Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I wouldn't worry about it. Some people just are not savers. You can't change adults and there are extremes on both ends of the spectrum. Some people are too frugal and never get to enjoy the money they saved, some people overspend and never see the money they could've saved. The best thing I've determined for me is to find a middle ground. Moderation is key.
I have some family and friends who continue to say the following when it comes to increasing saving rate for retirement or saving anything at all:
1. I rather spend it all now, why increase savings for when I am 60?
2. My mom says "why increase my saving above the company match, I want to enjoy life now", "why save all the money for you and your siblings to fight over". She recently went in her 401k to purchase $49k truck.She says she wants to spend her money anytime she wants.
3. One uncle says "putting all that money in 401K for what its all marketing, all that retirement stuff is just ways to get your money and the market to make more money off of it. I am enjoying life now"
4. my close says "it is what it is, why would I save all that money for when I am 64, what kind of fun can you have at 64
"You do your thing and I'll do my thing. But don't come to me after you retire asking for cash or a loan or any kind of help."
I've got (older) friends from work who teased me about my spreadsheets, obsession with paying off the house, and obsession with saving. Now I'm retired and they're still working because they can't afford to retire.
How much do you plan to contribute annually to reach 10 million at age 65 with the aforementioned rate of return?
I don't anymore.
I meant that number if I don't contribute anymore.
I already have a good savings for my age. If I don't save any single dime from now on I'd estimate that value to be reached on my 65th year.
If I keep contributing, then I'd end up with more, but like I said one's goal, if needed could now just to enjoy. I'm young and can pretty much spend all my salary thaat i don't think would even make a dent my retirement goals.
Of course I still save though, but at a much lower rate than I used to. Nowadays I save around 30% or so of my Salary income. (i'm not counting other types of income such as dividends, or rentals that i may have i always reinvest those)
The numbers don't add up. If you have $100k saved and don't add anymore, after 40 years at 8% that $100k will be worth around $2.1 million. It would take almost $500k to reach $10 million after 40 years at 8%.
well i dont have 100k
i have a studio that i could sell for 150k and is rented that has no debt on it plus my stock holdings+ other income from rentals (that i have debt on where i didnt have to put any money down so the return here is pretty much infinite almost) + salary
i dont live in my own house though. i rather rent out the studio that is mine and share a house with friends, where each has its own room.
I would not say anything, except maybe to my parents "I hope those Medicare nursing homes improve a lot by the time you need one because that is all you are going to be able to afford!"
I doubt that there are too many people over 60 who would say "gee, I wished I had spent more money when I was younger". And I am POSITIVE there are millions of people over 60 who would say "gee, I wished I had saved more of that money that I stupidly spent when I was younger, since now I can barely pay my rent and food".
Location: Chapel Hill, NC, formerly NoVA and Phila
9,764 posts, read 15,714,546 times
Reputation: 10855
I think for some people they need it broken down to a very basic level. That is:
1. Age expectancy is about 80 years.
2. From age 0-20 Mom and Dad pay for you.
3. From age 20-80 you need to pay for yourself.
4. The money you make from age 20-60 needs to last you for 60 years, not 40 years.
5. Therefore, don't spend everything you make.
No matter what you say, you probably won't change the minds of non-savers, but this is what I say:
--Having money put away for retirement doesn't just benefit me at age 64. It benefits me in the here & now because I have a better "sleep at night" factor than most people. I'm 43 and am approaching the point where I could get by with a low paying job and not have to worry about retiring in poverty (assuming I don't touch what I've saved until my late 50s or so).
--If you max out your 401K in your 20s & 30s, there's a good chance you won't need to work in your 50s & 60s unless you want to. Working because you want to & working because you need to are 2 completely different worlds.
--Most people get booted out of good paying employment in their 50s....so it's really not a safe bet that you'll be able to work full time into your 60s.
--Much of the money people spend is not adding anything to their life satisfaction (even though they think it is).
--The discipline you get from saving spills over into other aspects of your life as well. People with a lot of self discipline are generally happier than people who don't have much. (This is backed up by psychologists such as Sonja Lyubormirsky, who wrote "The How of Happiness").
It also turns out that humans are actually pretty bad at predicting what will make them happy. They think the dream house and the nice car or the (fill in the blank) will make them happier than the ok house and the ok car...but it turns out once you reach the "ordinary nice" threshold, anything beyond that doesn't add to happiness.
Good post, i'm a little older than you (48) and kind of think along the same lines in respect to what I've saved already and not touching it. I hope to stop working in 14 years with enough dough to to fund me and wifey to the tune of 95k/year for rest of our lives.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
