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People that have no retirement money.

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People that have no retirement money.

Old 02-25-2019, 06:05 AM
  #141  
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Originally Posted by captbone View Post
The retirement crisis is not the haves and have nots.

It it will be come the problems of the haves and we will become one group. Today we pat ourselves on the back and do humble brats on the internet but in a couple years we won’t be smiling. You will be the target of larger and ever expanding taxes while also being means tested out of social security.

The people without retirement savings are not going away and they will need money to survive. The real question is where is their retirement money coming from?
Couple this with large union (public & private) pensions that are not adequately funded and its going to get ugly
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Old 02-25-2019, 06:06 AM
  #142  
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Originally Posted by maintenanceguy View Post
People don't save because the future is so far away - until the day it isn't and you missed the opportunity. I teach a financial course to teens at my church. One of the things I share is that every dollar invested at 18 years old is worth $50-$60 at retirement. If you wait until 30 to start investing, every dollar invested is worth $20-$25. It seems so simple and obvious - unless you're 18 and retirement is a lifetime away.
I want to see the math on this?
Even at a 7% steady return (which is higher than standard calculators use (6%)) and retirement at age 65, investing $1 and letting it grow at 7% for 47 years will only be worth $24.50, while doing the same at age 30 drops it to $10.68. If you drop 7% to 6% the returns are $15.47 & $7.69. And, if you add in long term inflation at 2.3%, that 6% return makes the actual amount you have from that dollar invested as $5.52 (age 18) & $3.57 (age 30).
I would suggest that you do a better job researching before you provide advice in your financial course.
Not saying investing early isn't super important, but the reality is you need to both invest early and also invest far more in yearly dollars than people realize to actually have a decent nest egg for retirement.
Just to put it into perspective, if you started saving at age 22 (just graduated college) and put $15,000 away every year until you were 65, you would have an inflation adjusted $1.6 million saved, which at a 4% withdrawal rate would be $64,000/yr in payout.
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Old 02-25-2019, 06:22 AM
  #143  
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Originally Posted by muskamoot View Post
SS is a great supplement to a retirement plan,but you better be debt free and frugal if you plan on that for your sole income.
We'll be debt-free; expect SS to cover medicare part B and whatever lunacy the AOC buffoons come up with. Should have enough cash on hand to provide us both with the same lifestyle we've enjoyed for the past many years unless we live past age 94; then we become burdens to our children.

Definitely won't be "living large" but should have no money concerns, cash to travel and visit kids/grandkids.

Kids will inherit property and residual cash; but no one is getting rich; but no one will have to pay for anything either. Our last house should make for a nice rental, or vacation home, or liquidation for the trustees.

HOPEFULLY!!! Health is everything.
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Old 02-25-2019, 06:36 AM
  #144  
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Here is my advice: if you have the option to contribute to an HSA do it. Max it out and don’t use it. It is one of the only tax free in and tax free out vehicles available. You’ll need it in retirement.

You’re welcome
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Old 02-25-2019, 06:42 AM
  #145  
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Originally Posted by mikefloyd View Post
How could you have a conversation with your financial guy about a pension choice without knowing the amount. I find it hard to believe that information wasn't readily available considering ERISA law.
I was reading to the end before making this same observation.
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Old 02-25-2019, 06:44 AM
  #146  
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Originally Posted by mikefloyd View Post
How could you have a conversation with your financial guy about a pension choice without knowing the amount. I find it hard to believe that information wasn't readily available considering ERISA law.
This ^^^. Financial guy was a joke if he had a conversation about a pension without numbers.
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Old 02-25-2019, 06:51 AM
  #147  
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Originally Posted by RussH View Post
We have a couple of guys that I work with that are in their early 70's so I asked one of them why are they still working. I was shocked when he said he had to work because he has a house payment to make and really nothing in retirement money. I asked him if there was some tragedy or illness that he had to use up his retirement money and he said his plan was to never stop working so he never planned on retirement money. He told me he has 10+ years left to pay on his house.....I didn't know you could get a 30 year loan when you were in your 60's. He seems like a smart guy so I was just blown away that he is in this situation. I know some of my friends that are in a similar situation where they didn't plan well for retirement. I know one of them has a retirement plan, it will be from his parents inheritance when they pass, he admitted this right in front of his dad one day.

I'm sure there are some THT members on here that haven't planned very well for retirement and I just have to ask "what are you going to do?" Don't you ever plan on retiring? Why are you in the position you are in? When your employer contributes to a retirement account it's like free money that you are turning down. I am not looking down on anyone if you are in this position, in fact I feel awful for you which is why I am wondering what your plan is, never to retire or just live of off SS?
I have a condo complex down the street that refers people to our agency for Condo Ins. Its an over 55 community and I see people in their 70's getting loans all the time. Not sure if they require more down or what but a bank has to know that people in their 70's are not going to be around another 30 years.
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Old 02-25-2019, 07:04 AM
  #148  
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Originally Posted by fishingfun View Post
I have a condo complex down the street that refers people to our agency for Condo Ins. Its an over 55 community and I see people in their 70's getting loans all the time. Not sure if they require more down or what but a bank has to know that people in their 70's are not going to be around another 30 years.
It is totally illegal to discriminate based on age in lending.
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Old 02-25-2019, 07:14 AM
  #149  
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Originally Posted by fishingfun View Post
I have a condo complex down the street that refers people to our agency for Condo Ins. Its an over 55 community and I see people in their 70's getting loans all the time. Not sure if they require more down or what but a bank has to know that people in their 70's are not going to be around another 30 years.
I don't think the bank really cares assuming they have enough assets. It'll just come out of the trust/will debt.
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Old 02-25-2019, 08:01 AM
  #150  
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Originally Posted by jj1987 View Post
I don't think the bank really cares assuming they have enough assets. It'll just come out of the trust/will debt.
Bank might actually PREFER it. It's an appreciating asset (normally) so the asset should cover any debt owed at default. If there are no heirs at death the bank could end up with it 30-40% paid off AND get to keep the asset.
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Old 02-25-2019, 08:09 AM
  #151  
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Originally Posted by Hooper View Post
...

I believe we need a system that automatically "opts in" to 401k contributions. An employee is automatically enrolled unless they "opt out".
...
That option exists for any company that chooses to do it.
We do it.
Every employee has an account from day 1 of their employment and gets a fully vested annual contribution regardless of their participation.
They can't opt out.

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Old 02-25-2019, 08:14 AM
  #152  
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Originally Posted by muskamoot View Post
The sad fact is that when you feel like you have things paid off and you own things,reality hits and you find out that you are really only renting the right to exist.Taxes on property,fees for everything we want and need to do,cost of groceries,health care,pets,kids,fuel and probably carbon taxes in the near future ensure that you will live from check to check until you die.Then they tax that too.The best the average person can do is to take in a little bit more than goes out.
Heard that. I sure ain't saying I have it figured out. Interesting to hear different perspectives here.
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Old 02-25-2019, 08:22 AM
  #153  
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Originally Posted by whorrall View Post
I have hardly anything saved anything for retirement, and I'm almost 40. I'm currently investing 1% into my 401k because that's all my company matches. My financial situation is a house that's about 2/3 paid off, boat, truck, a little land, and no debt other than the house. Unmarried.

Sometimes I wonder how much money I'd really need monthly to get by. Property tax and house insurance together are about $200/mo.
Respectfully, you are setting yourself up to be that guy that needs to work well into his 70's and will be crying "poor me". The dollars that you save now will be worth much more than the dollars you save at 62. Just because they only match 1% doesn't mean that's a good guideline on what you should be saving. We've always stuck with 10%. If that's too aggressive for you, try to bump it up to at least 5%.

All of our neighbors have nicer cars than we do. We have linoleum counter tops and not granite. We have an above ground pool and they have inground pools. Why? Because we choose to save 10% of our income, and have been doing so since our late 20's. So when we retire someday and someone says "well you guys are lucky", I'll just keep my mouth shut and think of the times that I heard "I plan to work until I drop dead" or "I don't need to save for retirement".

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Old 02-25-2019, 08:28 AM
  #154  
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Anyone listen to Dave Ramsey? He's a great resource.

What bugs me is 40% of the national debt paying for other people's retirement. Some deserve it, but civil service personnel that can't be fired and make more in retirement is just not right.
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Old 02-25-2019, 08:30 AM
  #155  
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Originally Posted by Double tyme View Post


this right here.

scares the hell out of me.

It sounds elitist, but never before have people who don't plan for the future felt so entitled to live well.
Hmm..Not sure whether to "like" your post or hate it.
I fear you are correct.
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Old 02-25-2019, 08:41 AM
  #156  
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Originally Posted by The Matador View Post
Me?!

I just married somebody 20 years younger with a stellar career in my early 50's...

Problem solved...
Pics of wife ('s check)
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Old 02-25-2019, 08:50 AM
  #157  
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I don't have any money in retirement. I took out what little I had to buy another house a few years back. We have three rentals that produce a good bit of money and will manage those as long a we can then sell them when we are just to old and live off the interest / proceeds. I always joke with my wife that we'll just sell everything move to the river house live of catfish until we both die of lead poisoning. It may not be the best plan but I think we will be OK
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Old 02-25-2019, 08:56 AM
  #158  
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Originally Posted by Eastport205 View Post
Yeah but I was lucky enough to have jobs that offered a LOT of OT, and I worked a LOT of OT, I never turned it down. If that wasn't available I could have never raised my family and saved like that. I also found jobs that paid fairly well for, those jobs aren't around like they were then . I graduated high school and never went to college,, I jumped right into the manufacturing world almost immediately .
yes, but you Still chose to work that OT!

while you were working additional shifts the "live for the day" crowd was at the bar.
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Old 02-25-2019, 09:01 AM
  #159  
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Originally Posted by Knot on Call View Post
I can't think of an instance when there is no risk, although it can and should be mitigated where possible. My reference is to a state retirement (NC), and yes, it is not optional, and no, there is no guarantee, even with the state. NC has done relatively well though compared to some others, mainly due to growth and some other factors. Due to when I became a state employee, my medical insurance continues through retirement at 70/30 w/co-pays and the same obligations as if I am an active employee:

RALEIGH, NC –Treasurer Janet Cowell announced today that North Carolina Retirement Systems is the third strongest funded state pension system in the country, as reported by Morningstar, a renowned independent global investment research firm.
The report, which ranked North Carolina third, listed the pension fund as 93.9 percent funded. The national median is 68.4 percent funded. “The State’s pension systems are strong,” the Morningstar report noted.
I suspect it is one of the strongest because on average NC State and Local employees retire with roughly 33% of what their pay was prior to retirement. Most of the state and local retired people I know still have to work a PT job to survive.
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Old 02-25-2019, 09:37 AM
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Originally Posted by Danny33486 View Post


It is totally illegal to discriminate based on age in lending.
It's all about "ability to repay". Self employed, you're screwed.
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