being new here is a definite learning-curve. before i dig too deeply, i am just trying to figure out some of the acronyms! i've got LBYM but what is FIRE? i am sure it is very simple, but my ol' brain ain't workin' it out.:angel:
 
Welcome to the forum!

FIRE = Financially Independent, Retire Early

or for some of us: F*** It, Retire Early :LOL:

There is a forum sticky around here that lists all of the common acronyms.

If you have the time, doing some reading will really help to increase your confidence on which path is best for you. Most books describe that there are multiple paths to F.I. which include conservative vs aggressive investing and also paths for those who are looking to retire in 5-10 years as opposed to those who are looking at 20+ years till retirement. I would follow the more conservative approach while reading and stick to the advice given to those who are looking to retire in 5-10 years.
 
read them all.....and quiz away! (now i am kidding!) that's a great help to all of us newbies.....thanks!
 
Welcome , I am also an Rn . I figure nobody will watch my money as closely as I will so I started by reading simple finance books and worked my way up . My very first book was ' Financial planning for the utterly confused " by Lerner .It was as basic as you can get but it helped me learn to manage my savings . Good Luck !
 
Remember that you are buying an income stream. When the NAV drops, it is a buying opportunity. Then just watch the dividends.

I like your work-camper idea. Relatives of my wife did that for years. They sold their house and lived in a motor home. It kept them busy and entertained.

In the state of Washington, there is a similar occupation for live-aboard boaters to look after Washington's marine and waterfront parks.

Take heart. And take your money back from your adviser. Doing it yourself isn't as hard as they want you to believe. Just avoid expensive mistakes like day trading, selling at the bottom, and so forth. The Coffeehouse Investor should be a source of inspiration.
 
welcome barnaby - great advice on this board. I started at the local Lib. they have a few of the books. You will learn a lot on this board and get a number of different views and
opinions. good luck!
 
I think you should fire your advisers. Your assets are not that huge that a supposed expert can make a substantial change, but yet their fees will eat at your nest egg. Any good indexed fund will likely suffice, subject to yuor risk tolerance. You don't need financial advisers to buy indexed funds.
 
Let me add to a lot of good advice you've received. Spend 12 bucks and get a subscription to Money Mag, I've learned a lot. Next, contact Vanguard or Fidelity and ask them for a plan......tell them you hate fees. With your account you'll get some great advice cheap or free. Then invest in index funds and you'll save a bunch.

Look at the bright side; I know you would like to retire at 55. Yet, we hear about folks holding off until their 65 or 70. If you can actually retire, in good health, at 60 you're doing better than most! I have to admit, however, that many on this forum have successfully retired younger.

And, if you're only down about 15% after the past few years and you're heavily invested in stocks, you haven't done that bad. Part of the advice you need is how you should diversify between stocks, bonds and maybe adding in a REIT or something a little different for a small portion of your cash.

Good luck, enjoy your life, have fun planning and hopefully, the market will be good to all of us soon, although I'm really not counting on it.
 
You might start by reading John Bogle's book on mutual funds.
I have looked at many different investment methods over the years. For me a simple mix of index mutual funds still works best. I am working towards my goal of about 50% stocks, and 40% bonds and 10% cash.

This seems to work best for me. Of course, the percents may change over time.
 
Spend 12 bucks and get a subscription to Money Mag, I've learned a lot.
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:eek: Kiplinger's is much better, as is Money Sense (Canadian--sorry). I had Money for years. I eventually came to consider it financial pornography, as do many here. They just pitch the hot stuff. If you buy their picks (Enron! High Tech!), you will bleed to death quickly.

The above two alternative magazines do tell you that index funds are the best (Money Sense covers the Scott Burns Couch Potato Portfolios), but they have to sell advertising, too, so they tout hot stuff (and trading and , and...) as well. BEWARE THE TOUTS!

I did not learn anything until I bought Forbes' September issue several years running and learned from their Honor Roll of mutual funds that Vanguard's S&P 500 index was always in the honor roll (3 up markets + 3 down markets, with the down markets weighted more heavily), but all the other funds came and went. Mine always went. Until I bought VFINX.

Do some research. Then by all means DO contact Vanguard and Fidelity. They do have advisory help these days, but you MUST take responsibility for yourself.

If you still need someone to hold your hand, give your money to me. I offer Faith-Based Investment (thank you so very much, George W!:clap: ). Give your money to me and PRAY you get it back. :cool: [You may have heard this before. They stole it from me. I posted it here first. Now, hand over the cash and nobody gets hurt.]
 
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Ed_The_Gypsy said:
I had Money for years. I eventually came to consider it financial pornography, as do many here. They just pitch the hot stuff. If you buy their picks (Enron! High Tech!), you will bleed to death quickly.
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+1

You'd be better off financially if you subscribed to the National Enquirer instead.
 
welcome barnaby, hopefully your savings bundle keeps increasing!
 
jerome len said:
Let me add to a lot of good advice you've received. Spend 12 bucks and get a subscription to Money Mag, I've learned a lot.
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There is literally NOTHING of consequence one can learn fron Money Magazine, biggest joke of a personal finance mag I know of.......:rolleyes:
 
FinanceDude said:
There is literally NOTHING of consequence one can learn fron Money Magazine, biggest joke of a personal finance mag I know of.......:rolleyes:
Click to expand...


Well I beg to differ. Thumbing through any particular issue will teach you that financial companies like to spend big $ on advertisements that try to make you feel good about them without actually providing any real information about anything that matters.
 
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