Americans retiring broke

[Rogue Hawk]

Look at this

https://www.gobankingrates.com/retirement/planning/why-americans-will-retire-broke/

Most people are up the creek without a paddle. My father is a good example. He never thought past one day. He essentially became a ward of the state and put in a low quality retirement home. The place was a nightmare. He got lucky, because the ones on the South side of Chicago are even worse. They went from nightmare to Hell. He died with $7000 in his checking account and did not own a home. That was it for 50+ years of working. But it seems he is the norm. That is scary, the Boomers are a large segment in society. The future does not look bright.

 

[Rob Rodriguez]

This doesn't surprise me. Most people I know in their 40's have financed themselves to death with houses, cars, "toys", vacations, weddings, school loans, etc. They live paycheck to paycheck and are on the verge of collapse without a paycheck or two. I'd say this is the norm for people my age. Sad but true.

 

[RICZ]

IMO, this is the result of our schools not teaching money management and economics. The ONE thing we all deal with is money and yet, most are ignorant of money matters such as interest and the difference between net and gross profit. That has extended to the Oregon legislature that has taxed corporate revenue. So a company still has to pay taxes, even if it's operating at a loss. The city of Portland did that too. Now, too many politicians do not understand money matters.
The outcome of this is that most look at money as something to be spent, not used as a tool with which to make more money. And I agree, way too many are mortgaging their futures by buying luxuries on credit.

 

[BLUEKNIGHT911]

The Future & Finances …. My father grew up during the Great Depression, and this shaped His whole outlook on finances …. He passed His info on to me and my siblings ( 7 ) ….. all of us are doing well financially, we are not spendthrifts however we aren't denying ourselves luxuries either ( un-like my Dad ) … I absolutely agree the really important stuff is Not being taught, not in school, and not in the home…. jmho …. I hope you all are well off …… Mike hyea:

 

[RICZ]

I was born into the depths of the Great Depression and then WWII came along and this is what forged my attitude about spending, saving and investing. And yes, my parents' attitude had a lot to do with that. I'm frugal as hell, and spend hard. Where it comes to toys and luxuries, I buy only if I can pay for it on the spot and it passes the bang-for-the-buck test.

 

[trikermutha]

I will be dammed if I will be standing on the side of the road with a sign asking for money.

Been seeing a lot of panhandlers on the side of the roads.

But you know if it comes down to it, I would go get a part time job if needed, even though I would not want too.

 

[Jaxfann]

I have taught my children and will teach grandchildren "the power of compounding" - every dollar saved and not spent at the earliest age is worth so much more 45 or more years in the future - just look at the tables.

For those that still have time - open an account with Vanguard (no advisory fees necessary and they do it al for you with VERY low fees) - choose a target date fund close to your estimated retirement date - fund it regularly and don't touch it - don't look at it more than once a year, and when you reach retirement age you will be amazed where you end up!

Don't pay financial advisors - 1% does not sound like much - but if you expect to make 6% ongoing - you are giving away (1 divided by 6 = 16.6%) of your gains each year - compounded that is a heck of a lot of money wasted over 45 years as the vast majority of money managers don't beat the averages!

 

[ARtraveler]

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[h0gr1der]

Don't pay financial advisors - 1% does not sound like much - but if you expect to make 6% ongoing - you are giving away (1 divided by 6 = 16.6%) of your gains each year - compounded that is a heck of a lot of money wasted over 45 years as the vast majority of money managers don't beat the averages!

:agree:
No financial expert here, but a long time ago I read that something like 80-90% of financial advisers don't retire "in dignity". This meaning that they can't maintain their standard of living once they retire. Think about that. Are you going to listen to someone who can't even manage their own money? I always beat the pants off of their plans, and am happy with how I got out. Just remember advisers are working for a company trying to sell you a product. Act accordingly.

 

[Cobwebs]

Gold and silver if you want to survive the coming melt down.Even the most prepared or educated (or so they think) with stocks/bonds and devalued cash are going to be wiped out when the bubble bursts.opcorn:

 

[askitee]

Not sure why but I always just assumed Americans had similar retirement plans to ours here in Aus. We contribute up to 9% of our weekly wage, and our employers 12% to the same fund for our retirement. Mind you its like a moving target here because the Gov't keeps increasing the retirement age.

My assumptions were based on the term I heard 401k - which I thought was your equivalent to our Superannuation.

 

[Rob Rodriguez]

Not sure why but I always just assumed Americans had similar retirement plans to ours here in Aus. We contribute up to 9% of our weekly wage, and our employers 12% to the same fund for our retirement. Mind you its like a moving target here because the Gov't keeps increasing the retirement age.

My assumptions were based on the term I heard 401k - which I thought was your equivalent to our Superannuation.

401K's are voluntary not mandatory. Lots of employers don't even offer them and if they do the match they give varies. So, yes we do have something similar to what you suggest in the USA but lots of people don't take full advantage of them and I would bet the most commonly given reason why is.......I can't afford to put money in my 401K. That said the people who start investing in them early and use them to their potential typically make out pretty well as long as there isn't a major crash just before they retire.

 

[Rogue Hawk]

Gold and silver if you want to survive the coming melt down.Even the most prepared or educated (or so they think) with stocks/bonds and devalued cash are going to be wiped out when the bubble bursts.opcorn:

I always wondered about that. How do you trade for goods with gold?

 

[UtahPete]

Gold and silver if you want to survive the coming melt down.Even the most prepared or educated (or so they think) with stocks/bonds and devalued cash are going to be wiped out when the bubble bursts.opcorn:

How do you store it?

 

[Rob Rodriguez]

How do you store it?

In a chest, buried in the back yard with a map to find it LOL

Commercial aerospace, ground defense systems, unmanned aerial vehicles, and aircraft

 

[ARtraveler]

Just take that gold bar and have a cheese grater with you. Keep shaving off enough until they are happy. Easy Peasy. :roflblack:

Perception of value may be a problem. The new car dealer may have a problem giving up the car for a small mason jar full of flakes.

Where is Parker Schnauble when you need him. :dontknow:

 

[Gwolf]

Many different countries issue small denomination coins in gold or silver. In a melt down the small denomination coins would trade by weight. Canada has some that can be bought in most any place that trades in precious metals........ South Africa and many other places as well. A little research on the web and you can find coins that will retain their value when all the other currency becomes worthless. U.S.A. silver coins before 1964 are 90% silver and still available for purchase. Gold bars, yeah, probably hard to trade, but small denomination silver or gold coins could be traded for goods, weapons, whatever.

 

[JoshHefnerX]

A dollar doesn't buy what it used to. Some basic items have kept pace w/ basic inflation but many items - esp big ticket items have risen much faster than either cpi or inflation and more than the rise in income. Houses and cars take a much larger percentage of your income than they used to. There's less free income available. The baby boomers generation will be the last generation to be able to 'retire' in the traditional sense. There's been many articles on this. You can also see this w/ the shrinking of the middle class.

https://www.investopedia.com/ask/an...-current-cost-living-compare-20-years-ago.asp

http://www.mybudget360.com/cost-of-living-compare-1975-2015-inflation-price-changes-history/

 

[M109Dreamer]

I was always told...he who controls the lead will have the silver in gold..........:roflblack:

 

[Rogue Hawk]

A dollar doesn't buy what it used to. Some basic items have kept pace w/ basic inflation but many items - esp big ticket items have risen much faster than either cpi or inflation and more than the rise in income. Houses and cars take a much larger percentage of your income than they used to. There's less free income available. The baby boomers generation will be the last generation to be able to 'retire' in the traditional sense. There's been many articles on this. You can also see this w/ the shrinking of the middle class.

https://www.investopedia.com/ask/an...-current-cost-living-compare-20-years-ago.asp

http://www.mybudget360.com/cost-of-living-compare-1975-2015-inflation-price-changes-history/

I make a lot more money than my father did. Yet he had a new car every two years and a three bedroom home. (He lost the house in the divorce **HE** wanted). I could not go buy the house I grew up in, it's way out of my league.