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.
Not everywhere. My property in Connecticut has an annual mortgage of around 36,000 and that figure is fixed (20-year note). Taxes and insurance currently total 23,000, and they rise every year. Maintenance is easily 12,000 per year.
yes but that's on top of the mortgage. So even if your taxes and maintenance are high, it's still half of what you are currently paying. Pay off your house so you don't have a mortgage payment in retirement cuts your housing costs in half, if you stay in the same house.
Not everywhere. My property in Connecticut has an annual mortgage of around 36,000 and that figure is fixed (20-year note). Taxes and insurance currently total 23,000, and they rise every year. Maintenance is easily 12,000 per year.
That's where relocating to a lower COLA makes sense.
Some have no choice and others have always worked until they could not.
No one in my family has ever had a pension...
There are plenty of retired people that make ends meet by being frugal.
At one time it would have been unthinkable to retire with bills... like a mortgage or car payment... people would actually spend money on that new 40 year roof or upgrades just so they didn't have to do it when retired.
I could be wrong but it looks like taxes of all kinds will be my highest expense... California has his sales tax, income tax and expensive gasoline...
I know we are suppose to have low property tax but pushing a $1000 per month can be a retirement buster.
I'm a firm believer in living beneath your means if at all possible. I personally save more than half my income because I derive more pleasure knowing I have a safety net of my own than immersing myself in luxuries and material goods.
I personally hope to retire someday in a place in the south with better weather. a lower COL, and a government that isn't a corrupt third world parasitic farce like in Illinois.
Geez, if you don't have one, at least plan to retire without one. For someone who complains so much, you put very little effort into improving your own situation
A lot of people did have pensions.........they disappeared as fast as unions did.........
I don't know how old you are or what your background is but yes, a good strategy would be building a solid career in the public sector. LE (police) has entry requirements but if you have a clean background, 60 college credits and are physically fit (and have the right temperament, don't mind night shifts, etc.) that's an option with 25 year service and out in some places, and good officers are wanted pretty much anywhere. Also the pay is solid middle class, but if that's all worth the enormous stress, that's your call.
...and you have to be fairly young to enter the police force.
Anyway, my advice is to make as much money as possible and save 30% of it. If you have any ability in business or the professions, then a low-risk choice like public service is not a good idea.
Let's face it, it's getting harder to retire, pensions are becoming a relic of a bygone day (except for the CEO's and the public sector). Social Security and Medicare are in trouble. Do you think we should plan on working till we die?
And, if you do agree that this is more likely, what career paths would be the most viable for this?
Social Security is a supplement to what a person has been able to save. Of course, for poor people (and there are many), SS is their main if not only source of income. Medicare still costs several hundred a month, too.
It is entirely possible to save for one's retirement without making a lot of money. I did it. It requires self discipline, living beneath your means, and foregoing getting the latest and the best of things. Not that I haven't made my mistakes of impulse buying and bad decisions.
Examples would be: No expensive vacations, no trips to Europe. No flat screen tvs when the tube ones still work. No electronic tablets, unless there's a specific use for one. No SmartPhones, only cell phones. Buy laptops on sale. Buy nice clothing at discount places (and second hand shops that sell high end clothing). No coffee at Starbucks. Pace the eating out (bring lunch to work). Etc., etc.
The expenditures add up. There's no need to buy the cable package that has ALL the stations. If you live in a big city and can get digital signals from the tv towers, there's no need for cable at all. Get a Roku (thousands of free stations). Subscribe to Netflix instead ($100/yr). Get an Ooma for your phone use (practically free). Zero in on pricey things, like home insurance and auto insurance. Price shop for those.
You can save a LOT of money every year, if you make that your goal. That money goes into a 401k or investment account. Don't know about investments? Buy some investment books (at the used book store), or get them from the library.
If you get a cheap Kindle, you can get a lot of books for free! Anyway, if a young person saves whatever s/he can, and invests (after having an emergency savings account fund), a person can retire at a reasonable age with Social Security to supplement, and the lower cost of Medicare vs. the regular insurance market. And if one takes care of one's health, all the more savings. Don't smoke, drink often, walk often, eat vegetables, keep the weight down, etc.
Of course, you are assuming that you will WANT to retire. Most people I know don't want to retire. You get to where your identity is tied to your job that you are at a loss, if you lose that. Or you really enjoy it.
I'm not retiring in luxury. It's a big change for me. I have to watch every dollar. I've also had to endure the teasing about my frugality over the years. As I look around at all the things I've bought and not used, or doodads that serve no purpose, I have many regrets about spending money foolishly. Why did I buy a miter saw instead of renting one? Stupid.
I am also moving to a lower COL area. It can be traumatic to move after years of living somewhere. But it may be necessary.
Don't believe the investment cos. that say you need a LOT of money to retire. You need a lot, but not a LOT. You can figure what your expenses will be, in today's dollars (include the occasional big expenses, like a new car or roof), and see what you need to live. Try to pay off your house before you retire (unless the interest gives you a big cut in your income taxes...but at some point, that cut won't be so big). Whatever you pay in interest is an automatic GAIN when you pay off your house, then put that money into your investment account to earn MORE.
Don't get carried away with expensive cars. Think about TIME. Your financial situation will improve gradually over time. The car you buy will be good, solid, reliable...you will pay it off and keep it for many years. Ba-da-bing...you have saved thousands by not buying another car in 5 or 7 years, since you kept yours for 15.
Don't be risky with your investments. Steady as she goes. Whenever you ask for advice, stress that you want to be conservative, but are looking for growth (if you are young). There are people out there who advise all sorts of risky things, and they make them sound so reasonable.
Nowadays many people "semi-retire" either working part-time or doing jobs with a lot of flexibility, such as substitute teaching. My early 70-ish mom is a good example, she's a real estate agent.
The secret to a stress free retirement is to have almost all of your large bills paid off. Then live within your means.
This.
Debt is a crippler.
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.
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.
