Retire at your own risk

Discussion in 'Politics, Religion, Social Issues' started by Thomas Veil, Jun 19, 2006.

  1. Thomas Veil macrumors 68020

    Thomas Veil

    Joined:
    Feb 14, 2004
    Location:
    Reality
    #1
    God. :(

    I've just been reading the most depressing article.

    My local paper has started a series that will appear every Sunday for two months. The subject is retirement. And the prognosis is dire.

    This is just the beginning of the series:

    Now, The Plain Dealer is a rather straightforward newspaper, not given to tabloid-y "warnings" like this one (and the one below). That they appear in the article is a bit of a shock to readers familiar with the paper, and appear to indicate less of an effort to sensationalize the story, and more of an effort to get people to take it seriously.

    In another article in the series, the PD goes on:

    My bold.

    There's a lot more, but that's depressing enough. I guess as someone approaching 50, this news just hits me hard. I knew there was a big problem with retirement, but I had no idea it was this big, or would have ramifications so far beyond boomers like me.

    If you feel inclined to follow the series, it's here. By all means, I would recommend reading it -- at the very least the article that is in my second link above. It makes for scary reading, but reading that I agree is necessary.

    As for me...God, I need a drink.
     
  2. zimv20 macrumors 601

    zimv20

    Joined:
    Jul 18, 2002
    Location:
    toronto
    #2
    almost all of my friends are in debt. of those who do have a positive net value, for all but two that value is still less than their yearly salary.

    and i'm mostly talking about people in their 30s and 40s.
     
  3. riciad macrumors 6502

    Joined:
    Oct 10, 2005
    Location:
    Ireland
    #3
    Better have it soon while you can still afford it!
     
  4. njmac macrumors 68000

    njmac

    Joined:
    Jan 6, 2004
    #4
    I read this on moneycentral.msn.com from Scott Burns:

    I started a little later than 16, but I still have a pretty good IRA going. My husband contributes 6% of his salary, which is matched by his employer, going into his IRA. We are planning so hopefully we will be ok. I hope our friends and family are too.
     
  5. cslewis macrumors 6502a

    cslewis

    Joined:
    Jul 23, 2004
    Location:
    40º27.8''N, 75º42.8''W
    #5
    Maybe we'll see the resurgence of extended families, with older family members living with their children and grandchildren. Or, maybe since every way you look at it (between peak oil, a poor economic outlook and a grim ecological future) the 'good times' of the 21st century are about to end and we can kiss our way of life goodbye.

    :)
     
  6. celebrian23 macrumors 65816

    celebrian23

    Joined:
    Mar 12, 2006
    Location:
    Under the sun
    #6
    I guess I have to jump on my plans to marry Prince William :p
     
  7. zimv20 macrumors 601

    zimv20

    Joined:
    Jul 18, 2002
    Location:
    toronto
    #7
    nice. like an automatic 6% raise, but tax-deferred. that's the way to do it.
     
  8. D0ct0rteeth macrumors 65816

    D0ct0rteeth

    Joined:
    Mar 11, 2002
    Location:
    Franklin, TN
    #8
    I like it that people are getting scared. For the last 60 years the american people have been depending on their government or employers to take care of them in retirement, and by abdicating any personal responsibility they are just settting themselves up for a life of eating dog food and/or reverse mortgages.

    Get off your ass, people.

    If you take 100/month (pizza/beer/cable television money) and from age 30-65 put that in an decent growth stock mutual fund you'll have over 1 million dollars at retirement.

    Now of course, we must admit that most people arent 25, or even 30 years old and for them it could be too late ... but Considering the average idiot has a 350/month car payment... maybe he should just stop buying crap he doesnt need and start planning for the future.

    Most financial guys I know recommend saving 15% of your annual income for the future, and if your annual income is 50k - thats what? $750/month. Not the end of the world.

    Personal Responsibility, Ladies and Gentlemen.
     
  9. iGary Guest

    iGary

    Joined:
    May 26, 2004
    Location:
    Randy's House
    #9
    That's just a bit more than my health insurance premium.
     
  10. floriflee macrumors 68030

    floriflee

    Joined:
    Dec 21, 2004
    #10
    I've been contributing part of my salary to some sort of retirement fund since about 16 years old. Granted, it wasn't much when I started--maybe a thousand dollars by the time I got done with college, but still, I'm glad I did it. I contributed 10% to a 401(k) as soon as I got my first real job since the company I was working for at the time matched up to 5% dollar for dollar. Now I contribute 15% and the company matches 3% dollar for dollar. It's not bad, but it's something, and the account has grown pretty nicely in the last 6 years (much more than just the measly $1K I started with). The hubby and I have a couple of IRAs--one roth and one traditional (a rollover from a 401(k) plan from a previous employer). With that, the current 401(k), the savings accounts, handful of stocks, and T-bills we've got and the whole life insurance policies we will be getting we hope that that will keep us covered for the future.

    All in all, it definitely takes work and planning, but it can be done. Hopefully, we'll be able to keep it up at that level with kids. Time will tell.... At the very least we will try to save as much as we can now so it will pay off at a greater rate later.
     
  11. superbovine macrumors 68030

    superbovine

    Joined:
    Nov 7, 2003
    #11
    wow i only get 4% matched, but is 100% vested immediately.
     
  12. Desertrat macrumors newbie

    Joined:
    Jul 4, 2003
    Location:
    Terlingua, Texas
    #12
    I dropped out of professional engineering when I was 48. Didn't have a lot of money, but I'd done a good bit of legwork and homework and I was at least independently not-broke. Found some land ahead of growth, down here in the desert. Put a deal together for a backhoe and dumptruck. Became the one and only sand-and-gravel fella. Any time I found a deal on some small acreage, I'd buy it.

    Twenty-four years later, I'm sitting in pretty good shape. I've not had to punch a time clock for a long, long time. All my work has been contract, and I've set my own hours and done the vacation thing when it suited me.

    Debt-free and care-free...

    :),'Rat
     

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