we spend too much and save less for retirement .. Why

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  • #609066

    retired60
    Participant

    We want so badly to live the American dream .. that we forget about our future and our children’s future

    #797297

    JanS
    Participant

    where in Texas do you live, and…what is your connection to West Seattle?

    #797298

    2 Much Whine
    Participant

    I don’t understand. I save 20% of every paycheck in a 401K and have for many, many years. Am I part of this “we” you speak of? Should I be saving more?

    #797299

    skeeter
    Participant

    The “we” may not include you, 2 Much, but it does include most Americans.

    http://www.nirsonline.org/storage/nirs/documents/Retirement%20Savings%20Crisis/retirementsavingscrisis_final.pdf

    “Two-thirds of working households age 55-64 what at least one earner have retirement savings less than one times their annual income, which is far below what they will need to maintain their standard of living in retirement.”

    #797300

    anonyme
    Participant

    The topic may be valid, but the OP is not. Per WSB rules, membership is restricted to West Seattleites – not Texans. Looks a lot like trolling to me…

    #797301

    AlkiKmac
    Participant

    Anonyme…where in the WSB rules does it say membership is restricted to West Seattleites?

    #797302

    natinstl
    Participant

    My husband and I max out our 401(k)’s and our IRA’s. We make extra payments on our house and put money away in savings. If people that have the income to do so choose not to then that’s their problem.

    #797303

    Patrick
    Keymaster

    We don’t have a residency requirement. But it is curious why some one from another state would want to talk about a topic that could probably be discussed on dozens if not hundreds of sites elsewhere.

    #797304

    seaopgal
    Participant

    Like most things in this country, retirement planning is a business, off of which many people make their living. Tax incentive savings plans like IRAs and 401k’s make these people (and their primary clients in the business world) very happy … they take the burden off employers to provide a pension, put it squarely on the shoulders of the individual, and make tons of money for the investment bankers, money managers, insurance companies, financial planners, etc., etc. Same people who are constantly nagging at us about saving and investing … fear-mongering that you “won’t be able to maintain your standard of living in retirement” (as if nothing could be worse) or that the government wants to take the bread out of your children’s mouth … and mostly the same people who would like to do away with the only programs that truly make a difference in the standard of living of the majority of seniors, Social Security and Medicare. I’m certainly not advocating not saving for retirement … but in my view, diet, exercise, staying in good health, and strong social connections are far more important to “maintaining your standard of living” in retirement than is the size of your 401k.

    P.S. Not a very warm welcome to a new member … esp. when there’s nothing at all offensive about the post or topic.

    #797305

    2 Much Whine
    Participant

    I kinda felt like the reception came across as a bit cold as well – thought perhaps the electronic medium may have conveyed an unintended coldness. But I agree with Patrick that it is a bit odd that this particular blog was selected to voice such a short opinion. It just feels like the next comment will be about a financial seminar coming to our neighborhood soon where Mr. Texas (who apparently was able to retire at 60) will gladly manage our money for us with opportunities for huge financial returns. Just seems sketchy. Might not be at all. If it’s not, welcome to the blog! If it is, in the words of Jamie Lee Curtis in Trading Places “We don’t want your drugs here, Louis.” I love that movie.

    #797306

    Smitty
    Participant

    I just hope the don’t “means test” social security benefits by the time I retire. Penalizing those who saved, and rewarding those who did not.

    (And by that I mean those that had the “means” but chose otherwise.)

    #797307

    JanS
    Participant

    you pay into SS, you get out of SS…it’s that simple. The fact that they want to screw with it, while their pension is decided, chaps my hide. Leave well enough alone…it is not an “entitlement”, except for the fact that I paid into it, I’m entitled to it. And don’t take any money out of it to pay for other stuff. Period.

    #797308

    JanS
    Participant

    as far as the OP is concerned, I read the profile, so I asked where in Texas…and what ties to West Seattle…so far, no answer…

    #797309

    Genesee Hill
    Participant

    I paid into SS and will get nothing out. I don’t care. Consider me goofy..

    #797310

    JoB
    Participant

    retired60

    if you are indeed 60, then you know that wages have not kept pace with costs…

    if you are indeed 60, you know that if you didn’t buy your house before you reached the age of 30 you probably took a financial bath in the housing debacle that wiped out a substantial part of your retirement savings..

    if you are indeed 60, you know that unless you kicked in for school, your college educated grandchildren are facing a debt load they don’t have a chance of servicing in today’s job market.

    if you are indeed 60.. you know the answer to your oh so innocent question…

    blaming the middle class which has been essentially wiped out financially by the greed and corruption of big business which is now run to create the highest short term profit possible even if it cannibalizes the business is as short sighted as those business practices that have essentially wiped out most of the middle class …

    #797311

    JoB
    Participant

    you know.. i just re-read the OPs post…

    i am going to let my post stand because i think what i said was valid…

    but i do question whether i said it to the right person.

    #797312

    retired60
    Participant

    I am actually 62 years old from LaMarque, Texas and retired at 53. I am not blaming anyone for not saving as much as they do. The only thing I wanted, was to inform others of what it takes to retire close to what you make now. It takes $1,000,000 in assets to earn $40,000 to 45,000 annually

    #797313

    retired60
    Participant

    I do know that people don’t save for various reasons .. including keeping up with the Jones’s

    others are supporting their adult kids, sending them to college .. taking vacations that are too expensive .. buying cars that are more than you really can afford, or buying them more often than needed. Even the home we live in, are more than we need .. and expect to save enough for a decent retirement.

    #797314

    retired60
    Participant

    If we’ve started too late to save what we need to retire, then we need to make sure that our children get it right. Since we’ve done away with al those safety nets that help us get raises and are treated fairly on the job,like security and longevity. We keep voting for those that hurt our families, then we complain when things become as they are today. We voted for this ..and keep doing so. Priorities … which weighs more ??? abortion or more quality jobs in this country ????

    #797315

    retired60
    Participant

    I read a lot about retirement and those who hope and wish to do so, even those that are retired and weren’t ready financially. I wish more Americans would do the same. We all need to know where we are and how to get where we need to be, at least be aware of your realities. Don’t lie to yourself. Be honest and make the right decisions for yourself and your family. Tell your kids that you can’t afford to pay for 4 years of college. Tell them you can’t afford the down payment on a new car or home for them. We need to be honest and fair to ourselves about retirement, it’s real and if we live to retire .. it’s hell if we’re not ready. IT’s COMING .. matters your health or job status. if you live long enough

    #797316

    Huindekmi
    Participant

    I’m in my mid-40’s and started contributing to 401K programs at work as soon as I was eligible. After 25 some odd years of contributing to these plans, the total worth of my retirement fund is… slightly lower than what I contributed. Would have been better off putting the money in a mattress.

    Every year or two, representatives from the investment plan company would come to talk with employees at whatever company I was at. You’d think they’d want to talk about the funds available, their ideas on which have the best prospects for the short-term vs long-term, and so on. But every year, the discussion was a sales pitch. “Give us your money. Here’s some idealized projections of what you’d have if you just put money in 20-years ago. Compound interest and all that!”

    Thing is… the idealized projections assume that the available investment funds only invest in the winners and don’t do anything stupid.

    The first company I worked for put almost all of the 401K money into company stock (remember when that was still allowed, pre-Enron?). Then when the board did something stupid… Poof. No more retirement. Guess that’s why companies can’t do that any more.

    The next company kept changing providers every few years, as somehow the available investment funds always underperformed the market after fees were included. My “savings” did grow… until the first big recession in 2001, when everything went stagnant and then again in 2008 when my retirement lost any gains and then some.

    So, here I sit after 25 years of tossing money down a well and the only people who have gotten rich are the banks. With the kids education looming on the near horizon, there’s little to no chance that I’ll be retiring in the next 30 years.

    Investing your retirement in the stock market is a racket that’s no better than gambling in a casino. The house ALWAYS wins.

    #797317

    retired60
    Participant

    The greed of the wealthy in this country and around the world is more than we ever could have expected. In order for them to make larger profits, we have to make and get less. Anyone that we elect to office that supports the wealthy or their ideas, is putting us in a situation that will take years to overcome. lower wages .. longer hours .. less healthcare .. and job security. It used to be just the poor and lower income Americans that experienced this .. now it has reached the middle and upper middle class, those that make less than $200,000 annually. We turned away from the less fortunate.. thinking it could never happen to us .. and guess what .. here we are. As long as we’re working, we’re fine or at least surviving. But forbid we get ill or loose our job. Think before you spend .. Think before you vote.

    #797318

    JoB
    Participant

    Huindekmi

    “So, here I sit after 25 years of tossing money down a well and the only people who have gotten rich are the banks”

    well said.

    we too would have done better putting retirement money under a mattress.

    #797319

    Smitty
    Participant

    Does your company not match a certain percentage of your contribution? Mine matches up to 6% so even with no return it makes sense. Not to mention the tax advantage.

    #797320

    waynster
    Participant

    I know this is how politicians and bankers do it when it comes to our well being after we retire….lol

    http://www.uclick.com/client/spi/nq/2013/09/13/index.html

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