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I can't recall, and I don't want to read the whole thread again. But, I thought the OP either already had a job, or was working from home with a company he currently works for. Just saying.
I mean c'mon guys, can ya not figure this thread out before you blink twice?
Here you have two naysayers, two rich naysayers, whose lives basically revolve around status and money, trying to make the average joe(OP) feel like he's 'not good enough' or 'doesn't belong' on the islands because he's not rich enough. I mean, read the two usernames. white viper, and solo pilot....see anything in common between them? ...at all? Here's a hint...$$$$$$$
And then in the other, benevolent corner, you have someone like pj, who represents the true ohana of the islands, that sits here and calmly and plainly dispells the negativity brought in by the two elitists. And yes whtviper, you handily fall into that category renting your properties and living over in Kailua. I don't resent that, but I do resent you talking down to someone like they have no chance with the women if they aren't well off like you.
Just goes to show, money doesn't, and has never, bought someone true class.
pj737, keep fighting the good fight and representing the TRUE spirit of the Islands. You are a polished gem of kindess and wisdom and truth on this board.
The yuppies exist in their own little bubbles of reality folks. Take what they say with a grain of salt unless you also plan on devoting your life to chasing the almighty dollar, and self-determiing your own worth based on your investment portfolio and what designer brand is showing for all to see on your sunglasses.
Who am I and where did I come from out of nowhere? ..I'm just one of the 'little people' who works hard and enjoys what I have. WhtViper is very careful and often poised ro play against himself and his true nature, but he doesn't fool me with his well-placed remarks that feebly attempt to somehow blend him in as just another blue-collar joe.
Hawai'i, the true Hawai'i, cares not for what's in your hand, but rather what you hold inside your heart. Look no further than pj737 for a textbook example and let not the disparaging crowd deter any of you from following your dreams.
"No matter what it is, there is nothing that cannot be done"
-Hagakure: The Book of the Samurai
Mahalo,
Jones
Last edited by Cthulhu Rising; 10-18-2016 at 09:37 PM..
There's virtually nothing in those budgets for saving and retirement saving. If you save a respectable amount of money, only $66K doesn't go far in a high cost of living area after you've paid your taxes. The longer you delay your retirement saving, the higher percentage you will need to save for retirement. If you wait too long, most likely, you'll never be able to save enough money.
Under 50 years old, you can save up to $18K per year, over 50 years old, you can save $24K per year in a 401K or equivalent retirement account. I've been maxing my retirement savings for about 20 years. I currently contribute $2K a month to the retirement account. My wife also maxed her retirement savings until she recently retired early. Besides those savings, we save even more for retirement. Even with two high income jobs, each job much higher than $66K, there's not a lot of extra spending money available. The investment money makes even more money, like the income from working an extra job, without having to work that job. That's the way you can become a millionaire, so you can afford to retire anywhere, and working becomes an option, rather than a requirement.
Most people I know have saved little to nothing for retirement, which mirrors the vast number of people in the nation's population who have saved next to nothing and cannot even afford to pay an unexpected $1K expense. There's a huge segment of the population living paycheck to paycheck.
With all that said, if you're young, you can live in a high cost of living place, like Hawaii, making $66K. However, your long term financial future is in jeopardy. Maybe you could live that way, saving little to nothing till your 40s. By your 50s, it's going to be nearly impossible, maybe you'll be locked into retirement in poverty. If you don't save enough by age 60, you will be locked into retirement in poverty.
When your in your 20s, retirement is so far away, but those years go by much faster than you are thinking. So think about paying yourself first, as much as possible, then living on the rest of the money.
^
That is a good point, but I think with reasonable spending and budgeting, saving 10% or 20% of his income in a 401k is possible.
Say $4000 after tax income
- 1500 rent
-200 utilities
-700 food
-600 everything else
$1000 after tax for saving.
that's $12000 year after tax. Or probably 15000 year in a 401k . Numbers are pretty rough and probably high in utilities, food and everything else, but just an example to show how 66k is doable. If you decide to go really frugal on your spending habits, no debt, walk/bike to work, cook most meals, you can possibly save $2k per month after tax, which is like a 50% after tax income savings rate.
It is unwise to put all savings into 401K. In Honolulu, the most important saving is the cash for down payment for your home. But withdrawal from 401K before you turn 59 1/2 will be assessed 10% tax penalty.
I have seen couple individuals, both coming from Mainland, put all their savings in the retirement accounts but ultimately have to leave the island when they retire because no matter how much their retirement savings grow in value, those funds can never match how fast the home prices rise in Honolulu.
I agree that you should never withdraw from your 401K or equivalent retirement account because age 59 1/2 to avoid the penalty. Besides at least maximizing your retirement contributions, $18K per year under age 50 and $24K for age 50 and older, for each person of a couple. Plus, putting at least a 20% down payment on a 15 year home mortgage to avoid PMI.
I understand the need to rent after initially moving. Some people end up renting their entire lives, which I think is generally a bad idea. Although many people, maybe most people, never can earn enough money to save enough money for retirement and own their own home.
Making enough money so you can also live debt free might also be a goal. We paid off our 15 year mortgage in 10 years and bought our new cars with cash, and live debt free. In our case, we would have been better off financially to buy the cars with low interest loans and pay off the house in 15 years, which would have allowed us to make much more money in the market.
It's much harder to make and save enough money in a very high cost of living place, like Hawaii, where the same jobs pay much less than other places on the mainland.
Agreed on the 401k part. I mostly was using that as an example to show the max tax deferred savings.
If you don't have a house yet, and are planning to eventually buy, the funds should go into an investment account or a roth (can withdraw contributions tax free). 5% or so contribution into 401k is reasonable, especially if there is an employer match.
There are some ways that Kama'aina can save money for the down payment. I know some newly wed couples move into the parent's or parent-in-law's house, freeloading for 3-4 years, and then after they save enough money for down payment for the new home, they move out.
And almost everyone I know have their parents or parent-in-law help taking care of their kids so both can go to work.
Cthulhu Rising, thank you for those words of wisdom and the spot on assessments. You have renewed my faith in this forum. I am often struck dumb by the level of discourse and the points of view that seem, to me anyway, elitist and superficial, but I don't mean just here! That goes on in a lot of places. You were able to present things in a much more tactful manner than I would have been, so I usually just don't say anything when these things come up that are so obviously out of step w/ good, well mannered conversation and open minds. You understand the true value of life, and it has not one thing to do w/ money or status.
This has been my pet peeve about Hawaii since first coming there back in 1992. There is the myth of Hawaii, brought forward by slick advertising, real estate ageicies, travel agencies, and decades of books and movies.....and then there is the reality of Hawaii. In that sense, it's no different than anyplace else. You won't have any trouble finding mind sets that are exactly the types that a lot of people move to Hawaii to get away from, and the same problems of the mainland are fully present and on view as soon as someone arrives. Visiting is one thing, living on the islands is another. People can carve out a circle of friends that are more about getting back to what is of value, but there's always going to be a push back from the opposing views of people who exist anywhere and just don't get it. Money allows people to place a buffer between themselves and reality, but at some point the buffer breaks down. That's the good news about that story.
My partner of 13 years recently set out for Hilo on her own because I just wasn't open to paying the price to live in Hawaii in the manner that our income would have provided. With, finally, a great city to live in on the mainland that is liberal AND affordable (good luck finding that anymore) and w/ access to beaches and warm weather year round, I am happier in St Pete living within my means than struggling in Hilo. O'ahu would not be possible on my income, and again, O'ahu has many of the problems of other large cities, as well as some unique problems, along w/ the nice weather, beaches, etc. If someone has to work two jobs or otherwise be stressed about money, it changes the experience considerably. People come to Hawaii imaging that everything will be completely different than the life they left behind, but it seldom works out that way. Along w/ the good we have to accept the bad as well, or live w/ blinders on in a state of denial, which is how it's often accomplished. It all comes down to knowing what we want and being comfortable with what we are willing to pay to get it, and I am not necessarily talking about money.
Like Ian_Lee mentioned, many people in Hawaii manage to live there by living w/ their parents or vice versa. While I sorta like the concept of being one big happy family, I could never imagine that it actually works out that way. Most of us couldn't wait to get away from home when we were young! Nothing wrong w/ mom and dad, and thanks for everything guys, but it's better if you live over there and I live over here, and we just visit and not be in each others business all the time. If someone is ill, elderly, or struggling in some other ways then it's different, but unless that's the case, at some point people need to strike out on their own and stand on their own two feet. These setups are supposed to be temporary, but I can't tel you how many people I know in Hawaii that have "children" that are in their late 20's and early 30's that still live w/ them. It would be more compassionate to loan them a little money to get a place of their own and let them swim or sink on their own initiative.
Anyone who would rule out interest in a 50 year old that only has a moped and $20 would not be worth getting to know anyway.
Generally speaking, living with parents is done more by necessity than by choice. Either too expensive on your own, the need to build savings, or need to watch over parents with frail health. This is true no matter where you live. In Hawaii, you see a lot of multigenerational households in Hawaii, in part due to the high housing prices and low relative wages.
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