U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
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.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 10-14-2014, 04:26 PM
mlb
 
Location: North Monterey County
3,179 posts, read 2,854,709 times
Reputation: 4876

Advertisements

While I mostly agree with you, it's often taking young people longer to get on their feet now than it was before.


This is absolutely true.

I didn't marry until I was 35. My nieces and nephews are the same - they also started their families much much later.

You cannot always know what life will present you - like a recession - or a failed marriage.
Reply With Quote Quick reply to this message

 
Old 10-14-2014, 04:59 PM
 
Location: Woodinville
3,185 posts, read 4,047,008 times
Reputation: 6267
Quote:
Originally Posted by Emigrations View Post
While I mostly agree with you, it's often taking young people longer to get on their feet now than it was before.

I'm 28 and many of my peers, even those with "good" degrees in fields like finance, computer science, or engineering, couldn't find a related job immediately out of college. If you graduated at 22 or 24 (with master's), you may still be getting close to 30 before you get "on-track" professionally. I got my first $50k, professional job this year at 27, but before that, it was mostly $20k-$30k work.

With low paying junk jobs like that often come fewer benefits. Only two of those five employers offered insurance or retirement benefits of any kind. With a $25k salary, no retirement benefit, and having to live on your own, it's virtually impossible to save for retirement. One bout of pneumonia last year, antibiotics, and an office visit last year cost me $600 out of pocket - a week and a half of net pay. This year, with a higher salary and insurance benefits, another round of pneumonia cost me $47, less than three hours net pay. Even relatively minor things like this can deliver a financial KO to someone who is low wage.
Agree here. Even those of us that gets a 50k/year job right out of college are dealing with ludicrous student loans. I started at 50k/year right after graduation, but with 900/month in student loan payments (post-tax dollars, can't deduct the interest when your parents' name is on the loan) I was poor.

5 years later I'm doing much better, but the raises aren't near what I'd hoped for even with a couple job hops. Still have 24 years worth of payments on my last loan - that's still 350/month. Not chump change.

I can't complain too much, my wife and I are better off than many. But wow, those payments have been really crippling during these early years. I won't be maxing out my 401k any time soon...
Reply With Quote Quick reply to this message
 
Old 10-14-2014, 10:39 PM
 
10,813 posts, read 8,059,843 times
Reputation: 17020
Quote:
Originally Posted by Protege View Post
A pet peeve of mine is when people say, "Those are the best years of your life!" I heard this nonsense when I was a child, in high school, in college, and throughout my 20s.

>snip<

Think it's a waste of youth to save money? I'll see you thirty years.
To whom is this addressed? Has anyone in this thread suggested otherwise?
Reply With Quote Quick reply to this message
 
Old 10-14-2014, 11:09 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,548 posts, read 39,934,465 times
Reputation: 23673
Quote:
This year, with a higher salary and insurance benefits, another round of pneumonia cost me $47, less than three hours net pay. Even relatively minor things like this can deliver a financial KO to someone who is low wage.
Many of us are one illness from financial ruin.

I lost 3 friends last yr who had retired early and died before age 65 due to no coverage (after they had lost their homes to cover $1-2m medical bills.)

I will lose my HC on Dec 31 (even tho I had a great job with benefits for 41 yrs service). I have a very ill spouse so will need to travel for care. Many of my friends are self insured. Gall bladder surgery cost a friend $25k last yr, That is often something you can't 'wait out' a 15 hr flight to Thailand to get done for under $5k. I hope Mexico can stabilize before I need emergency surgery.

Best bet is to keep insured (as affordable) and stay healthy and safe. My premiums would be $1850/ month. So I will stay healthy and take the risk. (Risky with 40% uninsured drivers in my state)
Reply With Quote Quick reply to this message
 
Old 10-15-2014, 09:13 AM
 
Location: Tennessee
23,580 posts, read 17,553,447 times
Reputation: 27640
Quote:
Originally Posted by mlb View Post
While I mostly agree with you, it's often taking young people longer to get on their feet now than it was before.


This is absolutely true.

I didn't marry until I was 35. My nieces and nephews are the same - they also started their families much much later.

You cannot always know what life will present you - like a recession - or a failed marriage.
Knowing what I do now, I would have left Tennessee at 18, gone to college in New England, and never looked back. Being in a healthy area like the northeast where there are ample, well-paying jobs, great schools, and the ability to make strong connections is everything. Being in rural TN where there are few jobs, poor schools, and not as good of ability to make good connections is a handicap.

Still, this is the 28 year old me talking, after the recession, with the knowledge I have now. When I started college in 2004, I was 18, and the economy was better then - not great locally, but people who were graduating then were able to get decent jobs. No one knew the bottom was going to fall out over the next five years.

The only thing I could have changed would have been to graduate on time in 2008 rather than 2010, but I honestly don't think it would have really helped.
Reply With Quote Quick reply to this message
 
Old 10-15-2014, 09:18 AM
 
Location: Tennessee
23,580 posts, read 17,553,447 times
Reputation: 27640
Quote:
Originally Posted by Garfunkle524 View Post
Agree here. Even those of us that gets a 50k/year job right out of college are dealing with ludicrous student loans. I started at 50k/year right after graduation, but with 900/month in student loan payments (post-tax dollars, can't deduct the interest when your parents' name is on the loan) I was poor.

5 years later I'm doing much better, but the raises aren't near what I'd hoped for even with a couple job hops. Still have 24 years worth of payments on my last loan - that's still 350/month. Not chump change.

I can't complain too much, my wife and I are better off than many. But wow, those payments have been really crippling during these early years. I won't be maxing out my 401k any time soon...
Any "education" that you go into decades of debt for just isn't worth it. $900/month student loans? That's more than a lot of mortgages. Though your situation is obviously an edge case, many people end up with lower amounts of debt, but probably lower incomes, and are still in the same effective boat. Saving and investing assumes one has money left over after all expenses are paid, and in these types of cases, any excess is likely to be small.
Reply With Quote Quick reply to this message
 
Old 10-15-2014, 09:20 AM
 
Location: Tennessee
23,580 posts, read 17,553,447 times
Reputation: 27640
Quote:
Originally Posted by StealthRabbit View Post
Many of us are one illness from financial ruin.

I lost 3 friends last yr who had retired early and died before age 65 due to no coverage (after they had lost their homes to cover $1-2m medical bills.)

I will lose my HC on Dec 31 (even tho I had a great job with benefits for 41 yrs service). I have a very ill spouse so will need to travel for care. Many of my friends are self insured. Gall bladder surgery cost a friend $25k last yr, That is often something you can't 'wait out' a 15 hr flight to Thailand to get done for under $5k. I hope Mexico can stabilize before I need emergency surgery.

Best bet is to keep insured (as affordable) and stay healthy and safe. My premiums would be $1850/ month. So I will stay healthy and take the risk. (Risky with 40% uninsured drivers in my state)
Very few people will ever be able to save enough to pay for long-term medical care or even an expensive emergency. $25k is a LOT for the average person to swing quickly and a gall bladder isn't even super serious surgery.

It's terrible to think all of your accumulated wealth over the decades may be gone over something like a gall bladder going out.
Reply With Quote Quick reply to this message
 
Old 10-15-2014, 09:42 AM
 
Location: Woodinville
3,185 posts, read 4,047,008 times
Reputation: 6267
Quote:
Originally Posted by Emigrations View Post
Any "education" that you go into decades of debt for just isn't worth it. $900/month student loans? That's more than a lot of mortgages. Though your situation is obviously an edge case, many people end up with lower amounts of debt, but probably lower incomes, and are still in the same effective boat. Saving and investing assumes one has money left over after all expenses are paid, and in these types of cases, any excess is likely to be small.
I agree. This was a public school too! If I could do it all again I'd have worked my butt off to minimize my loans, but who knows how my grades would have suffered? My situation may have scaled up, but you're right, it's not much different from many others. It's real eye opening to see what those payments can do to a budget. No wonder my (our?) age group is so late to the financial development game.
Reply With Quote Quick reply to this message
 
Old 10-15-2014, 10:17 AM
 
Location: Tennessee
23,580 posts, read 17,553,447 times
Reputation: 27640
Quote:
Originally Posted by Garfunkle524 View Post
I agree. This was a public school too! If I could do it all again I'd have worked my butt off to minimize my loans, but who knows how my grades would have suffered? My situation may have scaled up, but you're right, it's not much different from many others. It's real eye opening to see what those payments can do to a budget. No wonder my (our?) age group is so late to the financial development game.
For many, the good jobs and benefits of the past won't be there anymore. Most of the jobs we're creating are low wage jobs, and with low wage employment comes few benefits. Not only do you have fewer absolute dollars to invest at a low income, you're also less likely to have help from your employer on the investing side.

Moving forward, I think the best strategy for a lot of Millenials is to work from the expense side, cutting expenses and reducing debt, as I don't think many will be able to count on the investment growth and benefits of prior generations.
Reply With Quote Quick reply to this message
 
Old 10-15-2014, 10:24 AM
 
Location: SoCal
6,064 posts, read 9,526,027 times
Reputation: 5789
Quote:
Originally Posted by Emigrations View Post
While I mostly agree with you, it's often taking young people longer to get on their feet now than it was before. ....
This does not doom them to a life a scrimping and an impoverished retirement.

I had 12 "lost" years before I even got back to get a degree. I did look at which degrees were paying well, and was fortunate enough that I liked one of them. I'm now retiring three years early.

If you save and invest as soon as you can, and as much as you can (without cheating yourself out of a good life), you don't need an entire adulthood's worth of earning years to have a good retirement.
Reply With Quote Quick reply to this message
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.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top