Are you "lucky"if you have a secure retirement?

[Pixguy]

I'll probably mess this up (I.e. not put this across very clear, or send the wrong impression) but here goes; As an initial reaction, I would yes "I am lucky" to have a secure retirement even though I am not fully retired yet. Then, as I think about it a bit longer, I don't think I am all that lucky. I didn't win the lottery, didn't & am not going to get any kind of meaningful inheritance ($$ wise at least), haven't made a mint in the stock market, etc. What I did do was leave home after University because I wanted to see the world; got accepted into a demanding profession & devoted myself to my career (within reason/didn't sacrifice my family to do it); met, married & stay married to a great woman (luck involved there but also a good bit of effort at times); moved around the world with my job when many others didn't want to (a bonus in my opinion); have great kids (thanks to my wife mainly) who have started their own careers now; began saving early (mainly as a tax reduction measure in the early days); have always tried to live within our means & have continuously upgraded my education (via structured courses or self education/study as applicable). I think I was lucky to be born in a great country, to have great parents that instilled good values & taught us from an early age to save money/avoid bad debt (can't say that all my siblings learned that lesson) and be self reliant (when possible, grow your own food, do your own maintenance, build stuff, etc). I/we've tried to instill those values into our children and believe we have been successful. In summary - I still think I am lucky to have a secure retirement planned, but a lot of that luck had to be earned, one way or the other.

You didn't mess it up imo, well said.

 

[Capricious]

"I'll probably mess this up ...I think I was lucky to be born in a great country, to have great parents that instilled good values & taught us from an early age to save money/avoid bad debt (can't say that all my siblings learned that lesson) and be self reliant (when possible, grow your own food, do your own maintenance, build stuff, etc). I/we've tried to instill those values into our children and believe we have been successful.
In summary - I still think I am lucky to have a secure retirement planned, but a lot of that luck had to be earned, one way or the other...."



I disagree- You did NOT mess that up.

 

[TomSeller]

You'd have to be well north of 4 million. Give your number if above that and I'll tell if you won. HS

You have a good start. But you should save and invest more.

 

[JDgreen227]

Pretty-much "on topic:"


Bad Social Security choices: Did your brain trick you?

Interesting article, BUT: I began collecting at 62 rather than waiting because my preference was to have the extra income from SS while my health was still decent. The decline in my energy levels and overall health after retiring at age 51 has been quite pronounced...I almost dread how I will feel when I turn 70, if I even get that far.

 

[vtsnowedin]

Interesting article, BUT: I began collecting at 62 rather than waiting because my preference was to have the extra income from SS while my health was still decent. The decline in my energy levels and overall health after retiring at age 51 has been quite pronounced...I almost dread how I will feel when I turn 70, if I even get that far.

That is very much my experience so far right down to retiring at 51. I'll turn 60 in the spring and plan on drawing my SS at 62. With type 2 diabetes I'll be lucky to even make it to the break even point of 75 much less live a lot longer on insufficient funds.

 

[houstonscott]

You have a good start. But you should save and invest more.

I interrupt that as you lost, no big deal, saving and investing never stops at my house. My father-in-law always told me, money, that makes money, that makes money, is how to invest. Anyone in the US no matter how small an income can become wealthy if you start early, and take the slow and steady approach. Marry and stay married, don't have kids to young, keep putting some money away and don't touch it. It's a marathon, forget get rich quick stuff. My experience is those looking to get rich quick are always those with the least. HS

 

[Parkanzky]

That is very much my experience so far right down to retiring at 51. I'll turn 60 in the spring and plan on drawing my SS at 62. With type 2 diabetes I'll be lucky to even make it to the break even point of 75 much less live a lot longer on insufficient funds.

Is that "break even point" calculated by the sum of the benefits or is any interest/investment return on the earlier benefits considered?

 

[Parkanzky]

I interrupt that as you lost...

He may not consider it a competition. I'm not living to see how much I can accumulate. Yes, I'm working hard to increase our wealth right now, but I have a number at which we'll have "enough" and we'll switch modes from saving to spending. We may not be able to spend quickly enough to use up the investment gains during the good years, but we'll give it a shot!

 

[ovrszd]

He may not consider it a competition. I'm not living to see how much I can accumulate. Yes, I'm working hard to increase our wealth right now, but I have a number at which we'll have "enough" and we'll switch modes from saving to spending. We may not be able to spend quickly enough to use up the investment gains during the good years, but we'll give it a shot!

I agree. At 63 I only check my "net worth" to ensure I'm not spending it faster than earning it. I'm Blessed with good health and I enjoy every day of whatever life I have left, with absolutely no concern as to whether I'm worth a million or as Forrest Gump would say a "Gazillion".

 

[vtsnowedin]

Is that "break even point" calculated by the sum of the benefits or is any interest/investment return on the earlier benefits considered?

I'm already drawing my state retirement for life so it is not part of the calculation. my estimate from the ss website gives me $1492/mo at 62 and $2011/mo @ 66 +2 mo.
So I get a 50 month head start at the lower figure and if my math is right the break even point is 194 months after 62 1492X 194=$289,448 vs. 2011X144=$289,584 , 194 months puts me to 76 + 2 mo.

 

[TomSeller]

I interrupt that as you lost, no big deal, saving and investing never stops at my house. My father-in-law always told me, money, that makes money, that makes money, is how to invest. Anyone in the US no matter how small an income can become wealthy if you start early, and take the slow and steady approach. Marry and stay married, don't have kids to young, keep putting some money away and don't touch it. It's a marathon, forget get rich quick stuff. My experience is those looking to get rich quick are always those with the least. HS

I absolutely have not lost. Please give us your real total. I have a hard time thinking anyone could take the political positions that you have with a modest $4M. That is one trouble with the hard right, they think someone with a few million benefits from the hard right politics. Don't get me wrong, good for you for saving $4m, if that is what you have. That amount of worth is benefitted by centrist politics, not left or right. To be quite honest, I have not tallied my worth lately, but the last time I did, I needed one more digit than you show and the market has increased since then. So I don't know why you say I am in a race to the bottom. If I was, I guess I would be passing by you at some point getting there.

 

[JDgreen227]

OP here...I respectfully ask members do NOT mention politics in this thread...and I respectfully also ask that houstonscott and Tomseller settle your issues via PM rather than here.

Truthfully, I never calculated my net worth and to me it's not a number that I really care about either. To me it's of little meaning...and what matters more is my credit score!!!!!

 

[Parkanzky]

I absolutely have not lost. Please give us your real total. I have a hard time thinking anyone could take the political positions that you have with a modest $4M. That is one trouble with the hard right, they think someone with a few million benefits from the hard right politics. Don't get me wrong, good for you for saving $4m, if that is what you have. That amount of worth is benefitted by centrist politics, not left or right. To be quite honest, I have not tallied my worth lately, but the last time I did, I needed one more digit than you show and the market has increased since then. So I don't know why you say I am in a race to the bottom. If I was, I guess I would be passing by you at some point getting there.

Some people don't form their political opinions solely on the basis on financial self-interests. Whether or not I agree with most of Scott's politics, I think it's insulting to suggest that his only motivation for forming his opinions is the selfish pursuit of what is best for him.

 

[TomSeller]

1. I respectfully ask members do NOT mention politics in this thread...and I respectfully also ask that houstonscott and Tomseller settle your issues via PM rather than here.
2. Truthfully, I never calculated my net worth and to me it's not a number that I really care about either.
3. To me it's of little meaning...and what matters more is my credit score!!!!!

1. Politics and money are inseparable. Government (includes politics) determines how much of our money we have left, how we navigate tax laws and how we decide to invest. But I will try not to mention the P word anymore at your request.
2. If you have not, how would you know if you are financially secure (the topic of the thread) ?
3. If someone is worried about a credit score, do they have enough assets of their own to be secure?

Thanks for starting such a good thread by the way.

 

[Travelover]

OP here...I respectfully ask members do NOT mention politics in this thread...and I respectfully also ask that houstonscott and Tomseller settle your issues via PM rather than here..............

+1 Amen

 

[JDgreen227]

TomSeller....thank you for telling us that you appreciate my starting this thread. But it's you and the rest of the members who have contributed and supplied input to keep it going, and I have learned a great deal from your viewpoints.

 

[Redneck in training]

If you save $5/day (Starbucks coffee or pack of cigs) and invest the amount in index fund earning historical average of 8%/year you would have $858.716,10 in your investment after 46 years (before taxes). And that $150/month. It seems to me that anybody could do it.

 

[300UGUY]

If you save $5/day (Starbucks coffee or pack of cigs) and invest the amount in index fund earning historical average of 8%/year you would have $858.716,10 in your investment after 46 years (before taxes). And that $150/month. It seems to me that anybody could do it.

They will take my latte out of my cold, dead hand......

 

[vtsnowedin]

If you save $5/day (Starbucks coffee or pack of cigs) and invest the amount in index fund earning historical average of 8%/year you would have $858.716,10 in your investment after 46 years (before taxes). And that $150/month. It seems to me that anybody could do it.

Yes we hear that a lot but think about it with inflation in mind. If I had put $5 a day away back when I started work that would have been more then an hours wages. I started in '75 at $4.20 an hour which was better then the $2.30 an hour minimum wage back then.
So start today putting coffee money $5.00 a day aside. sure it will add up and is far better then not saving but forty years out a cup of coffee will probably cost $30.00

 

[JDgreen227]

They will take my latte out of my cold, dead hand......

To each his own, but I have never understood why anybody would pay so much money for fancy coffee....I have never even tried a Starbucks or even an upscale Mickey D's coffee.