Retirement Savings

[Parrott_head]

So many well written responses to this topic.

Wife and I have done ok for our retirement but looking back there are things we should have done differently.

We have bought both new and used vehicles and kept them for various numbers of years. Our intent to to always run them till the wheels fall off but that it has not always panned out that way.

We both put money into whatever employee sponsored savings that we could. I also have a union pension plan that is fully vested and solvent.

We have encouraged our children to do the following:
1) Join any savings plan that your company offers.
2) Use and set a budget for your personal finances We use YNAB (You Need A Budget) but there are many fine products out there.
3) Live within your means.

Right now we are trying to find a CFP that we feel comfortable with. I am a bit of what is known as a "Bogelhead", someone that invests according to the philosophy of John Bogel, founder of Vanguard Investments. If it were not for health care expenses being what they are my wife and I would be retired right now.

[lynnmor]

I tell young folks to get a government job of any kind. Why save and live cheap when you can party and collect a pension later?

[EdInArk]

I worked for a bank back when I earned an honest living and was often amazed at how the young folks think. You'd think that being exposed to finance every day they'd know better. But I'd talk to one about investing in our 401k, and the answer would be that they couldn't afford it. Why? Well, it was likely because they'd have trouble making the payment on the Expedition or $23,000 motorcycle if they invested $100 a month for the future.

One young lady was married with two kids, lived in a mobile home, and was making payments on an $11,000 lawnmower. Yes, I said lawnmower. Crimeny! I was driving a car at the time that cost me $2,500, and I drove that car 6 years. A LAWNMOWER!

[jerboy]

Originally Posted by lynnmor

i tell young folks to get a government job of any kind. Why save and live cheap when you can party and collect a pension later?

finally someone with the guts to speak the truth!!!!

[09 harley]

I tell my kids (5) that they better save for their own retirement. Don't expect some one else to support you. Don't live above your means, don't accumulate debt and pay off all your debts so you are debt free when you retire. I'm always amazed by people who are deep in debt when they quit work. Might have helped if they didn't have all the toys that they now want to get rid of.
I saved 15% for all my working life and now I can joy it. Keep your money invested and you will be fine. I can't spend money fast enough to keep up with my returns in the market. Poor me.

[TonyMac]

Retirement savings is the second biggest investment you'll make. And, those of you who have successfully retired know, your house is not your biggest investment, not even close. Far bigger is the investment in your earning potential, investment in self. I graduated late from college, but knuckled down on my career and my retirement savings. I've owned one new car in my life. I taught myself to fix about everything. Spend wisely. Dollar cost average investing. Now I'm finishing my second career after 24 years in the Air Force.

[hoosierrun]

Had a matching 401K at an employer I worked for 19 years. They also had a small pension plan. I also contributed to a pre-tax spousal IRA for my wife (mostly a home maker, but did work enough years for SS). We got lucky and converted her IRA to a Roth IRA in the bad economic recession in about 2007. That was during the bad stock market days, so when the market recovered, her IRA (all in a mutual fund) nearly doubled in the following 7 years, all tax free.


I got laid off at age 54 but got a low paying county government job with good benefits. I worked for them for 10 years and got another pension and a partially funded Medicare supplemental plan. I also used a pre-tax deferred compensation plan. i.e. I saved what I could.


As others have mentioned, do without the luxury of a new car every few years and avoid the daily visits to Starbucks, etc. If your original family home meets your needs, go thru the entire mortgage or pay it off early. I never could understand why people switch homes every 5 or so years and step up their mortgage by 30 to 40% each time they move.

[kustom]

well i started working at age 7 went to school and worked till 6pm
my grandfather lived in the great depresion and saw and lived it
he told me i could have any thing in life if i was wise and saved
and paid cash for everything i have never had a loan in my whole
life now 61 my way to have things was to buy things that needed
tlc my wife is the same as me 32 yrs married she made her own
wedding dress so we think alike

[Badlands Bob]

Originally Posted by lynnmor

I tell young folks to get a government job of any kind. Why save and live cheap when you can party and collect a pension later?

Working for the government will teach you how to live cheap. You trade off a private sector paycheck for job security. Over the last 10 years, most local governments around this area have gone to the 401K plans for new employees. When the economy recovered, we lost a lot of employees back to the private sector.

[Frank Tamez]

Penny and I opened our Car Store in 1984. A year later we started keeping half of the profits after taxes and reinvesting the rest. The lot grew and thrived and in later years so did our other investments. During the first 20 years I worked about 80 hours a week.

Now at 60 the store still does extremely well, as do our rental properties. Everything is paid for. I work around 30 hours a week and take one week off a month from April through October.

I will add that I only have a 10th grade education and married the only wife I have ever had or wanted at 17.

We worked our butts off. If we had not lived to enjoy... Well.... No regrets possible if your dead. We all roll the dice. Don't bellyache if you spend it all and then live to be 100, and most of all. Don't expect ME to feel sorry for you...... Your choices. You made them... You live with the rewards or the consequences.

Me? Well. What happens when reality exceeds your dreams?

Frank

[Old-Biscuit]

Dad was an Independent Welder working the oil fields of WY/UT ....Mom held down the household
Paying bills one night I noticed she wrote a check out to her & Dad??

She explained that it went into a savings account for latter on and that I should always 'pay yourself' each month.

First job.paper and I put 10% away each week ......was really proud of my bank book.

Every job afterwards...paid myself! (restaurants, oil field, NAVY ----had money on the books from so much time at sea-----draftsman, construction)
Then got hired on by a major utility company that had some great 'retirement/money investment' plans.
Actively participated in each one.....especially when they went to a 401K program and matched first 3%. I matched that 3% for total of 6% then increased my contributions to MAX allowed by IRS (9%, then 12%, then 15%, 18% until I was maxed out at 24%)
Funny thing (GREAT) was Net take home changed very little.

Had boats, motorcycles, took short vacations monthly (12 hr rotating shifts netted 7 days off in a row each 28 days), bought rifles, pistols (Cowboy Action Shooting) , new vehicles------in other ENJOYED live/family & friends

Change in events due to deregulation/power plants being sold----
Retirement package from utility company...hired directly on with new plant owners.
Worked for those IDIOTS for 2 years and then one early Friday Morning I QUIT
Monday met with my investment guru and went from 'unemployed' to RETIRED----2 months before turning 50 Yrs old.

That was 14 yrs ago.......
Still enjoying life. DO want we want when we want.
Live a comfortable life.
Debt free!! (Another idea instilled in me by my MOM!!)

And still to this day......PAY MYSELF monthly.

[vsheetz]

I've worked since I was 12 years old. Learned the value of a dollar earned. Have had ups and downs through life as have most. When I wanted more money I worked a second job, got education to make me worth more in the workplace, etc. Always set some money aside. Not rich in retirement, but comfortable.

[Roy1]

The way I see it if you're not rich and don't have a college degree be good at where you make a living. But be a penny pincher where ever you can drive older used cars own a decent nice house with good equity . Be a good mechanic ,plumber,carpenter so you can keep all your stuff in good repair and not have to need anyone to maintain your stuff. Contribute to a 401k and also use your wife's paycheck to fund an Ira for both of you. It's ok to buy an older Motorhome and older boat to take the kids camping you can fix them so mostly the gas is your big expense. Lots of memory's here. Put your kids thru college on a budget while they work part time to help out. When all is said and done and you retire your house is paid for you are still driving a 10 year old car and Motorhome but you have plenty of money invested for the future and the grown kids that didn't go to college that will always need help. Just what I did and I'm still fixing most everything in my old age. Should be done with the bathroom remodel in a couple of weeks then off on a camping trip with my 15 year old diesel pusher.

[Badlands Bob]

And while we're on the topic of putting your kids thru college, I don't pay for art history or psychology degrees. If we're going to spend the money and time in college, let's get something marketable in the real world.