i want to retire in 5 years. how much money do i need in my ira's, 401k & stocks to do this?
969326
If you own properties valued 1.1M, then you have enough money to hire a financial planner who can ask the right questions to answer your question.
785959
The other answers forget..\n\nRule 72 (IRS) allows u to pull the $$$ from IRA (assume it applys to 401k too)...\n\nIt allows u to get it before 59.5 with only taxes to pay if u do it over a specified period of time.\n\nFor example u pull 40k out but do 4k per year for 10 years.\nThis is a way get $ out before 59.5 without penalty.\n\nIRS recongizes that there are life events that force many to grab funds from existing sources for emergencies.\n\nU could use this rule to pull out 100% of the 401k, and use portion for wife and portion for self.
74870
Unless you already have $5mil, wake up and stop dreaming. Stock investing for a 1 year time frame is inappropriate. You stand a substantial chance of ending up with less at the end of 1 year. For that short of a time frame, CD's, money markets and conservative bond investments are more appropriate, but the prevailing rates are low and you would need to start with$4.8 mil or so to reasonably have a chance to reach your goal.
590996
That depends on whether you need the money right now or in the near future, or not.\n\nIf you need it, best to put it in a high earning liquid account. Go online to bankrate.com and see the various rates offered with some of the highest rates.\n\nIf you don't need it, investing in something that will make you money over time is a good idea. Suze Orman has great books on money, investing and wealth, I suggest you take a look at her books. Any good advisior will tell you do diversify, meaning don't put all your eggs in one basket. Make sure at least 1/3 is in something completely different than the next 1/3 and that is different from the other 2/3.  \n\nIf you are young (under 30) you can be more aggressive with your money, put it into more growth.  If you are older (over 45), best to be a little more cautious. If you are even older (over 60) you need to start thinking about being in safer investments since retirement is just around the corner.
489396
You need a business plan.  Investors and lenders will want to know how you intend to make money.  They will want to see all the details, from where you will be located, how much rent you will pay, how many employees you will have, how much will you pay them, how much will employee benefits and insurance cost, where will you get the raw materials for your widgets, how much will the raw materials cost, what are your projected sales, projected cost of goods sold, tax liabilities, interest expense, return on investement, marketing plan, etc.\n\nIf you can prepare a 5-year plan, working out all the details and showing that you know how you will make money and how much money based on projected sales, then people may have the confidence in you to invest.
30323
Retirements are generally funded with money from 3 sources: social security, pensions and 401k or IRA distributions.\n\nOn average people spend less money after they retire.  However some younger retirees actually spend more because they have more leisure time.  Typically 80% to 75% of pre-retirement income is needed for the same lifestyle.  However if you plan to travel the world or some other fun put expensive choice you will need to have more savings.\n\nAssuming an income of 50K, social security and no pension, you will need about 300K(earning 5%) to have $3000/month for 20 years of retirement.  You should definitely run the numbers yourself and I would reccomend planning for a longer retirement.
498807
Keep it and make a habit of saving as much as you can afford or the maximum allowed.  Do so by investing through 401K Roth IRA or something else.  To have $500 in four years would not carry you through a comfortable living when you retire however young you are now.\n\nBy the way, to have grown to $500 out of $90 in four years is a huge return!  That kind of return beats 99.5% of all professional money managers.
153992
When you begin investing, you should invest in bonds first because they are less volatile.\n\nThen, when you have saved enough to invest in a stock mutual fund, you should add that.\n\nYou should always keep your investments split between bonds and stocks because the stability of bonds balances the volatility of stocks.  \n\nA 75% stocks and 25% bonds allocation gives good results if you are 5 to 10 years away from retirement.  If you are within 5 years of retirement, you should have a 50-50 split.  If you are retired and drawing down your investments, you should have 80% bonds and 20% stock.\n\nIf you are investing for a particular purpose, such as a house downpayment or college education, 5 years before needing it, you should move your money out of your stock and bond investments in proportion to your allocation.  The money should then be put into bonds because they are less volatile.
128978
If you are looking long term a Roth IRA is a great idea.  The limit is 4000 per year, but before April 15th you can still open one for 2005.  So you can open a Roth IRA with 4K for 2005 and 3,500 for 2006.  As for the investment inside that Roth IRA, you will have to analyze your stomach for risk and your desired return.  If you are new to investing, but can handle some risk an index fund such as the S&P 500 might be a good start.
4569
30 years of contributing the max to a Roth IRA each year should create a million.  If you have a 401k at work that offers matching, contribute enough to get the max of the match.
604703
Find a financial advisor you trust (through interviewing them).  They will provide good investment advice.  Both IRA's grow tax deferred (you don't pay earnings along the way).  The differences are that \n\nTraditional ira- tax write off on contributions, taxed fully when withdraw, can't withdraw b4 59.5yrs old w/o 10% irs penalty and taxed on everything\n\nRoth- all contributions are already taxed (can't use it as a write off), by the time you're 59.5 yrs old (and assuming you had the account at least for 5 yrs) everything is tax free.  You are also allowed to take out the principal at anytime w/o penalty.  Some other rules apply to fully withdraw w/o penalty (i.e. 1st home purchase, higher education, etc.)\n\nAgain, if you have little to no investment experience, DO NOT listen to those hot stock tips, Suze Orman, or whatever is on TV.  By the time you hear of those 20% returns, you're already too late (i.e. real estate).  Please, please work with a professional.
1080953
Your savings should be placed in safe investments (bonds, certified deposits, or deposits protected against inflation) which will yield about 5%.\nYour yearly expenses being Rs.3,60,000 (12 x Rs30,000), the required amount of savings that would produce this income is:\nRs.3,60,000 x 20 = 72,00,000\n(multiplying by 20 is the same as dividing by 5%).\n\nThis assumes that you have a very very long retirement.\nIf you factor in the number of years you expect to live (you did not specify in your question), the amount above is reduced... however the calculation is more complex.\nAs an example, if you expect your savings to last 25 years after your husband retires, the amount becomes approximately 50 lakhs. Sounds like a lot? one thing you can do is reduce your monthly expenses (in retirement people usually spend less) and save, save, save!
274520
Yes you can and the limit is 4000 for an IRA if you are under 50 and 4500 if you are over 50. You might not get a tax credit for the IRA there is an income limit. But you can put in up to 4000 if under 50. If you want to put money into an IRA you have until April 17th this year to do it for 2005.
481209
This is a very vague question!  You should sit down with a Financial Consultant and create a financial plan.  That person should ask you your risk tolerance. \nWhat type of income will you be getting from pension, social security, or other areas?\nAre you selling a business? \nWill you be working after you retire from this company?\nWhat types of debt do you have now vs when you retire? \nIf there is any additional income that you'll have.  \nWhat is your tax situation?\nWho are your beneficiaries?\nHave you already planned for long term care (one out of two people will need it in the future) \nHow long do you want to lock up your money?\nDo you have enough life insurance so your wife will be reasonably comfortable?\nHave you created a trust or will?\nDo you have grandkids?\n\nThere's 100 different ways to go about it.  I would recommend seeing a *Certified* Financial Planner with your wife. It will be a nightmare eye-opener for you. \nIt will be the equivalent of you sitting naked in someones office. LOL \n  Be careful going to one of the large or smaller brokerage houses first because you'll be like live bait.\n\nOff the top of my head should you wait to retire when your older?  Will you outlast your retirement funds?
195053
You should put in at least as much as you need to in order to receive your company's match.  If you put in less than, then you're walking away from "free" money.  Anything over that amount is a personal investment decision.  My old company had a terrible 401(k) program with few, and mostly bad, investment options.  I put in enough to get my company match, and then put more money into an IRA.  My current company has a great matching program, and terrific investment options, so I'm maxing out my contribution.  \n\nThe short answer is put away as much as you can.  The longer it sits in an investment that's growing, the more money you'll have at the end.
517192
Buy a diversified series of mutual funds. Individual stocks are just way too risky in most cases, especially for novice investors, even if they look like a sure thing.  How are Enron and Worldcom doing right now?\n\nMake sure you hit all the assets classes, like Large cap stocks, small/mid cap stocks, international stocks, emerging markets stocks, government debt, corporate debt, hi-yield debt, foreign debt, emerging markets debt, real estate, commodities, and precious metals. That's 12 categories right there, so let's say you get started with with $1200, you're talking about $100 each. \n\nThen sit back and rebalance each year, back to your original percentages. This is called asset allocation. The thinking being, what's BEEN hot is more than likely not going to STAY hot. All markets, after all, are cyclical.  This is why people who invest their 401(k) by just putting in whatever's had the most recent best numbers never get anywhere--they're investig in something that DID will and IS probably NOT doing well.\n\nThis sort of portfolio should average 8-12% per year, so just split the difference and say 10%. Will it do 10% EVERY year? Of course not. I'd be surprised if it ever did EXACTLY 10%. That's an annual average. With that average, your money should double roughly every 7 years. \nSo, in 7 years you should have about $2,000\nin 14 years you should have about $4,000\nin 21 years you should have about $8,000\nin 28 years you should have about $16,000\nin 35 years you should have about $32,000\nin 42 years you should have about $64,000\nin 49 years you should have about $128,000\nin 56 years you should have about $256,000\nin 63 years you should have about $512,000\nin 70 years you should have about $1,024,000!\n\nOf course, if you keep adding money in, say $100 a month, you'll become a millionaire MUCH sooner. The key is discipline, and sticking in when markets are up OR down. Don't try to time the market--you'll NEVER get it right.\n\nHere's a handy formula:\n\n$100/month x 12% retutn x 20 years = $100,000.  \n\nSo if you invest $300 a month, you can expect to have $300,000 or so in 20 years, depending on what return you get.  And remember, even if you stop there, that money itself will double again in 7-10 years, depending.  Then double again.  Then double again.  You get the idea.\n\nIn short, you can make a HELL of a lot of money, with a small output on your part, if you do it right, and are patient.\n\nOh, and if you qualify, and do this all in a Roth IRA? Then every penny will be 100% TAX-FREE. That's a deal that's too good to pass up. That's why I tell all my under-30 clients--if you make under $90,000, and therefore qualify to do a Roth, you'd be a fool not to. Just having the power of youth (and therefore time) on your side is such an advantage, to squander it would be such a waste!\n\nHope this helps!\n--J.\n\nP.S. The previous answerer's advice about contacting Edward Jones is gold.  I would go to their website at www.edwardjones.com, enter your zip code, and find the closest office to you.  Chances are there's one within 10 miles.  They have 10,000 office in the US, UK, and Canada.  And they will take care of you right if you decide you don't want to go it alone.
761866
Before you invest the first dime of that 5k make sure you have:\n1. Contributed enough to your 401k to achieve your company's match. (if that is an option available to you)\n2. Paid off all debt (except for your mortgage if you have one)\n3. Set aside 3 months of living expenses.\nNow you are ready to go! As to tools... see the following url which has info on various investment strategies.\nSuccess and health to you! \n\nSource(s):\n http://www.investmentu.com/sitemap.html