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Old 01-10-2018, 04:07 AM
 
3,025 posts, read 2,244,185 times
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Quote:
Originally Posted by Spuggy View Post
Unless they are asking for advice or help it's really not your place to offer an opinion or advice which is not to say if it came up in conversation and they asked what you are doing you couldn't share what you've been doing.
I know a number of people in their late 50's who have very little saved up. I've spent the last 20 years working hard for a decent retirement but that's me. People are going to do what they are going to do.

I've already told my wife unless someone has an accident/tragedy outside of their control I'm not lending or giving anyone anything.

My wife and I have enough to be comfortable and that's about it. Not rich but comfortable.
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Old 01-10-2018, 04:22 AM
 
Location: Tampa, FL
27,798 posts, read 26,235,889 times
Reputation: 14611
Quote:
Originally Posted by john3232 View Post
I know a number of people in their late 50's who have very little saved up. I've spent the last 20 years working hard for a decent retirement but that's me. People are going to do what they are going to do.

I've already told my wife unless someone has an accident/tragedy outside of their control I'm not lending or giving anyone anything.

My wife and I have enough to be comfortable and that's about it. Not rich but comfortable.
it's (no retirement funds) is a problem that millions of folks will face in the coming decades since most corps did away with the pension program benefits and left the task to each employee to accomplish through ROTH/401k/etc.... I think there's another thread on the topic. So the likelihood is high that OP won't just have one friend, but multiple friends to preach to.

Retirement Crisis in America

Another subject is long term care preparation - with many folks living long lives, the likelihood of needing LTC and not being covered is another topic mid-aged folks need to look at.
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Old 01-10-2018, 05:01 AM
 
210 posts, read 151,173 times
Reputation: 628
Although I think people should mind their own business, I do have an experience counter to myself. In the 90s my husband was out of a job for about a year. I pulled back my contribution to my 401K. My secretary, who was paid less than I was, had access to my payroll records. She stopped me one day and questioned me about it. Naturally I had not and did not share my mortgage payment problems or my husband's joblessness. However, she said she was nosing in because, as a friend, she thought it important that I keep up with my retirement savings. This had a great positive impact on my savings diligence after we got out of our rough spot. I think had she made a lot more money than I did, I would have resented her advice and seen it as "out of touch with the little guy".
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Old 01-10-2018, 09:28 AM
 
199 posts, read 112,515 times
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I don't care. If they are foolish with their money or want to work until they drop dead, that's their business.
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Old 01-10-2018, 03:54 PM
 
Location: Florida and New England
1,233 posts, read 1,419,657 times
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Quote:
Originally Posted by emm74 View Post
Where are you getting two combined incomes? As I specified, these are two single women, not a couple. And I'm not sure why you are assuming they would receive the maximum amount SS pays out, many people have professional careers without earning salaries that put them at the max.

I also already mentioned that neither is a homeowner (or in a position to become one especially with our real estate prices here!) so they will have to worry about housing expenses for the rest of their lives.

Although yes, if they are in a position to do so, they would of course be best served by working until 70. My own retirement plans include that as well - hopefully I'll continue to enjoy my job and want to keep working (and also be able to keep my job of course), and will be able to remain in good health and be able to! I would still be able to manage if that doesn't happen, but my retirement would be far less comfortable if that is the case.
Thank you for the clarifications.

A single retiree paying rent on SS alone is a different kettle of fish entirely -- essentially half the income with much greater housing expenses.

My (single) mother owns her home, but has a HOA payment that is roughly equal to 1BR rent in her seaside village. There is no way she could do this on SS alone, even if she gave up her car.
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Old 01-10-2018, 08:07 PM
 
13,962 posts, read 7,434,967 times
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Quote:
Originally Posted by westender View Post
Let me preface my comments that I do not recommend relying on Social Security alone. However, two people with 35+ years in professional jobs, retiring at 70, should receive the maximum SS amounts, which in current dollars total $3538 per person per month. SS has a built in COLA so it should track close to inflation even as far out as 2030 or whenever these Denver friends retire.

Seven thousand per month, tax free, can go a long way. Maybe not in Denver, but in Fort Morgan or Limon, with a paid off $250k home (assuming they will have ample home equity from Denver), I think SS alone would be adequate.

My gripes about people not saving has more to do with "early retirees" who seem to expect a comfortable retirement at 55 with no savings. Lifetime professionals who wait until 70 have done a form of saving, by paying into the SS system for the maximum, they have created an improved retirement outcome.
My defer-to-age-70 Social Security check is $44,500 (born in 1958, 35 years of max contribution). My girlfriend's is about $40K. My house is paid for and all-in operating costs other than cable are about $6K. My state doesn't tax Social Security income.

I don't understand the Denver comment. I'm sitting in a hotel room in Denver at the moment. I know lots of people who own property in Denver. If you own a paid-for $750K market value home, you're not paying huge property taxes compared to most of the country. It's well less than 1% of the fair market value of the home. In the Northeast Corridor, nobody is taxed that low.

Example:
Here's a house listed on Zillow for $750K. The city had it at $497K in 2016. The property taxes were $3K. If it's bumped to $750K, the taxes would be $4,500. https://www.denvergov.org/apps/realp...e=PropertyInfo

That's certainly affordable on two max Social Security checks. Not so much if one of the couple dies.

I'm with you 100% on the gripe about people with no savings feeling entitled to retire massively early at 55 and live luxuriously. My math all revolves around deferring collecting Social Security until age 70 and creating enough wealth to bridge myself comfortably from when I stop working until age 70. I'm 59 now. If I stopped working today, I'd put a big dent in my net worth by the time I hit age 70. Every year I work, it looks better.
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Old 01-11-2018, 12:50 AM
 
33,046 posts, read 22,083,092 times
Reputation: 8970
Quote:
Originally Posted by VTsnowbird View Post
"Hey, at least I can see you when I go shopping at Walmart!"

It just blows my mind that people don't save for retirement
. I have been saving all my life, it was one of the values instilled in me at a young age. Got some money? Save some of it. With the exception of a couple of years when I wiped out my savings paying college tuition, I have always had money in savings. And I was lucky enough to marry someone who felt the same way.

Also blows my mind that people don't have ANY money in savings. I was selling something online, about $200, and I got the "Can you hold it til Friday when I get paid?" I thought, but didn't say, if you don't even have $200 in savings you probably shouldn't be blowing it on this (totally unnecessary) item I was selling. And of course Friday came and went, no payment.

11 million renters spend at least half their income on shelter (rent plus utilities). How much do you expect them to be saving for retirement?
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Old 01-11-2018, 12:57 AM
 
33,046 posts, read 22,083,092 times
Reputation: 8970
Quote:
Originally Posted by GeoffD View Post
https://www.fool.com/retirement/2017...ough-reti.aspx


2/3 of the country approaching retirement age has a big problem. I just make sure I'm taking care of my own retirement funding. Like most people, I could have done a better job of it. I'm not going to throw rocks at somebody else.

Then we should at least be willing to adapt to downward mobility by allowing them to live in squalor instead of making that option illegal.
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Old 01-11-2018, 01:10 AM
 
33,046 posts, read 22,083,092 times
Reputation: 8970
Quote:
Originally Posted by Vacanegro View Post
Easy - ask them if their company has a 401K ? If yes ask if they are contributing the maximum amt ? Tell them they are likely giving away money and increasing their taxes by not contributing (assuming their company matches some percentage).

And if they say "no" then what?
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Old 01-11-2018, 01:14 AM
 
33,046 posts, read 22,083,092 times
Reputation: 8970
Quote:
Originally Posted by PriscillaVanilla View Post
I would not help out people who don't save for retirement.


How does someone reach the age of 65 and not have one dime saved in an account anywhere?

Low-wage work + The Rent Is Too High.
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