Comments on: The Hidden Risk of your 401k … http://7million7years.com/2008/07/01/the-hidden-risk-of-your-401k/ How to make 7 million in 7 years ... Sat, 11 Feb 2012 22:32:23 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Pareto’s Principle Revised … « How to Make 7 Million in 7 Years™ http://7million7years.com/2008/07/01/the-hidden-risk-of-your-401k/comment-page-1/#comment-1402 Pareto’s Principle Revised … « How to Make 7 Million in 7 Years™ Wed, 30 Jul 2008 08:54:43 +0000 http://7million7years.wordpress.com/?p=223#comment-1402 [...] summed up the mixed feelings out there nicely in a comment to one of my many recent 401k posts: Very interesting. Goes against the grain of all of the personal [...] [...] summed up the mixed feelings out there nicely in a comment to one of my many recent 401k posts: Very interesting. Goes against the grain of all of the personal [...]

]]> By: AJC http://7million7years.com/2008/07/01/the-hidden-risk-of-your-401k/comment-page-1/#comment-1398 AJC Fri, 04 Jul 2008 04:01:37 +0000 http://7million7years.wordpress.com/?p=223#comment-1398 @ Heidiroo - The 80% who don't save don't read the PF blogs; the 19% who do won't get rich just by saving. Now, what do the 'missing' 1% do? I'm hoping that some of them are here right now ... @ Heidiroo – The 80% who don’t save don’t read the PF blogs; the 19% who do won’t get rich just by saving. Now, what do the ‘missing’ 1% do? I’m hoping that some of them are here right now …

]]> By: Heidiroo http://7million7years.com/2008/07/01/the-hidden-risk-of-your-401k/comment-page-1/#comment-1401 Heidiroo Fri, 04 Jul 2008 00:58:50 +0000 http://7million7years.wordpress.com/?p=223#comment-1401 Very interesting. Goes against the grain of all of the personal finance blogs I frequent. I do have to agree with Lee, though, that at the very least it gets people saving. I know way too many 40 year olds who haven't even started and are too strapped for cash living their keeping-up-with-the-joneses lifestyle. Very interesting. Goes against the grain of all of the personal finance blogs I frequent. I do have to agree with Lee, though, that at the very least it gets people saving. I know way too many 40 year olds who haven’t even started and are too strapped for cash living their keeping-up-with-the-joneses lifestyle.

]]> By: AJC http://7million7years.com/2008/07/01/the-hidden-risk-of-your-401k/comment-page-1/#comment-1400 AJC Wed, 02 Jul 2008 06:05:10 +0000 http://7million7years.wordpress.com/?p=223#comment-1400 @ Lee - who wants to retire at 60 when you can 'retire' at 50, or 40, or 30, or ... ?! @ Lee – who wants to retire at 60 when you can ‘retire’ at 50, or 40, or 30, or … ?!

]]> By: Lee http://7million7years.com/2008/07/01/the-hidden-risk-of-your-401k/comment-page-1/#comment-1399 Lee Wed, 02 Jul 2008 03:54:43 +0000 http://7million7years.wordpress.com/?p=223#comment-1399 They might not be too exciting, but regular, disciplined, and long term investments in a tax deferred account are a great way for anyone to put a substantial nest egg away for retirement. A fundamental problem is that too many people fail to get an education about what to do with that money. The US Federal Government's Thrift Savings Plan, for example, defaults to the Government security insured income fund if the member fails to select another option. How does 6.42% average return sound since April 1987? Compare that to 11.82% since January 1988. That's the difference between retiring at 60 or retiring at 70+. The market will fluctuate. As you get closer to retiring you'll have to adjust your retirement game plan to minimize those fluctuations for your cash flow, but by that time you should have accumulated a serious pile of cash! The real tragedy would be to put off planning for retirement. Whether you start your own business, or devote your life to service, start planning for your future as early as possible. And remember, always have a plan-B! Things don't always end up going the way you'd planned. All the best! Lee (Canopybowstars on NetworthIQ) They might not be too exciting, but regular, disciplined, and long term investments in a tax deferred account are a great way for anyone to put a substantial nest egg away for retirement.

A fundamental problem is that too many people fail to get an education about what to do with that money. The US Federal Government’s Thrift Savings Plan, for example, defaults to the Government security insured income fund if the member fails to select another option. How does 6.42% average return sound since April 1987? Compare that to 11.82% since January 1988. That’s the difference between retiring at 60 or retiring at 70+.

The market will fluctuate. As you get closer to retiring you’ll have to adjust your retirement game plan to minimize those fluctuations for your cash flow, but by that time you should have accumulated a serious pile of cash!

The real tragedy would be to put off planning for retirement. Whether you start your own business, or devote your life to service, start planning for your future as early as possible. And remember, always have a plan-B! Things don’t always end up going the way you’d planned.

All the best!

Lee
(Canopybowstars on NetworthIQ)

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