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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").
IMHO the problem is that most people have no real grasp of how much it costs to raise a child nowadays. Even if they read articles etc, they probably think "oh, we can get by for less than that." Maybe they can, but they are betting their financial future on it, with odds no better than they'd get at Vegas.
I agree with you, with one caveat: No one ever tells them that they can't afford to have children. (Wanna bet they are not reading articles that state how much it costs to raise one child?) No one teaches them how to budget. Every high school child should have to take a 1-unit course in personal finance every year for four years.
No one told me and my ex that we couldn't afford a third child (who was an accident, btw -- that does happen). When I was contemplating an abortion because I knew we couldn't afford another child (we were already having trouble with two children), our parents told us "God will provide".** No one taught me (or my ex) how to budget -- I learned how to do so from a magazine article when I was in my early 30s. To this day, if you ask a room full of senior citizens (65+) if they have a budget written down, 75% of them will say no "because I have it all up here" (as they tap their heads) or "because I have no credit card debt". (I know -- I have asked them.) I would suspect it's not much different for middle-aged people.
**And I'm not blaming my parents or grandparents - because when they were working, they could work at middle-class jobs, pay their bills (there were no credit cards), make ends meet (and get a little ahead) and still provide for retirement or their families took them in. That simply doesn't happen these days. Our college graduates -- with their student loans -- are working in fast-food restaurants.
So I need to visit with a financial planner/advisor? Right now my tax rate if 20%. I will be eligable for SS in a few years. I guess I do need some advise I don't even know if SS is taxable. I know one of the banks I use has a program they say I can roll all the funds over tax free into a 401K, but I am not sure if
the rate of return would be higher or lower. I think I am just too afraid to touch the money right now because I don't want to go backward again.
I had a co-worker that was like that.
Put 3 kids through private college, paid for 2 weddings for his sons (the girls' families didn't have money), took lavish trips and then wondered at 64 why he had no money saved. He did live life to its fullest and it cost him dearly.
This was the wisest man here IMO and I'd do the exact same thing. He enjoyed his life, did everything while he was young and could enjoy it. As we age it simply is harder and for some, there are activities that we enjoyed at 30 or 40, that now at 70 we cant do. He may not even live to retirement and that would have been a shame to scrimp and save for an early death. He took a sure bet by living for the day.
He is only wise until he is not then life can be down right miserable. Considering you can live longer in your retirement years then you even spent working that may end up being not the wisest man but one of the stupidest.
Nothings a problem until its a problem. Saving for retirement and dying early on is the one mistake in life you will never live to regret.
He is only wise until he is not then life can be down right miserable. Considering you can live longer in your retirement years then you even spent working that may end up being not the wisest man but one of the stupidest.
Nothings a problem until its a problem.
He can check out any time he wants and have had a great life. There's nothing great about being 70 and having money, that's actually pretty sad for most situations IMO.
I'd completely regret have made decisions to save money and not do things when I was in my 30's to 50's because I had to save for a mythical retirement.
I would start working with a CPA or EA (Enrolled Agent) who is able to do tax planning with you. Find someone who is willing to work jointly with a financial/retirement planner. Then start working with a financial/retirement planner who is willing to work together with your CPA/EA.
QUOTE=Yakscsd;36027908]He can check out any time he wants and have had a great life. There's nothing great about being 70 and having money, that's actually pretty sad for most situations IMO.
I'd completely regret have made decisions to save money and not do things when I was in my 30's to 50's because I had to save for a mythical retirement.[/quote]
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Everything in life is a balance. While i didn't do everything in life i wanted i balanced it out with the future.
Now that i am semiretired at 61 with some bucks saved i am sooooo glad i planned it this way. We will actually be living a better lifestyle now that we are not raising a family.
Being relatively healthy and in good shape we have some fabulous trips coming up..
We also saved enough to have relatively stress free retirement and not have to sweat every unexpected expense.
Life can be pretty miserable in retirement when you have no money and no choices in life
He can check out any time he wants and have had a great life. There's nothing great about being 70 and having money, that's actually pretty sad for most situations IMO.
I'd completely regret have made decisions to save money and not do things when I was in my 30's to 50's because I had to save for a mythical retirement.
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