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I actually think that was the OPs point. People say "Max your 401k" on here without qualifiers all the time or even asking what the person's financial situation is. And I fully agree that in many cases it makes sense to do so - especially if its a person late in their career who has been neglecting retirement savings for two decades. Nonetheless, nuance matters. The idea that "Max your 401k" is a "rule" as asinine. Perhaps calling it a goal makes more sense. For many, an aspirational one they may never reach but that doesn't mean dog food is necessarily in their future. Retirement planning is much more complicated than that.
And yet you feel comfortable going on and on and on about it
This isn't true, I went on about my person experience in retirement spending which was contrary to the absolute statement you made about how people who save 25% of their income while working would then use it to fill up their free time.
You still haven't answered as to whether that was your experience in retirement.
You still haven't provided a source to your claims about massive increase in entertainment spending in retirement.
To put in perspective the ridiculousness of your post:
Couple making 100k spend 20% of that on entertainment while working, saving 25%.
Couple retires, and by your logic they would then spend that 25% to fill their days.
Their retirement budget is now 45% of their spending.
Absurd.
Quote:
Originally Posted by MrRational
But what will you do with all the extra time no longer spent working & commuting?
Here's a hint: It'll chew up most of that 25%, etc that you think you won't need.
It's true, I'm only aware of laws in California. Why would I know any other state? But then your statement about what you need to retire is also less accurate. You live overseas, not in USA. Pot's calling kettle black?
Because you said 401ks are protected while IRAs are not. This is only true for certain states, and under certain conditions, so very poor advice. It is akin to someone living in Arizona saying the United States is dry, thinking everyone else must live in their own sphere of existence.
As I already explained to you, my post on retirement spending was from my experience retired in the United States.
Because you said 401ks are protected while IRAs are not. This is only true for certain states, and under certain conditions, so very poor advice. It is akin to someone living in Arizona saying the United States is dry, thinking everyone else must live in their own sphere of existence.
As I already explained to you, my post on retirement spending was from my experience retired in the United States.
As I stated, I live in California. No more than you state your expense is low but you live in a third world somewhere at least that's what you admitted somewhere. Others have posted their experience in NY as Mathjak.
No more than you made generalization that Chinese food is not salty, the last time I checked they were very high sodium and fat. And you think there is zilch chance that somebody has $1.7m and abuse ACA. Hello, that guy posted his exact asset on Early retirement forum. So you basically like to argue, or hold some egrudge somewhere. I refuse to respond to you. So goodbye.
As I stated, I live in California. No more than you state your expense is low but you live in a third world somewhere at least that's what you admitted somewhere. Others have posted their experience in NY as Mathjak.
Third time explaining = my comment on retirement expenses was related to our time retired in the United States. This is a recording.
Quote:
Originally Posted by NewbieHere
No more than you made generalization that Chinese food is not salty, the last time I checked they were very high sodium and fat.
It certainly is, because in some states IRAs are protected. Therefore making the blanket statement that 401ks are protected and IRAs are not is false, there are a lot of variables in there including what state you live in.
Quote:
Originally Posted by NewbieHere
And you think there is zilch chance that somebody has $1.7m and abuse ACA. Hello, that guy posted his exact asset on Early retirement forum. So you basically like to argue, or hold some egrudge somewhere. I refuse to respond to you. So goodbye.
I shouldn't even address this feeble attempt at distraction but my position (in another forum, on another thread, about a different subject) was that millionaire early retirees with incomes low enough to claim subsidies is rare and putting a system in place to means check might cost more than what you'd save the program.Why would I claim there is zilch chance when I'm one of them?
Telling someone with a family that only earns 40k/year they need to max their 401k is insane - they can't and you might cause them to give up hope and not save anything at all.
Try not assuming that someone making 40K is destitute. There are many, many places in the country where people can get by just fine, including maxing out 401K's on 40K...especially when you paid 20K for your house and your house payment costs less than your cell phone bill...
I'm not sure I'd say not having an extra 18k a year is destitute. That said, if you can keep a family of 4-5 going comfortably on 22k/year (im assuming zero tax liability) then good for you. That seems an unbelievable stretch to me without cutting corners most people wouldn't be willing to cut or relying on government services.
Just checked and yeah...That is a little below the federal poverty level. Which admittedly is probably based on national averages and pulled up by larger cities. Still.
Also true -- I personally did max out some in my 20s but didn't start until almost age 26 bc I graduated grad school at 25. So yeah I'm behind where I would be if I started working at 22 and the only way to "remedy" that is to max out.
How many people can max out the year they get out of school? They must be making my salary (after working 30 years) immediately after getting their B.S.?
Not talking about you specifically, but there has always been a good deal of humble bragging here. And many people start out strong but find out they can't live with that level of extreme deprivation once they try to (seriously) date, marry and have kids....life does interrupt and it does cost money.
I'll never save to that point - because you also hear of those that can't turn from being a miser to having any kind of fun after 40-50 years. I guess the cats will inherit it all.
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