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Dont listen to these people... They think the world is ending and are stocking up on space food. Social security will be there for everyone that has paid into it, albeit I believe they will eventually have to lower the payout, however I dont believe that would ever affect current retirees or folks close to retirement.
If the government stopped paying SS benefits that were due the entire country would fall apart and the dollar would be useless anyways
If you truly believe SS will be there forever when the coming generations retire, I have some oceanfront property in Arizona to sell you.
What's going to happen, within the next 10 years after all the baby boomers start collecting, the government will be FORCED to completely redo the entire SS system. They'll raise the retirement age for collecting SS to 70+ years old, they'll lower the payments drastically, and the retirees who aren't grandfathered in will be absolutely screwed if they don't have other retirement accounts.
The government isn't going to "stop" payments to current people drawing SS but they WILL drastically heighten the retirement age and drastically cut the payments to future generations.
If you're planning on depending on SS or Medicare to provide for your retirement, you're living a fantasy. You NEED, at the bare minimum, an employer-matched pension account, a ROTH IRA that you max out each year, and investments which can pay out when you retire. This is the bare minimum if you plan on having any decent lifestyle in your "golden years".
[quote=SpeedyAZ;27918550]If you truly believe SS will be there forever when the coming generations retire, I have some oceanfront property in Arizona to sell you.
What's going to happen, within the next 10 years after all the baby boomers start collecting, the government will be FORCED to completely redo the entire SS system. They'll raise the retirement age for collecting SS to 70+ years old, they'll lower the payments drastically, and the retirees who aren't grandfathered in will be absolutely screwed if they don't have other retirement accounts.
quote]
Well it seems like you think it will be there as well???
Like I said, SS will not be paid out at the current levels, it will decrease or SS tax will increase greatly at some point. People are currently being paid at much greater levels then they contributed, thats obviously not sustainable. Younger generations are saving for retirements at much higher level then previous, and they (and I) will certainly need it for retriement. I have 30 years till retirement and I am expecting to receive apayout, but it will of course not be my main source of income. Beer money perhaps?
If you truly believe SS will be there forever when the coming generations retire, I have some oceanfront property in Arizona to sell you.
What's going to happen, within the next 10 years after all the baby boomers start collecting, the government will be FORCED to completely redo the entire SS system. They'll raise the retirement age for collecting SS to 70+ years old, they'll lower the payments drastically, and the retirees who aren't grandfathered in will be absolutely screwed if they don't have other retirement accounts.
The government isn't going to "stop" payments to current people drawing SS but they WILL drastically heighten the retirement age and drastically cut the payments to future generations.
If you're planning on depending on SS or Medicare to provide for your retirement, you're living a fantasy. You NEED, at the bare minimum, an employer-matched pension account, a ROTH IRA that you max out each year, and investments which can pay out when you retire. This is the bare minimum if you plan on having any decent lifestyle in your "golden years".
I understand all this. I try. I put money into 401K to get the max employer match. I will start looking at some other vehicles once our financial situation stabilizes - they way our budget is right now, I have $300 left over every month that I save, unless the car needs something, or I need to go to the dentist. I understand the frugal mentality, but I don't want to live like I'm dead. Yes we have cable, but seriously considered getting rid of it. We decided that if we don't get it, we will go out more and spend more $$. We have $10 gym memberships and that's about it. We did invest in reliable cars with one already paid off and the other will be at the end of this year, or mid-next year.
Anyways, I assume that the people on this forum are above level intelligence, have decent jobs, put money away and understand how this works. I think we are in the minority. My GF's mom doesn't get anything about money. My GF's coworker lives paycheck to paycheck, she doesn't have a car, doesn't have cable, doesn't go anywhere and lives in income restricted housing. She doesn't save, nor does their job having matching 401Ks. She is 32. What will happen to these people when they can no longer work?
I can see where this is going though. It seems that it will be the same BS it is now. Those of us that work don't qualify for reasonably priced housing, food stamps, any kind of breaks on anything. We will get screwed by SS too. They will argue that we should have saved enough, while those that never tried to get better jobs, make more money, learn about finances, or save will get a hand out. That's the only way I see it. There will be people at a certain point that won't be able to work to 70 and have $0 in savings, so what, they go on disability? So disability will be the new SS?
i am 24, but i kinda feel the same way. i am very concerned about the future and getting at least as far as my old man got. although he didn't get far, but only to cell block E and killing himself several years later of a drug overdose. it's not like either of my parents has set the bar real high. my mom was doing well for a while, but the semiconductor industry packed up and outsourced....then she became an alcoholic and developed health problems. now, at the tender age of 45, she is holding out for SSDI benefits which she desperately needs while i work to the bone to help support her and keep a roof ever our heads. she is vigilant about paying me back the several thousand dollars once she gets her settlement even though i tell her not to.
i am concerned about my future, but not as depressed as i used to be. i have become vigilant financially and health wise. i keep fighting, holding two or three jobs when necessary, but embracing what vacation time i get. i am a little bitter, yes. if i would've grown up 15 years ago, i would've already been in a decent paying position at 24 instead of being stuck in menial supermarket work. as i receive my bachelor's degree soon, i am interviewing for positions that pay a measly $12 an hour, which is not much more than i make in the supermarket..
on top of that, i am facing $20,000 in student loans this coming summer. it's really depressing but i suck it up and keep my nose to the grindstone, hoping that my big break eventually comes my way. the $300 left to save, that's good. i was saving $400-500 a month before i lost my other job. now, i have difficulties banking $200/month. if i were you, i'd consider getting rid of the cable if the both of you amicably agree on it. i can't get rid of cable because my mom and her boyfriend heavily rely on it for entertainment purposes. i also watch it quite a bit bit could do without it. it is very expensive and i pay for the entire cable bill. keep the gym memberships though. it will be hard to miss that $20. and plus, it is easier to cope with life events when you're in shape and healthy.
by the way, don't assume that most people on this forum are of above-average intelligence. you're confusing that with narcissism. there are many people in the same position or worse off than you. people on this forum tend to insult your intelligence and talk to you as if you're an idiot. don't let that get to you. it's easier to cast stones and point fingers from the greener side of the fence. lastly, consider retiring to a country with a lower cost of living, such as ecuador. i don't have the source, but financially speaking, it was one of the best places to retire to. a $1.5 million condo on the beach in cali would run you about $100,000 in ecuador. there are other countries that a relatively safe, economically sound, with friendly enough locals that can be good retirement communities. indonesia was another place that i read had many retirees from the US.
@stackhouse - sorry to hear about your situation. Luckily my parents are well off and I don't have to take care of them financially, at least yet. The cable is up for discussion, but we both like it. We work a lot of opposite hours so we are home alone a lot. I don't go out if she's working, I go to the gym, cook and watch my shows. Maybe it's not a good thing, but I would get depressed even more without cable. After working all day, gym, cooking, I just want to sit down and watch my shows. Even if I got internet TV, the internet is $55 alone, another $30 and I got HD cable. It's worth it to me.
I guess using the word depressed at in the title was wrong. I am a little frustrated and being pushed to my limit right now. Stressed I guess since the taxes going back up in the new year and everything seeming to be more expensive.
I come here and read the forums pretty much on a daily basis. I see people paying off $40K cars, putting money into stocks, roth IRAs, planning to retire at 55 and the like. I just turned 31 which based on the current SS requirement I have 36 more years to work to get my max benefit and will probably be changed to 70, so 39! That's more than my entire life! I can't see retiring at 55, not only financially, but I like to work. Not like to work as in if I won $100 million I would continue to go, but I like the routine of it.
Right now our financial situation is tight. My GF and I live together. We rent. I have a good job, she's struggling to get a decent job. I pay most of the expenses in the house, her income goes to debt, mostly education expenses and some medical (since she doesn't have insurance through her job). We've stayed in Florida where the job market isn't that great for her for my sake, I wanted to get some tenure at my job. Now, she's looking everywhere in Florida and out of state, but we know how the job market is. She just got a job working for a restaurant and the group that owns them is headquartered here, so she will try to get into corporate after being in the restaurant for a few months. If she got a decent paying job with benefits, we could kill out debt in 2 years tops.
Anyway, after rent, bills, car, food and entertainment we have $300 left over each month. I put that in savings because if it's not one thing, it's another. This month alone I needed $400 for an MRI (my insurance deductible) and $400 for new car tires (I've ridden them as far as they can go).
I max out my 401K contribution, I have $20K in savings (cash in a savings account). Since our financial situation is fragile, I don't want to invest that money, I need it in cash right now. I'm thinking of paying off my car in Jan 2014 with $5K savings and I need the other $5K for a medical procedure this year. So I'll be down to $10K, plus whatever I'm able to save this year.
My GF's mom retired and lives on $1600 SS and pension combined, no savings. That's depressing too.
I'm in Finance myself, so I'm not having issues with money management, just the idea that this is going to go on forever, and in the end, I'll collect my $1600 check and ride the bus. I know the key is to stay out of debt, but sometimes you can't help it. Most our debt is education debt. I do have a car, but I need it to get to work. I didn't want to buy used because I had a bad experience and I just wanted to have a car from start to finish. I'm hoping to pay it off in 4 years and drive it for 10 total. I take care of it well. Our other car is used.
I'm just so frustrated with the economic situation and the future outlook. The idiots in Washington don't care and will play with people's money like it's fake monopoly money. Sometimes I just want to quit everything, file bankruptcy and start over. Of course I can't do that because since I work in Finance, I will never be able to find another job. Sigh!
To me, the big question is are you on a track to making a larger and larger income over the years, enough to buy property, truly save for retirement, and all of that?
If so, don't worry, this too shall pass. I happen to think that young people (I am over 60) are getting screwed big time re: student loans. It's very depressing.
I understand all this. I try. I put money into 401K to get the max employer match. I will start looking at some other vehicles once our financial situation stabilizes - they way our budget is right now, I have $300 left over every month that I save, unless the car needs something, or I need to go to the dentist. I understand the frugal mentality, but I don't want to live like I'm dead. Yes we have cable, but seriously considered getting rid of it. We decided that if we don't get it, we will go out more and spend more $$. We have $10 gym memberships and that's about it. We did invest in reliable cars with one already paid off and the other will be at the end of this year, or mid-next year.
Anyways, I assume that the people on this forum are above level intelligence, have decent jobs, put money away and understand how this works. I think we are in the minority. My GF's mom doesn't get anything about money. My GF's coworker lives paycheck to paycheck, she doesn't have a car, doesn't have cable, doesn't go anywhere and lives in income restricted housing. She doesn't save, nor does their job having matching 401Ks. She is 32. What will happen to these people when they can no longer work?
I can see where this is going though. It seems that it will be the same BS it is now. Those of us that work don't qualify for reasonably priced housing, food stamps, any kind of breaks on anything. We will get screwed by SS too. They will argue that we should have saved enough, while those that never tried to get better jobs, make more money, learn about finances, or save will get a hand out. That's the only way I see it. There will be people at a certain point that won't be able to work to 70 and have $0 in savings, so what, they go on disability? So disability will be the new SS?
You really need, big time, to get off your high horse and stop yelling about those who get government benefits. Quite often, my friend, more than you realize, it is there but for the grace of God go I. I think your attitude really stinks on that one. I can see why you don't work in a job that involves compassionate work with those who have less than you do - you would want to blame them.
(And for all of those who are going to write to me to support his attitude, don't bother. I will not respond. It's all drivel.)
But as far as your pessimism (and scapegoat, whining attitude also) is concerned, listen, I have always found that people like yourself who have a "normal worried" attitude (which is good at your age) and who do watch your money carefully and do plan well as you do, and who do work hard and in a responsible way: You will, just you wait, find out that things will get better, because you will keep your eyes open for opportunities in your life and career. You are that type and you are someone to be admired.
But get off that insulting, put down - and very ill informed and prejudiced - attitude towards those who get food stamps, assisted housing, etc. Life is complex. People sometimes don't have the background which you obviously have which supports them as they make good decisions for themselves. If you want to complain, do something to show them how to do it right, so that they will know how to best live their lives.
yeah, people always like to complain about the younger generation. i dont really like to be a part of that kind of complaining but i am seeing a lot of negativity towards the younger generation now as if the other ones were any better. there was an article about how wonderful kids think they are now and how they post all these pictures on facebook and think they are special. my mom thinks her generation of baby boomers is so wonderful and her father was part of a generation that named themselves "the greatest generation." so its all kind of silly.
My mom just retired in her 50's (she gets a pension) and she said the same thing. I thought she was just being lazy but she always said how hard it was for her to go to work and she was always tired.
I'm in my late 20's and I PRAY I can retire by 50. I know a lot can change in the next 20 yrs or so but I don't want to work until 65 if I don't have to. I'll need to figure out a plan and make some sacrifices.
Exhausted in the early 50's? That's ridiculous. I am past 60 by a few years. Listen, my husband started a new career, new job, taking the train and then the subway to work, at age 56, most workers (he is a techie) being far younger, 30 years younger, often, and he loved his job, stayed there over 10 years, not tired.
Because it was work he liked.
Someone all worn down at 53? They don't like the job, that's all.
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