Originally Posted by
magicandmisc
I have an IRA with Edward Jones and have all my assets in a company called Lord Abbott. This is a funds of funds, which means that all of your money isn't in one basket. The Lord Abbott Company puts my money in different branches of the market. I have mutual funds/certificate of deposits/stocks.
In long term savings you want to be diverse having some high risk and some blue chips (Wal-Mart, Coke, Companies that will always make money). When you are young you want to have more high risk than low risk stocks because you can take a hit while you are young, but when you are old you want to have more low risk stocks than high risk stocks because if a high risk stock crashes all your assets will be depleted and you will have less money to retire on.
Now, I know you think you are saving a little more than minimum, but you are not. In all of reality you should save at least 10%. If QT is matching 50 cents (per dollar you save, I assume) that means you are going to be saving $4000 a year at your salary of $40,000 a year at 7% savings rate.
BUT, if you save 10% you will save A LOT more $$$$$$ and be able to retire earlier.
If you save 10%, that means you are saving $4,000 a year of your own money. QT will give you $1,200 (6% of $40,000 divided by 2) a year as long as you save at least 6%. So that means you will be saving $5,200 a year instead of just $4,000.
With money, the more you save now the more you will have later (no ****). So if you save more while you are young, you can retire a lot earlier.
Wanna guess how old I am?
Reply With Quote
