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That being said...I am GRATEFUL to have an extra $72K/ year to stick in the bank on top of my current salary. It's certainly nice to have but some will always have MORE than I do and some will always have LESS. I'm fine being in the middle of the road, I don't begrudge anyone who does better than myself.
If I have understood correctly, you have an extra $72K/year coming in from rental income on property which your parents had bought. You are quite fortunate, and I don't begrudge you that at all.
I am raising a different issue, namely your false perception that you are situated "in the middle of the road". In terms of percentages, you are really quite close to the top if you have your salary plus $72K/year. Just think about it; the median family income in this country is somewhere around $50K per year. You are certainly at more than double that, unless you earn a very paltry salary indeed. It is more likely you are at triple that. It is rather insulting to people who are actually, in fact, in the middle of the road for you to claim you are when in fact you are on easy street.
And let me explain what I mean when I say you are "close to the top". I don't mean close to the top in dollar amounts, as I am aware than some people make millions of dollars per year. But let's suppose you bring in $150K total. In percentage terms, you are probably ahead of at least 90% of the people in this country. No, I haven't researched that figure, but I am familiar enough with the statistics to know that it isn't far off without having to look it up right now.
This topic has been hashed out endlessly in the City-Data Retirement Forum, which is normally a place for us old farts, but discussions have recently also included the retirement prospects for younger people coming along. Therefore, those interested in further City-Data reading on this thread topic might want to poke around in the Retirement Forum a bit.
I agree. I was just mocking the other poster who said you were lucky. If you were "lucky" so were all the other posters in this thread.
I was trying subtly to stress that your parents were financially competent. You weren't any luckier than the other people in this thread.
I completely agree with you. Frankly, everyone in this nation is quite lucky compared to those living in other countries. I've always been thankful for what I have and I think many Americans should count their blessing as well.
Quote:
Originally Posted by Escort Rider
If I have understood correctly, you have an extra $72K/year coming in from rental income on property which your parents had bought. You are quite fortunate, and I don't begrudge you that at all.
I am raising a different issue, namely your false perception that you are situated "in the middle of the road". In terms of percentages, you are really quite close to the top if you have your salary plus $72K/year. Just think about it; the median family income in this country is somewhere around $50K per year. You are certainly at more than double that, unless you earn a very paltry salary indeed. It is more likely you are at triple that. It is rather insulting to people who are actually, in fact, in the middle of the road for you to claim you are when in fact you are on easy street.
And let me explain what I mean when I say you are "close to the top". I don't mean close to the top in dollar amounts, as I am aware than some people make millions of dollars per year. But let's suppose you bring in $150K total. In percentage terms, you are probably ahead of at least 90% of the people in this country. No, I haven't researched that figure, but I am familiar enough with the statistics to know that it isn't far off without having to look it up right now.
I guess when I think "middle of the road" I speak comparatively to the 5% Americans who makes upper six figure/seven figure salaries. I count myself as middle class, I don't feel upper class at all. I still have bills, need to work, can't afford to go wherever I please whenever I please, etc. Perhaps some of this has to do with my chosen location, Scottsdale is fairly affluent and I feel like a pauper living here. When you're surrounded by multi-million dollar estates, it can make anyone feel like a small fish in a big pond.
I make a low six-figure income working for a defense firm in the Valley and that's what I LIVE on. The farmland rent gets stuffed into an investment account; never see it, never spend it.
I think quite a few people have a tendency to want to SPEND quite a bit of their salary. If many can figure out to live on less and simply disregard a percentage of what they make into an investment/retirement account without touching it, I bet they'd be surprised how quickly it can grow. If I combined everything I made into a lump sum, I'd probably want to buy a bigger boat and maybe that Audi R8 Spyder I've been eyeing but alas...I refuse to touch anything that I don't MAKE MYSELF.
From what I've read...it does seem like a large percentage of this forum is fairly...well-off. Maybe some are lying but from some of the excellent advice and intricate investing recommended...I would assume the majority are doing well for themselves. I would say this forum, as a whole, has a higher than average income than the majority of Americans.
I completely agree with you. Frankly, everyone in this nation is quite lucky compared to those living in other countries. I've always been thankful for what I have and I think many Americans should count their blessing as well.
I guess when I think "middle of the road" I speak comparatively to the 5% Americans who makes upper six figure/seven figure salaries. I count myself as middle class, I don't feel upper class at all. I still have bills, need to work, can't afford to go wherever I please whenever I please, etc. Perhaps some of this has to do with my chosen location, Scottsdale is fairly affluent and I feel like a pauper living here. When you're surrounded by multi-million dollar estates, it can make anyone feel like a small fish in a big pond.
I make a low six-figure income working for a defense firm in the Valley and that's what I LIVE on. The farmland rent gets stuffed into an investment account; never see it, never spend it.
I think quite a few people have a tendency to want to SPEND quite a bit of their salary. If many can figure out to live on less and simply disregard a percentage of what they make into an investment/retirement account without touching it, I bet they'd be surprised how quickly it can grow. If I combined everything I made into a lump sum, I'd probably want to buy a bigger boat and maybe that Audi R8 Spyder I've been eyeing but alas...I refuse to touch anything that I don't MAKE MYSELF.
From what I've read...it does seem like a large percentage of this forum is fairly...well-off. Maybe some are lying but from some of the excellent advice and intricate investing recommended...I would assume the majority are doing well for themselves. I would say this forum, as a whole, has a higher than average income than the majority of Americans.
First, thanks for not taking offense at my post on the question of perspective. Second, I think you are very wise in the way you handle your extra windfall income. You are living below your means. Well done! I think it's fairly normal to look up rather than look down, that is, to compare ourselves to those just above us regardless of where we really fit in the overall scheme of things. Your example of the neighborhood you live in is a case in point. In that neighborhood, you may well be "in the middle of the road". But if you lift your eyes up to a broader perspective, I think you will have to admit that you are quite a bit above the middle of the road.
You say "they" got the boomer's money. Who is they? "They" will soon be coming for yours, you say? That implies they aren't coming for it already. Whoever "they" are, why aren't they already coming for it? Why are they waiting? How soon is "soon"?
I am a boomer. (Well, technically just a tad too old to be one, as I am 68.) No one has my money, nor has anyone tried to get it. My sister is 65. No one has her money either, nor has anyone tried to get it. What the hell are you talking about?
What crazy advice to "stick it in your mattress". What about fire, flood, tornado, and theft? Do you think your hiding places are good enough to fool a determined, experienced, professional thief? Lots of people have come out on the wrong side of their bets on that score.
no one got mine either.... the they can be more mythical then reality . i made most of the money happen i do have through my own choices in life as far as what to do with the money i saved and made
i could have done nothing and let inflation ravage it in which case the they was the printing press. but i didnt let that happen and so yes i am on track for a decent retirement.
I need to vote for two. I have savings and investments but I'm behind so I'm thinking of moving abroad where I can live cheaper. I'm not sure how that works with social security though. Can you still draw it if you're not living in the US?
OP, you didn't factor in social security. Someone with a net worth of $1 million at age 65 should be receiving at least $20k a year in social security on top of the $43k they'd receive from their net worth.
I'm 23 and have a 401K I've been funding with at least 10% since I started at 22/graduating college with my current employer, I'm now adding additional to an IRA I just opened. My first year was a bust with retirement savings (medical bills and travel expenses due to a terminally ill stepmother and long distance relationship with a boyfriend, whom I'm still with so it was worth it!), but I'm thinking I'm far more on track than peers my age, save for the lucky few who had money given to them or some other sort of set up.
I have low, low student loans (under 5K) and plan on keeping my brand new car (I travel a lot due to the nature of my job) for at least 6-10 years. I'm trying to set myself up for success, my boyfriend has a great lucrative career and I have no children yet.
Hopefully socking away what I can more and more will be enough. I enjoy nice things but I'm not an expensive person. I hate saying it, but I'll be most likely marrying my boyfriend within a few years and together we could build a nice cushion, and we're really similar financially in terms of our needs/wants and goals.
I need to vote for two. I have savings and investments but I'm behind so I'm thinking of moving abroad where I can live cheaper. I'm not sure how that works with social security though. Can you still draw it if you're not living in the US?
The problem with living abroad as a senior is
1. Finding a country which has a good quality of life and a good infrastructure .... especially health care.
2. If you don't have dual nationality, persuading them to let you in. Most countries don't want people who might be a drain on their taxpayers.
3. While you can draw social security, you also remain subject to US taxation. Better hope your new country has a dual tax treaty with the US.
OP, you didn't factor in social security. Someone with a net worth of $1 million at age 65 should be receiving at least $20k a year in social security on top of the $43k they'd receive from their net worth.
Good point. I just assumed this program would not exist in its current form given the country's current financial situation (i.e not that far away from bankruptcy if we can't balance our books). I agree this can amount to something but I dont't want to rely on it. Also, given financial turmoil so much of our hard earned money can be wiped out quickly so I want to be conservative there. Plus inflation will eat away at what we earn so just trying to keep the math simple. Regardless, one would still need to save the million to get the $43k. Maybe it can be a slightly lower number but the point is we need to still save an onerous bundle of cash to retire comfortably. And I don't see how most can do this.
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For more reading on this topic.....
. When you're surrounded by multi-million dollar estates, it can make anyone feel like a small fish in a big pond. 
