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Unhealthy habits are only part of the problem. We're all eventually going to die either from ill health or something sudden (violence, accident, etc). Ill health might be Alzheimer's at age 95, after a lifetime of good diet and exercise. The real problem, in terms of healthcare costs, is not necessarily in treating obese middle-aged smokers, but in costly treatment in the final stages of life, whether those come at 55 or 95. The solution is changing our culture, to embrace the onset of death, instead of trying to medicate it. Can this be done? If not, we will continue to have escalating healthcare costs. It is a choice that we as a society have to make.
This is like the advice I got at a retirement seminar a few months ago. "If you had invested $500 a month, starting in 1980, you would …." Like all typical retirement advice it ignores the fact that I, like most people, wasn't making $500 a month in 1980. My budget at a huge $50 bucks a month for the savings account. Back then, there weren't all these on line trading aps. A broker wouldn't even talk to you for $50 in the stock market.
It's just not helpful to give completely unrealistic advice.
Personally I think Suze Orman and Dave Ramsey are just a step above snake oil.
To me, "retirement" starts the moment my investments and passive income start making enough money every month that they cover all my expenses.
If my outgoing bills are $3,600 and I have $4,000 coming in every month between rental property and dividends I'd consider myself "retired", even if I am still working, because at that point I'm doing it 100% by choice, and I can walk at any moment without worry... That has to be an amazing feeling.
That's why even though I know I could earn more investing beyond my 401k match and Roth IRA, I'm still focused on paying down my 4% student loans as its a guaranteed way to lower my monthly expenses by $370.
Location: Formerly Pleasanton Ca, now in Marietta Ga
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Quote:
Originally Posted by ericp501
To me, "retirement" starts the moment my investments and passive income start making enough money every month that they cover all my expenses.
If my outgoing bills are $3,600 and I have $4,000 coming in every month between rental property and dividends I'd consider myself "retired", even if I am still working, because at that point I'm doing it 100% by choice, and I can walk at any moment without worry... That has to be an amazing feeling.
That's why even though I know I could earn more investing beyond my 401k match and Roth IRA, I'm still focused on paying down my 4% student loans as its a guaranteed way to lower my monthly expenses by $370.
Several people are here are going to tell you that you have the wrong definition of retirement although I now see there is no solid definition nowadays. I have a better income from my rentals than when I worked and spend an hour or two a month overseeing them. Most tell me I'm not retired but have a business.
I would then argue that if this is the case then people who are retired in the conventional sense aren't retired either if they spend any time at all overseeing their market investments whether it being banking, doing tax returns, shifting or rebalancing portfolios.
I will say that when you reach the point you are talking about the feeling is indeed wonderful. The security you feel just makes everything so much nicer.
I listened to Dave Ramsey's radio show for years, and in all those years I heard him give out advice I didn't agree with only one or two times. I listened to him for entertainment. I think he handed out great advice to the financially clueless. (I haven't been financially clueless since I was about 15 years old.)
Location: Formerly Pleasanton Ca, now in Marietta Ga
10,352 posts, read 8,578,998 times
Reputation: 16698
I used to listen to Dave Ramsey in the background while I worked. He had a good radio voice. At the time I wasn't doing great financially and it made me feel better to know there were lots of people more screwed up than me. That said it's amazing how many make a decent wage but have no idea how to not put themselves in a pickle.
I always considered his show entertaining, and yes he has a great radio voice! I always felt validated as he handed out answers identical to the same advice I would have given. He also has a very personable personality.
My parents did well in educating me in personal finance, a subject that was taught dismally poor at my schools. From what I see today I wonder if they teach personal finance at all in today's schools.
Unhealthy habits are only part of the problem. We're all eventually going to die either from ill health or something sudden (violence, accident, etc). Ill health might be Alzheimer's at age 95, after a lifetime of good diet and exercise.
It could be, but Alzheimer's is also highly preventable. People seem to love to talk about the 30% of issues that are beyond our control and ignore the 70% that we have control over and I, for one, am tired of it.
Quote:
Originally Posted by ohio_peasant
The real problem, in terms of healthcare costs, is not necessarily in treating obese middle-aged smokers, but in costly treatment in the final stages of life, whether those come at 55 or 95. The solution is changing our culture, to embrace the onset of death, instead of trying to medicate it. Can this be done? If not, we will continue to have escalating healthcare costs. It is a choice that we as a society have to make.
Yes, I definitely agree with that. We spend insane amounts of money at the end of people's lives that does little to no good.
This is like the advice I got at a retirement seminar a few months ago. "If you had invested $500 a month, starting in 1980, you would …." Like all typical retirement advice it ignores the fact that I, like most people, wasn't making $500 a month in 1980. My budget at a huge $50 bucks a month for the savings account. Back then, there weren't all these on line trading aps. A broker wouldn't even talk to you for $50 in the stock market.
It's just not helpful to give completely unrealistic advice.
Personally I think Suze Orman and Dave Ramsey are just a step above snake oil.
So, back in 1980, you could've gotten CDs or a good bank account that paid interest above the inflation rate. The 1980s were a great time to own CDs.
I think the naysayers live in this world of no possibility. Because one particular option wasn't available to them at a specific point in time, it justifies doing nothing. People who do well financially don't think that way. They do what they can with what they have and go from there. If they only have $50 bucks, they put away the $50 bucks in a CD or whatever the best option is at the time, etc.
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People who do well financially don't think that way. They do what they can with what they have and go from there. If they only have $50 bucks, they put away the $50 bucks in a CD or whatever the best option is at the time, etc.