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)
 
Old 02-17-2008, 02:04 PM
Status: "0-0-2 Game On!" (set 20 days ago)
 
Location: The beautiful Rogue Valley, Oregon
7,343 posts, read 15,410,733 times
Reputation: 9563

Advertisements

Quote:
Originally Posted by Cattknap View Post
I think life is too short to spend your free time reading about financial matters.

I agree with this somewhat - you need to spend the time to understand what your options are, and the upside and down side of each one, and you need to spend the time to keep current. But that doesn't mean reading the business/finance pages every day and checking your financial portfolio on a daily basis. You do need to keep an eye on things and have a reasonable grasp of future possibilities. Just parking the money with a manager somewhere, without oversight, is a potential for disaster, no matter how honest your money manager is or how well-intentioned.

I do use an investment firm for a chunk of my portfolio, despite knowing that I'm buying management fees twice. But he subscribes to all the newsletters, reads all the prospectuses (prospectii?), goes to all the shareholder meetings, tracks changes in fund/stock/company, acts according to my wishes (we're invested in several places he wouldn't have chosen on his own, but that I felt made sense - such as an oil services fund, an agricultural services fund) and he provides me with a viewpoint that is alternative to mine. It's a good balance, and one I'm willing to pay for.
Reply With Quote Quick reply to this message

 
Old 02-17-2008, 04:17 PM
 
29,910 posts, read 34,976,474 times
Reputation: 11812
Quote:
Originally Posted by sheri257 View Post
Well ... it's not something I would do if I was planning to retire in a couple of years. But, since I won't be retiring for at least 20 years ... I don't think cashing out some of your home equity to boost the retirement account is necessarily a bad idea if there's a good point spread between the cost of the debt and the investment return, as I previously mentioned.

Of course, there are risks but ... isn't retirement these days pretty much based on risk? Afterall ... the whole concept of the 401K is essentially based on stock market returns. You don't build much of a 401K retirement staying in safe investments forever.

Not that I'm advocating getting into the market now either ... I pulled out of stocks last summer and probably won't get back into stocks for at least another year. I think we have a lot more downside to go before stocks start going up again ...

But, when it looks like this bear market is over ... I could see cashing out some equity to invest in stocks as a pretty good idea. Or, maybe just selling the house all together (of course when the housing market comes back) ... since we want to move to another location eventually anyway.
Most gain is associated with risk. I am recently retired with my wife and I both having very good pensions. We will be social security eligible in two years. We will probably have her take hers and I will wait. We are well up there in social security. We have three investment baskets:

Short Term

Medium

Long Range

We have 3-4 years of overage if needed in short term investments non stock.

Our medium range funds are in balanced or targeted date funds.

Our long range investments are much more risk/gain oriented.

The fortunate thing about this strategy is we are not bear market impacted prior to her being social security eligible and at that point we don't need the investments for fall back cost ( medical etc).
Reply With Quote Quick reply to this message
 
Old 02-18-2008, 10:07 AM
 
29,910 posts, read 34,976,474 times
Reputation: 11812
Retirement Insecurity
Reply With Quote Quick reply to this message
 
Old 02-18-2008, 10:32 AM
 
Location: Earth
1,480 posts, read 4,489,219 times
Reputation: 1430
Quote:
Originally Posted by Buckhead_Broker View Post
OK folks, I've read these posts for about a year or so. Either it's the crowd that this forum attracts or somewhere along the path people didn't learn how to save for the future. So, what is it?

Did many of you never learn about planning for your future?

Was there just not enough income to save for the future?

Was it not important to save for the future?

Why is it that so many people facing retirement are so ill-prepared after 30-40years of working?
Maybe it's because of our materialistic, high consumption culture driven by media star-worship, rap music, the belief that we will be rich some day, and a sense of entitlement.

Or perhaps the invisible hand of capitalism has evolved our economy into such an opportunistic environment that prices are set so as to take every disposable dollar from households. I don't think there's enough income to save for the future.
Reply With Quote Quick reply to this message
 
Old 02-18-2008, 11:29 AM
 
26,596 posts, read 52,485,278 times
Reputation: 20468
I have several colleagues that truly live for the moment with almost no thought to the future...

One young lady told me that no one in her family lived long enough to collect Social Security so she didn't see the point of saving for retirement
Reply With Quote Quick reply to this message
 
Old 02-18-2008, 12:06 PM
 
13,359 posts, read 25,647,265 times
Reputation: 20654
One friend once said, "Oh, I figure the government will take care of us."
I pointed out, the same government you protested against when you had (long) hair, the same one that doesn't support poor children, is going to take care of you and your boyfriend who eat out every day and buy all sorts of crap?"
(Boyfriend's family had some money. I do think a lot of people just assume they'll be raking it in later).
Bald friend went to work for the V.A., which has a good pension plan.
It's disgraceful to see people in their 40s and 50s and up waiting for elders to die to get an inheritance. I hope the elders spend every bloody cent on their needs and pleasures.
Reply With Quote Quick reply to this message
 
Old 02-19-2008, 10:48 AM
 
1,861 posts, read 3,028,433 times
Reputation: 559
I think a lot has to do with the fact that real wages have been stuck for about 3 decades, but everything else has gone up.

Who can save anything? Most of my money goes for my bills - housing, food, utilities, insurance, etc. - and just about every year, everything goes up more than my salary which goes up 3%.

And, I'm by myself - no kids to support, just me. I cannot IMAGINE a family living on a salary of $45,000 - the median salary in the U.S.

If you make enough money to be "comfortable" (unlike myself), you might not notice what other people's situations are. It's tough for many, many people, and it's NOT because they went around spending money foolishly.

1/3 of elderly single women are in poverty. I don't think it's because they have charge cards.
Reply With Quote Quick reply to this message
 
Old 02-19-2008, 03:06 PM
 
1,145 posts, read 1,730,747 times
Reputation: 888
I think there are many factors:

-Budgeting is not taught enough by parents and should be mandatory in schools;
-People want instant gratification;
-It's now easier than ever to have credit cards and there is more temptation to buy;
-The new "me, me me" mentality: people think they deserve everything without proper planning;
-Some people are afraid to open their credit card statements. They should check their balance regularly online to avoid any surprises.
-Few people learn how to cook! Restaurants should be a once in a while treat! It would make it extra special to go out as well!
-Some people think that money grows on trees;
-Some children are imitating their parents' overspending and are taught to love material things;
-We think that somehow social security will still be there to give us that retirement we want, therefore not thinking about the financial future;
-Some people buy too much house for their real needs;
-Wants are becoming needs;
-Some people want to impress others with expensive gifts etc.
-They want to spend everything now because "life is too short" instead of planning a 6-8 months emergency fund and retirement accounts...

And I could go on forever!!

Good thing there are shows like the Suze Orman show and the debt diet on Oprah to open some eyes...
Reply With Quote Quick reply to this message
 
Old 02-19-2008, 03:20 PM
 
Location: Atlanta
738 posts, read 646,449 times
Reputation: 279
Quote:
Originally Posted by Eastern Roamer View Post
. I don't think there's enough income to save for the future.
And please, Eastern Roamer, I don't say this to you, but to anyone who thinks there is not enough income to save for the future.

This also applies to the person who said something fairly similar below about all their money going to bills; if you don't make enough to save, you essentially have two options - either spend less or do whatever is necessary to increase your earnings potential. To bemoan the situation as hopeless is pathetic.
Reply With Quote Quick reply to this message
 
Old 02-19-2008, 03:22 PM
 
Location: Atlanta
738 posts, read 646,449 times
Reputation: 279
Quote:
Originally Posted by brightdoglover View Post
One friend once said, "Oh, I figure the government will take care of us."
I pointed out, the same government you protested against when you had (long) hair, the same one that doesn't support poor children, is going to take care of you and your boyfriend who eat out every day and buy all sorts of crap?"
These are the exact people the bloodsucking Democrats live for! With the promise of taking away from the producers in our society to give to the folks you mention, that's how they pander for votes. The idea that we need "wealth redistribution" in this country is insane. The wealth has already been distributed - to the very people who earned it!
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
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