I got an early start on saving when I saw that I could eliminate my federal income liability by investing in an IRA. Got a late start on earning by not having a job that paid more than $10,000 a year until I was 38 and my wife and I began saving in earnest. In the 15 years since then, we have managed to pay off a modest house in Seattle and put our toes over the seven figures line, almost all of it in retirement accounts.
Following my job burnout, I stumbled into a home-based ecommerce business that now pays me more than my job with much less stress and effort. A Fidelity solo 401(k) allows me to put away nearly $50K a year. I recently opened a T. Rowe Price Roth 401(k) plan as a hedge against the likelyhood of higher income taxes in the future.
I intend to carry forth with the business at least until my wife's planned retirement in 4 years at age 53.
I am now a seasoned, but unophisticated investor, with all my investments in mutual funds, with a bit over half in low-cost index funds:
- Domestic Equities 40%
- Foreign Equities 15%
- Domestic Bonds 33%
- Cash 12%
Right now I am looking at increasing the diversification of my portfolio to include more emerging market equities and other asset classes that are little or unrepresented. I am also evaluating the appropriateness of long-term care insurance to our situation.
I look forward to a valuable give and take here on the board.