To be able to retire, are savings accts and IRA's enough or do u have to invest in the stock market?
- RichardLv 72 weeks ago
IRAs should be mostly invested in the stock market.
But, you should also invest your excess savings in addition to your work-related retirement funds.
- AmyLv 72 weeks ago
Inflation averages about 3% per year. That means prices double in 20 years. And some services, such as health care, are increasing in price a lot faster than overall inflation.
Your savings account earning 1% interest is losing value.
Your IRA needs to be invested in the stock market. You also need to be investing a lot more than the $6,000 you can contribute to an IRA.
When you get within 20 years of retiring, you should shift a portion of your investments to bonds instead of stocks. You'll need to talk to a fiduciary about the specific amounts, rather than ask random people on Yahoo.
- BLv 72 weeks ago
you need assets and plenty of them, consider diversifying and getting into growth areas
- Anonymous3 weeks ago
You need enough in assets. Stock markets long term returns are much higher than savings but there are no guarantees.
I would have never been able to retire young without stock market investments.
My IRA is at my broker, it contains 70% stock and 30% savings. Only because I can't find things I want to buy.
I put in about $2000 a year for 13-14 years and then stopped adding new money. Now it's worth over $400k. But, because its a regular IRA I will owe taxes on it when I take it out.
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- Elaine MLv 73 weeks ago
That totally depends on what you do manage to put away for the future.
- JudyLv 73 weeks ago
If you have all your saving in things like savings accounts, inflation will eat into them badly. Money in an IRA has to be invested in SOMETHING. Can be stocks, bonds or something like a savings account.
- KennyLv 73 weeks ago
Most peoples IRA's are invested in the stock market . It doesn't have to be all or nothing . Invest what you are comfortable with in no load mutual funds and keep the rest out . You are ripe for a shark attack by a broker . Look here for answers .
- StephenWeinsteinLv 73 weeks ago
It depends on how much you make and how much you will need when you retire.
- John DDLv 73 weeks ago
Interest is way too low for a decent income - of course you need to invest in the stock market. Buy a large, solid ETF like the MSCI and be happy about significant profit
- cmac'mLv 53 weeks ago
You want to invest in mutual funds, money markets, and maybe a few individual stocks. Savings accounts are not good for long term savings at this time but you have direct access to that money if were to need it