What Stpid Thing Have You Done Today?

[DreadPirateRoberts]

Originally Posted by Ghoulish Delight

Boy, were we stupid for saving money.

Does it count against you if you transfer savings into a Roth or traditional IRA (or a 529) ?

[BarTopDancer]

That will teach you to be responsible!

[Not Afraid]

Moonie, you probably should try and grow something other than cat nip.

[Prudence]

GD - same goes for college tuition. After my parents got over the shock of being penalized for saving for the rainy day (which was smart, given my dad's health at the time), they decided to do a lot of home improvements, since home value at the time didn't factor in to the calculations. Don't know if that will be the same in situation in 18 years, but you might want to keep it in mind.

[DreadPirateRoberts]

Originally Posted by Prudence

GD - same goes for college tuition. After my parents got over the shock of being penalized for saving for the rainy day (which was smart, given my dad's health at the time), they decided to do a lot of home improvements, since home value at the time didn't factor in to the calculations. Don't know if that will be the same in situation in 18 years, but you might want to keep it in mind.

You could insulate the house with dollar bills.

[Ghoulish Delight]

We'll see. I've still got one more avenue to explore, calling HUD directly to see if they've got any programs we qualify for. When the guy at the bank who holds our mortgage realized my savings were too high to qualify for any of the programs he had access to, that's who he referred me to.

This whole exercise has highlighted the need for us to start working with a financial adviser. We've got saving and are doing nothing useful with it. We've now got the possibility of a college tuition to start thinking about, who knows what we'll be responsible for as our parents seem to insist on continuing to age, and then of course there's retirement, whatever that may or may not look like in 30 (40? 50?) years. It would be nice to get some help with planning.

[Moonliner]

Originally Posted by Ghoulish Delight

We'll see. I've still got one more avenue to explore, calling HUD directly to see if they've got any programs we qualify for. When the guy at the bank who holds our mortgage realized my savings were too high to qualify for any of the programs he had access to, that's who he referred me to.

This whole exercise has highlighted the need for us to start working with a financial adviser. We've got saving and are doing nothing useful with it. We've now got the possibility of a college tuition to start thinking about, who knows what we'll be responsible for as our parents seem to insist on continuing to age, and then of course there's retirement, whatever that may or may not look like in 30 (40? 50?) years. It would be nice to get some help with planning.

If you put $2,000 in an IRA plan now by the time Theo retires it will hold about $500,000.

[€uroMeinke]

Originally Posted by Moonliner

If you put $2,000 in an IRA plan now by the time Theo retires it will hold about $500,000.

I wonder if that will be a large sum in 2077

[DreadPirateRoberts]

Originally Posted by Moonliner

If you put $2,000 in an IRA plan now by the time Theo retires it will hold about $500,000.

I want to know where you are going to get an 8.5% return for every year until he retires.

[Alex]

Originally Posted by DreadPirateRoberts

I want to know where you are going to get an 8.5% return for every year until he retires.

8.5 is kind of high. Average DJIA return over the last 65 years is 6.52%. Doesn't seem that far different but $2000 invested on January 1, 1945 would have only returned $137,000 on January 1, 2010.

Still, put away $2000/month for retirement from birth and get 6.52% back and Theo'll have a nice $56 million nest egg. I'm guessing that even in 2075 that will be decent living.