For the young folks here

Discussion in 'The VIP Lounge' started by capsuleri, Aug 15, 2017.

  1. capsuleri

    capsuleri Well-Known Member War Zone Member

  2. CJ

    CJ Well-Known Member Admin War Zone Member

    These calculators are still useless. There is no way I will need my current income in retirement. That calculator is just making an assumption that EVERYONE will want X% (e.g. 80%) of their current income in retirement.
  3. Mike B

    Mike B Well-Known Member Donor War Zone Member Top Poster

    Yeah the people who are really into this (striving to retire as early as possible) will tell you to track expenses, estimate taxes and healthcare after the fact and then add some cushion. The cost of healthcare between retirement and Medicare is a prime (and unknown now) expense. Then there is the ever popular "what kind of retirement do you want", from world travel at fine hotels to living small and clipping coupons for a hobby.

    Calculators just give you a rough estimate. Better than nothing and good to check out more than one but still just a guess.
    Barry_NJ and capsuleri like this.
  4. Phil A

    Phil A Active Member Top Poster

    Much depends on the lifestyle that one wants to lead after retirement. I know people my age still work and they just want to have nice cars, audio systems, etc., and they just keep working.
  5. John Celardo

    John Celardo Well-Known Member Donor

    Are there any young people here? :cool: Retirement works out well sometimes despite minimal planning. It has worked out well for us, a retired civil servant and a still-working ex-college professor. I have a real pension, and I know they are rare to nonexistent nowadays. We also got some money from the sale of our late parents homes. Things seem to work out when you least expect it.
    Barry_NJ and DYohn like this.
  6. Phil A

    Phil A Active Member Top Poster

  7. capsuleri

    capsuleri Well-Known Member War Zone Member

    Exactly, these are rough targets to start planning. If the money saved is too much when one retires it can go to charity or to descendants.
    Barry_NJ likes this.
  8. capsuleri

    capsuleri Well-Known Member War Zone Member

    Some of us are lucky enough to have a pension. Many are not. According to this survey 37% of baby boomers have <$50K in savings.
    For the young folks here. Average SS benefit is about $1350.00 from SS web page.

    Starting retirement savings early for say in early 30's can ease the burden and pain of having to catch up later. Maxing out 401k is a good place to start. Adding insult to injury job security is mostly vanishing at all levels including pretty high level white collar jobs.

    Most if not all big companies who had defined pension plans froze the plans for old timers about 10 years ago and eliminated it for new hires. Most smaller companies never ha it. Some highly successful Biotech companies did not even have a defined pension plan fortunately, their employees made out well with the stocks and stock options they got.
  9. jasn

    jasn Well-Known Member Donor Top Poster

    Au contraire...The older I get, the pool of younger women to look at gets bigger.
  10. John Celardo

    John Celardo Well-Known Member Donor

  11. Mike B

    Mike B Well-Known Member Donor War Zone Member Top Poster

    I started saving in my teens, I was never broke. Starting funding IRA's when they became available. Always did the 401K.

    Start young, never spend more than you make and invest the rest. So simple, but not easy eh?

    You have to practice self control, eschew "keeping up with Jones'es", live below means and delay gratification.
    Barry_NJ likes this.
  12. Denton

    Denton Well-Known Member Donor War Zone Member Top Poster

    I hope you are right, CJ. I can remember when home mortgages carried 20% interest rates and more. Things change. And then they change again.

    And sometimes people get sick.
    Barry_NJ likes this.
  13. Mike B

    Mike B Well-Known Member Donor War Zone Member Top Poster

    And sometimes they die.

    You don't need any dough when you're dead.
    Barry_NJ likes this.
  14. Rick C

    Rick C Active Member

    Keep in mind CJ has kids. As the kids get older they become a black hole for cash consumption. Activities, clothes, clubs, skating, braces, dance, hockey etc. Then college looms on the horizon. An almost never ending flow of cash.

    Once the kids begin to be on their own you get a real sense of your future expenses and hopefully they become much lower.

    Another interesting phenomenon is as the kids are on their own and face the myriad of expenses and uncertainties they have a changed appreciation of the cash black hole they once were. :)
    Last edited: Aug 17, 2017
  15. claud

    claud Well-Known Member Donor

    Why would you retire when you have 6 weeks of vacation a year plus sick leave. I too am one of those state employees that gets a pension. I try not to keep more than 10 thousand in the bank due to crappy interest rates. I just have a line of credit at the bank and commercial and residential rental property. My child is married, but still needs a bit of Dad's cash advance. I guess I am his emergency cushion.
  16. CJ

    CJ Well-Known Member Admin War Zone Member

    My wife wants to retire as soon as possible (like she's thrown out 55). I don't see myself doing that. Its not that I like work more than her, I just don't believe we can both retire at 55 with what we'll have and do any of the things we talk about doing WRT travel etc. I also think if you can find the right company to finish your career with you can make a lot of money just being around providing your experience. My old "big boss" makes north of $500k, living in Omaha, barely puts in 40 hours but gets the job done because he has 35 years of experience. I'd love to be in that position and I think the career path I fell into definitely lends to those kinds of opportunity more than others. Hell, I'd love to be a corporate board some day.

    As far as kids, I've got two in middle school and I'm sure some of it is related to our financial status and personal choices but even with that taken into account I think parents spend far more on kids today than when I was a kid (adjusted for inflation).

    Assuming no unforeseen major changes (knock on wood) we'll have our house paid off before my oldest graduates from HS. Between savings, 529, and the free cash flow from no mortgage we should be able to pay for college without taking loans. Of course I may be paying for three weddings etc.
    Barry_NJ likes this.
  17. Phil A

    Phil A Active Member Top Poster

    CJ - it is cheaper to buy a ladder (and leave it by their bedroom window). That will save a few bucks:p
    Barry_NJ likes this.
  18. capsuleri

    capsuleri Well-Known Member War Zone Member

  19. CJ

    CJ Well-Known Member Admin War Zone Member

    LOL. Yeah, that's true too. It really is a double edged sword because having the last 20 years of your life off to travel and hobby around is great but its a big difference if that's age 50-70 vs. 80-100.
    But that's the kind of comment that just makes this all stupid in my mind. We're collectively short 5x the entire global economy in retirement savings? That just doesn't seem to add up.
    Last edited: Aug 17, 2017
  20. Carl V

    Carl V Well-Known Member Donor War Zone Member Top Poster

    for most people/workers....there is no Gov't Pension, no Work Pension, few get 401K
    most never get 4-6 weeks vacation, Sick pay is sometimes lumped into a Broad category of Flex time.

    So, for those lurking. Listen to Mike B. Start early.
    Be Disciplined. Don't count on Daddy War Bucks to
    come to your aide and buy your BMW or your Condo.

    But most importantly establish a life balance early.
    travel now as best you can, as often as you can, where
    you can. When you're 65 or 75 you might not be able to travel.
    Shit happens.
    Barry_NJ, Denton and capsuleri like this.

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