VeggieBoards banner

1 - 20 of 44 Posts

·
Registered
Joined
·
8,777 Posts
Discussion Starter #1
Do you save for retirement? Where's your wealth accumulating? Think you're too young to save for retirement?<br><br><br><br><div class="quote-container"><span>Quote:</span>
<div class="quote-block"><b>Report: Overconfidence in Home Values Led to Decline in Savings<br><br>
June 29, 2006 (PLANSPONSOR.com)</b> According to new research by the Securities Industry Association (SIA), almost half of American households are not saving at all and two thirds are not saving enough to last them through retirement.<br><br><br><br>
According to a press report, Retirement Savings: By the Numbers identifies the "wealth-effect" - when individuals save less because they perceive their net worth has increased as the main factor in the decline in savings. Specifically, the appreciation of housing prices generated a rise in net worth, which helped extend the wealth-effect to lower income groups.<br><br><br><br>
... About half of all baby boomers will be unable to maintain their standard of living during retirement, and <i>as many as 20% of baby boomers will live in poverty after they reach the age of 65, about twice the number of seniors in poverty today.</i> (emphasis mine)<br><br><br><br>
... Almost half of many Americans' net worth is based on the value of their home. Given this concentration, the decline, or stunt, of housing and the rising cost of servicing mortgage debt would further detiriorate net worth and measures of the adequacy of retirement savings.</div>
</div>
<br><a href="http://www.plansponsor.com/pi_type10/?RECORD_ID=34105" target="_blank">http://www.plansponsor.com/pi_type10/?RECORD_ID=34105</a>
 

·
Registered
Joined
·
8,777 Posts
Discussion Starter #2
I'm amazed at how much perceived wealth is based on home equity. Considering that's not liquid at all, how do Americans plan on affording retirement? Are we looking to see a whole lot of employed 70-year-olds in the next ~20 years?
 

·
Registered
Joined
·
8,777 Posts
Discussion Starter #4
Yeah, I'm not exactly sitting pretty, Karen, and having just transferred over to working in the retirement industry, it's been an eye-opener. My 401(k) is small but growing. Even still, I know I am going to have to do more to be able to retire well.<br><br><br><br>
Thankfully remi is like-minded and has some good ideas on saving for retirement. <img alt="" class="inlineimg" src="/images/smilies/smiley.gif" style="border:0px solid;" title=":)"> I only wish that everyone was taught the importance of saving and the impact of choice on your later years.
 

·
Registered
Joined
·
0 Posts
I'm not worried at all.<br><br><br><br>
I am 19 and already have a retirement plan, ready to put into action. Whether or not Social Security will be available for me (it won't) doesn't matter - I will have enough money to retire before the traditional age. I was extremely lucky to have a high school teacher that opened my eyes to savings.<br><br><br><br>
I hope my generation is smarter about savings than other generations. It's a shame that most adults are in debt these days.
 

·
Registered
Joined
·
12,079 Posts
You go girl!<br><br><br><br>
I'm trying to drill it into my three kids the importance of planning for the future. So far, two out of the three are doing well. I'm still working on my youngest.
 

·
Registered
Joined
·
8,777 Posts
Discussion Starter #7
Here's a calculator: <a href="http://www.bloomberg.com/invest/calculators/retire.html" target="_blank">http://www.bloomberg.com/invest/calculators/retire.html</a><br><br><br><br>
If I save 5% of my income with 6% interest and retire at 65, inflation remains at 3% and my annual salary raises are 3%, I won't even have a million dollars. pff.
 

·
Registered
Joined
·
0 Posts
<div class="quote-container"><span>Quote:</span>
<div class="quote-block">Originally Posted by <strong>karenlovessnow</strong> <a href="/forum/post/0"><img alt="View Post" class="inlineimg" src="/img/forum/go_quote.gif" style=""></a><br><br>
You go girl!<br><br><br><br>
I'm trying to drill it into my three kids the importance of planning for the future. So far, two out of the three are doing well. I'm still working on my youngest.</div>
</div>
<br><br><br><img alt="" class="inlineimg" src="/images/smilies/smiley.gif" style="border:0px solid;" title=":)"><br><br><br><br>
That's wonderful that you're doing that! Good luck with the youngest.<br><br><br><br>
Looking back at my post, it seems like it could be taken as boastful. I didn't mean to come across that way. <img alt="" class="inlineimg" src="/images/smilies/smiley.gif" style="border:0px solid;" title=":)">
 

·
Registered
Joined
·
6,887 Posts
I have only been saving for about a year. I was waiting until I was done school to start, but I save 5% off each paycheck, and my work matches that at 5% as well, so 10% of my annual income is going into RRSP.<br><br>
If I continue, even at my current income, I will have enough to retire comfortably for a long time! <img alt="" class="inlineimg" src="/images/smilies/smiley.gif" style="border:0px solid;" title=":)">
 

·
Registered
Joined
·
2,150 Posts
Paying yourself first is a must! I have been recently living on the principal that the 100% of the money I make is not mine to keep. I must live on 80% of my income, 10% savings, 10% giving.<br><br><br><br>
I highly recommend:<br><br><a href="http://www.debtproofliving.com" target="_blank">http://www.debtproofliving.com</a>
 

·
Banned
Joined
·
13,022 Posts
Let's see...<br><br>
15% into my my 401K, we max our Roth IRAs (which isn't much at our income level), and then we have a couple of mutual funds which we invest in on a monthly basis, as well as adding to our cash reserve.<br><br>
Our savings rate is in the ballpark of 30% of our gross income.<br><br><br><br>
I'm with Remi - home equity doesn't mean dick until you sell the house, and even then, you still need a place to live. Oh, it's pretty on the old balance sheet, but it isn't that special.<br><br>
We "underbought" with our home relative to our income, and we may upgrade in the near future, but we are still staying far away from what the banks say we can afford. Heh, the figure one lender gave us as to what we could afford was correct...if we gave up contributing to our retirement, and diminished our lifestyle greatly. No thanks. A home is nice, but we need a life and a future as well.
 

·
Banned
Joined
·
5,772 Posts
<div class="quote-container"><span>Quote:</span>
<div class="quote-block">Originally Posted by <strong>OregonAmy</strong> <a href="/forum/post/0"><img alt="View Post" class="inlineimg" src="/img/forum/go_quote.gif" style=""></a><br><br><br>
Thankfully remi is like-minded and has some good ideas on saving for retirement. <img alt="" class="inlineimg" src="/images/smilies/smiley.gif" style="border:0px solid;" title=":)"></div>
</div>
<br><br><br>
Powerball tickets?
 

·
Registered
Joined
·
2,150 Posts
<div class="quote-container"><span>Quote:</span>
<div class="quote-block">Originally Posted by <strong>remilard</strong> <a href="/forum/post/0"><img alt="View Post" class="inlineimg" src="/img/forum/go_quote.gif" style=""></a><br><br>
Powerball tickets?</div>
</div>
<br><img alt="" class="inlineimg" src="/images/smilies/laugh.gif" style="border:0px solid;" title=":lol:">
 

·
Banned
Joined
·
658 Posts
Before I became self employed a little over a year ago, I had a 403b at my old job. I put about $500 in every month ($250ish each check) Once I left that job, I stopped saving <img alt="" class="inlineimg" src="/images/smilies/sad.gif" style="border:0px solid;" title=":("> I need to get with my financial advisor and change it all over into a Roth IRA. I've got about $10,000 give or take in it, and that's it. It's slowly going up because of my financial advisor's investing it. I admit, I know NOTHING about it. I get my quarterly statements and see it's gone up. It's one of those things I keep telling myself to get on, and I don't. I need to be putting a lot more away. I make quite a bit more than I did then, so there's really no excuse.
 

·
Registered
Joined
·
0 Posts
<div class="quote-container"><span>Quote:</span>
<div class="quote-block">Originally Posted by <strong>raw jess</strong> <a href="/forum/post/0"><img alt="View Post" class="inlineimg" src="/img/forum/go_quote.gif" style=""></a><br><br>
Before I became self employed a little over a year ago, I had a 403b at my old job. I put about $500 in every month ($250ish each check) Once I left that job, I stopped saving <img alt="" class="inlineimg" src="/images/smilies/sad.gif" style="border:0px solid;" title=":("> I need to get with my financial advisor and change it all over into a Roth IRA. I've got about $10,000 give or take in it, and that's it. It's slowly going up because of my financial advisor's investing it. I admit, I know NOTHING about it. I get my quarterly statements and see it's gone up. It's one of those things I keep telling myself to get on, and I don't. I need to be putting a lot more away. I make quite a bit more than I did then, so there's really no excuse.</div>
</div>
<br><br><br>
You could always try learning about finance on your own and save money, instead of paying someone else to do it for you! <img alt="" class="inlineimg" src="/images/smilies/smiley.gif" style="border:0px solid;" title=":)"> Suze Orman has awesome books (I have the Young, Fabulous, and Broke book) for people to learn about finance.
 

·
Banned
Joined
·
658 Posts
<div class="quote-container"><span>Quote:</span>
<div class="quote-block">Originally Posted by <strong>veggiejanie</strong> <a href="/forum/post/0"><img alt="View Post" class="inlineimg" src="/img/forum/go_quote.gif" style=""></a><br><br>
You could always try learning about finance on your own and save money, instead of paying someone else to do it for you! <img alt="" class="inlineimg" src="/images/smilies/smiley.gif" style="border:0px solid;" title=":)"> Suze Orman has awesome books (I have the Young, Fabulous, and Broke book) for people to learn about finance.</div>
</div>
<br><br><br><br><br>
I probably should. I have no idea how much he takes. I know I don't write him a check.
 

·
Registered
Joined
·
0 Posts
<div class="quote-container"><span>Quote:</span>
<div class="quote-block">Originally Posted by <strong>raw jess</strong> <a href="/forum/post/0"><img alt="View Post" class="inlineimg" src="/img/forum/go_quote.gif" style=""></a><br><br>
I probably should. I have no idea how much he takes. I know I don't write him a check.</div>
</div>
<br><br><br>
You mean that you don't even know how much you're paying him?
 

·
Banned
Joined
·
5,772 Posts
<div class="quote-container"><span>Quote:</span>
<div class="quote-block">Originally Posted by <strong>veggiejanie</strong> <a href="/forum/post/0"><img alt="View Post" class="inlineimg" src="/img/forum/go_quote.gif" style=""></a><br><br>
You mean that you don't even know how much you're paying him?</div>
</div>
<br><br><br>
probably just per transaction fees however<br><br><br><br>
your broker and your advisor should be different people, the conflict of interest is staggering
 

·
Banned
Joined
·
658 Posts
<div class="quote-container"><span>Quote:</span>
<div class="quote-block">Originally Posted by <strong>veggiejanie</strong> <a href="/forum/post/0"><img alt="View Post" class="inlineimg" src="/img/forum/go_quote.gif" style=""></a><br><br>
You mean that you don't even know how much you're paying him?</div>
</div>
<br><br><br><br><br>
He must be taking out of the returns. I don't pay him anything myself. All I know is when I get my quarterly statements, my numbers keep going up even though I'm not putting anything in it.
 
1 - 20 of 44 Posts
Top