Hello Terry ;
My question is, I am 58. My employer is going to give us a fat raise soon. They also have been giving bonuses.
7 years ago I lost it all but since have been trying to get 401K really going.
I just need to talk to an adviser of a few situations. Please advise.
Thank-You in advance;
Terry Says: I know how tough it would be to invest after you have “lost” money — but did you really lose money? If you had stuck it out when the market crashed, you would be way far ahead! And that’s the issue with investing — you need to take the long-term perspective. Does your employer match your contribution? If so, and they match dollar-for-dollar, it’s like buying a stock that doubles immediately! How could you pass up that opportunity?
You have nearly 15 years until you retire — assuming the longer you work, and the longer you wait to take Social Security, the more secure retirement you will have. And you will need to grow your money DURING retirement, as well. Do you have any Fidelity or Vanguard funds inside your 40l(k) plan? If so, they will advise you on how to allocate your new contributions, and help you plan for withdrawals in the future as well.
And if you have any debt, be sure to use the bonus to pay it down –and avoid future debt. It sounds like you are in a better position than you give yourself credit for! And remember, there’s no law against just “saving” some of that money on an after-tax basis in a money market fund — a “cushion” or “pillow’ to help you sleep at night with your stock market investments inside the plan!