Retirement

[otc]

As long as you get to the maximum amount matched by your employer...

 

[Piobaire]

Originally Posted by Ambulance Chaser

Does everyone sock away in a 401(k) the maximum amount permitted by law? I make a decent living -- not rich by objective measure much less SF "my backup job is $250K/year" measure -- but I can't bring myself to save more than the amount needed to get the company match. I am a Taurus, so I like nice stuff, and I can't bear the thought of saving all that money that I can't access until I'm 59.5 years old.

I thought this way 10-15 years ago. However, as I'm getting longer in the tooth, I make maxing every damn thing me and Mrs. Piob can a point.

 

[GQgeek]

Originally Posted by pocketsquareguy

What has me concerned is the number of people who are retiring but will outlive their savings. I sure don't see governments increasing benefits. They just won't have the money.
My mother is totally screwed like this except she really doesn't have any savings. I look at my parents and how they used to live compared to how they live now, and think to myself that I will never let myself be in the same position. It's hard changing behavior though... Basically, I want to continue the same standard of living when i retire as I have now. I want to eat out at a nice place every couple of weeks. I want to be able to drink wine and buy good food. I want to take the same vacations. I just want to be able to enjoy myself and not worry about working. Also, there are so many more worthwhile pursuits than working imo. Just because you retire at 55 doesn't mean you have to sit in front of the TV all day. There are so many books I don't have time to read and so many things I don't have time to do right now that I'd love to do when i retire. I'm aiming to save 20% of net and think it's doable.

 

[Connemara]

Originally Posted by GQgeek

I'm aiming to save 20% of net and think it's doable.
20 is kind of the "golden number." I'm shooting for that too.

 

[SkinnyGoomba]

Originally Posted by GQgeek

My mother is totally screwed like this except she really doesn't have any savings. I look at my parents and how they used to live compared to how they live now, and think to myself that I will never let myself be in the same position. It's hard changing behavior though... Basically, I want to continue the same standard of living when i retire as I have now. I want to eat out at a nice place every couple of weeks. I want to be able to drink wine and buy good food. I want to take the same vacations. I just want to be able to enjoy myself and not worry about working. Also, there are so many more worthwhile pursuits than working imo. Just because you retire at 55 doesn't mean you have to sit in front of the TV all day. There are so many books I don't have time to read and so many things I don't have time to do right now that I'd love to do when i retire. I'm aiming to save 20% of net and think it's doable.
I think they ends up being extremely expensive, since you have much much more free time to spend shopping. It's hard to judge the move your parents have made. At least they knew enough to change their lifestyle instead of just going broke and becoming a burden to others, I respect that choice. I think I'll probably continue a hobby when I retire, woodworking or metal working. It consumes alot of hours and is not that expensive (even though it can be). Saving 20% of your net would be pretty impressive, it's hard to imagine you wouldnt be wealthy at that rate, considering you're in your late 20's early 30's now.

 

[GQgeek]

Originally Posted by SkinnyGoomba

I think they ends up being extremely expensive, since you have much much more free time to spend shopping. It's hard to judge the move your parents have made. At least they knew enough to change their lifestyle instead of just going broke and becoming a burden to others, I respect that choice.

I think I'll probably continue a hobby when I retire, woodworking or metal working. It consumes alot of hours and is not that expensive (even though it can be).

Saving 20% of your net would be pretty impressive, it's hard to imagine you wouldnt be wealthy at that rate, considering you're in your late 20's early 30's now.

My mother lives week to week and doesn't have a penny to her name. Believe me, her current living standards are not by choice, and she still has unrealistic dreams about the standard she can get back to. It's just going to end in disaster (again). She has made mistake after mistake and never learns. My father is better off due to inheritance and is a sensible guy that lives within his means. He's not the type that needs expensive things so he's relatively content, at least financially. I feel bad for him though because i'm the only one of his kids that talks to him. The others are ungrateful *****. I get along with my siblings, but they really are ungrateful.

 

[Piobaire]

Yes, I think having a productive hobby is important in retirement. One of mine will be playing the bagpipes at weddings, funerals, etc. Not only will it be good spending money, pipers never pay for their drinks

 

[eg1]

Originally Posted by GQgeek

My mother lives week to week and doesn't have a penny to her name. Believe me, her current living standards are not by choice, and she still has unrealistic dreams about the standard she can get back to. It's just going to end in disaster (again). She has made mistake after mistake and never learns. My father is better off due to inheritance and is a sensible guy that lives within his means. He's not the type that needs expensive things so he's relatively content, at least financially. I feel bad for him though because i'm the only one of his kids that talks to him. The others are ungrateful *****. I get along with my siblings, but they really are ungrateful.

You really are from Oakville, aren't you?

 

[GQgeek]

Originally Posted by eg1

You really are from Oakville, aren't you?

I don't follow.

 

[Lowndes]

The 20% rule makes me feel a little bit better about my savings. I put away about 10% of gross in a 401K to may it out each year and also 10% of gross in general savings.

Only 26 and just started working six months ago so when I look at my balance it doesn't seem like much. However, this thread inspired me to run a compund interest calculator and assuming an 8% return for 40 years on my current balance it comes out to about $400,000. Nice little motivation to keep the savings going.

 

[SField]

I don't understand the concept of retirement. Retired people I've dealt with are fat, boring old people. I think one should always be useful in some capacity, and frankly I've never met an interesting person that was retired. I guess it's a by product of not being in a line of work that gives you satisfaction. But if you have enough money to retire, why not then switch to something that gives you enjoyment and fulfillment? Sitting around watching daytime TV and going for early bird specials sounds like cause for suicide to me.

 

[otc]

You just haven't met the right retired people.

 

[globetrotter]

Originally Posted by SField

I don't understand the concept of retirement. Retired people I've dealt with are fat, boring old people. I think one should always be useful in some capacity, and frankly I've never met an interesting person that was retired. I guess it's a by product of not being in a line of work that gives you satisfaction. But if you have enough money to retire, why not then switch to something that gives you enjoyment and fulfillment? Sitting around watching daytime TV and going for early bird specials sounds like cause for suicide to me.

my grandfather farmed mink and ran a trading post on an indian reservation. when he retired, he went to college, and studied a huge number of books. lived 20 some years like that. I could see doing that

 

[SField]

Originally Posted by otc

You just haven't met the right retired people.

I'm not sure I'd agree. I'm just not the type of person who would enjoy people that don't accomplish anything.

 

[Piobaire]

I say each to his own but doing nothing all day would not do it for me. The trick is finding something you like doing, can do on your own terms, and maybe make a little cash doing. On your own terms is important because once in a while I do feel like laying around the house all day and want to be able to do that. When you can do that at will, IMO, you have it made. If that's all you do, you're just waiting for the grave, IMO. However, if that's what you want to do, more power to you.