Retirement Planning - Lessons Learned

[Sigarms]

Washington's minimum wage is $13.69, but I doubt many people are looking to work for that. Around here, Taco Bell starts employees at $14.20. Maybe it's different in the South. Do Walmart and grocery stores only charge 50% of PNW prices there?

My one 16 year old has worked for 8 months at minimum wage in NC, $8.15 an hour. 8 months, never missed a days work when he was planned, always came in when he was asked as wasn't on the schedule. Proud of him as he has banked over 7k saving every penny.

Same company he works at starts others at $,9 and the same franchise is opening another location starting at $10, yet he can't transfer for more money (he pays for gas and his portion of car insurance).

There is about 3 of them who work hard who interviewed at a local family diner who will start them off at $9. I sincerely hope every good worker leaves, as I do believe they are screwed up management wise from what I've seen. That said, he's stuck with the BS and proud of him for that as well.

 

[Torvy]

Shaking my head at the lack of fundamental economics understanding. Too bad econ was not required in HS back in the day. Maybe some people would understand what it is they are actually saying.

 

[Sigarms]

Shaking my head at the lack of fundamental economics understanding. Too bad econ was not required in HS back in the day. Maybe some people would understand what it is they are actually saying.

Don't spend what you can't already have the money for. If you have the money and have a good interest rate to boot, use someone elses money.

Is that wrong?

I'm in my 50's, the only thing we both owe on is our house and land.

 

[RickB]

Credit is a tool just like any other. I've seen businesses fail because of too much debt. I've also seen businesses fail because of a fear of taking on any debt.

 

[MoKelly]

Shaking my head at the lack of fundamental economics understanding. Too bad econ was not required in HS back in the day. Maybe some people would understand what it is they are actually saying.

Yes. It’s shocking sometimes.

But - unfortunately most view economics through their political beliefs which is so distorted it’s shocking.

But - that is life today.

Someone once said “it’s not what you don’t know that’s dangerous, it’s what you think you know but don’t know that’s truly dangerous”.

MoKelly

 

[ultrarunner]

That's admirable. I got a free high school education and heavily subsidized college education courtesy of the taxpayer. It helped a lot. Washington's minimum wage is $13.69, but I doubt many people are looking to work for that. Around here, Taco Bell starts employees at $14.20. Maybe it's different in the South. Do Walmart and grocery stores only charge 50% of PNW prices there?

The $300 unemployment boost expires in September, and 26 states have already cancelled it without seeing an uptick in hiring. It looks like the "nobody wants to work" rant was just BS. People aren't willing to sit still and be screwed any more. The handwriting on the wall is, if you have employees you better keep them happy. Half of them would like to work elsewhere, and 44% already have one foot out the door.

Is now a good time to change careers? More workers are feeling good about it

In an exclusive ‘Fast Company’-Harris Poll, 59% of middle-income workers said they’re thinking about changing jobs. Remote work continues to be a draw.

www.fastcompany.com

If a person is able to meet their obligations and not work I say more power to them...

The last 18 months have been a reset for many finding they can do with less and not even miss it.

I do have a problem when obligations freely undertaken are ignored with no intention of ever honoring commitments...

Case in point is the Billions owed on defaulted rent where the property owner is required under penalty of law to continue paying for and providing services without recourse...

Something is terribly wrong with government forced servitude and no recourse... which is exactly what is happening now...

The fallout has affected too many modest retirement plans...

 

[Steppenwolfe]

Shaking my head at the lack of fundamental economics understanding. Too bad econ was not required in HS back in the day. Maybe some people would understand what it is they are actually saying.

Please... enlighten us. What are we missing?

 

[MossRoad]

That's a good plan!

After age of 65 you qualify for Medicare and can shop around for supplementary ins. available in your state.

That should not be too hard to find?

Yes, but I'm talking before 65.

After 65 it'll be medicare and supplementals.

 

[Fuddy1952]

I'm 69, wife 67. Both Anthem Blue Cross, both (part F now I'm thinking G) so it's like $150 deductible per year. She has prescription (D?). Each is about $150-$200/month so not bad at all.
Yes, I'd also like economics lesson.

 

[lman]

One lesson is if you don't work, you can get free government paid medical insurance.

 

[ultrarunner]

One lesson is if you don't work, you can get free government paid medical insurance.

This is the retirement plan of many...

New Toyota Corolla in driveway, Section 8 pays 2500 rent each month... you pay $125

All utilities discounted... cell free... high speed internet $10.

It is an entire way of life many have no idea it exists... even paid to take care of your grandkids.

Medical full coverage often at no cost including prescriptions.

Discounted Public transportation.

It must be good because the wait list for a single family home voucher is 5-7 years..

 

[MossRoad]

This is the retirement plan of many...

New Toyota Corolla in driveway, Section 8 pays 2500 rent each month... you pay $125

All utilities discounted... cell free... high speed internet $10.

It is an entire way of life many have no idea it exists... even paid to take care of your grandkids.

Medical full coverage often at no cost including prescriptions.

Discounted Public transportation.

It must be good because the wait list for a single family home voucher is 5-7 years..

They say Californy is the place you aughtn't go
So they loaded up the truck and they moved to Idaho.

Potatoes
Frenchfries

 

[RustyA]

Back to the debt discussion I read a great book when I was young called How To Beat The Salary Trap. Rule #1 was pay yourself first, live on 90% of your income and invest the difference...this was pre 401k. Rule #2 never finance a depreciating asset. At the time it was the best advice I had ever heard.

 

[ultrarunner]

They say Californy is the place you aughtn't go
So they loaded up the truck and they moved to Idaho.

Potatoes
Frenchfries

Yes... demographics changing....

Cashing out and blowing out your debt with leftover cash sufficient to buy in another state is a popular option for those with equity.

(It use to be head for the foothills)

Among my 30 something neighbors several have said is this where we want to be ten years from now or forever when retired?

Often the answer is no and another SOLD sign goes up... these are all people of means... many in tech or medical...

 

[Macinnis]

Never say never
My second house was bought in 1984 when interest rates were over 12% for my adjustable rate loan.
30-Year Fixed-Rate Mortgages Since 1971 - Freddie Mac
It had a "cap" of 14 or 15% MAX. When I asked the loan officer what was the bottom "cap" they laughed at me.
I rode that loan down to about 6%.
I had a bunch of treasury bills at 14%. Used to stop downtown at the treasury building for lunch and buy them.

Definitely.
Borrow on an auto loan at 1%, make better money elsewhere.

I believe my dad said his first home loan was like 18% or something crazy like that in the late 60’s. He was an attorney, who did ok, nothing crazy.

I just don’t understand not using credit like any other tool. If you can pay cash, why not keep that cash and pay a little finance charge less than whatever that cash would do whereever it’s parked?

my first house was about 8.5% interest, now it’s 3.5%. Cheapest loan ever for me.

 

[caver]

They say Californy is the place you aughtn't go
So they loaded up the truck and they moved to Idaho.

Potatoes
Frenchfries

read up on J.R. Simplot. there was a rags to riches story. I was on a commercial rafting trip down the Middle Fork of the Salmon and one of the guides pointed out land his family still owned. the only way in is river, horseback or plane since it's surrounded by a wilderness area. Scroll down a little in the link. J.R. Simplot Company -- Company History

 

[goeduck]

This is the retirement plan of many...

New Toyota Corolla in driveway, Section 8 pays 2500 rent each month... you pay $125

All utilities discounted... cell free... high speed internet $10.

It is an entire way of life many have no idea it exists... even paid to take care of your grandkids.

Medical full coverage often at no cost including prescriptions.

Discounted Public transportation.

It must be good because the wait list for a single family home voucher is 5-7 years..

I wish I was as privileged as those "poor" taking advantage of the working stiff paying the bills.

 

[Frankenkubota]

I'm 69, wife 67. Both Anthem Blue Cross, both (part F now I'm thinking G) so it's like $150 deductible per year. She has prescription (D?). Each is about $150-$200/month so not bad at all.
Yes, I'd also like economics lesson.

i'd like a medicare lesson

part x,y,z

 

[Frankenkubota]

This is the retirement plan of many...

New Toyota Corolla in driveway, Section 8 pays 2500 rent each month... you pay $125

All utilities discounted... cell free... high speed internet $10.

It is an entire way of life many have no idea it exists... even paid to take care of your grandkids.

Medical full coverage often at no cost including prescriptions.

Discounted Public transportation.

It must be good because the wait list for a single family home voucher is 5-7 years..

you are forgetting child care, food stamps, medicaid, the list just goes on and on. Free internet so they can look for a job?

the best one was they were having pizza delivered on food stamps while they squat on the couch to watch jerry springer, that was portland. had to stop that.

article 10 years ago said single gal with 2 kids would need to make $65K per year to just break even. they don't qualify for a $65K job and....who's gonna do that anyway?

another good one was/is....in some areas, if you are on medical weed and on welfare, you get a huge discount and.......wait for it.....they deliver it to you.

A few years ago i read the average age for a grandmother in one federal housing project is 32. that's a career choice with no other options.

food stamps have a direct and indisputable link to the obesity epidemic....that from the dept of ag web site.

then, look into corp welfare and govt employment. lots of folks willing to take what they can.

It's hard to blame people, the welfare queens or the Warren Buffetts for taking advantage of any situation, that's exactly what people do.

It's the govt and their band aid after the fact knee jerk reactions.

It's the government, not the people.

 

[KennyG]

Borrowing money can be a very smart financial move, but it always comes with a risk when you borrow at a fixed rate to keep other assets invested at uncertain rates. The real problem with credit (and the reason some advisors are so against it) is that it encourages people to buy things they really don't need and keeps them from making adequate investment for the future.