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jlm274 – your rant is pathetic. Poor, poor pitiful you!! Stand up and zip your pants – real men don’t squat to pee.
Evidently most of the baby boomers and all of the subsequent generations missed the class on "pay yourself first".
As a teenager in the sixties I started off earning $1.85 an hour. Every paycheck, first thing,10% went into my savings account. Regardless of number of hours worked, bonus, overtime, or anything else. As years went by and wages went up I still paid myself that 10% every payday.
I didn’t pay my ego with a new car every couple years or use credit instead of saving for what I wanted.
I didn’t finished college or ever hold a job that paid more than 50K a year. I never had an employer paid pension contribution.
Today, I own my home, my car, my truck & my boat. My net worth is slightly north of1.3 mil.
I retired when I turned 58 and I waited until 65 to start drawing social security.
All because I paid myself first.
Having even a small amount saved for retirement is better then having nothing at all.
Do not get hung up on the idea of am I saving enough, just start saving.
I agree budgets are tight and incomes have not kept pace with inflation. Yes the government is taxing us to death. Kids and medical expenses can get in the way. None of this must keep you from trying. Even a small amount each week to start with is better than doing nothing at all. You will be amazed how it will add up.
When the day comes that you do finally retire, you will be better off having saved something. It may not be the amount you hoped for or the amount the so called financial experts feel you should have saved, but be proud of what you did save. Considering all the things that are currently working against you, you did a GREAT job.
I've heard enough ranting from those who brag about their saving aptitude. And I've heard enough from those who blame Democrats or Republicans for thier financial woes. The real problem is not taxes on the middle class, because they've held steady for the last 40 years. It's partly a sense of entitlement; i.e. a confusion between needs and wants (no, an i-phone is not a need, and neither is a television). However, I believe the main problem is the stagnation in wages and the disappearance of pensions. Inflation has not been particulary high over the past 40 years, nevertheless, wages have not kept up with inflation. This makes us poorer now than we were in previous years/decades. We are working more hours yet taking home less in adjusted wage earnings.
I make a good salary (top 10% wage earner) and save like crazy. I've maximized my retirement contribution ever since I started working after graduate school, and that was nearly 30 years ago. But I look at my friends and co-workers and recognize that so many are behind the proverbial 8 ball. Sure I could be self-righteous about my saving ability, but the truth is that I make enough money to have the luxury of saving. The vast majority don't enjoy that luxury. Indeed, most people I know are only 2-3 missed paychecks away from financial ruin.
A recent study looked at the expenses for a family of 4 living in Houston and earning the median income ($63,000). After paying for a house (at the mean price for homes in Houston), utilities, health insurance, food, clothing and transportation, there was nothing left for entertainment, much less college savings or retirement savings.
You can blame whatever political party you want, but the real culprit is a business/government model that allows for an increasing concentration of wealth in the hands of a decreasing percentage of people. While the Median income (half the population is higher and half is lower) is $63,000, the mean income (the average income for everyone) is much higher. This can only happen if there are persons so heavily compensated that it skews the data. In the past the CEO of a company earned 20 times what the average worker made. Now that person earns 200 times what the average wage earner makes.
I'm not a socialist; I'm a fan of the free market economy. I suppose we could say that this is the free market at work, but those at the top have the advantage of tax breaks and other benefits that allow them it increase their wealth while the rest of the population (me included) struggles. In essence, the rule are heavily in their favor. That's why I don't have a problem with the inheritance taxes, the Affordable Care Act, eliminatioN of the Capitol Gains Tax or numerous other programs that are aimed at helping the middle class at the expense of the privileged. Those "Occupy Wallstreet" folks were a little to nutty for mainstream America to take seriously, but they had a few very good points.
One of the many things my parents taught me was how to save. They both lived through a depression and learned the value of living within your means, saving for a rainy day, and staying out of debt.
My parent taught me well. I have always been a good saver but did not become a good investor until I was in my thirties. I have been very good at managing my money. I keep to a strict budget, have no debt, live within my means, and have a rainy day fund for unexpected events.
I take full advantage of my employers 401K company match. I have an IRA I invest in. I try to contribute the maximum amounts allowable in all my tax deferred plans. I am invested in stocks that have dividend reinvestment plans. I learned the value of starting small and through the course of time and compounding have seen my investments grow.
I am in my fifties and plan on working for another twelve years. I am on track to achieve all of my investment and retirement goals. I have lived through the ups and downs of the stock market. I have been downsized and had to start over. When I have learned is that it is best to have a plan and set goals for your life and your investments, live within your means, stay out of debt, and save for a rainy day.
The early you start your plan the easier it will be when you get older.
The early you
the classic: "assuming 8 percent annual growth" line has changed over the years from other "average" growth numbers like 10%, 11%, 12%...
run a spreadsheet and it always looks great in time.
reality? not the same. add in cases like the 7 out of 10 companies i've worked for that have disappeared. 401k? see-ya! company matching? see-ya! fully invested company match? see-ya! does the next company even HAVE a 401k? heck no!
the stay at home spouse who makes no money? no problem? "just" have her husband stash away more money! oh sure.....that's easy!
the slide show is obviously an ad for the mutual fund industry.....
if you cannot figure out how to save, ask your parents. they usually made smaller salaries but kept money for an emergency and figured out how retirement works. they bought insurance in case they needed protections. my average income has been around $30,000 and after 30 years of working i have $500,000+ in investments, a nice home, and loan free vehicles i have been able to afford trips around the u,s and the world. no body said it would be easy, just work hard and play hard. we only go 'round once...
TO THE OREGON BIRD,
I WISH I HAD BEEN THAT SMART. MY HAT GOES OFF TO YOU!!!
My mother-in-law part of the greatest generation always paid herself first.
She was frugal, paid her taxes, kept out of legal troubles, bought a house,
and did not use it for equity. We baby boomers could learn a lot from them.
RIP and God Bless....
Why doesn't someone for a change do an article like this meant for the normal people who cannot put upwards of $17,000 a year away into a retirement account? For the people who live paycheck to paycheck.
It's this attitude (that everyone can do anything remotely like save $17,000 a year) that's creating an ever increasing divide between the wealthy and the poor in this country.
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Saving just a single month of expenses may take longer than you think. See how your savings rate affects how quickly you can build a solid emergency fund.
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