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Old 12-23-2016, 09:34 AM
 
Location: RVA
2,164 posts, read 1,265,106 times
Reputation: 4451

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Quote:
Originally Posted by FREE866 View Post
I think the title of this thread is a little silly and the notion that if you don't spend a lot of money that you're "passing up the good things in life" I find almost sad.
It is a little silly, as obviously millions of people retire with having millions. The OP has her well off parents as a reference, as as I mentioned much earlier, there is a huge difference between managing to retire as in the title and retiring with options or comfortably. There are many nice things that require more money to experience in retirement. There are many more that require little to none. The post does bring up again, the oft mentioned problems that the younger generations will have in probably needing a lot more money than their parents had in order to experience the same level of retirement. From that standpoint it is a very worthwhile post.

This not a general statement for all people, but really the children of parents that have exceeded their parwnts in financial success. No one in my generations of retired family has ever had a pension. They were all labor based or self employed all their lives. I was only the second out of all my cousins to graduate from college. Only my one uncle ever went to college, and never finished. My one older cousing graduated 3 years before me. We both have had far better financial success than our siblings. We will have a more secire and comforanle retirement than our previous generations, while our siblings will probably still be better but much closer to what our parents all had. I dont see any of our kids doing significantly etter or even as well
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Old 12-23-2016, 04:31 PM
 
Location: RVA
2,164 posts, read 1,265,106 times
Reputation: 4451
I meant millions retire without having millions..
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Old 12-23-2016, 08:59 PM
 
3,460 posts, read 2,197,292 times
Reputation: 6130
Quote:
Originally Posted by JRR View Post
The part about contributing to an IRA/401k near to the max as soon as you become a working adult sounds good, but in reality how many people can do that? Especially if you have a family, it may be all one can do to pay the bills, much less saving a lot for retirement.

My wife and I didn't have any children but it was still tough for us to save much for the first 20 years of our marriage. Then we were lucky enough to both get good jobs with a nice 401k match and saved like heck for the 21 years that we worked there, until we retired. But not everyone has been/will be that lucky.
Math is always on the side of the person who does this as early as possible than waiting until later. People overall aren't good money managers. I've known too many people who gave excuses why they couldn't save money, yet I see them lease cars, go out of town on vacations each year, and somehow come up with money for things like superbowl tickets. And then they have habits like smoking and drinking, which they do each week and always seem to have money for that. They still visit Starbucks every day, because it's only $5.00. Then they run up credit card debt with gifts each year. It is about making choices. In the book the Automatic Millionaire it starts off talking about a couple of very modest incomes who were able to retire wealthy by doing the same thing consistently over many years.
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Old 12-23-2016, 09:05 PM
 
3,460 posts, read 2,197,292 times
Reputation: 6130
Quote:
Originally Posted by ABQ2015 View Post
For several years, there have been news articles that detail why many Americans have not benefited from 401(k)s, often due to lack of money available to invest or a lack of investment expertise especially during economic downfalls. I have both a 401(k) and a government pension and I consider my pension to be very magical. No risk, no can't sleep at night worrying about the next recession, and for me it was a better rate of return than my 401(k). Also tax deferred 401(k) distributions are considered income that increase adjusted gross income and can result in social security reductions as more of it is taxed or in future means testing or in Medicare Part B increases. It is just the balance that is not counted.
Their lack of money, I already answered tonight. A pension is at risk. They can change the terms of a pension at any time. Many people who have had pensions for years from very large companies are handed a lump-sump in exchange for it, or are forced into lower paying annuities. With a pension, you don't have any control and where is the reward is sticking with a job you hate where there are far more exciting things to do with your career. Just because you decide to stick with the government job or company, doesn't mean they won't downsize you too. You don't have to lose sleep about saving money and investing it if you take the intelligent long-term view on it, it will always reward you, instead of putting your faith in the factory, your boss, the government, instead the 401(k) and IRA money belongs to you 100%. You control it. The people who retire wealthy didn't do it by investing in risky investments. They have time on their side. But many people know more about the names of sports players than how to do about asset allocation of their on portfolio.

"While income you receive from your 401(k) or other qualified retirement plan does not impact the amount of Social Security retirement benefits you receive each month, you may be required to pay taxes on some or all of your benefits if your annual income exceeds a certain threshold."
Can Your 401(k) Impact Your Social Security Benefits? | Investopedia
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Old 12-23-2016, 11:16 PM
 
Location: southwestern USA
1,815 posts, read 1,758,311 times
Reputation: 2396
Adjust your retirement lifestyle to the reality of your financial situation.
Do not dream of a champagne lifestyle if you can only afford beer.
Live within your means----we know we cannot afford a Mercedes so we do not drive one. We do not eat in expensive places a lot because we will have buyers remorse.
Live within your means----this doesn't mean a grim lifestyle----it just means a realistic lifestyle.
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Old 12-24-2016, 12:11 AM
 
Location: State of Transition
78,593 posts, read 70,482,002 times
Reputation: 76560
Quote:
Originally Posted by Larry Siegel View Post
>How do people without millions manage to retire?

Social Security, defined benefit pension plan, health insurance paid for by an ex-employer, frugal living, living with children or other relatives, leaving the country, leaving the city, co-housing.
This, and they hope and pray that they won't need home health care or a nursing home in advanced old age. That really burns through money. That's why it's recommended to have millions.
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Old 12-24-2016, 01:34 AM
 
71,511 posts, read 71,674,131 times
Reputation: 49088
medicaid will just pay the tab . but you have no choice if the only beds are 100 miles away from family .
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Old 12-24-2016, 09:12 AM
 
361 posts, read 621,035 times
Reputation: 496
Quote:
Originally Posted by AnnaGWS View Post
Never ask "Do you take my insurance?" Ask "Are you in-network for my insurance plan." Ask for a "bill" prior to a procedure. Check the procedure code with your insurance company. Make sure you get "pre-authorization" prior to procedures, if required by your insurance plan.
Great info... thank you.
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Old 12-25-2016, 07:17 PM
 
33,046 posts, read 22,043,990 times
Reputation: 8970
Quote:
Originally Posted by jefffla01 View Post
Adjust your retirement lifestyle to the reality of your financial situation.
Do not dream of a champagne lifestyle if you can only afford beer.
Live within your means----we know we cannot afford a Mercedes so we do not drive one. We do not eat in expensive places a lot because we will have buyers remorse.
Live within your means----this doesn't mean a grim lifestyle----it just means a realistic lifestyle.

For many people, living within their means requires a grim lifestyle.
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Old 12-25-2016, 09:14 PM
 
Location: On the road
5,926 posts, read 2,887,264 times
Reputation: 11336
Quote:
Originally Posted by freemkt View Post
For many people, living within their means requires a grim lifestyle.
Well the word "grim" is somewhat open-ended. For example I wouldn't consider anyone who could afford to throw money into precious metals investments as short on cash, if their lifestyle is suffering is more because of poor choices.
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