Is the economy really improving??
The problem with retirement savings and planning is that there is a lack of
education. There should be mandatory education about retirement planning and
saving/investing starting in elementary school right through college. Retirement
savings/investing should be ingrained in everyone like brushing teeth on a daily
basis. There are many sites that provide retirement information. I can never
understand why people do not take advantage of the information on these sites to
educate themselves. In most cases it is free. The one I am using is Retirement
And Good Living which provides great information on a wide variety of retirement
topics including finance, health, retirement locations, volunteering, part time
jobs and more.
I have to agree that buying an expensive sports car is very dumb. So is
spending a small fortune on a wedding rather than putting a down payment on a
modest home. So is saving nothing even though you receive virtually no
interest.First, though, you have to have a job and the economy is
not really improving. Show me I'm wrong.Then people have an uneasy
feeling vaguely connected with the Enron scandal. Then again you don't
think about saving when you are young and you have little to save if you are
raising a family. Taxes keep going up and so do college fees, doctor fees, and
demands from elementary and High schools.When you are older and your
children are grown up, and they have finally left the nest, and you have paid
for their expensive weddings, you start to be wiser. You run a cheap car of
course, and start to save. You are fired prematurely from your job so younger,
cheaper employees can be hired, for a 30 hour week. Then you have no wages and
you retire early so you can have some income, after you have spent all your
Agree with you, Gildas. And add to that the constant pressure to "keep up
with the Joneses", especially in this state. It's hard for people to
save when they are endlessly spending their money on newer cars, recreational
toys, designer clothing, etc. Not to mention the need they feel to upgrade
their homes to bigger and better every five years.I live in a modest
west-side neighborhood with adequate homes, generally ranging from 2400 - 3500
square feet. However, there are many younger couples who moved out years ago
because they considered these "starter homes". Ridiculous.
I hope you enjoyed your RX-7.Do you still have it? I hope so, because
that's where you'll be living for the rest of your life.Pay
yourself first! I did that and retired at 58. I haven't punched a clock
I am 31 and have been contributing 3% of my salary to my 401k for 5 years now.
My employer matches up to 3%, so that's what I do. At this point I have a
rather measly 15,000 grand in my account, which doesn't inspire much
confidence. However when plugging my numbers into a 401k calculator, it
estimates that if I keep doing what I am doing it will be close to 1 million
when I am 65. I'll believe it when I see it, my generation has little to no
confidence in the stock market, but it at least gives me hope that I may be able
to retire someday.
This is a no-brainer. How can retirement savings keep up with an improving
economy when wages can't keep up with an improving economy.
Prepare for the worst and hope for the best. So how do you plan for this money
mess the world is in.
UtefanThanks for the feedback. I bought my own home before I was
married, a modest home of about 1,000 square feet in a low status neighborhood.
I hate debt and bought when home prices were very low. I hate debt so try to do
without it. When I felt we needed a vehicle we paid it off in two years or
less.There is a great deal that is unpredictable so that I think in
terms of surviving in retirement and do not expect much from the present
economy. Many people have nothing left to save but I hope they will find a way
to put something aside and skip all of society's pointless expectations and
every wasteful status symbol.
Question. I see the stock market dropping big time, like in 2001. I'm
thinking of taking the401k and laying off the house. Thoughts?