Adulting: Retirement

jenna8984

princessofgenovia said:

Cookie Pusher said:

I could put away 17.5K every year... if I stopped paying my rent!

According to the comments you should try moving into a studio apartment with a buddy. Because that is just a luxury dorm and who doesn't want a luxury dorm?

I'm seriously trying to figure out how to do this. I'm going to run the numbers, no fucking way is this actually possible for the average person.

Not even! My mortgage payments come to $12,000 a year so even if I didn't pay them I'd STILL be short! lol

princessofgenovia

Ok I ran the numbers 2 different ways using my own bills. 

First what I spend out a month, I have a very small student loan I'm paying off and FI and I split shared bills. Rent, electric, cable/internet, ect. Monthly total is $2662, which sound about right. That's $31,944 I'm paying out every month.

So then I went back and anything I'm splitting the cost on with him, I put in the full amount. Because ya know, a lot of my friends are single and paying their own bills. That comes to $3262 a month, or $39,144 a year. 

Now there are definitely areas I'm rounding up, like electric. And we do have a nice, large-ish 2 bedroom apartment. And there are some luxury on there. So alright. Lets play with these some more.

Alright so new numbers. The rent is the cost of a studio in my complex, and I put 50 for electric which still seems really low (the summers are crazy hot). I took out the car payment and student loan payment, lets assume you don't have these. I lowered the monthly food bill, and took out the monthly savings (because no need to save if you are...saving? This seems dumb). I also got rid of the cable/internet since it'd be luxury and lowered the cell bill to what cricket says they charge. Total is still $1536 a month. $18,432 a year. Lets say you make $32,500, about the average salary of my friends. That leaves you $14,068 a year. If you put it all in your 401K...you're still not making the $17,500 contribution.

But no. The average 23 year old should totes be able to pull this off. 

ETA: Formatting was wonky. I pulled out all my number examples cause I could not fix formatting.

lovemesomemonster

That chart is just super fun.. I felt ahead of the game until I read that! Possible? Yes.. but why would I want all of my investments in one basket? 

Jells2dot0

lovemesomemonster said:

That chart is just super fun.. I felt ahead of the game until I read that! Possible? Yes.. but why would I want all of my investments in one basket? 

Just because you are maxing out your 401K doesn't mean you are putting all of your eggs into one basket. I guess if it the $17.5k ($18K in 2015) is ALL you can save- yes- maybe you should diversify as long as you are at least getting your employer match.

AprilH81

I see what the chart is getting at, but it is stupid all the same.  They are trying to drive home that the earlier you start planning for retirement the better (time value of money and the miracle of compounding interest).

However, I consider myself to be on track possibly ahead of the game when it comes to retirement planning and I'm not even close to the low end of the range for my age.

It is not realistic for a 22 year old to be maxing out a 401k unless they are from a wealthy family.  

Most Millennialls have a crap ton of college debt which is why we (general we as I'm on the upper edge of this generation) are screwed.  We have college debt, high rates of unemployement (economy sucks dude), and little hope for seeing any social security payments, and what we might receive won't be what was "promised" based on the current formulas.

lovemesomemonster

Jells2dot0 said:

lovemesomemonster said:

That chart is just super fun.. I felt ahead of the game until I read that! Possible? Yes.. but why would I want all of my investments in one basket? 

Just because you are maxing out your 401K doesn't mean you are putting all of your eggs into one basket. I guess if it the $17.5k ($18K in 2015) is ALL you can save- yes- maybe you should diversify as long as you are at least getting your employer match.

I absolutely mean me personally.. I could do that much/yr IF I didn't invest in anything else. 

hellosweetie1015

Guys, if I were to put my whole, entire, pre-tax earnings for 2014 into a retirement account, it still wouldn't equal $17,500. And I made more this year than I've ever made.

I am CONSTANTLY worried about this. I'm 26. I'd like to retire eventually. And I have absolutely nothing right now to fall back on. I have never, in my life, worked a job that offered a 401k, nor have I ever made enough to put into one privately. And with the SSA in the shape it's in, I'll likely never see the money I've paid into that over the years. 

I am terrified about this shit. 

huskypuppy14

princessofgenovia said:

Ok I ran the numbers 2 different ways using my own bills. 

First what I spend out a month, I have a very small student loan I'm paying off and FI and I split shared bills. Rent, electric, cable/internet, ect. Monthly total is $2662, which sound about right. That's $31,944 I'm paying out every month.

So then I went back and anything I'm splitting the cost on with him, I put in the full amount. Because ya know, a lot of my friends are single and paying their own bills. That comes to $3262 a month, or $39,144 a year. 

Now there are definitely areas I'm rounding up, like electric. And we do have a nice, large-ish 2 bedroom apartment. And there are some luxury on there. So alright. Lets play with these some more.

Alright so new numbers. The rent is the cost of a studio in my complex, and I put 50 for electric which still seems really low (the summers are crazy hot). I took out the car payment and student loan payment, lets assume you don't have these. I lowered the monthly food bill, and took out the monthly savings (because no need to save if you are...saving? This seems dumb). I also got rid of the cable/internet since it'd be luxury and lowered the cell bill to what cricket says they charge. Total is still $1536 a month. $18,432 a year. Lets say you make $32,500, about the average salary of my friends. That leaves you $14,068 a year. If you put it all in your 401K...you're still not making the $17,500 contribution.

But no. The average 23 year old should totes be able to pull this off. 

ETA: Formatting was wonky. I pulled out all my number examples cause I could not fix formatting.

That was about my take home pay per month my first few years out of college. I lived with roommates, so the utilities and rent were split. Still, pretty much impossible to even give 8000 a year.

huskypuppy14

AprilH81 said:

I see what the chart is getting at, but it is stupid all the same.  They are trying to drive home that the earlier you start planning for retirement the better (time value of money and the miracle of compounding interest).

However, I consider myself to be on track possibly ahead of the game when it comes to retirement planning and I'm not even close to the low end of the range for my age.

It is not realistic for a 22 year old to be maxing out a 401k unless they are from a wealthy family.  

Most Millennialls have a crap ton of college debt which is why we (general we as I'm on the upper edge of this generation) are screwed.  We have college debt, high rates of unemployement (economy sucks dude), and little hope for seeing any social security payments, and what we might receive won't be what was "promised" based on the current formulas.

Do people really think the economy still sucks? Maybe I'm immune to it in the Boston/Cambridge area because everything seems to be booming (hosing market, jobs, etc). I also think we were not hit as hard to begin with. 

I also read about how the economy and unemployment rate is much better now than it was in 2008/2009, but I haven't researched how they come up with these numbers. 

Just curious how other people feel.

charcoalandblush

Oh the vesting is super annoying. It's amazing that my company contributes 7.5% without me having to do anything, but we vest at 20% per year. So I won't be fully vested until January 2020.

AprilH81

huskypuppy14 said:

AprilH81 said:

I see what the chart is getting at, but it is stupid all the same.  They are trying to drive home that the earlier you start planning for retirement the better (time value of money and the miracle of compounding interest).

However, I consider myself to be on track possibly ahead of the game when it comes to retirement planning and I'm not even close to the low end of the range for my age.

It is not realistic for a 22 year old to be maxing out a 401k unless they are from a wealthy family.  

Most Millennialls have a crap ton of college debt which is why we (general we as I'm on the upper edge of this generation) are screwed.  We have college debt, high rates of unemployement (economy sucks dude), and little hope for seeing any social security payments, and what we might receive won't be what was "promised" based on the current formulas.

Do people really think the economy still sucks? Maybe I'm immune to it in the Boston/Cambridge area because everything seems to be booming (hosing market, jobs, etc). I also think we were not hit as hard to begin with. 

I also read about how the economy and unemployment rate is much better now than it was in 2008/2009, but I haven't researched how they come up with these numbers. 

Just curious how other people feel.

The economy is "better" but the unemployment rate lies.  It doesn't take into account the underemployed (those working retail part time when they have a college degree) or those who have stopped looking for work.  The true unemployment rate is much, much higher than the official rates.

The stock market is booming but it is being propped up by the Fed and their constant printing of money (that isn't backed by gold, just the full faith of the US government).

I was laid off a month ago and I've had one face to face interview and one phone interview for a job I'm over qualified for (and still didn't get a face-to-face interview).  I've applied to 50 positions in my field.

jenna8984

huskypuppy14 said:

AprilH81 said:

I see what the chart is getting at, but it is stupid all the same.  They are trying to drive home that the earlier you start planning for retirement the better (time value of money and the miracle of compounding interest).

However, I consider myself to be on track possibly ahead of the game when it comes to retirement planning and I'm not even close to the low end of the range for my age.

It is not realistic for a 22 year old to be maxing out a 401k unless they are from a wealthy family.  

Most Millennialls have a crap ton of college debt which is why we (general we as I'm on the upper edge of this generation) are screwed.  We have college debt, high rates of unemployement (economy sucks dude), and little hope for seeing any social security payments, and what we might receive won't be what was "promised" based on the current formulas.

Do people really think the economy still sucks? Maybe I'm immune to it in the Boston/Cambridge area because everything seems to be booming (hosing market, jobs, etc). I also think we were not hit as hard to begin with. 

I also read about how the economy and unemployment rate is much better now than it was in 2008/2009, but I haven't researched how they come up with these numbers. 

Just curious how other people feel.

I do think the economy still sucks in term of jobs. Like April said, many underemployed people out there. The outsourcing is just crazy. Even my company in MA is highly complicated electronic components comprised of mostly engineers and even we utilize China and Singapore for most of our business. I'm actually terrified that one day I'll come in and they will say "Well China is doing so much of our work, they might as do the whole thing, we're closing". I know we even created a sister company in Singapore soley for tax relief and we ship sales through that to pay less taxes. So yea, I think our economy is still in a terrifying place right now.

lovemesomemonster

huskypuppy14 said:

AprilH81 said:

I see what the chart is getting at, but it is stupid all the same.  They are trying to drive home that the earlier you start planning for retirement the better (time value of money and the miracle of compounding interest).

However, I consider myself to be on track possibly ahead of the game when it comes to retirement planning and I'm not even close to the low end of the range for my age.

It is not realistic for a 22 year old to be maxing out a 401k unless they are from a wealthy family.  

Most Millennialls have a crap ton of college debt which is why we (general we as I'm on the upper edge of this generation) are screwed.  We have college debt, high rates of unemployement (economy sucks dude), and little hope for seeing any social security payments, and what we might receive won't be what was "promised" based on the current formulas.

Do people really think the economy still sucks? Maybe I'm immune to it in the Boston/Cambridge area because everything seems to be booming (hosing market, jobs, etc). I also think we were not hit as hard to begin with. 

I also read about how the economy and unemployment rate is much better now than it was in 2008/2009, but I haven't researched how they come up with these numbers. 

Just curious how other people feel.

Haven't been feeling the whole "economy sucks" thing over here, although we may be lucky and have made some sacrifices. We have also taken advantage of where the economy is good.. FI works in Williston ND 7 months out of the year, he makes great money and landed a job straight out of school because he was willing to go. Is it ideal? No. I'm sure living in a trailer most of the year in an undesirable place sucks for him, and it sucks for me to not be with him that long but we are taking advantage of it to get ahead right now. I have a lot of friends that struggled to find jobs in their field out of school but their unwillingness to relocate or take that entry level job that doesn't pay as much as they want is a big part of that. FI had a lot of friends in school that "couldn't" find an internship because they didn't want to go to particular places but when they told him "you will be in ND" he said sign me up and landed a job before graduation. I'm sure years down the road we will feel differently about this when we have kids etc. but for now we will sacrifice and do what we have to do to get ahead. 

Cookie Pusher

AprilH81 said:

huskypuppy14 said:

AprilH81 said:

I see what the chart is getting at, but it is stupid all the same.  They are trying to drive home that the earlier you start planning for retirement the better (time value of money and the miracle of compounding interest).

However, I consider myself to be on track possibly ahead of the game when it comes to retirement planning and I'm not even close to the low end of the range for my age.

It is not realistic for a 22 year old to be maxing out a 401k unless they are from a wealthy family.  

Most Millennialls have a crap ton of college debt which is why we (general we as I'm on the upper edge of this generation) are screwed.  We have college debt, high rates of unemployement (economy sucks dude), and little hope for seeing any social security payments, and what we might receive won't be what was "promised" based on the current formulas.

Do people really think the economy still sucks? Maybe I'm immune to it in the Boston/Cambridge area because everything seems to be booming (hosing market, jobs, etc). I also think we were not hit as hard to begin with. 

I also read about how the economy and unemployment rate is much better now than it was in 2008/2009, but I haven't researched how they come up with these numbers. 

Just curious how other people feel.

The economy is "better" but the unemployment rate lies.  It doesn't take into account the underemployed (those working retail part time when they have a college degree) or those who have stopped looking for work.  The true unemployment rate is much, much higher than the official rates.

The stock market is booming but it is being propped up by the Fed and their constant printing of money (that isn't backed by gold, just the full faith of the US government).

I was laid off a month ago and I've had one face to face interview and one phone interview for a job I'm over qualified for (and still didn't get a face-to-face interview).  I've applied to 50 positions in my field.

All of this. Once you have exhausted the allotment of unemployment payments you're qualified for, you are considered to be "voluntarily" out of the work force - total bullshit. I was out of work for almost 2 and a half years before I started my current job, and it was not by choice. I was over-qualified for most of the open positions available. A lot of companies (including retailers) didn't want to hire me because they felt that I would leave as soon as a better position came long. I was interviewing on average at least twice a week every for over two years. I made it to late- and final-round interviews. But to the government, I clearly didn't want to work.

hellosweetie1015

huskypuppy14 said:

AprilH81 said:

I see what the chart is getting at, but it is stupid all the same.  They are trying to drive home that the earlier you start planning for retirement the better (time value of money and the miracle of compounding interest).

However, I consider myself to be on track possibly ahead of the game when it comes to retirement planning and I'm not even close to the low end of the range for my age.

It is not realistic for a 22 year old to be maxing out a 401k unless they are from a wealthy family.  

Most Millennialls have a crap ton of college debt which is why we (general we as I'm on the upper edge of this generation) are screwed.  We have college debt, high rates of unemployement (economy sucks dude), and little hope for seeing any social security payments, and what we might receive won't be what was "promised" based on the current formulas.

Do people really think the economy still sucks? Maybe I'm immune to it in the Boston/Cambridge area because everything seems to be booming (hosing market, jobs, etc). I also think we were not hit as hard to begin with. 

I also read about how the economy and unemployment rate is much better now than it was in 2008/2009, but I haven't researched how they come up with these numbers. 

Just curious how other people feel.

I definitely do not think the economy is that much better, on the job front or anywhere else. I can think of at least three foreclosures on my street alone, houses are sitting on the market for weeks on end. I know of three or four businesses that have closed or are closing soon just in the couple of blocks I work on. I'm underemployed, FI's underemployed and can't get a job or even a second interview in his field. Food prices are still high, gas prices are still high. I do think there are some improvements - gas prices have dropped about 70 cents from where we were this time last year, houses aren't on the market forever, there's only 3 foreclosures I know about on my street, and FI and I both have jobs. But at least here, in my part of the country, it still feels very much like the economy is in the shitter.

labro

Definitely on board with everyone's feelings regarding unemployment. My dad was laid off in the middle of last year and in spite of his many qualifications, graduate degree, work experience, former military officer, PMP certification, etc. he still hasn't been able to land a job. In his case, I think a big part of it is his age. Companies don't want to hire someone they think will be retiring in the next few years (although he plans to keep working for awhile). My best friend lost her job in August last year and only just recently within the last few weeks picked up a new job that she's over-qualified for but at least has a path forward for promotion and advancement.

As far as the housing market goes, I think it's improved a lot in our area compared to a few years ago, but I don't think it's very consistent and it highly depends on where you live in the metro area and what kind of house you have to sell. Basically, even with all the news of an improved economy, job market, etc. I still don't feel anywhere close to secure.

CMGragain

huskypuppy14 said:

Do people really think the economy still sucks? Maybe I'm immune to it in the Boston/Cambridge area because everything seems to be booming (hosing market, jobs, etc). I also think we were not hit as hard to begin with. 

I also read about how the economy and unemployment rate is much better now than it was in 2008/2009, but I haven't researched how they come up with these numbers. 

Just curious how other people feel.

No, I think the economy has greatly recovered from 2008.  Our personal retirement accounts (which are still untouched) are mostly stock market investments.  In 2008 we saw our funds plummet.  We stayed the course.  They are now very healthy.
DH retired in 2006, and we put our house on the market in the fall of that year - just as the real estate market boom ended and prices went sliding off a cliff!  Since we had owned our home for 16 years, we were able to afford to sell it at a lower price than we had hoped.  When we bought our present home across the country, we paid 80% cash, and the small mortgage is now paid off.  We could not have lived our lifestyle with our pensions and social security if we had stayed in the expensive D.C. area.  Currently our present home is worth about $40,000 less than we paid for it,  It doesn't matter.  We aren't selling right now.  Someday our heirs may sell, and, since it is paid for, whatever they get for it will be part of their inheritance.
Employment doesn't affect us now, but it does affect our neighbors.  We live in a mining based economy, which has always been boom and bust.  In 2007, it was booming.  Teachers were quitting their jobs in the middle of the school year to go drive heavy equipment in the oil fields.  Those jobs have now fled to Bismark, ND, along with a large number of heads of households, who have left their families behind to go work in ND.  There are jobs out there - just not here in western CO!
I have learned a lot on the Knot.  I have learned how student loans are such a burden on the current generation.  This is why we are designating our inheritance for college education expenses for our future grandchildren.  I already know how difficult it is for young people to buy property in expensive urban areas.  This is why we contributed money when my daughter was buying her homes. 
My sister has a very different outlook on finance.  Her credit cards are maxed out. She wears very expensive clothes and sells her cars when they are four years old.  (We drive 8 and 9 year old Hondas and plan to keep them.)  Her yard is full of motorcycles and a HUGE RV.  She received the same inheritance from our late mother, and her husband got a large share of his parents estate. They could have paid off their house, but they had $40,000 in consumer debt.  The money is gone.  Recently, she told me that she wants to sell off the stock she inherited.  She wants to spend the money.
OK.  We are totally different people.  My point is that there are some choices to be made over your life.  Planning for the future is one of those important choices.  Certainly, not everyone is as fortunate as we were to inherit a large windfall.  Now that we have it, we feel that it is a responsibility for us to use it wisely.
Thank you, Knotties, for teaching me about the financial issues of your generation.  I am trying to make it easier for my children and grandchildren.

AprilH81

CMGragain said:

huskypuppy14 said:

Do people really think the economy still sucks? Maybe I'm immune to it in the Boston/Cambridge area because everything seems to be booming (hosing market, jobs, etc). I also think we were not hit as hard to begin with. 

I also read about how the economy and unemployment rate is much better now than it was in 2008/2009, but I haven't researched how they come up with these numbers. 

Just curious how other people feel.

No, I think the economy has greatly recovered from 2008.  Our personal retirement accounts (which are still untouched) are mostly stock market investments.  In 2008 we saw our funds plummet.  We stayed the course.  They are now very healthy.
DH retired in 2006, and we put our house on the market in the fall of that year - just as the real estate market boom ended and prices went sliding off a cliff!  Since we had owned our home for 16 years, we were able to afford to sell it at a lower price than we had hoped.  When we bought our present home across the country, we paid 80% cash, and the small mortgage is now paid off.  We could not have lived our lifestyle with our pensions and social security if we had stayed in the expensive D.C. area.  Currently our present home is worth about $40,000 less than we paid for it,  It doesn't matter.  We aren't selling right now.  Someday our heirs may sell, and, since it is paid for, whatever they get for it will be part of their inheritance.
Employment doesn't affect us now, but it does affect our neighbors.  We live in a mining based economy, which has always been boom and bust.  In 2007, it was booming.  Teachers were quitting their jobs in the middle of the school year to go drive heavy equipment in the oil fields.  Those jobs have now fled to Bismark, ND, along with a large number of heads of households, who have left their families behind to go work in ND.  There are jobs out there - just not here in western CO!
I have learned a lot on the Knot.  I have learned how student loans are such a burden on the current generation.  This is why we are designating our inheritance for college education expenses for our future grandchildren.  I already know how difficult it is for young people to buy property in expensive urban areas.  This is why we contributed money when my daughter was buying her homes. 
My sister has a very different outlook on finance.  Her credit cards are maxed out. She wears very expensive clothes and sells her cars when they are four years old.  (We drive 8 and 9 year old Hondas and plan to keep them.)  Her yard is full of motorcycles and a HUGE RV.  She received the same inheritance from our late mother, and her husband got a large share of his parents estate. They could have paid off their house, but they had $40,000 in consumer debt.  The money is gone.  Recently, she told me that she wants to sell off the stock she inherited.  She wants to spend the money.
OK.  We are totally different people.  My point is that there are some choices to be made over your life.  Planning for the future is one of those important choices.  Certainly, not everyone is as fortunate as we were to inherit a large windfall.  Now that we have it, we feel that it is a responsibility for us to use it wisely.
Thank you, Knotties, for teaching me about the financial issues of your generation.  I am trying to make it easier for my children and grandchildren.

Very little of that has to do with the economy and a lot to do with personal decision making.  Just because YOU are doing okay doesn't mean that the economy has recovered.

Yes, the stock market is back from the crash in 2008 (and the housing market is much better in most areas) but just about anyone who pays attention to finance/economy news thinks that the stock market is a great big bubble getting ready to bust.  Based on the unemployment numbers, energy costs, student loan defaults and a host of other issues there is NO REASON for the stock market to be pulling the numbers it is.

Jells2dot0

AprilH81 said:

CMGragain said:

huskypuppy14 said:

Do people really think the economy still sucks? Maybe I'm immune to it in the Boston/Cambridge area because everything seems to be booming (hosing market, jobs, etc). I also think we were not hit as hard to begin with. 

I also read about how the economy and unemployment rate is much better now than it was in 2008/2009, but I haven't researched how they come up with these numbers. 

Just curious how other people feel.

No, I think the economy has greatly recovered from 2008.  Our personal retirement accounts (which are still untouched) are mostly stock market investments.  In 2008 we saw our funds plummet.  We stayed the course.  They are now very healthy.
DH retired in 2006, and we put our house on the market in the fall of that year - just as the real estate market boom ended and prices went sliding off a cliff!  Since we had owned our home for 16 years, we were able to afford to sell it at a lower price than we had hoped.  When we bought our present home across the country, we paid 80% cash, and the small mortgage is now paid off.  We could not have lived our lifestyle with our pensions and social security if we had stayed in the expensive D.C. area.  Currently our present home is worth about $40,000 less than we paid for it,  It doesn't matter.  We aren't selling right now.  Someday our heirs may sell, and, since it is paid for, whatever they get for it will be part of their inheritance.
Employment doesn't affect us now, but it does affect our neighbors.  We live in a mining based economy, which has always been boom and bust.  In 2007, it was booming.  Teachers were quitting their jobs in the middle of the school year to go drive heavy equipment in the oil fields.  Those jobs have now fled to Bismark, ND, along with a large number of heads of households, who have left their families behind to go work in ND.  There are jobs out there - just not here in western CO!
I have learned a lot on the Knot.  I have learned how student loans are such a burden on the current generation.  This is why we are designating our inheritance for college education expenses for our future grandchildren.  I already know how difficult it is for young people to buy property in expensive urban areas.  This is why we contributed money when my daughter was buying her homes. 
My sister has a very different outlook on finance.  Her credit cards are maxed out. She wears very expensive clothes and sells her cars when they are four years old.  (We drive 8 and 9 year old Hondas and plan to keep them.)  Her yard is full of motorcycles and a HUGE RV.  She received the same inheritance from our late mother, and her husband got a large share of his parents estate. They could have paid off their house, but they had $40,000 in consumer debt.  The money is gone.  Recently, she told me that she wants to sell off the stock she inherited.  She wants to spend the money.
OK.  We are totally different people.  My point is that there are some choices to be made over your life.  Planning for the future is one of those important choices.  Certainly, not everyone is as fortunate as we were to inherit a large windfall.  Now that we have it, we feel that it is a responsibility for us to use it wisely.
Thank you, Knotties, for teaching me about the financial issues of your generation.  I am trying to make it easier for my children and grandchildren.

Very little of that has to do with the economy and a lot to do with personal decision making.  Just because YOU are doing okay doesn't mean that the economy has recovered.

Yes, the stock market is back from the crash in 2008 (and the housing market is much better in most areas) but just about anyone who pays attention to finance/economy news thinks that the stock market is a great big bubble getting ready to bust.  Based on the unemployment numbers, energy costs, student loan defaults and a host of other issues there is NO REASON for the stock market to be pulling the numbers it is.

I had read this too and have gotten some feedback from our financial advisor. I'm getting ready to make my investments a tad bit more conservative to get through the market correction. Of course, the correction might not happen. There is no predicting anything.

CMGragain

You have made some excellent points.   Currently, half of my legacy is in petroleum stocks.  DH's inheritance is now in cash.  (They sold the family farm.)  We need to do a lot of research to find out how best to invest it.  It is a frightening responsibility.

I thought posting my experience from the other side of the retirement wall might interest some people.

julieanne912

Well after reading this, I sure don't have my shit together.  I'll be 33 in about a month and I don't even have a retirement account.  I made REALLY good money during the real estate boom, but I wasn't responsible with it, one of my biggest regrets.  I now make less than half of what I did in the peak, and it's enough to cover expenses, minor spending (like I have $100 every 2 weeks for "spending money"... includes stuff for the dogs, clothes, the occasional haircut, eating out etc) and some savings.  My goal after I get my savings to a comfortable level is to get a retirement account going next though.

Unfortunately the industry I'm in (real estate, and now title, so still real estate related) doesn't give a lot in terms of benefits.  In December I got my first job ever that offers health insurance.  It's a small company so I'm hoping to gain experience here and then move to a larger company with better benefits, as I know the bigger ones offer better benefits packages.  

FI does ok, with my encouragement.  Unfortunately he also works at a small start up company that pays well, but doesn't do much in terms of great benefits.  They do some matching though, so I've encouraged him to do the max he can do that they'll match at least.  

CMGragain

A different story:

My late FIL married again after MIL passed away, 25 years ago.  He had accumulated a lot of money during his career (real estate broker), but had made no provisions for his retirement.  Much of MIL's estate was in a trust fund for DH and his sister, with provisions to care for FI: if the need arose.
FIL figured he was rich and didn't need retirement protection.

For 18 years, FIL ran through his money.  When the money ran out, he mortgaged, and re-mortgaged the house.  He demanded money from the trust fund, and spent everything liquid that was there.  Then reality struck.  He asked us for money, but when we gave him some, he bought a Lexus with it.  We stopped giving him money.  He wrecked the Lexus.

Then he got sick.  He had a prolonged decline with Alzheimers, and he really needed that money that he had already spent.  His wife (a nice lady) was bewildered as to why there was no money.  Without telling us, they sold off family heirlooms, some of which had been in the family for 200 years.

FIL passed away last month.  No provisions were made for the widow.  She owns a house that is underwater with all the mortgages.  Life insurance on FIL was minimal.  She cannot afford the house payments on her Social Security benefits.  She is 78.  What is left of the trust fund now belongs to DH and his sister.

Ladies, this could be you!  Take a hard look at your retirement plans, and don't depend on your husband's income for your future needs!  (My own father died at age 44.  Mom had to support the family and provide for her own needs.)  If just one person has learned from this thread, then that is good!

huskypuppy14

CMGragain said:

A different story:

My late FIL married again after MIL passed away, 25 years ago.  He had accumulated a lot of money during his career (real estate broker), but had made no provisions for his retirement.  Much of MIL's estate was in a trust fund for DH and his sister, with provisions to care for FI: if the need arose.
FIL figured he was rich and didn't need retirement protection.

For 18 years, FIL ran through his money.  When the money ran out, he mortgaged, and re-mortgaged the house.  He demanded money from the trust fund, and spent everything liquid that was there.  Then reality struck.  He asked us for money, but when we gave him some, he bought a Lexus with it.  We stopped giving him money.  He wrecked the Lexus.

Then he got sick.  He had a prolonged decline with Alzheimers, and he really needed that money that he had already spent.  His wife (a nice lady) was bewildered as to why there was no money.  Without telling us, they sold off family heirlooms, some of which had been in the family for 200 years.

FIL passed away last month.  No provisions were made for the widow.  She owns a house that is underwater with all the mortgages.  Life insurance on FIL was minimal.  She cannot afford the house payments on her Social Security benefits.  She is 78.  What is left of the trust fund now belongs to DH and his sister.

Ladies, this could be you!  Take a hard look at your retirement plans, and don't depend on your husband's income for your future needs!  (My own father died at age 44.  Mom had to support the family and provide for her own needs.)  If just one person has learned from this thread, then that is good!

That sucks, but it sounds like your FIL was absolutely terrible with money. Yes beefing up your retirement account is important, but marrying someone with similar financial goals is also important.

 Husband's shouldn't rely on their wife's money either (which is what you FIL did). 

julieanne912

I think it's pretty common in the older generations for the wife to not know anything about their finances.  My dad way young, at 52.  Thankfully, my mom had always been the one to deal with the finances, even did the books for his business, so she was OK after he passed away.  She was telling me that in her grief group, most of the women didn't even know how to access the bank accounts   I know I learned a big lesson from that.... FI and I do not have merged finances, but I do know his passwords to things and vice versa, should the need ever arise.  

huskypuppy14

julieanne912 said:

I think it's pretty common in the older generations for the wife to not know anything about their finances.  My dad way young, at 52.  Thankfully, my mom had always been the one to deal with the finances, even did the books for his business, so she was OK after he passed away.  She was telling me that in her grief group, most of the women didn't even know how to access the bank accounts   I know I learned a big lesson from that.... FI and I do not have merged finances, but I do know his passwords to things and vice versa, should the need ever arise.  

I don't know about this. At least not in my family. I think it's especially important for the woman to know because especially in older couples, the woman is usually younger, and men on average don't live as long as women.

My mom does my parents finances, and this would be my concern for my dad if anything happened to my mom. He knows where their money is, but he doesn't manage it. 

My grandma was an accountant, so she was obviously involved with their finances when my grandfather died. 

I did my husband and my taxes this year. I'm better at math and understand the nuances better than him. We each pay our own respective bills, and we're on each other's bank accounts. 

It's important for both parts of the couple (whether it's two women, two men, or a man and a woman)  to know where the money is going, where the money is located and how to pay the bills if something happens to the other person. But this reminds me that I need to make a list of accounts and their passwords for my husband in case anything happens to me.

FiancB

Ugh, no idea. I had a Roth IRA for a bit, for some reason I was under the impression that it would grow substantially but it didn't. I didn't have a lot in there so I went ahead and withdrew it recently as there were more pressing matters. I'm not even sure what H's retirement plan looks like- he's a teacher, so probably not super impressive.

I am just starting school in a second career, so that's all a long way out of my mind first. Fuck, it's hard enough to save for a house. 

I did listen to a TED talk about how cultures that view time differently also save differently. Cultures like ours where present, past, and future are these separate things tend to not be so good about saving for retirement because they view it as this far off things. Cultures that view time as being, idk, less linear? tend to be a lot more proactive about saving. 

VulgarGirl

Don't worry @CMGragain I have no plans to rely on my non existent husband.

Cool to rely fully on my wife though, right?

hellosweetie1015

On the economy note - Alabama is closing a buuuuuuunch (more than half) of our state parks because the legislature slashed the Parks department's budget to the point where the Parks department can't afford them any more. One of the state parks on the slash list is a place I considered early on for a wedding venue. Some are set to close in May, others in June, and a few later if they can't correct.

It's a bit distressing.

FiancB

Minnesota has a relatively good job market but still feeling the crunch here. Target just let go of a shitton of employees so that's a factor. MIL worked for a magazine that folded a few years ago and has yet to find a comparable job and has been working retail since. 

CMGragain

julieanne912 said:

I think it's pretty common in the older generations for the wife to not know anything about their finances.  My dad way young, at 52.  Thankfully, my mom had always been the one to deal with the finances, even did the books for his business, so she was OK after he passed away.  She was telling me that in her grief group, most of the women didn't even know how to access the bank accounts   I know I learned a big lesson from that.... FI and I do not have merged finances, but I do know his passwords to things and vice versa, should the need ever arise.  

Not in THIS older generation marriage!  I know where every penny is invested.  We need to see a lawyer soon about rewriting our wills and taking care of our estates.  And no way is DH's next wife gonna get my jewelry!