Retirement savings ....Yikes !

[dave1949]

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

I'm sorry some skunk swiped your silver coins. They stopped minting silver dimes and quarters in 1964 I think. They were pretty seldom seen when I was running cash register in the late 60's. I traded new ones for the silver anytime I saw one in the till. :thumbsup:

I guess everyone has to invest in ways that are consistent with their risk-taking comfort. I have done the same exercise, comparing mutual fund net gain (after expenses) to interest bearing accounts. During some time periods, you are taking risk in the market for little to no gain, or a loss even.

I just checked a mutual fund account that I rolled an IRA into in 2002. No additions or withdrawals since. Over the 11 years and 1 month since, it has had an average annual net gain of 9.747%. The account mix happens to be heavily weighted toward corporate bonds, so it hasn't benefited much from the most recent stock gains. There were some very sad days in those 11 years, but over the long haul, it has done better than bank interest.

Back when 5% interest was common, and the market grew at 7%, plus take away the fees, the choice was a lot easier to make. Now with under one-half% interest, it is much harder I think to feel good about interest bearing accounts. It's fair to say in the current situation, you couldn't duplicate your interest results of the past years.

Of course, the market could go poof! and wipe out a lot of savings too. Diversification and long-term outlook seem to be the best way to balance risk and reward in investments.

I don't like Mr. Price getting paid when I don't either, just a fact of life. The only way around that, that I am aware of, is to open a trading account at Scottrade or similar. If you can stand the research time and tax paper work, it's like putting sweat equity into your retirement savings.

 

[daugen]

We're going to make it boys!

:thumbsup::thumbsup::thumbsup:

:dance1::cool2::dance1:

 

[Gale Hawkins]

We're going to make it boys!

:thumbsup::thumbsup::thumbsup:

:dance1::cool2::dance1:

I tend to agree. From my position it is the high level of business unknowns today that concerns me. Our local job market has suffered due to Mattel going to MX, a crooked business owner and currently the lucky ones got a 5% pay cut at the hospital and the not as lucky ones got sent home until demand for services increases AND Medicaid payments start flowing in a timely manner.

Things are well for many but anyone carrying debt and then lost a lot of household income due to a job loss things are not so well.

Clearly for the group retiring soon with under $50K in savings for retirement will not be retiring in style.

I know a retired pipeline welder who has a simple old wood frame shop behind his house that does a lot of welding jobs for locals at a fraction of the price of big shops that is doing OK. If you show up when he is leaving to go fishing with the grandkids he will tell you where to leave it lay or when you can come back. That is understood by all before we show up.

As was the case in the 1930's those who can grow a garden and some meat will eat. I expect many of us will be to keep a way to generate some cash after retirement. I knew one guy without a home that lived rent free in an OK apartment because he was their handy man around the complex. Nothing heavy that required him to hang around all of the time. There are other ways for people with skills/tools to pick up cash on their terms. Others better hope they have savings enough or are OK living in government housing and food stamps.

One thing I have observed is the financial stable live much longer in our region for some reason(s).

 

[keegs]

Here's one..... If your asset allocation is in large part determined by your risk tolerance, what if by nature you have a very optimistic outlook on life? Or conversely ....what if by nature you are a pessimist

 

[daugen]

Here's one..... If your asset allocation is in large part determined by your risk tolerance, what if by nature you have a very optimistic outlook on life? Or conversely ....what if by nature you are a pessimist

This is why some folk really do need a pro to guide them into a spot where they need to be, but might not want to go.

 

[ultrarunner]

I worked as a lunch line cashier all 4 years during high school and was able to pick up quite a few silver coins...

I made a smart remark to the teacher that ran the cafeteria about taking so long... he said OK smart A... handed me the cash box and walked away...

Like most here... I think we have all had jobs from a young age... I started paying into Social Security at age 12 and had plenty of jobs before that... still remember getting paid $50 from a neighbor to stain all his board fences and I was 8...

As long as health is OK... there is no reason why anyone shouldn't be able to make it...

Your Health is your Wealth...

Which brings up the topic of health Insurance for those not yet qualified for medicare...

My brother now pays $1680 a month for basic Health Insurance for himself, wife, and their 3 daughters... they also have a $2500 deductible for each covered member... so 30k+ each year set aside for medical and 5 years ago he was paying less than half that with $1000 deductible...

 

[Gale Hawkins]

Your Health is your Wealth...

Good point. Just saw the below from the UK and wondered what would be the results if tried in the states?
900,000 choose to come off sickness benefit ahead of tests - Telegraph

 

[dave1949]

Here's one..... If your asset allocation is in large part determined by your risk tolerance, what if by nature you have a very optimistic outlook on life? Or conversely ....what if by nature you are a pessimist

In that situation, always listen to your wife. It won't matter if you were right or wrong. :laughing:

 

[keegs]

In that situation, always listen to your wife. It won't matter if you were right or wrong. :laughing:

....had I learned something over all these years of being together that might be a logical approach to it Dave .... Did I ever mention I was Irish..

 

[300UGUY]

In that situation, always listen to your wife. It won't matter if you were right or wrong. :laughing:

Yeah. On the other hand, the wife has a pretty good track record. After all, she chose me!!!