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URL:  http://boards.fool.com/just-my-two-cents-worth-1-i-didnt-see-anything-21747566.aspx

Subject:  Re: Only 27, but... Date:  12/13/2004  12:35 PM
Author:  Watty56 Number:  205482 of 743968

Just my two cents worth;

1) I didn't see anything about saving up to pay cash for your next car, getting the down payment for a house, kids, college, emergencies, etc. The retirement plan needs to be part of the bigger picture.

2) Consistently picking stocks over the long term is harder than most people think. Even the people who have been successful can never be sure how much of their success is due to luck or skill. If you do decide to try stock picking, plan on keeping track of your total return very carefully. Some people that think they are doing well are really not beating the index funds.

3) I am not very close to the normal retirement age yet but it is surprising how may people in my high school class have already died.

In balancing your retirement savings vs current discretionary spending check out
http://www.ssa.gov/OACT/STATS/table4c6.html

To do a rough calculation of your “death expectancy”.

For example since, you are 27, there is about a 10% chance that you won't live to be 57.

(97,504-87,457)/ 97,504)=10.3%

This is not adjusted for your lifestyle and your current health so it probably overstates it a bit, but probably not as much as you would like to think.

Greg

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