Before the bust, back in July 2007, I sat down with the financial consultant, gave him all my details, including investments from other companies, and was told that I was doing well in my diversification as well as my goal of retiring (not sure if I said 50 at the time though). Of course things have changed now.
I just got rehired into my former company and actually have some hope to stay here until I retire. I get to bridge my time for retirement, not just get back the 2 1/2 years I already worked the first time around, but getting the time that I left the company
, so that will help with my pension plan.
I also get to participate in a 401(k) and here lies the questions. I'm planning to put in 20% of my income in 2009 up to the $16,500 maximum (I would go over... finally making good money, I guess), so it's a lot of money to put away. My company will match 75 cents of each dollar up to 6% of my salary, which is $5,400, so it'll be a total of $21,900, at least for 2009
Assuming that I believe my FC regarding diversification and being on track regarding my other finances, which I do, and assuming that putting away 20% won't "kill" me, do you think this is a good move? Is it ever "too much"? And what type of funds, in general, would you suggest for now? We use Fidelity but have over 150 choices from what I remember, and they aren't all Fidelity funds. I'm trying to figure out whether this is a good time to put all the money in the riskier categories (since the value has gone down) at least for a while (and how long? Or how can I tell I will need to go back to less riskier diversification?).
The second part of this story is that at some point down the road, DH will be inheriting 4 houses, which are all paid for, 2 in the Bay Area and two outside the state. Assuming they live till they are 95, we'll be 65, so down the road, we will have access to some money if we need it. I'm not sure if this is relevent, but I'm saying that there is a safety net, unless we get disowned or something strange happens (which can happen).
Let me know if there are more info you need. Thanks for your help!!!