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Old 08-10-2014, 02:32 PM
 
Location: Albuquerque NM
1,670 posts, read 1,536,094 times
Reputation: 3657

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Quote:
Originally Posted by Never2L8 View Post
I'm with those who feel that family planning and financial planning go hand in hand.

I see 30something two-salary couples who are both still in serious debt with student loans, credit card debt, mortgage payments, car loans or lease payments... deciding to start a family "because the biological clock is ticking" or "because they don't want to be OLD grandparents" (I seriously heard someone say this and was mindboggled). No matter that the wife will have to either stop working to raise the kid(s) OR pay someone for daycare. No matter that their total indebtness is well into six figures and the one-salary result of childbearing won't even approach $100K/yr. No matter that their financial plan during the expensive childrearing years is to "take vacations closer to home instead, for a while". No matter that they have NO plan in place to fund the offspring's college education (I can only assume that THEY assume the kids "can just take out student loans, like we did").
Married couples in their 30's with actual jobs and at least some college having children? Sounds great to me! In my state, 50% of births are to teenage mothers, 50% are to unmarried couples, and 70% of all births are paid by Medicaid. But I agree with you on the family planning and financial planning comment.
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Old 08-10-2014, 02:34 PM
 
Location: SW MO
23,605 posts, read 31,552,600 times
Reputation: 29083
Quote:
Originally Posted by Escort Rider View Post
We have been through this discussion before. I wonder what percentage of the non-savers has a secure pension adequate to live on in retirement. That would make a HUGE difference, although I am not advocating that people with pensions do not (ideally) need savings as well.
Exactly! We have decent pensions and reasonable Social Security which gives us a better than average, median household income in most of the states. Upon retirement we also had modest 401(k)s. We both started at about ground zero when we married six years before my wife had to retire for medical reasons and 12 years before I retired. My "0" was thanks to a divorce in which I lost just about everything; my wife's due to having to raise her two daughters with absolutely no support from their father.

Fast forward to recent years and medical costs not just wiped-out our savings but threw us into debt. Thankfully we still have the steady pension and SS incomes so savings will build up again over time, but slowly now. I can't begin to imagine what it would be like without those benefits which we worked hard for.
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Old 08-10-2014, 02:39 PM
 
Location: Amongst the AZ Cactus
7,074 posts, read 4,943,547 times
Reputation: 7701
Quote:
Originally Posted by KYBob View Post
Personal Responsibility I think this is an issue that is critical not only to one's financial success but also to life in general.
YES.
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Old 08-10-2014, 02:58 PM
 
Location: Amongst the AZ Cactus
7,074 posts, read 4,943,547 times
Reputation: 7701
It's obvious we live in a victim mentality society today where personal responsibility somehow got lost in the weeds somewhere for many. Long term planning ahead for many seems to end at what will I make for dinner 2 hours from now.

Throughout my life, I can't even count how many times I've heard people who make good money tell me they have no money to save for retirement. Translation....I don't want to save for retirement as I spend every last dime I have on stuff. That's a choice. I called a few of them out over the years when they went on and on whining about how "broke" they are and asked them....... if you can't "survive" making $150k, 100k, 75k, 50k, whatever a year and can't put away a few $ for retirement now, how do you ever expect to retire? I usually got a blank look or the topic changed quickly. But the obvious answer is they'll never retire with that mentality. And I tell them I hope they really enjoy working for their entire life(or until their health fails) because that's what they'll be doing.

It's a choice people. Make minimum wage/not enough money? Better yourself. Go to college. Learn a trade. Even if it's a class or 2 in the evening while your working.

The river of De-nial is long as they say. And if one wants to save nothing/work their entire life as their goal, more power to them. But many of us don't feel sorry for you or really care for that matter when they complain about the situation they find themselves in when they had every opportunity to take a different path. We make our own bed/our own choices in life and must live with what arises from them.

And please, above all else, don't ask other responsible people to make up for your poor life decisions.
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Old 08-10-2014, 03:04 PM
 
Location: In my mind
288 posts, read 167,768 times
Reputation: 797
Quote:
Originally Posted by mathjak107 View Post
huh ? what was it invested in when all diversified funds recovered every penny and more? was it citi bank stock? if it was not something diversified then a speculation was made again in only one investment and one outcome, human error again if that is the case.
A deferred compensation account is an account offered by an employer that is secondary for retirement. The incentive is for employees to contribute the tax is deferred until the funds are drawn out. With me so far? The account is turned over to a company to manage & invest ours was handled by CitiBank. You don't chose specific stocks they offer either horizon option risk based on years until retirement, 10 yrs, 20 yrs etc & invest in stock that have performed best for the account. They also offer US Co, Foriegn Co, Socially Responsible, Savings Pool, etc.

I had chosen the Horizen account originally 30yrs, then 20 yrs, then 10 yrs, some US, some Foriegn, and a few Socially Resposible. When the market tanked theyt all went down across the board. SO...The $50K I had in Socially Responsible (very risky) was now worth $10K so even when the market recovered I was only recieving interest on the $10K. Do you see how that works????? Yes the market recovered but they didn't give me back my $40K, I am virtually starting over & the market has been fluctualting every
since so I would still reccomend Not investing unless you can afford to loose the money.

Sorry about the nine million middle class. My finger got stuck I guess.
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Old 08-10-2014, 03:09 PM
 
72,092 posts, read 72,094,203 times
Reputation: 49627
So it wasn't the markets that took your money ,it was you bailing out of a long term asset because of short term volatility.


The real issue i believe is you were invested in something that had more volatility then you had stomach for.

I am on the 401k comittee at my company. Folks just fling money blindly in to things with no rhyme or reason. Most found out they were invested far riskier then they could tolerate.

As the last 146 years has demonstrated not waiting for markets to rebound and trying to time things rarely works.

For most john bogle offers the best advice.

Don't just do something ,stand there!
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Old 08-10-2014, 04:10 PM
 
Location: In my mind
288 posts, read 167,768 times
Reputation: 797
No my money is still right there. Just not nearly as much as I had. I can't afford to move it... I used to check it daily, but now I just wait for my quarterly reports & hope I recoop all my loses.
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Old 08-10-2014, 04:23 PM
 
72,092 posts, read 72,094,203 times
Reputation: 49627
well you had to do something to not allow it to bounce back. like i said there isn't a fund i know of that lost money.

if i remember what you wrote you pulled money out of the more aggressive one and moved in to the more conservative one.

that is what you do at market highs, not after markets plunge.
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Old 08-10-2014, 04:41 PM
 
29,891 posts, read 34,951,892 times
Reputation: 11793
Quote:
Originally Posted by Frydazechild View Post
A deferred compensation account is an account offered by an employer that is secondary for retirement. The incentive is for employees to contribute the tax is deferred until the funds are drawn out. With me so far? The account is turned over to a company to manage & invest ours was handled by CitiBank. You don't chose specific stocks they offer either horizon option risk based on years until retirement, 10 yrs, 20 yrs etc & invest in stock that have performed best for the account. They also offer US Co, Foriegn Co, Socially Responsible, Savings Pool, etc.

I had chosen the Horizen account originally 30yrs, then 20 yrs, then 10 yrs, some US, some Foriegn, and a few Socially Resposible. When the market tanked theyt all went down across the board. SO...The $50K I had in Socially Responsible (very risky) was now worth $10K so even when the market recovered I was only recieving interest on the $10K. Do you see how that works????? Yes the market recovered but they didn't give me back my $40K, I am virtually starting over & the market has been fluctualting every
since so I would still reccomend Not investing unless you can afford to loose the money.

Sorry about the nine million middle class. My finger got stuck I guess.
Did you retire after the crash? What type of funds is your money in now?
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Old 08-10-2014, 05:07 PM
 
Location: In my mind
288 posts, read 167,768 times
Reputation: 797
I misspoke when I said I didn't have the original amount. What I should have said was I don't have what I had anticipated for that time span. That particular investestment has rebounded to a little more than I had, but nowhere near what I would have if my $ had worked for me for the 8 or so years the market was
in a slump. The real problem is as you state the Horizen accounts were set up for the risk factors; so the
30 yr Horizen acct was for people that had 30 yrs until retirement and so on down the line. I was
close to retirement when the bottom fell out; unfortunately.
I am not drawing money from my deferred account but I can no longer invest there either. Right now I have my regular retirement account that I draw from & if I ever feel the market is right again, I will move all my investments to the savings pool. I would like to draw $ out of that account but right now I need for it to continue growing until the monthly w/drawls would be sufficient to make a subtancial difference in my income, not just enough to put me @ the same tax bracket I was in when I contributed. That was the whole point of being deferred.
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