How long until you retire?

[TAMU, Knower of Ball]

Why are people jumping on chick?  She clearly isn't talking about lower income people, she stated its the people in their 50s that make good coin, don't save for retirement and chose to spend their money elsewhere.  YOLO!

Read the post that Chick quoted and the conversation that post was a part of and you will see why.

[ATL MU Warrior]

Why are people jumping on chick?  She clearly isn't talking about lower income people, she stated its the people in their 50s that make good coin, don't save for retirement and chose to spend their money elsewhere.  YOLO!

I didn't really think I was "jumping on Chick", but whatever.

[warriorchick]

Nailed it, TAMU.
The belief that anyone who faces poverty or struggles financially is a victim of their own bad choices seems a particularly American affliction.

Exactly where did I say, or even imply, that?

[Pakuni]

Exactly where did I say, or even imply, that?

Exactly where did I say or even imply you did?
If I wished to say or imply that of you, I would have replied to your post.

[WarriorFan]

When I started my first full time job with a fortune 50 company at age 21 I made a mistake on my paperwork for the company savings plan (retirement plan).  When I got my first paycheck at the end of the first month, I realized that 25% of my salary had gone into the plan. I didn't understand what was happening or that I had made a mistake.  After surviving the first year with 25% of my salary going to savings, I decided this wasn't too bad in any case.  I've done it ever since... in good years and bad. 

If you never see it, you never spend it, and if you invest wisely, it compounds quickly. 

I hope my kids can do the same!

[Hards Alumni]

Nailed it, TAMU.
The belief that anyone who faces poverty or struggles financially is a victim of their own bad choices seems a particularly American affliction. Of course, many of those people do exist. But many others are victims of bad luck and circumstance. After all, depending on which research you believe, anywhere between 40 and 65 percent of personal bankruptcies in the U.S. are tied to medical expenses.

But now we're pretty far removed from where chick started.  She said the people who had no money flowing into the 401k program were also the people who drove top of the line cars and went on lavish vacations.

[rocky_warrior]

But now we're pretty far removed from where chick started.  She said the people who had no money flowing into the 401k program were also the people who drove top of the line cars and went on lavish vacations.

That's also not exactly what she said.  She had qualifiers, like "number of professional people in their fifties who weren't contributing to their 401(k)s" and many of those people also seemed to be throwing money away.  Ok, lets go ahead an quote the the whole thing so we can stop trying to apply her statement to "all the poor people in the world"

I worked my entire career in positions where I saw everyone's payroll information, and I was shocked at the number of professional people in their fifties who weren't contributing to their 401(k)s. Many of them were people who drove nice cars and took fancy vacations. Just plain stupid.

[Tortuga94]

There is definitely a retirement crisis happening as more and more people have to work longer and longer. There are a lot of factors contributing to that, from people not saving enough, to people just living longer than they did in the past. Most of us were told to start saving for retirement early and we plowed money in our 401ks or IRAs, but when you get to retirement age it's definitely scary. I always mention to my clients that it's perfectly normal to have that sense of anxiety, because there are so many unknowns. We have no idea how long we are going to live in retirement, healthcare is always changing, inflation is a huge concern, taxes, etc., because of that people get to retirement and don't want to touch their nest egg, so they live frugally and are miserable.
I'm fortunate that most of our clients are able to retire comfortably, but we do get some people occasionally that haven't planned well for their futures. It sucks when I have to tell a client of that they probably haven't saved enough to live the retirement lifestyle they envision. It can be a very uncomfortable conversation to tell someone they may have to work longer or save more, or possibly consider part-time employment in retirement.

[drewm88]

In case anyone wants an interesting (terrifying?) read, here's one of the people that fit what Chick was talking about.

https://www.refinery29.com/en-us/brand-director-orange-county-ca-salary-money-diary

[warriorchick]

When I started my first full time job with a fortune 50 company at age 21 I made a mistake on my paperwork for the company savings plan (retirement plan).  When I got my first paycheck at the end of the first month, I realized that 25% of my salary had gone into the plan. I didn't understand what was happening or that I had made a mistake.  After surviving the first year with 25% of my salary going to savings, I decided this wasn't too bad in any case.  I've done it ever since... in good years and bad. 

If you never see it, you never spend it, and if you invest wisely, it compounds quickly. 

I hope my kids can do the same!

I know a blue collar guy who set up a retirement plan deduction and then literally forgot about it for the next 20+ years. He was planning to retire on his modest pension.

When he went into HR to do his retirement paperwork and they asked him what he wanted to do with his retirement fund he said, "Oh, I don't know... can I get a check?"

They told him, "I don't think you want to do that. It's over $400,000."

The guy bought a really nice lake house with money he didn't even miss.

[ZiggysFryBoy]

I know a blue collar guy who set up a retirement plan deduction and then literally forgot about it for the next 20+ years. He was planning to retire on his modest pension.

When he went into HR to do his retirement paperwork and they asked him what he wanted to do with his retirement fund he said, "Oh, I don't know... can I get a check?"

They told him, "I don't think you want to do that. It's over $400,000."

The guy bought a really nice lake house with money he didn't even miss.

WhAt AbOuT pEoPlE tHaT dOn'T hAvE hR dEpArTmEnTs?   

[Jockey]

I agree with this 100%. When I bring up retirement savings with my close friends, I’m always surprised how little they have saved. Even my brother who is 3 years younger than me and does really well for himself, has half the 401k I do.

The best advice my dad gave me was to start a 401k and put as much as you can into it from day 1 after getting a job after MU (my brother didn’t listen as well as I did). I think 20-30 years from now could be ugly for a lot of people.

My dad was terrible with money. Left very little for my mom when he died.

But, he told me when I was 17 and got my 1st job to always put away 10% of what I made. I never had it so I wouldn't miss it. Amazing how it adds up over the years when you start that young.

[Jockey]

+1000!

My fear in retirement is that because my wife and I sacrificed and saved, we're going to end up paying for the folks that didn't. Either through taxes, curtailed Social Security or massive income-based premiums on Medicare.

Somebody has to pay for those nice cars and fancy vacations.

I got a kick out of the Home Depot idea for post-retirement With my luck, I'd end up working for my son, who manages the front end at a Home Depot!

Your fears are fear based. You Social Security is not getting cut. And if your taxes are raised, it will be to help those who already have everything - not the poor.

[JWags85]

In case anyone wants an interesting (terrifying?) read, here's one of the people that fit what Chick was talking about.

https://www.refinery29.com/en-us/brand-director-orange-county-ca-salary-money-diary

1) that almost feels like a parody of a bored housewife.

2) I have so many more questions.  Its meant to highlight daily spending, but you blow through $500K on "cars and travel"...yet you still have 2 car loans?

Also, not that credit card debt is good, but they only have $10K in CC debt, yet they continuously overdraft their account?

[muwarrior69]

I'm not talking about those people. I am talking about my wife's coworker whose entire paycheck goes into her family's basic needs and medical bills from her childs cancer diagnosis.

All I'm saying is you can't assume that everyone who hasn't saved properly for retirement is bad with money. If you have the ability to retire with a healthy sum you are very blessed. Not everyone will have had the same options.

My cousin's oldest daughter was diagnosed with a brain tumor when she was 3. Kyla died at age 11. They live in the Hershey, PA area. They paid very little out of pocket for Kyla' s treatments as they took her to St. Judes in Tennessee which charges no patient for care, even the uninsured. Sure life isn't fair and no one is untouched by unforeseen circumstances. You hope for the best but prepare for the worst.

[muwarrior69]

Your fears are fear based. You Social Security is not getting cut. And if your taxes are raised, it will be to help those who already have everything - not the poor.

If congress doesn't act soon his fears just may be realized. They are talking about a 9% COLA for next year on top of the 6% we got this year. Where is that money coming from? Certainly not payroll taxes.

https://www.gobankingrates.com/retirement/social-security/what-will-social-security-be-in-2035/

[The Hippie Satan of Hyperbole]

My cousin's oldest daughter was diagnosed with a brain tumor when she was 3. Kyla died at age 11. They live in the Hershey, PA area. They paid very little out of pocket for Kyla' s treatments as they took her to St. Judes in Tennessee which charges no patient for care, even the uninsured. Sure life isn't fair and no one is untouched by unforeseen circumstances. You hope for the best but prepare for the worst.

Well since your cousin didn't pay a lot, that means no one pay a lot!  Problem solved!

[TSmith34, Inc.]

If congress doesn't act soon his fears just may be realized. They are talking about a 9% COLA for next year on top of the 6% we got this year. Where is that money coming from? Certainly not payroll taxes.

https://www.gobankingrates.com/retirement/social-security/what-will-social-security-be-in-2035/

Take a look at the SECURE Act 2.0 which just passed the House and will comfortably pass the Senate. Automatic enrollment into 401k's and automatic annual escalations unless employees opt out.

[MU82]

There is definitely a retirement crisis happening as more and more people have to work longer and longer. There are a lot of factors contributing to that, from people not saving enough, to people just living longer than they did in the past. Most of us were told to start saving for retirement early and we plowed money in our 401ks or IRAs, but when you get to retirement age it's definitely scary. I always mention to my clients that it's perfectly normal to have that sense of anxiety, because there are so many unknowns. We have no idea how long we are going to live in retirement, healthcare is always changing, inflation is a huge concern, taxes, etc., because of that people get to retirement and don't want to touch their nest egg, so they live frugally and are miserable.
I'm fortunate that most of our clients are able to retire comfortably, but we do get some people occasionally that haven't planned well for their futures. It sucks when I have to tell a client of that they probably haven't saved enough to live the retirement lifestyle they envision. It can be a very uncomfortable conversation to tell someone they may have to work longer or save more, or possibly consider part-time employment in retirement.

Are you a financial planner or CPA? I don't doubt that you have many difficult conversations with your clients. I'm glad they have somebody like you to help them.

[The Hippie Satan of Hyperbole]

If congress doesn't act soon his fears just may be realized. They are talking about a 9% COLA for next year on top of the 6% we got this year. Where is that money coming from? Certainly not payroll taxes.

https://www.gobankingrates.com/retirement/social-security/what-will-social-security-be-in-2035/

No politician is cutting Social Security or Medicare.  They will just debt finance it like everything else.

[Tortuga94]

Are you a financial planner or CPA? I don't doubt that you have many difficult conversations with your clients. I'm glad they have somebody like you to help them.

Yes, I am a financial planner.

[MU82]

Yes, I am a financial planner.

Thanks. As I said, your clients are fortunate to have you. Be well.

[muwarrior69]

No politician is cutting Social Security or Medicare.  They will just debt finance it like everything else.

We're 30 trillion in debt already, so the solution is to go further into debt print more money.

[BM1090]

I'm 31, aiming for retirement at 60.

Pretty basic advice but increase your to your 401k contribution every time you get a promotion or raise, if you're able. Set up an additional reoccurring monthly (biweekly?) payment from your checking to your portfolio, even if it's a small amount.

[Dr. Blackheart]

But a cruiser and traverse the Great Loop