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Author: CapricornFool One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75618  
Subject: The Quiz Date: 10/27/2000 4:32 AM
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The retirment quiz on the site today got me a little confused. It says that only 1 out of 10 Americans are truly financially prepared for their retirment, yet 75% of employees that qualify for a 401(k) plan do contribute. Sounds a little contradictory, no?

Capricorn.
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Author: W401K Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25769 of 75618
Subject: Re: The Quiz Date: 10/27/2000 6:37 AM
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ITs probably not contradictory. The number is actually now up to 82% of all eligible employyes do contribute. That doesn't mean they are contributing enough, or that they are investing properly to earn enough to retire comfortably.

Bill

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Author: JLC Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25772 of 75618
Subject: Re: The Quiz Date: 10/27/2000 11:04 AM
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Just because people are contributing and saving doesn't mean they're doing enough or are really planning for retirement. I have several fellow physicians who are supposed to be saving enough but are in so much debt because of their lifestyle, they'll have to work into their 70's.

JLC

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Author: cdavies9954 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25774 of 75618
Subject: Re: The Quiz Date: 10/27/2000 11:16 AM
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JLC-

Can you take a peek at my other post on on this board about needing advice? Should I delay getting a house, under my scenario, until I have a larger portfolio?

Thanks,

CD

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Author: rhecker One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25843 of 75618
Subject: Re: The Quiz Date: 10/30/2000 8:22 AM
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The retirment quiz on the site today got me a little confused. It says that only 1 out of 10 Americans are truly financially prepared for their retirment, yet 75% of employees that qualify for a 401(k) plan do contribute. Sounds a little contradictory, no?

75% of employees may contribute to 401k plans, but I think that figure is pretty recent. If you go back 10 years, I bet the percentage isn't even half of that. Obviously contributing to a 401k for only a few years is not going to financially prepare a person for retirement.

I also agree with the people who have said that the 75% does not account for people who are only minimally participating in their 401k plans by not saving as much as the could.

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Author: altovista Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25912 of 75618
Subject: Re: The Quiz Date: 11/2/2000 3:34 AM
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CD,

I understand your wife's point of view, and that large of an allocation to rule breaker securities would not be my choice personally since long term appreciation of securities is a much surer bet than higher risk ones which tend to be rule breakers. By investing a larger portion in Rule MAKERS you may find it easier to explain/justify since your wife is worried about losing money. I suppose you have read about Warren Buffet and are familiar with his strategy of buying Dow Stocks while they are temporarily out of favor and then reaping huge returns by holding on to them for many years? This strategy is very effective but difficult in the fact that shortsightedness, euphoria and fear of the market tend to keep one from following this model.
As far as saving for a house. I live near Seattle and currently own several. What I find nice about Fixed money market accounts such as the one offered by TIAA-CREF is that my money is not tied up like in a Certificate of Deposit and yet it earns anwhere from 5.5%-6.30%. This comes in really handy when one is not sure when the 'perfect opportunity' for buying or building will arrise. I am only familiar with Vangards index funds but Creft also has very competitive maintanence fees as well. You, can also write checks from this type of fixed account for no extra charge so it makes this investment very liquid for purposes of saving for a house or car or family emergency.
I am 26 and married (wife 31) we have three children. Combined income for us is about 75K. We have about 250k in real estate and about 6K in stocks for long term holding (>10yrs). This year we started maxing out a single IRA. In a discount brokerage I also buy individual stocks under the protection of a 2nd IRA.

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Author: veronica6 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 25944 of 75618
Subject: Re: The Quiz Date: 11/3/2000 1:57 PM
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altovista wrote:
As far as saving for a house. I live near Seattle and currently own several. What I find nice about Fixed money market accounts such as the one offered by TIAA-CREF is that my money is not tied up like in a Certificate of Deposit and yet it earns anwhere from 5.5%-6.30%. This comes in really handy when one is not sure when the 'perfect opportunity' for buying or building will arrise. I am only familiar with Vangards index funds but Creft also has very competitive maintanence fees as well. You, can also write checks from this type of fixed account for no extra charge so it makes this investment very liquid for purposes of saving for a house or car or family emergency.
(end quote)

I also live near Seattle and am looking for a vehicle to save money for the situations you mentioned above. I recieved the information packet from TIAA-CREFF and just sent it in. It is good to hear a review from someone currently using the product.
Veronica

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