Retirement savings ....Yikes !

[Redbug]

I have been investing and saving for many years, (Vanguard). I have also been a member of the Early Retirement Forums, for many years. I log in every day, kinda like here. We have no debt, and I plan to pull the trigger this January. I recommend that you guys take a look at them. It's a crowd of folks, (like on here), but with retirement and investing as the focus. And other real life topics like we have here, too.

A great thread I keep bookmarked from a few years back...
The "fog of work" - Early Retirement & Financial Independence Community

Here's some of the forums...
FIRE and Money - Early Retirement & Financial Independence Community
Life after FIRE - Early Retirement & Financial Independence Community
Health and Early Retirement - Early Retirement & Financial Independence Community

 

[daugen]

I have been investing and saving for many years, (Vanguard). I have also been a member of the Early Retirement Forums, for many years. I log in every day, kinda like here. We have no debt, and I plan to pull the trigger this January. I recommend that you guys take a look at them. It's a crowd of folks, (like on here), but with retirement and investing as the focus. And other real life topics like we have here, too.

A great thread I keep bookmarked from a few years back...
The "fog of work" - Early Retirement & Financial Independence Community

Here's some of the forums...
FIRE and Money - Early Retirement & Financial Independence Community
Life after FIRE - Early Retirement & Financial Independence Community
Health and Early Retirement - Early Retirement & Financial Independence Community

good stuff, thanks. And I like that this other forum must be similarly managed, as it looks similar and has "stickies"

 

[Ken]

Yep, born in 1949. Not a very creative id, but I think it helps sometimes to know how old the person I'm chatting with is.

I should read and hew to my signature more often. :laughing: Investment is not my area of expertise either, I'm not sure if I have an area of expertise anymore come to think of it.

I think I have been very lucky in life. When I read about the troubles, often very expensive troubles, many folks have or had along the way, I feel like I'm leading a charmed life. I know we make some of our own luck, but that certainly doesn't account for everything. On the other side of the coin, I think some folks do have bad luck, and some make their own bad luck to a degree.

We fed our IRA's and 401k's for many years, put a lot of effort into our jobs, saved money and lived within or below our means. It does add up if you keep to it. We made some good decisions and choices along the way that helped too, and some of those were dumb luck.

Staying out of debt well before retiring is surely good advice to follow. I agree a home is not an investment. I picture it as an asset that needs to be protected, kept up and so forth to maintain or increase its value.

What do you think I should do with my 5 lb bag of States' Quarters? I hear they are worth 25 cents now. :laughing:

Dave 1949 I was a teenager when you showed up .and working in Southern Arizona heard of those who knew what was happening should of joined in. They would cash there pay check go to a Mexico bank and purchase a bag of Peso coins. and in travel to another town they would separate the silver from the new tin coins and then turn back In for U.S. dollars in coin and again separate the silver from the new tin. then return to banks all new coins.
and work for another week to go again.
I started to save my silver coins until had a heavy bag. but some one needed it more than I.
Growing up always cautioned by Father to never go into debt more than can write a check to cover. And to keep funds in Credit Unions that are investor owned. At work had 401K and also T.R.Price and Ed Jones investments. Then in learning computer spread sheets put in the Profits from these company's .
how much put in and how much removed in service charges and the amount of growth of investments.
Called old T.Rowe and requested my money by check and then looked closely at Ed Jones and after 10 or more years the service charges exceeded what the C.U. would of paid if had been invested in there account. so got out all of the investments. plans . Still have the 401k but each year the Gov. has a portion removed to gain tax on the amount. and large penalty if removed.
All this to say if cannot get your hands on cash money some one else is living well in taking care of the account.
Been retired 19 years and have enjoyed the life style. Also the C.U. account is still growing and have a living trust for family in future .
ken

 

[Gator6x4]

I recently while looking for something else came across a 2009 study on retirement. The facts presented by the study, one of which is listed here, “(The major sources of income as reported by older persons in 2009 were Social Security (reported by 87% of older persons), income from assets (reported by 53%), private pensions (reported by 28%), government employee pensions (reported by 14%), and earnings (reported by 26%). “ are staggering.

Eighty seven (87%) percent of retirees listed Social Security as their major source of income in retirement. Only twenty eight (28%) percent had a private pension.

 

[Gunny]

Those statistics sound about right, there are too many people depending on the government to take care of them, right now and when they get older. For now, it's working fairly well, but it's a situation that can't keep itself going much longer. Things are going to get pretty hairy when big government steps out of the equation, both civilly and politically.

 

[dmccarty]

...

Eighty seven (87%) percent of retirees listed Social Security as their major source of income in retirement. Only twenty eight (28%) percent had a private pension.

The 87% is not be that surprising but it certainly is scary. I know the people my age and younger that I talked too do not expect that Social Security will pay us very much when we retire. It certainly will not return what we paid into the program.

28% having a private pension will decline because companies are correctly removing that long term liability. For a few years, I was in a plan for a private pension but the company transitioned to 401K plans for employees of a certain age and new hires. Employees of a certain age and/or years of service remained in the pension plan. In theory, I lost money when I was moved out of the defined pension plan but for me it was a blessing. I now don't give a rats to what happens to the company from a retirement perspective. My retirement money is my retirement money and not dependent on the financial health of the company. While the company is doing well today, you never know what will happen in the future. The idea of someone else being responsible for my retirement money would always nag me. There is always risk but I would rather my retirement be my risk responsibility.

Later,
Dan

 

[Travelover]

Why the housing bubble happened.
For many years real estate mortgages were a "SAFE" investment. The money lent was backed by a real asset that could be sold to recover the money lent if the borrower couldn't pay. What changed ? The gov't got involved. Said banks weren't lending enough money to poor people to buy a house (google Community Reinvestment Act) Banks started to lend money to all. No money down ?

Off topic, but worth commenting on..........

This is a where a little bit of truth and a lot of propaganda get mixed. It is true that the government encouraged banks to lend to the poor, as traditionally that is a major source of net wealth in America. What is not true is that this policy is what caused the big melt down. The banks recklessly loaned tremendous amounts of money on both first and second mortgages to the non-poor, but unqualified, repackaged them into mortgage backed securities which were then rated AAA safe by unscrupulous rating agencies and sold on the open market. When this blew up in their face they pumped out this propaganda that "the government made us do it". One percent truth, 99% BS.

Sadly, they had the economy by the short hairs and the government had to rescue them to avoid a greater collapse. Even sadder, the "too big to fail" banks are now even bigger and congress will do nothing to break them up because they enjoy the campaign money from the banks too much.

Back to retirement savings...........

 

[Gator6x4]

A lot of GREEDY people caused the housing bust. They were flipping houses to make large sums of money. They were over extended, but were doing it, house flipping because everyone else was doing it and making, "BIG MONEY". Some elderly retirees jumped on the band wagon buying 400-500 thousand dollars homes with a five year ARM. Live in the home for two (2) years sell and take the equity and buy another larger home with another ARM. Oh by the way has anyone heard of a ARM mortgage lately? Can you still get an ARM?

When the housing market went sour these same people were wailing and crying on television about how cruel and without feelings the government was for not stepping in and making them hole again. There are still people bitter today because tax dollars were not used to restore their pension money which was squandered in a greed driven speculative deal on housing.

I never have been able to understand how someone can be spending thousands more than they make each year on housing loans, multiple auto loans, boat and water craft loans, vacation cabins or beach homes, college tuitions and own college loans etc, yet talk about building a great retirement pension portfolio.

 

[ultrarunner]

Adjustable Rate Mortgages are alive and well...

One of the banks that caters to Doctors and other professionals does not offer fixed rate loans because they do not resell on the secondary market.

This bank also weathered the bubble quite well and is doing great today.

They do offer great service and can make a loan determination in days vs. weeks.

 

[MacLawn]

I've read most of the posts here, and it seems that we TBN members are in pretty decent shape for retiring! Probably because we have a habit of trying to learn about not just tractors, etc., but all things that touch our lives. At least, that's kind of the way I am. We'll probably retire about the way we've lived all our lives - maybe lower middle class. And very frugally. One thing for sure, I'll have plenty to do with all my hobbies (I have too many!) and piddling around on our 9 acres! I just love piddling! Which to me is chopping in the woods clearing, piddling in my office/shop, keeping all me old stuff running. Man, looking forward to no more schedule, at least not a pushing schedule. We're going to make it boys!