How Closely Do You Monitor Your 401k / Retirement

[RamblingMad]

It's amazing the difference of today vs. that long ago. Even 20 years ago, I was married, kid on the way, bought our first house, maintained 2 cars (5 year loan on used plus year 6-10 on the other car until it was replaced) all while my wife quit her part time job to raise the kids and I made $12/hour on the edge of 9/11 and the economy stagnating for the lower workers.

I am looking to start and toss some money now, but the current goal is to take vacation payout, bonus, and tax refund and get the car paid off early. At that time, hoping to be March, I am looking at being able to put a small amount away, and it will be for the car replacement. I'm not looking at long term retirement, I have the 401k for that which is slowly building back. There are other needs that come that need paid but not now for a while like future car and house down payment. That's the kind of investing I'm looking into, but the only thing I know is going to the bank and getting a mutual fund.

My employees use the Robinhood app for all of their investing needs. The average investor is only making a 1.9% return because investing is hard psychologically. Don’t feel rushed to do this. But make sure you know your options for when you want to dip your toes into this hellish pool, where everyone is trying to rip you off.

 

[LovesTimone]

DH checks it weekly.... sometimes daily... on the 401K...
We check all our banking, and CC balances... Daily... multiple times daily...

 

[QueenIsabella]

It's amazing the difference of today vs. that long ago. Even 20 years ago, I was married, kid on the way, bought our first house, maintained 2 cars (5 year loan on used plus year 6-10 on the other car until it was replaced) all while my wife quit her part time job to raise the kids and I made $12/hour on the edge of 9/11 and the economy stagnating for the lower workers.

I am looking to start and toss some money now, but the current goal is to take vacation payout, bonus, and tax refund and get the car paid off early. At that time, hoping to be March, I am looking at being able to put a small amount away, and it will be for the car replacement. I'm not looking at long term retirement, I have the 401k for that which is slowly building back. There are other needs that come that need paid but not now for a while like future car and house down payment. That's the kind of investing I'm looking into, but the only thing I know is going to the bank and getting a mutual fund.

That's actually a really good start! Don't feel like you have to invest in REITs or metals or penny stocks--do what makes you comfortable, even if you might think you're leaving some returns on the table. Peace of mind is very valuable!

When my older kids were little, we invested a small amount in stocks for them. For DD, we got Disney--something she could recognize, while DS got Caterpillar (he was 3 and loved construction vehicles). DD sold and bought Walmart--she liked going there, they had good prices and she could find almost anything. But, DS's Caterpillar stock really flew after 911 and all the rebuilding. My point is, invest in what you know and understand.

BTW, they're grown now. DD is big on social causes, so she invests in stocks that support them. You know, fair trade and micro-loans to third-world entrepreneurs, that kind of thing. Meanwhile, at the other end of the spectrum, DS is more of a "guns and cigarettes" investor. I have no idea who's making more of a return, but both are satisfied with their choices. Most important, they're leaving the money to grow, for whatever they might need in the future (car, house, education...).

 

[NYCgrrl]

My employees use the Robinhood app for all of their investing needs. The average investor is only making a 1.9% return because investing is hard psychologically. Don’t feel rushed to do this. But make sure you know your options for when you want to dip your toes into this hellish pool, where everyone is trying to rip you off.

I suspect this figure comes from a specific type of investments. Were this true of all investors why would anyone bother what with banks paying a similar amt on savings accounts?
Investing doesn't need to be psychologically damaging/stressful. Remember to diversify and keep up to date with information; easy peasy.

 

[RamblingMad]

I suspect this figure comes from a specific type of investments. Were this true of all investors why would anyone bother what with banks paying a similar amt on savings accounts?
Investing doesn't need to be psychologically damaging/stressful. Remember to diversify and keep up to date with information; easy peasy.

You can find that number in the JP Morgan guide to the markets deck. That’s across all asset classes. Dalbar did the research. Investors aren’t good at making money.

 

[NYCgrrl]

You can find that number in the JP Morgan guide to the markets deck. That’s across all asset classes. Dalbar did the research. Investors aren’t good at making money.

Are you looking at a historical graph? Like maybe a ten year analysis? I should point out that not all investors put their money down in all markets, a fine distinction you might say yet a somewhat misleading figure and analysis from my POV.

 

[DLgal]

You are referencing my post and my wife, and yes she put $100 a month away for 2 years, paid rent, ate, bought gas, paid her auto insurance and health insurance, bought clothing, paid utilities, all on a GROSS income of $12,000 the first year, and $16,000 the second year. You actually prompted me to pull out her Social Security earning statements to get those numbers.
I'm sorry you didn't get the helpful advise you sought from credit card help, but keep working to educate yourself on your financial options. Keep asking, keep reading, keep Googling. Without seeing your financial numbers, of course, there is no way to speak to your situation. But I have seen enough of those financial shows to know that a careful eye can find or re-purpose money in a way that adds up to serious money. You just have to really want to do it.

How long ago was this, though? It would be literally impossible to do this on that salary today, nearly everywhere in the country.

19 years ago, we made a combined net income of about $24000 for awhile before I found a full time job, and we struggled HARD as newlyweds in Southern CA (oh, the days of $1250/month rent...how I miss you). We had 2 student loans, 2 car payments, and consumer debt from furnishing our first apartment together. We barely had money to buy groceries after paying for utilities. Forget investing. We didn't start contributing to the TSP (military 401k plan) until around 7 years later, when we finally had some wiggle room because we had paid off all our debts.

 

[RamblingMad]

Are you looking at a historical graph? Like maybe a ten year analysis? I should point out that not all investors put their money down in all markets, a fine distinction you might say yet a somewhat misleading figure and analysis from my POV.

It’s over a 20 year period ending 12/31/2018.

 

[NYCgrrl]

It’s over a 20 year period ending 12/31/2018.

With the less than 2% return, it makes sense that it includes the last 2 quarters of 2007, and all of '08, 09, and '10 as well as the dot.com debacle of 2000. That was a period of great disturbances throughout much of the marketplace.

 

[RamblingMad]

With the less than 2% return, it makes sense that it includes the last 2 quarters of 2007, and all of '08, 09, and '10 as well as the dot.com debacle of 2000. That was a period of great disturbances throughout much of the marketplace.

It’s twenty years. Investors didn’t do all that great. Why would you expect them to do any better over the next twenty years?

 

[NYCgrrl]

It’s twenty years. Investors didn’t do all that great. Why would you expect them to do any better over the next twenty years?

Reminding you of what was stated earlier: the market analysis you posted is an average of every market out there over a cetain amt of funds. Not everyone invests in ALL. Much of that time frame I invested in real estate and did much better than less than 2%. Also finally began investing in the stock market in the first 10 years noted and did better as well. YMMV.
I suspect I'm more of a longterm optomist but there are those who are look to make a short term killing frequently. I applaud those who can do this on a regular basis but I've not a true gambler's mindset so isn't for me.

I should also point out that the data you posted is frequently pulled out to sell banking products.

 

[RamblingMad]

Reminding you of what was stated earlier: the market analysis you posted is an average of every market out there over a cetain amt of funds. Not everyone invests in ALL. Much of that time frame I invested in real estate and did much better than less than 2%. Also finally began investing in the stock market in the first 10 years noted and did better as well. YMMV.
I suspect I'm more of a longterm optomist but there are those who are look to make a short term killing frequently. I applaud those who can do this on a regular basis but I've not a true gambler's mindset so isn't for me.

I should also point out that the data you posted is frequently pulled out to sell banking products.

In my experience Wall Street makes its money from fees, not from making investors a lot of money.

 

[tvguy]

How long ago was this, though? It would be literally impossible to do this on that salary today, nearly everywhere in the country.

19 years ago, we made a combined net income of about $24000 for awhile before I found a full time job, and we struggled HARD as newlyweds in Southern CA (oh, the days of $1250/month rent...how I miss you). We had 2 student loans, 2 car payments, and consumer debt from furnishing our first apartment together. We barely had money to buy groceries after paying for utilities. Forget investing. We didn't start contributing to the TSP (military 401k plan) until around 7 years later, when we finally had some wiggle room because we had paid off all our debts.

1980 and 1981 like I posted. I don't know, my daughter bought a car ($16,000) in 2018, paid it off in 8 months to established credit, and saved $25,000 down payment for the house she bought a few months ago. $12,000 in 1980 would be just over $37,000, which is about what she makes, so it is absolutely possible today, if you work at it.

 

[RamblingMad]

1980 and 1981 like I posted. I don't know, my daughter bought a car ($16,000) in 2018, paid it off in 8 months to established credit, and saved $25,000 down payment for the house she bought a few months ago. $12,000 in 1980 would be just over $37,000, which is about what she makes, so it is absolutely possible today, if you work at it.

Where does she live?

 

[disneychrista]

Where does she live?

And what other living expenses did she have.

 

[soccerdad72]

Where does she live?

California - have you literally never read anything from tvguy?

 

[RamblingMad]

California - have you literally never read anything from tvguy?

I don’t keep track.

In what world can you afford CA rent on $37k and pay off a car loan in less than a year?

 

[tvguy]

I don’t keep track.

In what world can you afford CA rent on $37k and pay off a car loan in less than a year?

By living at home until you save a down payment to BUY a home. She bought half a duplex, her payment is $500 a month less than those duplexs rent for

 

[mikehn]

I used to not look at mine at all. But I cant help looking these days. I wanna be there when my balance hits the 7 figures mark, even if it's just for a day.

 

[mrodgers]

I don’t keep track.

In what world can you afford CA rent on $37k and pay off a car loan in less than a year?

Maybe in a world where they haven't moved out of the parents home yet until they've bought and paid off a car and saved $25,000 for a house? Significantly different than paying rent, utilities, legal fees, debt, and raising 2 teenagers and saving that much up.

By living at home until you save a down payment to BUY a home. She bought half a duplex, her payment is $500 a month less than those duplexs rent for

Answer the same as mine. Have to ask, do you think she could do that if she had 2 teenage daughters, one of which started college, and had rent and all the other living expenses of 2 households?