Current Events > Are you saving enough money for retirement?

(+) Yeah! (+)

Don't spend your final years working yourself to the bone

Nope, the opposite actually.

im not worried about having enough money for retirement, im worried about making it to 55

i'm afraid to look right now in this economy tbh

During this economy? People are barely surviving, much less saving.

Aside from utilities, I have zero bills. I'm already prepared for retirement

Millions of Americans will likely die in the streets because of inflation and social security running out

RevivedPacifist posted...

Millions of Americans will likely die in the streets because of inflation and social security running out

Bootstraps etc.

Technically yes but by the time we get to my retirement age, things will probably be so expensive that what I have will be worth dick

I got enough in my retirement accounts already that it will grow to $1M (adjusted for inflation) by the time I'm 55 years old if I don't touch it, which is enough for me to retire (4% SWR)

Just need to survive on my cash and income until then

In all honestly, retirement will be the hardest for renters.

If you don't own your own shit and have it paid off by retirement, you're fucked. You'll most likely need to check yourself into a state nursing home. Rent only goes up and never, ever goes away.

I paid off my house 2 years ago so I'm not worried about shit.

Plan on dying long before then

It's not really possible on min wage

LeoRavus posted...

In all honestly, retirement will be the hardest for renters.

If you don't own your own shit and have it paid off by retirement, you're fucked. You'll most likely need to check yourself into a state nursing home. Rent only goes up and never, ever goes away.

I paid off my house 2 years ago so I'm not worried about shit.

Honestly with rates being as high as they are and then real estate being bonkers, renting is not the worst thing in the world. You can still get ahead as long as you live within your means. I saved up all my retirement while renting and only bought a home just last year.

https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html

That link is useful to compare. You only really come out ahead with buying if you stay in the same spot for about five years or so.

You are correct that the rent can just go up without you having much of a say though, it's fucked. My 2br/2ba went up from $1800/mo to $2200/mo for absolutely no reason other than that they could. FWIW most homes have an HOA, and (almost?) all have property taxes

With all that being said my mortgage + HOA + tax is like $2200/mo and a comparable living space is $2500-$2800 to rent, without the luxury of building equity lol.

Millennials and Zoomers are really being squeezed

DeepFriedSquid posted...

Honestly with rates being as high as they are and then real estate being bonkers, renting is not the worst thing in the world. You can still get ahead as long as you live within your means. I saved up all my retirement while renting and only bought a home just last year.

https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html

That link is useful to compare. You only really come out ahead with buying if you stay in the same spot for about five years or so.

You are correct that the rent can just go up without you having much of a say though, it's fucked. My 2br/2ba went up from $1800/mo to $2200/mo for absolutely no reason other than that they could. FWIW most homes have an HOA, and (almost?) all have property taxes

With all that being said my mortgage + HOA + tax is like $2200/mo and a comparable living space is $2500-$2800 to rent, without the luxury of building equity lol.

Millennials and Zoomers are really being squeezed

True, the world is a different place than it was 20 years ago when I bought my house.

My mortgage was only $730 a month. At the time, housing prices were really low. I worked enough overtime to pay it off way early. People called me stupid for putting that much of a chunk down to get rid of the mortgage, but I don't regret it at all.

I'm currently unemployed and not worried about shit. I've worked stressful jobs most of my adult life, and I'm done with all that.

LeoRavus posted...

True, the world is a different place than it was 20 years ago when I bought my house.

My mortgage was only $730 a month. At the time, housing prices were really low. I worked enough overtime to pay it off way early. People called me stupid for putting that much of a chunk down to get rid of the mortgage, but I don't regret it at all.

I'm currently unemployed and not worried about shit. I've worked stressful jobs most of my adult life, and I'm done with all that.

You're a fucking inspiration, I want to be you when I grow up

DeepFriedSquid posted...

You're a fucking inspiration, I want to be you when I grow up

Honestly bro, I don't know how I did this.

I've never been good with work. Something always happens. But by some miracle, I'm living in a decent place that's 100% paid for and have no debt.

I know things could have been way different. Like if I had a spouse and kids. But the NEET life is working for now

DeepFriedSquid posted...

I got enough in my retirement accounts already that it will grow to $1M (adjusted for inflation) by the time I'm 55 years old if I don't touch it, which is enough for me to retire (4% SWR)

Just need to survive on my cash and income until then

I dont think 1M is as much as you think it is

Hahahahahahhashahhahha

My government is currently pushing me and fellow nurses to be jailed for asking to be paid enough to live, let alone save.

Ill be getting a pension soon and may get a plot of land in the Philippines where living is cheap. Hopefully ill be fully retired by my early 50s with all stuff paid off.

idk I could be saving more. I max out my roth IRA every year and contribute $300 a month to my retirement mutual fund. But I could probably save more >_>

Kind of, I spend less than I earn, but I have to actually put that $ in a savings account

I put most my savings up till now into my first house which I don't regret at all. Had to sell off most of my stocks though but did so in late Feb not long before they crashed.

Saving money is important but owning a house that's paid off before retirement is more important then having alot of money in your account.

No_U_L7 posted...

I dont think 1M is as much as you think it is

It will be however much money is worth $1M in today's dollars

That's what I mean when I say $1M adjusted for inflation

no Ill probably die at work

Prismsblade posted...

Saving money is important but owning a house that's paid off before retirement is more important then having alot of money in your account.

Depends
My mortgage is like 2%. I can do way better than that putting my money just about anywhere else.

Yes. I'm well positioned to retire in 5.5 years, when I turn 50, should I choose to do so.

I doubt I'll live to retirement age. I walk a lot and people in cars almost hit me a lot inside crosswalks or backing out of a place. I'm sure soon I'll get killed by one of them

Jiek_Fafn posted...

Depends
My mortgage is like 2%. I can do way better than that putting my money just about anywhere else.

Mathematically you are 100% correct. But I'll sleep better at night when my 2.75% mortgage is paid in full; which will be done when I stop the grind. I just can't pull myself to sell when the market is down 20% to come up with what I need to finish paying it off. Math and emotion don't always move in the same direction. To each their own.

From 401k probably not. I do wonder what will happen to SS. Its expected to run out by early 2030's at this pace. Also not enough people being born to replace us and put money into SS. Unless taxes are heavily raised on the 1% we're headed into poor country territory.

At least my mortgage is 712 and will be paid off before retirement age.

My retirement plan is Giant Meteor Of 2035. So finances will not be a worry

Have_A_Cigar posted...

Mathematically you are 100% correct. But I'll sleep better at night when my 2.75% mortgage is paid in full; which will be done when I stop the grind. I just can't pull myself to sell when the market is down 20% to come up with what I need to finish paying it off. Math and emotion don't always move in the same direction. To each their own.

That's fair
Not ever having to stress out about losing your home isn't something that you can really put a price on

Nope im screwed in the future.

I've done well at saving for retirement so far, but that's about to get cut in half due to a divorce.

I'm working a job that invests money for me. They automatically pay into it from my earnings, and match up to $1,500 per year. They're at least building into my retirement for me, because I'm fucking not making enough money to do it by myself.

Unless you make that 250k a year theres no point. Homes are too expensive to pay off before retirement now and chances are if my health doesnt fail me when Im 65 and collecting SS then the state will put me in a nursing home for retirement. So Im spending my years enjoying myself not giving a fuck lol.

My mortgage is basically a forced savings account and it'll be paid off while I'm still working.

Homeownership is the best path to wealth attainment in this country.

DeepFriedSquid posted...

It will be however much money is worth $1M in today's dollars

That's what I mean when I say $1M adjusted for inflation

No I mean 1M isnt enough to retire on

No_U_L7 posted...

No I mean 1M isnt enough to retire on

4% of $1M is $40,000 a year which, which is much more than what I'll need, especially after my car and house are paid off

I don't need to live large to get by

I hope so. Been maxing out 401k for a bit now, wish I wouldve been doing that sooner.

Ill have a paid off house in ~10 years, so between retirement accounts and income from that I should be set.

I think retirement is pretty much off the table for the Millenials and younger generations.

my employer matched up to 6% then i have my own investments and then i have a savings account that builds at very low interest.

obviously not where i want any of the accounts at yet, but they're better than they were last year.

I started buying sealed Pokemon product two years ago and now have quite a collection.

TheSuperSilver posted...

My mortgage is basically a forced savings account and it'll be paid off while I'm still working.

Homeownership is the best path to wealth attainment in this country.

this pretty much

4 years into a 30 year mortgage but hoping to pay it off like 5-10 years early.

Also investing separately from that in a company 401(k) and a brokerage account

nope, I'm gonna live while I'm alive

No. I only plan to live a normal life until I'm 50. I will then sell my house and travel for as long as the money lasts. After that, I don't care what happens.

Nah, I almost certainly won't live that long.

Yeah I am.

I doubt it. My company matches 4% and that's all I put in. My wife's parents are both doctors so I am banking on her inheritance to get us the rest of the way because she's not saving shit herself.