Retirement without passive income

[FrustratedVuncle]

2 minutes ago, papampasivadu said:

That's not an excuse to stop planning.....Actually, if you have that doubt, then you should have 2 plans....

aa time ki unte plan enti?? pothe, mana family kosam plan enti??

 

[FrustratedVuncle]

28 minutes ago, Konebhar6 said:

Its a good message for those who have not saved enough so far. 

401k is a good start. Also do SIP of small amounts (Monthly savings) into popular Index funds 

this info meda details veii anna. I mean popular index funds.

[papampasivadu]

3 minutes ago, FrustratedVuncle said:

this info meda details veii anna. I mean popular index funds.

VFIAX anna...

[FrustratedVuncle]

2 minutes ago, papampasivadu said:

VFIAX anna...

Deniki S&P 500 ki teda enti?

[papampasivadu]

1 minute ago, FrustratedVuncle said:

Deniki S&P 500 ki teda enti?

s&p 500 is an index bhayya....this one is a Index fund that tracks that s&p 500 index...if you prefer ETF instead of fund, then go for VOO..

[papampasivadu]

5 minutes ago, FrustratedVuncle said:

Deniki S&P 500 ki teda enti?

ee rendu books chaduvu anna veelaithe, they helped me a lot and they'll help you for sure :

The Little Book of Common Sense Investing --by john bogle

inkokati

money master the game by tony robbins...

[FrustratedVuncle]

2 minutes ago, papampasivadu said:

ee rendu books chaduvu anna veelaithe, they helped me a lot and they'll help you for sure :

The Little Book of Common Sense Investing --by john bogle

inkokati

money master the game by tony robbins...

thanks anna will read. 

[Konebhar6]

9 minutes ago, papampasivadu said:

ee rendu books chaduvu anna veelaithe, they helped me a lot and they'll help you for sure :

The Little Book of Common Sense Investing --by john bogle

inkokati

money master the game by tony robbins...

If possible a summary?

[Konebhar6]

Never mind .. here is the summary 

The Little Book of Common Sense Investing by John C. Bogle, founder of Vanguard Group, is a guide on why low-cost index funds are one of the best long-term investment options for the average investor. Bogle argues that attempting to beat the market through stock picking or active management often leads to higher costs and underperformance compared to a simple buy-and-hold strategy in a broad market index fund. Here are some key points:

1. Market Efficiency and Low-Cost Indexing: Bogle explains that while individual stocks can outperform, the stock market as a whole tends to reflect the collective intelligence of all investors, making it challenging for any one investor to consistently pick winners. Low-cost index funds capitalize on this by investing in a broad swath of the market, minimizing costs and risks tied to individual stock performance.

2. The Impact of Costs: High fees from mutual funds or active management can eat into returns significantly over time. Bogle advocates for minimizing these fees through index funds, which generally have lower expense ratios, leading to better returns for investors over the long term.

3. Compounding and Time Horizon: Bogle emphasizes the power of compounding over time, encouraging investors to start early and stay invested through market ups and downs. The book underscores the value of patience and long-term commitment to a diversified portfolio.

4. Investment Discipline: Bogle warns against emotional trading and market timing, which can lead to poor decisions, especially during market volatility. He champions a disciplined, passive approach to investing where one holds onto index funds regardless of short-term market movements.

[Konebhar6]

Money: Master the Game by Tony Robbins is a comprehensive guide to achieving financial freedom. Robbins distills advice from top investors and financial experts to create a seven-step plan that aims to help anyone take control of their financial future. Here’s an overview of the book’s main ideas:

1. Set Clear Financial Goals: Robbins encourages readers to identify specific financial targets to work toward, including short-term and long-term objectives, such as retirement.

2. Become an Insider: By learning the fundamentals of investing, readers can understand the mechanisms of wealth-building and the types of investment vehicles available. Robbins demystifies terms like mutual funds, ETFs, stocks, and bonds.

3. Prioritize Tax Efficiency and Reduce Fees: High fees and taxes can erode wealth. Robbins emphasizes choosing low-cost funds and tax-efficient strategies to retain more gains over time.

4. Learn from Financial Experts: Robbins interviewed investors like Ray Dalio, Warren Buffett, and John Bogle to gather proven strategies. These experts provide insights into maintaining consistent, risk-adjusted growth and protecting against market volatility.

5. Create a Lifetime Income Plan: Robbins advocates building an income plan that ensures one will never outlive their money. This includes creating a balanced portfolio that can provide steady income throughout retirement.

6. Focus on Asset Allocation and Diversification: Spreading investments across different asset classes and geographic regions helps manage risk. Robbins offers guidelines for diversification based on risk tolerance and age.

7. Achieve Peace of Mind and Financial Security: The ultimate goal of Robbins’ plan is to achieve financial peace of mind. He discusses mindset and behaviors that help investors stay calm and consistent, even in turbulent times.

By combining accessible advice with insights from top investors, Robbins provides readers with a roadmap to financial stability and independence, regardless of income level. The book also includes action steps, resources, and tools to help readers start implementing these strategies right away.

[Konebhar6]

28 minutes ago, FrustratedVuncle said:

this info meda details veii anna. I mean popular index funds.

You can search in the Stocks Discussion thread. Its documented many times. 

[papampasivadu]

Just now, Konebhar6 said:

If possible a summary?

basically bogle is the inventor of index funds and founder of vanguard anna....summary ante emuntadhi, he explains in detail about why index funds are the foolproof way to correctly mimic investing in the american economy rather than individual stock picking...and he explains why you should continue investing in index funds even when scenarios like 2008 happens...he also says balance portfolio by increasing bond index as you grow older..

mana tony robbins book occhesi koncham motivational speaker style lo untadhi cuz he's one...he explains the power of compounding, difference in compounding while investing in tax free accounts vs taxed accounts and why index funds are the best....additionally, he explains other things like life annuities, life insurance products for family etc....

aa annuities meedha koncham research chesa appatlo...basically junk...same conclusion regarding precious metals investing unless you want to actually buy the physical gold/silver...

rendu books nunchi naa takeaway enti ante

• invest in index funds and chill...mix of stock index and bond index funds..or may be stock/bond/international index
• max out tax deferred accounts first and then move on to others.
• have a good life insurance policy for your family.

[k2s]

4 hours ago, FrustratedVuncle said:

401k withdrawl:

If we start contributing to 401k from age 30, and do max out 23,000/yr until age 67 we will have $3,687,772.47 saved in 401k at 7%(Standard growth) ROI every year. 

We can withdraw 4% per year from $3,687,772.47, which is 147510.8988/yr, we are still leaving the 3.6M grow at 3%.

The current value of $147,510.90 per year in 2061, adjusted for 3% inflation over 37 years, would be approximately $49,413.63 in today's dollars.

 

Social security benefits pay:

For a single individual with an average $100,000 salary and retiring at age 67:

• Estimated Monthly Benefit: $2,100 - $2,500
• Estimated Annual Benefit: Approximately $25,200 - $30,000 per year

Good thing about social security benefit pay is its adjusted to inflation so, we will get current market value at retirement. 

 

So going with this plan a single income family can get approximately 79k/yr at age 67 in todays dollar value, in spite of no passive income. 

A working couple can double it by doing the same individually which is 158k/yr.  Or can keep it simple and get 49k (401k) + 60k (ssn) = 109k/yr.

Its not going to be easy given ups and downs in life. But its doable. 79k tho without kids responsibility easy ga survive avvochu. ee laddu lo investments, real estate ani stress padakunda. Emantav sodhara...

good post! 
Appatiki no mortgage and will have equivalent medical insurance premiums

[FrustratedVuncle]

19 minutes ago, Konebhar6 said:

If possible a summary?

 

[k2s]

2 hours ago, papampasivadu said:

maxing out 401k is a good idea but side lo oka non-registered brokerage account maintain chesi daniki kuda contribute chestaa undadam better....emergency purposes lo without penalties withdraw cheskuni use cheskodaniki untaay....

 

 

2 hours ago, FrustratedVuncle said:

ante robinhood lantide ga?

daniki Roth IRA account undi ga !