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Most people including many poor people just don't know how to manage money. They think because something costs less than $30 they can spend money on it many times and it won't make a difference.
An example: I was at the mall and a new place had opened that served a form of Korean Blue Tea. The place was jammed even though the tea costs over $6 for a small amount. Huge family groups were all in line waiting to buy a fancy tea for everyone, and I saw one family spent over $30.00. Next, we went to a movie where it seemed like everyone got a large drink, a large candy bar, and large popcorn, even small kids. It cost about $30
Yes, $30 is not a lot of money if it is a one-time charge but it is a mentality that opens them up to lots of needless spending that could have been invested.
Not sure your point. This has nothing to do with the topic at hand as you have no clue whether these are low income folks or not.
Why the attitude? I know lots of people who just live on small SS checks, and I know lots with good retirement incomes.
What attitude?
I don't believe the OP either.
He seems to know alot of "hypothetical people" he just happens to have his own opinions on.
And somehow his conclusions of these "hypothetical people" amount to put downs to those who make so little they are un-able to save 10%
It's getting weird. Of course it's very possible to make so little $ you do not have extra $, little lone a whole 10% of income to save
after paying bills. Not to mention gas to get to work, food, medical, etc.
I run into so many people who are retirement age that tell me they don't have a dime saved and plan to move in with their kids when they can't work anymore. These are middle-income people who worked non stop since about 1980.
So I did some calculations: If they started working in 1980 and made $10,000 a year to start and put 10% of that in a mutual fund that was 70% stock and 30% bond they would have $650,000 today.
If that person was never promoted during their career and only got cost of living increases and finished with a salary of $35K today, their social security would be $1350 at age 66 (full retirement age). Take 4% out of the $650,000 and you have $2166.00 a month, add Social Security and you have $3516.00 a month. If married double that figure.
Even a poor person who made no more than $35,000 a year can retire comfortably if they just would have saved 10% of their gross salary a year., can't they?
No. You can save 10% if you have enough expendable income. I didn't have any expendable income at all for my beginning years, then not much, then a little more....until finally I had enough expendable income to save enough to make a real difference. I was past the age of 40. I tried to make up for lack of being able to save more in prior years. (I wasn't paid that much for most of my working years, which is typical of females. So I tried to make up for it by living frugally, never taking a vacation trip, bringing lunch to work, etc.)
What I always ask people who never saved a dime for a rainy day or retirement is this question: "What if your employer had paid you 10% less, would you have survived?" They think about it and finally answer "yes, I guess so." Maybe people should think long term and pay themselves first and act like they got a job that pays 10% less, so they can save.
Key word is "survived". It is not practical for everyone to save. Do you want people to eat store brands, live in low rent housing, not be able to afford vacations and just generally have a low standard of living so that they can keep funding that meager existence once they can no longer work without public assistance?
My first full time job after college was in SF and I made a whopping $14K/year. 401Ks were not available yet and wouldn't be for several more years. I didn't start saving until the next year after I left that job and got a better paying job. It was a couple years in my 3rd job I started my first IRA--1987. I think my first 401K was in 1990. I was brought up to be a saver -- had my first savings account when I was 7 yrs old, with a deposit of $2!
I wish I had saved more and invested in the early years. I saved but I wasn't maximizing everything out back then. And I didn't know anything about investing so I had regular savings.
Key word is "survived". It is not practical for everyone to save. Do you want people to eat store brands, live in low rent housing, not be able to afford vacations and just generally have a low standard of living so that they can keep funding that meager existence once they can no longer work without public assistance?
Yes? It's our responsibility to support ourselves....
Wait, I can't figure out if you are being sarcastic or serious.
I'm going to go with sarcastic.
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I glad that you qualified that with “most” years. In my early “divorce” years and early “second marriage” years, I didn’t save anything. Luckily, my moves in my 401k made up for it and within a few years, I was also able to get back into savings mode. I’d say that out of my 34 + year career (still working), I was able to save via the 401k route for 26 years. I also had a few years of IRA savings.
Yes? It's our responsibility to support ourselves....
Wait, I can't figure out if you are being sarcastic or serious.
I'm going to go with sarcastic.
Some sarcasm, but a serious question. At every level of advancement to earn more money, there are less jobs. In our current model of capitalism, it is mathematically impossible for everyone to make enough to fund their own retirement. Even if every single worker was as industrious as possible and tried as hard as they could to advance it would not change the math. Some people will end up barely squeaking by and possibly even need some assistance doing that though no fault of their own. We could change the math by paying people enough. Or we could help those who didn't manage to advance far enough. Or we can selfishly say the hell with them. I personally cannot stomach the third answer.
I'm a high school drop out and DH has very little higher education, and we are pretty well funded for retirement. Knock on wood.
We are a spoiled society, and our quality of life, and consumption rates, are probably higher than a good 60% of the rest of the world.
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No. You can save 10% if you have enough expendable income. I didn't have any expendable income at all for my beginning years, then not much, then a little more....until finally I had enough expendable income to save enough to make a real difference. No, you simply chose not to save, it's a choice. You chose not to until later in life.some people sacrifice and some don't..I was past the age of 40. I tried to make up for lack of being able to save more in prior years. (I wasn't paid that much for most of my working years, which is typical of females. So I tried to make up for it by living frugally, never taking a vacation trip, bringing lunch to work, etc.)
.
Bracing for the flames. But ultimately it's a choice, whether you choose to decide or not. That's what is known as pay yourself first.
Last edited by homestead123; 08-01-2019 at 07:49 PM..
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