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Author: def1 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75610  
Subject: How to retire early? Date: 1/22/1999 3:28 AM
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I am new to investing and need any advice for the following questions:

1) I am 31 and want to work for 15 more years, that will put me at age 46. I will then live on the money I saved during that 15 year period until I turn 59.5 and am able to draw on my Roth and 401's. I am just starting to invest.

a) Where can I go to find out how to calculate how much I need to save per month to meet these goals?

b)Are there any easy to use retirement calculators out there?

c) My Roth and 401k programs are maxed out. What is the next best way to save money to be used in 15 years? Mutual funds, individual stocks, index funds? I am willing to be very aggressive!!!Any ideas on defering taxes?

d) Is this goal even a possiblity? Or am I in dream world? I am very good at saving.

Any help or reply's would be appreciated!!
Thanks in advance.
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Author: DownwardSpiral One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7968 of 75610
Subject: Re: How to retire early? Date: 1/22/1999 9:38 AM
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def1 said:

<<1) I am 31 and want to work for 15 more years, that will put me at age 46. I will then live on the money I saved during that 15 year period until I turn 59.5 and am able to draw on my Roth and 401's. I am just starting to invest.

a) Where can I go to find out how to calculate how much I need to save per month to meet these goals?

b)Are there any easy to use retirement calculators out there?>>

My favorite tool is the Vanguard Retirement Planner (VRP). This was a program that Vanguard offered to their customers [and to anyone off of the web site] for a nominal processing/shipping fee [if I remember, it was $10 or $15] several years ago. I don't know if they are still offering it; there are several references to it on the web site.

The beauty of this program is that after entering the basic parameters and information, you can just grab a slider for inflation rate, rate of return, etc. and watch the totals available change instantly in graph form--it is really amazing watching your totals be a growing fortune at age 95 to living penniless from age 70 by moving the projected inflation rate from 3% to 5%.

It will also handle your situation nicely--projecting funds needed until retirement vehicles (pension, SS, IRA distributions, etc.) kick in at a later date.

It is a couple of years old, so it does not have Roth IRA info, nor the lower LT cap gains rate.

Try to see if it is still available. Maybe they have updated it. I think you will like it. I have had a couple of analyses done by financial planners [via retirement "classes" I have taken]. These are very detailed, but use only one set of assumptions. The VRP can do the "what if" so nicely.



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Author: rspires One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7974 of 75610
Subject: Re: How to retire early? Date: 1/22/1999 12:31 PM
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def1 wrote: <<a) Where can I go to find out how to calculate how much I need to save per month to meet these goals? b)Are there any easy to use retirement calculators out there? >> I have found the following Site to be very good at calculating various "what if" exercises. Also, a good knowledge of Excel allows you to study this subject to death! Good luck. Dick
http://www.geocities.com/WallStreet/8257/reindex.html


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Author: gp703 One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7990 of 75610
Subject: Re: How to retire early? Date: 1/22/1999 2:19 PM
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USA Today and AOL both have a series of calculators available. AOL's is pretty extensive and can be found under keyword calculator. USA Today's can be found at http://www.usatoday.com/money/calculat/mcfront.htm.

Hope this helps,

GP

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Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 8017 of 75610
Subject: Re: How to retire early? Date: 1/23/1999 11:14 AM
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Greetings, Def1, and welcome. You wrote:

<<I am new to investing and need any advice for the following questions:

1) I am 31 and want to work for 15 more years, that will put me at age 46. I will then live on the money I saved during that 15 year period until I turn 59.5 and am able to draw on my Roth and 401's. I am just starting to invest.

a) Where can I go to find out how to calculate how much I need to save per month to meet these goals?

b)Are there any easy to use retirement calculators out there?

c) My Roth and 401k programs are maxed out. What is the next best way to save money to be used in 15 years? Mutual funds, individual stocks, index funds? I am willing to be very aggressive!!!Any ideas on defering taxes?

d) Is this goal even a possiblity? Or am I in dream world? I am very good at saving.>>


Others have pointed you to some of the various calculators that are available to assist you in your planning effort. I'll just add that I believe your goal is attainable if you do your planning carefully and enact it with discipline. You've pretty well taken advantage of all the tax deferred vehicles open to you, so the only remaining one would be an annuity product. However, you say you want to retire at age 46. For that reason, a regular -- and taxable -- investment would probably fit the bill better. As to what you should invest in, that's up to you.

I assume you're new to both Fooldom and to investing. That's great on both counts! You have wandered into a forum that believes you, as an individual, can do far better for yourself than most professional money managers. Provided, that is, you take some time to learn a few basic investment concepts and do some self-examination to see where you fit on the risk tolerance scale. Therefore, why not take some time now -- not later -- to be sure about what you want to do. Start first by reading The 13 Steps to Investing Foolishly, which you can access from the main, opening screen to The Motley Fool. They will suggest some important things you should consider. Then I suggest you toddle over to your local library, discount bookstore, or even here in the Fool Mart, and pick up some easily read, easily understood, inexpensive texts that will thoroughly explain how to invest in stocks using some simple systems that will take but an hour per year of your time (if you're slow) yet produce returns that put the majority of professional money managers to shame. I suggest and commend the following to you: "Beating the Dow" by O'Higgins; "The Dividend Investor" by Petty and Knowles; "The Motley Fool Investment Guide" by the Gardner brothers; "One Up on Wall Street" by Lynch; and "What Works on Wall Street" by O'Shaughnessey. All are well worth their low cost and the small investment in time it takes to read them. Get them and read them. You'll be glad you did.

While you're doing all that, also take some time to explore the various nooks and crannies of Fooldom to see what others are doing and what they're discussing. I also recommend you read my 13 Steps to Foolish Retirement Planning and my Foolish Retirement Plan Primer. You will find both at http://www.fool.com/Retirement/Retirement.htm . Those missives will give you some insight as to what you can do. In the process of all that reading, you'll gain a wealth of knowledge and information that will serve to clarify how you want to approach this very personal issue. Don't be afraid to ask a question anywhere in Fooldom. Folks around here are great about answering questions and clearing up misunderstandings.

Regards.......Pixy



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