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Old 04-25-2015, 02:01 AM
 
71,520 posts, read 71,694,121 times
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no one really knows what anyone has and who really cares. far to much time is spent digging up articles about failing and not enough time is spent learning how to make our own plans better.
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Old 04-25-2015, 07:59 AM
 
368 posts, read 459,137 times
Reputation: 494
Quote:
Originally Posted by VJDAY81445 View Post
I have no mortgage or car loan, however, if my...fixed expenses over $2,000 a month........I would b e high tailing it to a place with a lower cost of living.

When I re-located, property taxes were one of the reasons.

Any state/city where my taxes would be over $1,000 per year got scratched from my list.

Currently, $620 covers my annual property tax on my house, property tax on two vehicles, and license/registration on those two./

I live a very small town in Ma., 120 residents, and they all believe their taxes are cheap, because they are compared to other towns around here and in Vt. We even got windmills on town property that are supposed to add to the towns revenue. What did they do?, went out and bought a road grader. My taxes are 4300/yr and even my neighbor with 1/4 acre and a falling down trailer, pays more than 1000. Ive argued this at town meetings for years, looked at as a cheap .....
Everything else adds up quick too, like groceries, gas, propane, electric, tv phone internet, etc.
Heck my health ins is 975/mo/ for 6250 deductible. I have no cell phone, and a 1990 dodge.
2000 is nothing round here in the rural Northeast.
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Old 04-25-2015, 08:20 AM
 
Location: Metro Seattle Area - Born and Raised
716 posts, read 292,457 times
Reputation: 1761
It sucks, but it's the individual's/couple responsibility to prepare properly for retirement. I started later than "I" wanted to, but played catch up with saving 15% of my monthly earnings to make things happen. I'm in my early 50s and retired on approximately 77% of my monthly net income, AFTER the deductions of my savings and taxes. Yes, I have a pension... I took a job that had a pension plan and didn't pay that much in the beginning. Several of my friends said I was stupid to go that route verse making the "big money" in the corporate world, which many of them took a hit after the meltdowns in 2008.

Most of my friends drive new Lexus and BMW cars, have super nice homes, as well as go on nice yearly vacations... I drive a four year old Jeep and my wife drives a Hyundai, we take small vacations and own a modest home in a working class neighborhood.

Now, that I'm retired with a secured pension and close to 500Ks in my 401k savings, which I will not touch for at least 3 more years, my friends and family are not laughing at my career choices and life style anymore. Several of my friends are now looking into their own retirement plans, which requires them to work until their early 60s, with a return of between 50% to 70% of their individual monthly needs... These figures includes their planned Social Security payments.

I should also note that I stayed in the Military Reserves to secure a second pension, which I will be able to draw on at my 60th birthday. To be honest, serving in the military reserves is a serious pain in your "civilian" and family life... For me!! I can't even began to tell you how many times I wanted to quite or the troubles it caused in my civilian occupation, but only stuck it out since I was looking at the bigger picture... I had a difficult time in balancing both careers, but I made it very clear in the beginning that my civilian job took priority over everything and only retired as a senior enlisted member, which I'm more than fine with.

After retiring last December, I decided to take a 6 month "break" before seeking out a non-demanding, stress-free part-time job were I do my given task and at the end of the shift, forget about the job and go home. The only reason why I'm seeking out P/T work is to fund some of my hobbies and continue to make improvements in my house for the next 3 years before drawing on the earned interest of my 401K savings WITHOUT touching any of the principle.

Life is demanding and we all can come up with excuses on why "we" didn't save for retirement. Again, it's an individual responsibility to secure our own futures... Even in a tough economy. Choices have to be made early in ones career to either prepare for the future or live in the now.

Most everybody... With a few exceptions, can save at least 10% monthly gross income and adjust it into their budget... Also, living in a life style that supports your saving efforts will make it easier to save... IMHO

I'm not an expert in this field or do I claim to be one. I'm just stating what "I" did to make it into my retirement. I truly wish everybody well with their own retirement plans!!!
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Old 04-25-2015, 08:34 AM
 
Location: Jamestown, NY
7,841 posts, read 7,327,156 times
Reputation: 13779
Quote:
Originally Posted by BLS2753 View Post
The problem is that the people writing these articles, assume an upper middle class lifestyle as a baseline for human existence. If you notice anytime they delve into individual cases of retirement gone awry, it's always some professional or management type living in the NYC or D.C. 'burbs. They never interview a janitor in middle America, putting down his broom, filing for SS, and living happily ever after.
Exactly. The chances are that that janitor may have barely made $1 million in his entire working life, so how in hell could he have realistically managed to accumulate $1 million in retirement savings, even if he had been an "aggressive" investor? OTOH, he might have a defined benefit plan pension with a potential value of $250k or more that coupled with his SS will enable him to live modestly in a paid off bungalow with a paid off car, and even afford the occasional vacation.
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Old 04-25-2015, 08:39 AM
 
Location: Central NY
4,666 posts, read 3,241,188 times
Reputation: 11932
Default Well said.

Quote:
Originally Posted by John13 View Post
Divorce and/or the downturn in the economy can have a big say in that.

Unexpected job loss at a critical age and most firms not hiring those who are in their 50s can wipe a person out. Maybe people should not stereotype or harshly criticize when they don't really know the details or can't relate to what many older Americans are now going through.

Could not have said it better. People do tend to judge those less fortunate in their retirement money not fully understanding how it came to be that way. I was downsized twice, out of work for a long time and needed to use some 401K money. And let's not forget health costs and what they can do to your retirement money.

As far as pensions go a lot of companies are eliminating them. Something that people in my generation took for granted. We assumed a pension would always be there.

Same for SS. While I struggle with the concept that SS money will "run out" soon, it's certainly something that has to be thought about. The government has helped itself to much of that money designated for SS and never felt the need to pay it back.

People's financial lives are becoming less and less a sure thing as time goes by. If we can get our government straightened out (believe me, I have no idea what that would take) maybe peoples' futures would look better.
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Old 04-25-2015, 08:43 AM
 
950 posts, read 714,519 times
Reputation: 1615
Quote:
Originally Posted by cvap View Post
I live a very small town in Ma., 120 residents, and they all believe their taxes are cheap, because they are compared to other towns around here and in Vt. We even got windmills on town property that are supposed to add to the towns revenue. What did they do?, went out and bought a road grader. My taxes are 4300/yr and even my neighbor with 1/4 acre and a falling down trailer, pays more than 1000. Ive argued this at town meetings for years, looked at as a cheap .....
Everything else adds up quick too, like groceries, gas, propane, electric, tv phone internet, etc.
Heck my health ins is 975/mo/ for 6250 deductible. I have no cell phone, and a 1990 dodge.
2000 is nothing round here in the rural Northeast.

First off...........I could never have retired if I was facing a $4300 a year property tax.
Also, I certainly could not absorb a $975/mo health insurance

Low property taxes where I am and the VA plus Medicare takes care of my health worries.

Right there I have saved............$1300 a month compared to you

Last edited by VJDAY81445; 04-25-2015 at 08:57 AM..
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Old 04-25-2015, 12:26 PM
 
11,935 posts, read 20,383,027 times
Reputation: 19328
Quote:
Originally Posted by Linda_d View Post
Exactly. The chances are that that janitor may have barely made $1 million in his entire working life, so how in hell could he have realistically managed to accumulate $1 million in retirement savings, even if he had been an "aggressive" investor? OTOH, he might have a defined benefit plan pension with a potential value of $250k or more that coupled with his SS will enable him to live modestly in a paid off bungalow with a paid off car, and even afford the occasional vacation.
The AVERAGE wage is 25K -- so in 40 years he will have made 1 million. BUT -- if he takes 10% of his wages and saves them monthly, and invests, using the 6% I've been reading is now the average return we should expect from the market, he ends up with an return of around 440K. Certainly nothing to sneeze at.

Now-- here is something else to think about. When we started our janitorial business, we thought we'd do the work for a year or two and then power up, add people and get more contracts and become management. In 1998, the going wage for janitorial in the Bay Area was 8 bucks an hour.

17 years later, it's 10.71.

How in the Sam Hill is that keeping up with the costs of living?

By the way -- we decided to keep it a mom and pop. No sharing the money with anyone -- 'cept the government.
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Old 04-25-2015, 01:24 PM
 
29,775 posts, read 34,860,277 times
Reputation: 11705
Quote:
Originally Posted by DaveinMtAiry View Post
I totally agree with the posts here criticizing the article. Again another alarmist article. Whenever I see figures like $7 million it just screams of writers trying to get attention and clicks. When I saw the figures the first thing I wondered was the age of the respondents.

No doubt Americans are not saving enough, and I have no doubt there is some validity to the $7 million figure. But it's not the entire story.
NO, NO and no again. It isn't about clicks it is pure and honestly about getting your money and getting it for their clients via a work place savings account. Not all surveys and not all survey publications are but this one clearly is. It was done by EBRI which stands for Employee Benefits Research Institute. Is a research and lobbyist support group for the financial industry and provides them research and data so they can argue and lobby for different ways to get your money. They don't lobby directly but provide data and support for those who do.
t
Employee Benefit Research Institute | EBRI

Facts About EBRI | EBRI

Quote:
Quote:
The members of the Institute determined that their common business interests will be furthered by having the Institute develop and disseminate such information. In all its activities the Institute shall function strictly in an objective and unbiased manner and not as an advocate or opponent of any position.
EBRI was founded on four points of purpose:

To conduct, and to encourage others to conduct, research relating to employee benefit plans, whether governmental, private, or otherwise.
To assemble and disseminate information on employee benefits, by publication or otherwise, to the general public, including interested organizations, both private and governmental.
To sponsor lectures, debates, roundtables, forums, and study groups on employee benefit plans.
To carry out all such activities as a research and educational organization.
HOW DOES EBRI DO IT?

EBRI provides credible, reliable, and objective research, data, and analysis. The belief: neither public nor private policy or initiatives, whether institutional or individual, can be successful unless they are founded on sound, objective, relevant, verifiable information.
EBRI is funded by membership dues, grants, and contributions. EBRI’s financial base includes a cross section of pension funds; businesses; associations; labor unions; health care providers; insurers; banks; mutual funds; government organizations; and service firms, including actuarial firms, employee benefit consulting firms, law firms, accounting firms, and investment management firms.
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Old 04-25-2015, 02:13 PM
 
2,630 posts, read 1,934,527 times
Reputation: 4597
Quote:
Originally Posted by LauraC View Post
"Study after study shows that Americans are not saving for retirement like they should, and a new survey finds that nearly one third of people who have some sort of savings plan have amassed less than $1,000 for retirement. The survey titled “Preparing for Retirement in America,” by Employee Benefit Research Institute (EBRI) and Greenwald and Associates, finds that only 65 percent of workers have any savings for retirement, a number that fell below the 75 percent figure from 2009. But 28 percent of workers report that they have saved less than $1,000 for retirement, and almost 6 in 10 Americans say that their financial planning needs improvement. Additionally, 34 percent say they have made no effort at all to saving anything or make a retirement plan."

Almost a Third of Savers Have Banked Less Than $1,000 for Retirement

There is a link in the article to the actual study.

What do you predict the 62% (28% that saved less than $1,000 and 34% who say they have made no effort at all to save for retirement) will say when they reach retirement age?

If they are thirty years old, so what. That article doesn't give an age those people are at.

BUT: Once 40, preferably before 40, you must put greater than 50% of your take home pay (or its equivalent) into a "cannot touch under any circumstances" account. Period. No exceptions. Can't touch it. Put it away and forget it even exists.

That is Rule #1 ...and Rule #2...and Rule #3.

I don't care what day and age. Those are the rules. Buy those "toys" early and cease that behavior by 40.

Tomorrows world is very unpredictable. More so today than ever. This is NOT gramma grampa's world. So it's just that much more important.
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Old 04-25-2015, 03:28 PM
 
Location: RVA
2,164 posts, read 1,265,616 times
Reputation: 4451
I know many, many successful savers, that live/lived below their means, would never be considered rich or very highly paid, and will or are retired comfortably, and not a single one saved 50% of their take home pay. Now if you mean "If you want to retire at 50", then I would buy that. But a "normal" early retirement by 62? That's insane. Due to divorce and the tech bubble, I basically started with only about 50k net worth, with 12k of that in a 401K in my mid 30s. I am very well off now, no fear at all about retirement, (but I have a nice defined pension) and I'm 57, and I never saved more than 25%. Most of the time it was 15%. I COULD retire tomorrow, if I had to or was wiling to drag up and move to a lower cost area, and modify my lifestyle. But I'd much rather work at what I enjoy and retire in my early 60s with a guaranteed income of $120k a year than at 58 with $60k a year, and wait until SS to kick in to bring me up to $80k. No thanks. May sound petty, or self righteous, but I haven't worked my whole life as I have, at what I do, to take that kind of a hit. That's like a Doctor working until he pays off his loans, then enough to save $1M, and then living on $50k a year, retired at 45, the rest of his life until SS kicks in. Who would do that?
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