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Old 02-02-2016, 11:42 PM
 
Location: Albuquerque NM
1,662 posts, read 1,530,329 times
Reputation: 3650

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If her employer offers any matching on a 401k, try to convince your daughter to start contributing to get the match. Thatís free money. Some parents fund Roth IRAs for their adult children. Perhaps agree to fund half of it and her the other half. This might get her interested in investing.

As a single, I had more free time early in my career and got a Masterís degree while working. This helped me obtain an important promotion early on. Being more flexible to relocate or take temporary details might be another way for singles to advance their careers and subsequently their retirement. An emergency fund and disability insurance is more important for a single than life insurance. A single may have fewer medical needs than those with children. So a High Deductible Health Plan that allows you to invest money tax free for future medical costs can be practical and usually has less expensive premiums.

Singles generally have a smaller budget when buying a home and this can be a real disadvantage. We heard two different stories in this forum recently. One single woman bought an inexpensive home in NJ and quadrupled her money in 20 years and the other bought a similar home outside Atlanta and the neighborhood is now so bad that she has basically abandoned it. Homes, especially condos and cheaper starter homes, are not always a good investment in middle America. My older sister lost money on her condo when the complex turned rental. I waited until my salary was large enough that I could afford a small single family home in a nice neighborhood. In 20 years, the value has not quite doubled but it has been a relatively good investment for my part of the country.
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Old 02-02-2016, 11:53 PM
 
Location: Silicon Valley
18,134 posts, read 23,028,696 times
Reputation: 35378
Quote:
Originally Posted by SunGrins View Post
I'm trying to convince my 30 year old daughter to save up for retirement. She is single and looks to stay that way for a while. She is working at a good (public service) job with a career path and paying off her college loan and has few other debts. She has nothing going toward retirement that I know of apart from a future work pension and social security.


Most retirees I know were couples with two incomes and gained some financial leverage over time. I have one friend who has remained single and just retired but she is fearful of every bump in the road. How does a single-for-life person plan for retirement? How different from a couple?
You say she has nothing going to retirement other than a work pension and social security.

So, uh hem, she has a work pension and social security.

What the heck else does she need?

You're not talking about some kid who hasn't saved a thing and never worked. You better back off or you won't have her in your life at all. Kids have this way of disappearing out of their parents' lives if they drive them crazy in adulthood.
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Old 02-03-2016, 06:12 AM
 
Location: Pennsylvania
16,375 posts, read 10,361,162 times
Reputation: 28588
Quote:
Originally Posted by NYgal2NC View Post
I'm sitting here wondering why the OP wrote about the single, never-married women.

."
Probably because that's the description that applies to his daughter and she's the one he's concerned about.
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Old 02-03-2016, 07:04 AM
 
825 posts, read 566,431 times
Reputation: 2603
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Originally Posted by imagardener View Post
You need to talk to someone at Social Security. Anyone married for 10 years and divorced has a claim on their ex-spouse's SS. If his amount is higher than yours you can collect his amount and he will never even know it (he is not contacted and has nothing to do with it).
That's not right. The very most a divorced person can claim on their living ex-spouse's SS record is 50% of his benefit.

If the ex-spouse dies, only then can a divorced person claim up to 100% of their ex-spouse's SS benefit.
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Old 02-03-2016, 07:08 AM
 
Location: Central NY
4,689 posts, read 3,258,145 times
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Originally Posted by PAhippo View Post
Probably because that's the description that applies to his daughter and she's the one he's concerned about.
You might be surprised to hear I knew that.
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Old 02-03-2016, 08:01 AM
 
1,039 posts, read 777,874 times
Reputation: 817
Quote:
Originally Posted by SunGrins View Post
I'm trying to convince my 30 year old daughter to save up for retirement. She is single and looks to stay that way for a while. She is working at a good (public service) job with a career path and paying off her college loan and has few other debts. She has nothing going toward retirement that I know of apart from a future work pension and social security.


Most retirees I know were couples with two incomes and gained some financial leverage over time. I have one friend who has remained single and just retired but she is fearful of every bump in the road. How does a single-for-life person plan for retirement? How different from a couple?
Sounds easy. I mean a man with a SAHW and five kids has to do it one one income.
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Old 02-03-2016, 08:02 AM
 
1,039 posts, read 777,874 times
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Two words of advice for your daughter - "marry rich"
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Old 02-03-2016, 10:47 AM
 
Location: New Mexico
6,620 posts, read 3,687,027 times
Reputation: 12436
Quote:
Originally Posted by NYgal2NC View Post
I'm sitting here wondering why the OP wrote about the single, never-married women.


I didn't specify women. I suppose the retirement strategy would be similar, somewhat, regardless of gender. Women live longer. Divorce was not in her frame of reference but that can be a factor.


Thank you all for the input.
I think maybe I'll just nudge her toward a deferred compensation of some sort....employer probably has a plan and might match a little. Also finding a trustworthy financial advisor down the road might help (Dad won't be here forever).


Of course, marrying a rich guy would be good, too.




An afterthought: I married late in life (age 27)
I wonder if this is considered "late" by young peoples' standards today.
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Old 02-03-2016, 10:54 AM
 
7,953 posts, read 5,058,504 times
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While finances are doubtless important, I aver that the principal challenge is one of lifestyle and intimate relations.

A person without spouse or children can focus relentlessly on his/her career, living an austere and frugal life. If the stock market cooperates, it's possible to amass substantial assets without necessarily earning a high income. And if one focuses on education early, and parlays that into a thriving career, then the financial side – while never guaranteed! – becomes that much easier and more automatic.

But what of hidebound loneliness in one's old age? The OP's daughter is only 30. Many of her peers are probably still single and socially available. Fast forward by another decade or so, and most of her peers – if not the totality – are going to be attached to families. Even for a younger person without a partner, presumably his/her parents are still alive, and form some measure of emotional support. But elderly parents pass away, and eventually one finds oneself in absolute isolation (unless one had siblings, cousins or the like). Then, no amount of wealth can buy a rewarding retirement – or even a rewarding middle age.

So I would suggest to the OP's daughter to focus on her social-skills… not to ignore the financial side, of course – but to make maximal effort not to pass through life completely alone. Independence and solitude can be fun and invigorating while we're young. But once the gray hair becomes not some sporadic finding, but the new reality, then too one's rudely hit by the reality of solitary struggle.
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Old 02-03-2016, 11:31 AM
 
208 posts, read 188,808 times
Reputation: 1033
I have to agree with the person who mentioned a house. As a single never-married woman I own a very modest, very small home in a blue-collar type neighborhood. When I initially moved in, I had to do some major maintenance on the house which is fine but I didn't have enough money leftover to do fancy upgrades. At this point I do not have the finances for fancy upgrades and I've learned to live with things the way they are. However, if and when I do sell the house, it will not fetch much money, not enough to buy into a fancy assisted living facility.

Compare that to most married couples who have beautiful $300,000+ homes in nice neighborhoods. Having 2 incomes provides a much grander house for a married couple and they can build up that much more equity to come out with in retirement, unless of course they stay in the house and continue to pay the higher bills for taxes and maintenance.

As for "single" women who were married but end up getting divorced and not coming out with anything, well, I can see that maybe they are even less ahead than a single never married woman, especially if they stopped working during their married years. However, if you get married, you are giving yourself at least a CHANCE to gain an economic toehold and/or to jump to the next economic rung of the ladder. Whereas a single never married woman doesn't get that chance at all.

I know a woman who was married and is now divorced and from the divorce proceeds she was able to buy herself a vacation home and also owns a small condo. Many women can do well once divorced--they are successful at a job, their own business, or even inherit some money.

The issue for single never married women is who will be there to help us if we are in an accident and need someone to manage our financial affairs temporarily or take care of our homes if we are in rehab. Some of us do not have any family nor do we have friends that can do it or neighbors. I think that is a major concern for single never married women. Lack of support systems.
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