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Old 01-11-2018, 02:09 AM
 
33,046 posts, read 22,057,675 times
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Quote:
Originally Posted by AnnaLee2 View Post
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".

That would never happen at my workplace because the people who have access to payroll records know better than to ask.
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Old 01-11-2018, 06:37 AM
 
15,734 posts, read 9,251,350 times
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Quote:
Originally Posted by freemkt View Post
I have a co-worker who is 72 and he still has a RENT payment!
OMG! My mom is 77 and still has a RENT payment. Why? Because it's the cheaper option. She also has a nice retirement income. Probably because she scrimped, saved, planned and didn't spend money on useless crap like storage facilities to hold junk. She also wasn't satisfied with earning a minimum wage income for her entire life, and did whatever it took to increase the income, year by year. All this with having no college education, and being out of the workforce until she was 40, when my dad left her.
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Old 01-11-2018, 08:02 AM
 
Location: Tennessee
23,581 posts, read 17,567,761 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.
$7k/year tax free here would probably be 3.5x median HHI for those who are still working and paying taxes. It would not be rolling in dough, but would be very comfortable for a retired couple, presumably without too many expenses.
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Old 01-11-2018, 08:35 AM
 
Location: Dayton, OH
605 posts, read 273,510 times
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Quote:
Originally Posted by columbusboy8 View Post
I wouldn't say anything. They know what they're doing, and are living in the moment. They aren't stupid, but they ain't too bright either. Let it go...
Aesop got it right. There will always be grasshoppers, and there will always be ants.

Don't think there's much you can do to change human nature.
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Old 01-11-2018, 09:13 AM
bg7
 
7,697 posts, read 8,168,803 times
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Quote:
Originally Posted by emm74 View Post
It recently came up in conversations with a couple of people I know (I know them separately, I don't mean they are a couple) that neither of them is saving anything at all for retirement. Nada, zilch, zero. They are both around 50, working full time, career type jobs but for different reasons, neither is saving anything at all. They both rent, so they won't have the fall back of a paid off home to live in. One of them seems to have a small employer funded 401k, so that's at best a few percent of salary, the other one I know for sure doesn't contribute at all and there is no employer contribution, so they truly have absolutely nothing saved for retirement.

I know the best answer is to keep my mouth shut, but would you say anything at all, maybe point them to some really, really basic budgeting and saving information? If you would say anything, do you have an specific websites or books you'd suggest?

At this point, I'm thinking I wouldn't initiate a conversation but if the subject came up again, I might say something like "I have some resources I could suggest if you wanted to take a look". But then again, it might fall on deaf ears given that the answer to "what do you plan to live on in retirement" was basically a shrug.


Say nothing - save your breath. You'll be hearing from them about 20 years (on the future CD retirement forum equivalent) when they state all those who are "lucky" in their financial position retirement shouldn't crow, and bemoaning their own bad fortune.
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Old 01-11-2018, 09:15 AM
bg7
 
7,697 posts, read 8,168,803 times
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Quote:
Originally Posted by Serious Conversation View Post
$7k/year tax free here would probably be 3.5x median HHI for those who are still working and paying taxes. It would not be rolling in dough, but would be very comfortable for a retired couple, presumably without too many expenses.
I don't think so.
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Old 01-11-2018, 10:53 AM
 
Location: Connecticut
26,329 posts, read 42,294,861 times
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I remember years ago having a conversation with two young secretaries in our office. Neither was taking advantage of our company's 401k plan which matched several thousand dollars of retirement savings. I explained to them how they are giving away free money and their return on their investment will at least double so they would be stupid not to take advantage of it. They both signed up for it with one getting very aggressive in her savings there.

Years later the one who began to save aggressively thanked me. She had saved a sizable amount of money and was able to quit the job and go back to school to do something she liked. She borrowed against the 401k to do this and yet still had more than enough to retire when she turns 60. The other secretary got married and moved so I have no idea what happened with her. Still she should have a nice little nest egg when she retires.

Not saving for retirement is definitely a bad idea. Getting some money out of your hands before you even see it kind of makes it easy. When I started, I was saving about 10% but every year as I got raises, I would increase the amount until I met the maximum. It has definitely worked out since by every account I see DW and I should have more than enough for retirement when we choose to do so. Jay
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Old 01-11-2018, 11:05 AM
 
Location: In a vehicle.
5,029 posts, read 3,216,023 times
Reputation: 8217
Quote:
Originally Posted by emm74 View Post
I know the best answer is to keep my mouth shut, but would you say anything at all, maybe point them to some really, really basic budgeting and saving information? If you would say anything, do you have an specific websites or books you'd suggest?
.

Just leave pictures like this one on their desks with a note saying "Is this your future?" and watch what happens...
Attached Thumbnails
What (if anything) do you say to friends who aren't saving for retirement?-download-3-.jpg  
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Old 01-11-2018, 11:46 AM
 
Location: Camberville
12,030 posts, read 16,768,354 times
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In my case, this is both my parents and my partner's parents. My parents saved in the 80s and 90s, but my dad (the breadwinner until I was in high school) has had unstable income for the past 15 years and my mom always worked low wage jobs. They haven't contributed to retirement in over a decade, and even worse, my dad is daytrading what they do have. They're in their early 60s and have under $200,000 in retirement. I know that's more than most people, but goodness gracious does that terrify me. For many reasons, I've had to cut them out of my lives and it became clear that they were anticipating that their children would make up the gap.

My boyfriend's parents have basically said as much - they have bupkis saved and invested everything in the family farm in the middle of nowhere that will be practically worthless in resale value. The nearest job center is 2 hours away, and even that is a fairly small city. I have had to make it very clear to my boyfriend that I am saving for my, and hopefully our, future but his parents' irresponsibility will absolutely not be my problem. They will not be coming to live with us and we will not be paying the gap. We can't afford it, and I am neither willing to sacrifice my own retirement nor my future children's college savings to bail them out.

Those are the only two people I have said anything to about their retirement savings.
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Old 01-11-2018, 11:49 AM
Status: "Disagreeing is not the same thing as trolling." (set 11 days ago)
 
Location: Texas
9,540 posts, read 3,654,679 times
Reputation: 19553
Quote:
Originally Posted by Ariadne22 View Post

Honestly, there's a lot to this, especially if she never married and has always lived alone, and doesn't think about investments much. It's hard for single women - at least it was in my era - especially if never married. I've often said a woman should be married at least once. When we split, I took the investment real estate, he took his business. We both were in decent shape after the divorce because of the marriage - pooling of resources. That real estate was my foundation. .
I've always said the same - that single women have it hard, financially. Every never-married woman over 40 that I know is broke and poor. One lives in a shelter now, and that's even with having a college degree. If they'd been married and divorced, they would have something. Although no, I'm not saying people should marry just for financial security.
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