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Old 08-13-2010, 02:42 PM
 
Location: Florida -
10,213 posts, read 14,774,441 times
Reputation: 21845

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Quote:
Originally Posted by Miss Crabcakes View Post
So the husband and I were talking about retirement and he is starting to believe that won't be a reality for him and I wonder for myself.

Here are our stats and if you have advice on improving things, feel free to jump in:

- We are both 32 years old
- I have had a 401K for about 10 years, the hubby has not opened one for several reasons (job didn't offer it or he made too little to contribute anything)
- I have only been able to contribute 5% and my balance grew to a high of $19k before the financial crisis in early 2008. It has not gotten back up to that amount since.
- I lost my job in Dec 2008 and have not been able to contribute to the 401k since. I have only had part-time and temp jobs in the interim (no benefits)
-Hubby also lost his job in 2008, took one year to find a temp job and just went permanent this past January.
- the hubby plans to open a 401k but won't be able to contribute much (he doesn't earn much and has little leftover after bills)
- I still don't have a permanent job and don't know any other way to add to my 401K or any other retirement plan and as it stands only have about $17,000 in my current 401k. I also don't know much about stocks.

Are we just screwed and will never retire? Any other options or advice?
There is always hope! By 36, we had pretty much tapped-out our 401K's and really had no savings to speak of... so, we got serious about saving (and spending). That was back just after the 1983 market crash.

We just retired in 2008 (me at 60) - with no lottery wins, inheritance or even high-roller jobs --- Nevertheless, we've got plenty of money to do whatever we want (travel, oceanfront condo paid-off, golf, the works) ... we haven't really even tapped-in to the 401K's -- (take a look at long-term annuities that will let you pay now, and make a lifetime income later).

Bottom line; you can't do anything about where you've been or even where you are now, but you can begin to steadily manage your savings and spending now. (Save, before you spend -- after a while, you won't miss it).
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Old 08-15-2010, 07:45 AM
 
Location: Victoria TX
42,579 posts, read 86,702,293 times
Reputation: 36642
No, you're not just screwed. There will be Social Security, and most retirees are living on that. It is adequate for a life of comfort and dignity.

There is a political faction in this country that is yammering constantly that SS will not be there. Well, it will be, unless that self-same faction dismantles it, which they are hell-bent on doing.
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Old 08-15-2010, 09:26 AM
 
2,714 posts, read 4,269,681 times
Reputation: 1314
Quote:
Originally Posted by jtur88 View Post
No, you're not just screwed. There will be Social Security, and most retirees are living on that. It is adequate for a life of comfort and dignity.

There is a political faction in this country that is yammering constantly that SS will not be there. Well, it will be, unless that self-same faction dismantles it, which they are hell-bent on doing.
That faction is talking 30 years down the road. Their reason is that the government is so far into debt up to their eyeballs that there is no way SS will still be there when they retire in 30 years. You do know SS is spent on a daily basis on government projects right? It's not actually put into a vault anywhere, its actually spent once the government receieves it. They will be borrowing money to pay for all the baby boomer's social security. How interesting that will be. I sometimes question if it will even be there 10 years from now... let alone 30.

But anyway, the point is people should save for retirement, that way, if there is no SS you have nothing to worry about. And the OP has plenty of time to save, it may look hard, but I know she can do it. She is definitely not "screwed" (as the thread title states...as of yet) if she starts saving today, she could have plenty of money for retirement when she decides to leave the workforce. The current generation (baby boomers) can retire on SS. But I'd definitely not recommend anyone who is going to retire in 30 years rely on SS because in all honesty-- we really don't know if it will be there.
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Old 08-15-2010, 09:40 AM
 
Location: State of Superior
8,733 posts, read 15,896,614 times
Reputation: 2869
Social Security helps , but I would find it hard to live off it alone. Most people today have some other income as well, even those who have not planed well with investments, like me. The folks who are in the worst shape are those who still have huge debt facing then , when they reach 60. Having killer house payments , being upside down cause they took out seconds and thirds, have little choice but to bail out somehow. The reverse mortage was designed for these people mostly, kinda sad in a way.
Canada is facing the Boomer thing just as we are here , only in a lesser way. We DO need to start saving more as a population , and the SS should be put in a lock box. Government is doing the same thing with the fuel taxes...spending it on Wars and stuff, now , instead of putting it towards fixing our infrastructure.
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Old 08-15-2010, 10:34 AM
 
Location: Pinal County, Arizona
25,100 posts, read 39,172,642 times
Reputation: 4937
Social Security will not cover most individuals living expenses during retirement.

Then, there is the pending running out of money that SS is facing.
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Old 08-16-2010, 09:46 AM
 
Location: Victoria TX
42,579 posts, read 86,702,293 times
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Quote:
Originally Posted by cyclone8570 View Post
That faction is talking 30 years down the road. .
The same faction was talking 30 years down the road in 1975. Here we are, and not a minute closer to the collapse.
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Old 08-16-2010, 09:48 AM
 
2,714 posts, read 4,269,681 times
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Quote:
Originally Posted by jtur88 View Post
The same faction was talking 30 years down the road during the Carter administration. Here we are, and not a minute closer to the collapse.
And how lucky we are. Better to be prepared though for no SS, then to count on it. If it is there in 30 years-- great! But if not-- if you saved-- its okay because you aren't counting on it.
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Old 08-16-2010, 11:11 AM
 
Location: Victoria TX
42,579 posts, read 86,702,293 times
Reputation: 36642
Quote:
Originally Posted by cyclone8570 View Post
And how lucky we are. Better to be prepared though for no SS, then to count on it. If it is there in 30 years-- great! But if not-- if you saved-- its okay because you aren't counting on it.
Better still to stop lying to the people and constantly screaming that the sky is falling.

The more knowledge we have and the more truth we strive for, the luckier we get, and the better prepared.

But you're right, we need to prepare for the day when those who hate SS as a dogmatic matter of principle and seek to destroy it will prevail.

Last edited by jtur88; 08-16-2010 at 11:19 AM..
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Old 08-16-2010, 11:54 AM
 
4,709 posts, read 12,637,846 times
Reputation: 3813
Social Security will be the absolute last thing to go (third rail, anat)...but if/when it does, it won't really matter because the entire house of cards will have collapsed. The best shooters will have the best chance of survival...
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Old 08-16-2010, 12:00 PM
 
2,714 posts, read 4,269,681 times
Reputation: 1314
Quote:
Originally Posted by jtur88 View Post
Better still to stop lying to the people and constantly screaming that the sky is falling.

The more knowledge we have and the more truth we strive for, the luckier we get, and the better prepared.

But you're right, we need to prepare for the day when those who hate SS as a dogmatic matter of principle and seek to destroy it will prevail.
How can I lie about something that hasn't happened yet?

Unless... you built a time machine and know that in the future I'm wrong?
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