Are you "lucky"if you have a secure retirement?

[dave1949]

I think it is more than luck, but a lot of people at retirement age now have been through some turbulent employment and financial times.

Out-sourcing, automation, fast changes in skill set demand, real estate and stock market tankings, pension plan freezes; not everyone is going to be lucky enough to dodge those bullets. Add in the more personal things like divorce, medical problems, ballooning college costs; all that adds up to more potential risks that aren't always controllable. If you come through all that with no scars, I think that's due to luck as much as planning.

How well the inevitable setbacks are dealt with is not luck though.

 

[JDgreen227]

Huh?? I only see posts which are sensitive and understanding...don't know what you saw.

You probably don't see many of the posts I make that get deleted because I can be an outspoken and opiniated jerk who loves sarcasm....

 

[Travelover]

As background, I grew up poor and got little guidance from my parents, who both died by the time I was twenty years old. I wish I'd been given more mentoring, but I was still able to retire at age 54 with enough money to last me the rest of my life.

My observation is that when people have asked me for financial advice, they are looking for a quick fix or a hot stock tip. When I tell them to live below their means, pay themselves first and invest it in boring index stock funds, their eyes glaze over and that is the last I hear from them on the topic. They will spend hours watching television and surfing the internet for kitten videos, but won't spend a few hours on one of the most important topics in their lives.

 

[ovrszd]

As background, I grew up poor and got little guidance from my parents, who both died by the time I was twenty years old. I wish I'd been given more mentoring, but I was still able to retire at age 54 with enough money to last me the rest of my life.

My observation is that when people have asked me for financial advice, they are looking for a quick fix or a hot stock tip. When I tell them to live below their means, pay themselves first and invest it in boring index stock funds, their eyes glaze over and that is the last I hear from them on the topic. They will spend hours watching television and surfing the internet for kitten videos, but won't spend a few hours on one of the most important topics in their lives.

Very well stated. One of my Dad's most used statements was "It's not important what you make, it's what you spend".

 

[doxford jim]

I think that the role of the "financial advisor" should be mentioned too. Not every FA is on the up and up and, in my opinion, just as likely to consider their needs (commissions etc.) over the customer needs. Most people are not fully conversant with the FA jargon and in most cases, comments go over their heads.
A personal note regarding my invested funds. I had a mix of about 50% medium and 50% low risk investments. I am 70 years old and cannot take any financial hits without it affecting my situation.
Out of the blue I get a letter from this FA who said that basically, I couldn't mix my investments and had to go 100% medium risk. Hhhhm - that didn't go down too well with me. He obviously had no clue as to what my needs or concerns were. To make a long story short, after talking with him I got what I wanted and so far have not suffered financially from it.
I guess, a lot of people take the FA advice without giving much thought to what the advise really means. I am an engineer and can discuss most engineering problems and make sense of it all. FA seem to have a jargon all there own and often, what you think a certain phrase means is wrong.
Just thought I would mention this as it has happened to me and I am sure, many others.
You do to some extent, have to educate yourself on what is going on and why. Preparation, luck, decisions, are all a part of the picture.

 

[riptides]

No such thing as "lucky" when it comes to money and retirement.

It is all about choices and knowledge. In our current society, knowledge rules. And you have a choice to get more.

 

[newbury]

<snip>
It did not hurt to have Grandparents and parents that made the Great Depression real as a child growing up.

Very well stated. One of my Dad's most used statements was "It's not important what you make, it's what you spend".

Having parents AND grandparents who take part in your rearing are very important. My father and grandfather taught me to hold tight to money and not "want" a lot.
"Use it up, wear it out, make it do or do without" was their motto.

However "luck" can play a large part. Just before the stock market crash I and many of my coworkers at the Army lab were investing our pension plan money (TSP) in the stock market, plus buying stock on the side. I had to go in for back surgery, and based on past experience knew I was going to be on pain meds for a while. So I transferred all all my TSP funds over to the govt. bonds and basically left the stock market.

Most of my coworkers rode the stock market down and all took a significant financial hit in their retirement funds. I didn't. And I'd have to say it was luck.

 

[ovrszd]

Having parents AND grandparents who take part in your rearing are very important. My father and grandfather taught me to hold tight to money and not "want" a lot.
"Use it up, wear it out, make it do or do without" was their motto.

However "luck" can play a large part. Just before the stock market crash I and many of my coworkers at the Army lab were investing our pension plan money (TSP) in the stock market, plus buying stock on the side. I had to go in for back surgery, and based on past experience knew I was going to be on pain meds for a while. So I transferred all all my TSP funds over to the govt. bonds and basically left the stock market.

Most of my coworkers rode the stock market down and all took a significant financial hit in their retirement funds. I didn't. And I'd have to say it was luck.

I agree. I was in the same position without the medical issues. Had my TSP 50/50 split between medium/high risk and govt bonds. I too bailed out of the high risk based on small news tips I'd see on TV or hear on radio. I saved myself a LOT of money loss. Would I claim that to be total genius on my part?? No way. I'll give it 50/50 between luck and skill, with luck having the edge.

 

[Capricious]

I think that the role of the "financial advisor" should be mentioned too. Not every FA is on the up and up and, in my opinion, just as likely to consider their needs (commissions etc.) over the customer needs. Most people are not fully conversant with the FA jargon and in most cases, comments go over their heads.
A personal note regarding my invested funds. I had a mix of about 50% medium and 50% low risk investments. I am 70 years old and cannot take any financial hits without it affecting my situation.
Out of the blue I get a letter from this FA who said that basically, I couldn't mix my investments and had to go 100% medium risk. Hhhhm - that didn't go down too well with me. He obviously had no clue as to what my needs or concerns were. To make a long story short, after talking with him I got what I wanted and so far have not suffered financially from it.
I guess, a lot of people take the FA advice without giving much thought to what the advise really means. I am an engineer and can discuss most engineering problems and make sense of it all. FA seem to have a jargon all there own and often, what you think a certain phrase means is wrong.
Just thought I would mention this as it has happened to me and I am sure, many others.
You do to some extent, have to educate yourself on what is going on and why. Preparation, luck, decisions, are all a part of the picture.

I have a low opinion of "financial advisers." I see no reason to pay them 1% of AUM (for fee-based) or commissions (the rest of 'em) for information that is pretty easy to find on the internet.

Several of them here in town have TV or radio shows (paid programming) and refer to themselves as "the retirement coach" and such. They are essentially salesmen.

 

[CobyRupert]

Luck? Intelligence? Risk tolerance? I don't think it's just one thing.
I like the analogy of a card game: It's 1) intelligence (how smart you are, how to best strategize, see the big picture, etc..); 2) your risk tolerance (how much are you willing to invest/gamble/lose); and 3)Luck (the cards that are dealt).
Sometimes having one can overcome not having the other two, and other times not having one can cancel out having other two.
:2cents: