Are you on track to retire comfortably?

[Drew99GT]

Originally Posted By: 04SE


Folks, life is easy, spend less than you make. No magic, no Dave Ramsey, no 12 step plans are needed.



I agree. In fact, I quite enjoy living as cheaply as possible. It's kind of a game to me now.

I HATE spending money because everything now adays is made so [censored], even expensive stuff.

The only thing I splurge on is fishing gear, but even then, I won't spend more than 150 bucks for waders, over $50 for a rod etc.

 

[javacontour]

Originally Posted By: JohnnyJohnson
Things don't look real great for young retirees but then over half of them aren't saving a cent in a ROTH IRA or another independent savings plan. How do I know this because my step kids except for one are all over forty and don't have one dime in a retirement account. They aren't coming to live with me. If our government quit giving away all of our money they could save SS but that's never been the plan. But if you think you're going to retire on SS make an appointment with your shrink today!


I think I'm doing well. I don't think I'll retire early due to my divorce 13 years ago, but I'm on track to retire at 65-67. Just about maxing out my 401(k).

I've told all my kids to start with enough of a contribution to get the maximum company match. My now 19 year old daughter started her contributions when she turned 18. She just got a 20% raise and I suggested she bump up her contribution by 20% as well as she won't miss the money since she's been getting by without it. That way she can keep most of the raise AND increase her contributions to her retirement.

My oldest also contributes, but he and his younger sister are still in school, so there is only so much.

She hasn't really worked a "big girl job" yet, but should have her teaching credential in the spring and plans to teach in the Seattle area.

But I've impressed upon them all to put money away early, don't touch it and let compounding returns work their magic.

 

[SZR48207]

I've always found it ironic that we manage to save up so that we can live well during our latter years when we are more likely to have health or mobility issues. I have relatives who are retirement age with good 401ks/pensions/tricare coverage, etc.. but their 30+ working years just wore away their bodies so they are spending their retirement days either sitting at home resting or at the hospital getting some sort of surgery or treatment. Hip issues, back issues, sore muscles, diabetes, etc.. you name it and it bogs them down. I imagine they all had grand visions of how they'd spend their retirement days, too..

I know that the act of being frugal and saving for later is a virtue, but what happens if you put away the IRS max every year during your working years and croak a week after you formally retire? I mean yeah your retirement will go to your next of kin who will really appreciate it, but would you have zero regrets for not having lived a little during your younger years?

Conversely, it would be a terrible thing to live to 85 or 90 and not have any sort of savings or tax-deferred income to fall back on.

 

[doitmyself]

I'm on track as well as anyone else, LOL! I'm one of those fund sucking locusts that JHZR referred to. That my employer contributes 2X my contribution is killing me.

 

[grampi]

Originally Posted By: HosteenJorje
Those who have paid into Social Security can start drawing payments at 62.(I think) Payments are based on total earnings and I believe more weight is given to the last few years of earnings. Also become eligible for Medicare benefits and Part D prescription drug plan. Medicare pays eighty percent of health care costs. Most individuals carry Medicare gap insurance to cover costs not paid by Medicare. In retirement, health care insurance takes up about twenty percent of our income. You just can't do without medical coverage because one serious illness can wipe out investment wealth. We don't do without, but we also manage our wealth. Our investments have kept up with living costs since retirement, but I see a day when we may have to go on Medicaid to cover nursing home care which has increased tremendously the last twenty years.


This is where being retired military really pays off. I have Tricare for my health insurance, which turns into Tricare For Life at age 65. The only thing that changes is that I will have to pay part B premiums when I turn 65. I will have no medical expenses as I live close to a military hospital, and the VA will provide long term care should I need it. This saves me a lot in premiums after I retire...

 

[demarpaint]

Originally Posted By: Reddy45
I've always found it ironic that we manage to save up so that we can live well during our latter years when we are more likely to have health or mobility issues. I have relatives who are retirement age with good 401ks/pensions/tricare coverage, etc.. but their 30+ working years just wore away their bodies so they are spending their retirement days either sitting at home resting or at the hospital getting some sort of surgery or treatment. Hip issues, back issues, sore muscles, diabetes, etc.. you name it and it bogs them down. I imagine they all had grand visions of how they'd spend their retirement days, too..

I know that the act of being frugal and saving for later is a virtue, but what happens if you put away the IRS max every year during your working years and croak a week after you formally retire? I mean yeah your retirement will go to your next of kin who will really appreciate it, but would you have zero regrets for not having lived a little during your younger years?

Conversely, it would be a terrible thing to live to 85 or 90 and not have any sort of savings or tax-deferred income to fall back on.





So true. IMO there's not much good that comes from getting old. Enjoy life when you're young and can enjoy it. No one knows what the future holds, and there are no guarantees on how long we're going to live.

 

[DBMaster]

Much like other aspects of life it's a gamble. No one really knows for sure if they will be in good enough health, or spirits, to enjoy retirement. I remember a long time ago that a suggestion (might have been a joke) was made that everybody should get their "retirement" money up front and enjoy life until about age 50 and then work til you drop. Sounded hilarious at the time...

 

[d4d]

My wife and I both retired some 8-9 years ago while in our mid-late 50's. So far, it has worked out better than I expected financially. Luckily, we both have pensions, excellent medical benefits, additional social security income, untapped 401k/403b balances, etc.

For you younger folks, the wild card is ALWAYS your health status and its impact on your longevity, funds required and quality of life. Things start to happen to you unexpectedly in your late 50-60's. You realize that you are not bullet proof anymore and can't jump tall buildings in a single bound. Hopefully, you have engaged in good lifestyle habits in your adult life and your workout regimens are/have been an investment in YOU. You have to make sure you protect your health and your money in your working years to best optimize your retired life.

Retirement- where EVERY day is Saturday. Learn early how to turn a 30 minute DIY project into a day long adventure.

 

[StevieC]

I think there needs to be a balance. I left my "It's gonna kill me but the money is awesome" job 5 years ago and haven't looked back. I make a little less but I'm far happier and my Type-II diabetes symptoms went away after leaving this job because my stress dropped immensely which I think was a contributing factor to my hard to control sugar level.

 

[jeepman3071]

Originally Posted By: Nick1994

I do really think the older generations are a lot better off. I don't think pensions will be around when I'm older, they're already mostly gone.



The pensions in the state of CT are creating huge budget problems. We have lots of state employees making more money in retirement than they ever did during the years they worked for the state, since many of them are living longer. They are trying to fix the plans but it is too late, and the budget hole is getting bigger. The other problem is a lot of people are working longer in their state jobs, allowing them to earn more because of longevity. I remember in the dept I worked for, we had about 5 people who were in their early 70s. They could barely do anything, but were all making over 100 grand since they had been there 30+ years. Yet, the department could only afford to hire one $40,000 person to take care of a lot of the projects.

The city of Hartford is also on the verge of going bankrupt due to miss management. I wonder what would happen to all those city employees who have pensions if the city goes bankrupt?

 

[StevieC]

My dad got a job with a pension the years we were kids along with twice the pay they are paying people today without pensions to do the same job. That's the problem. Oh and they are requiring rocket science degrees.

 

[javacontour]

Originally Posted By: Reddy45
I've always found it ironic that we manage to save up so that we can live well during our latter years when we are more likely to have health or mobility issues. I have relatives who are retirement age with good 401ks/pensions/tricare coverage, etc.. but their 30+ working years just wore away their bodies so they are spending their retirement days either sitting at home resting or at the hospital getting some sort of surgery or treatment. Hip issues, back issues, sore muscles, diabetes, etc.. you name it and it bogs them down. I imagine they all had grand visions of how they'd spend their retirement days, too..

I know that the act of being frugal and saving for later is a virtue, but what happens if you put away the IRS max every year during your working years and croak a week after you formally retire? I mean yeah your retirement will go to your next of kin who will really appreciate it, but would you have zero regrets for not having lived a little during your younger years?

Conversely, it would be a terrible thing to live to 85 or 90 and not have any sort of savings or tax-deferred income to fall back on.



Why do you have to have mobility issues?

Keep moving. I look at my family and we fall into two categories. A few die in their 20's, usually due to some accident. For example, my grandfather survived WW2 and the Battle of the Bulge, but was killed on his motorcycle some 6-9 months after my mother was born. Of course, my grandmother is in her 90s. The generation before that lived to 90+ with one to 103. Their mother and grandfather both died in their 20s. One due to scarlet fever, the grandfather was struck by lightning.

Given that I'm in my 50s, I figure I'm in it for the long haul, so I have to take care of both my wallet and my body.

Fiscal health is merely one aspect of life. One must take a holistic approach and also be concerned about mental, physical, social and spiritual health.

 

[SZR48207]

Originally Posted By: javacontour
Originally Posted By: Reddy45
I've always found it ironic that we manage to save up so that we can live well during our latter years when we are more likely to have health or mobility issues. I have relatives who are retirement age with good 401ks/pensions/tricare coverage, etc.. but their 30+ working years just wore away their bodies so they are spending their retirement days either sitting at home resting or at the hospital getting some sort of surgery or treatment. Hip issues, back issues, sore muscles, diabetes, etc.. you name it and it bogs them down. I imagine they all had grand visions of how they'd spend their retirement days, too..

I know that the act of being frugal and saving for later is a virtue, but what happens if you put away the IRS max every year during your working years and croak a week after you formally retire? I mean yeah your retirement will go to your next of kin who will really appreciate it, but would you have zero regrets for not having lived a little during your younger years?

Conversely, it would be a terrible thing to live to 85 or 90 and not have any sort of savings or tax-deferred income to fall back on.



Why do you have to have mobility issues?

Keep moving. I look at my family and we fall into two categories. A few die in their 20's, usually due to some accident. For example, my grandfather survived WW2 and the Battle of the Bulge, but was killed on his motorcycle some 6-9 months after my mother was born. Of course, my grandmother is in her 90s. The generation before that lived to 90+ with one to 103. Their mother and grandfather both died in their 20s. One due to scarlet fever, the grandfather was struck by lightning.

Given that I'm in my 50s, I figure I'm in it for the long haul, so I have to take care of both my wallet and my body.

Fiscal health is merely one aspect of life. One must take a holistic approach and also be concerned about mental, physical, social and spiritual health.


Not sure I understand your question, but by mobility issues, I mean by the time you retire, your joints and muscles are just not there so you have limited range of motion and have to really go easy. It also seems that most of my elder relatives have had some form of surgery to address joint wear so now they can't lift heavy things or crawl under cars. They don't have to work until they die, but at the same time their bodies just aren't equipped for anything besides light household work.

 

[Mr Nice]

Originally Posted By: ZZman
Everything I read says most Americans are not preparing properly. They save too little and don't take advantage of company matches. They jump jobs and cash out retirement accounts.

I am one of the lucky few that has a good pension and will also get SS.

Do how are you doing?


We are doing very well.

Money is not everything in Life .

 

[mazdamonky]

My 401k says I am on track to retire comfortably, however it doesn't seem to indicate I will live quite so comfortably in the mean time.

 

[opus1]

Originally Posted By: Reddy45
...
I know that the act of being frugal and saving for later is a virtue, but what happens if you put away the IRS max every year during your working years and croak a week after you formally retire? I mean yeah your retirement will go to your next of kin who will really appreciate it, but would you have zero regrets for not having lived a little during your younger years?

Conversely, it would be a terrible thing to live to 85 or 90 and not have any sort of savings or tax-deferred income to fall back on.



My nephew gets to retire early.

 

[SevenBizzos]

Originally Posted By: jeepman3071
Originally Posted By: Nick1994

I do really think the older generations are a lot better off. I don't think pensions will be around when I'm older, they're already mostly gone.



The pensions in the state of CT are creating huge budget problems. We have lots of state employees making more money in retirement than they ever did during the years they worked for the state, since many of them are living longer. They are trying to fix the plans but it is too late, and the budget hole is getting bigger. The other problem is a lot of people are working longer in their state jobs, allowing them to earn more because of longevity. I remember in the dept I worked for, we had about 5 people who were in their early 70s. They could barely do anything, but were all making over 100 grand since they had been there 30+ years. Yet, the department could only afford to hire one $40,000 person to take care of a lot of the projects.

The city of Hartford is also on the verge of going bankrupt due to miss management. I wonder what would happen to all those city employees who have pensions if the city goes bankrupt?


In a state in much worse shape that yours, the pension benefits are guaranteed in the constitution. So if IL went bankrupt, the pensions would remain. Basically, there would be no medicaid, no schools, and no state programs until the pension recipients were paid first. So even with $130 billion in an unfunded liability (which is about $10,000 for every resident of the state), it won't go away. Detroit managed to get it's burden reduced when they declared bankruptcy, so in some cases it can be.

 

[gathermewool]

Originally Posted By: Schmoe
Investing....the other elephant in the room. I'm sure I may speak for some, but not all, that's something a lot of us can't risk with the onset of looking at the retirement windows. I think back to 2008 and all the money I lost, luckily I was still relatively young and made it back, but cover my buns in butter and call me a biscuit did that sting. I knew a lot of workers here that had to stay on longer because of the hit they took that year. I simply can not afford to take that risk now.


A buddy of mine had been watching and accurately predicted a precipitous drop. Most of lost 25% or more from our 401(k) but he ended up slightly positive for the year.

Being in my 20s and relatively new to the company, it was a good thing for me. it doesn't sting. I would prefer the market be crop for the next 20 years, then hit a boom with lots of shares in my account!

 

[ZZman]

I retired at 55 with a pension. However I still work at my old employer 2 days a week for less money. Why? Because I now have to pay for half our Healthcare premium plus the co-pays and deductibles that have increased.

I also work another job on call when they need me.

We will be better off when we are both SS eligible.

We only made 6 figure combined incomes once. Mostly we were around 70-85,000.

Health issues and and unexpected issue killed our plans. The wife had to take a large cut in pay and hours which hurt both our monthly finances but also her retirement savings contributions.

 

[DBMaster]

Originally Posted By: StevieC
I think there needs to be a balance. I left my "It's gonna kill me but the money is awesome" job 5 years ago and haven't looked back. I make a little less but I'm far happier and my Type-II diabetes symptoms went away after leaving this job because my stress dropped immensely which I think was a contributing factor to my hard to control sugar level.


I think this is what I need to do, too. I can come up with myriad excuses to stay where I am, but "it's gonna kill me." I get to stop child support payments in July. After that the number of excuses dwindles. I'm willing to cut my pay by at least 25% to both get closer to home and stop being a cubicle bound computer jockey.