Retirement

[thekid65]

As I approach the big 5-0 (in a couple of years) I find myself thinking more and more about retirement. Will I be ready (financially)? WTF do I want to do? At what age will I be able to retire? You know....shit like that.

I guess it's more the financial shit that I think about. If I stick with my current mortgage, fuck, I'll be 77 when this house is paid off. I certainly don't want to work until that age.

I'm dumping 8% into my 401K...I know, I know..should be 10%-15%...but shit, there goes my fun money. Last year I had almost a 28% return..which kicked ass...this year, after spending the first 4 months with a -2% YTD, I dumped some funds, and invested in others..at least I've turned that around with a 4% return YTD (not bad, considering where I was a month ago)..but still, a far cry from 28%. I look back and kick myself in the as for not starting to save for my future when I was in my late 20's. I've got a nice little nest egg in my 401K...but that's in todays dollars..who knows what 2030 dollars are gonna be like? Hell, who knows if we're gonna crash like we did on 08/09? Boom, there goes the nest egg.

I look at my car, which I love by the way....and think...man, that's 5 bills a month I could be dumping into savings...did I REALLY need it?

Social Security...meh..what's that gonna be $1400/month or so? Assuming it stays solvent?

Anybody else around my age starting to think about this shit, and get a little depressed?

[Duchess]

I think about it but it's not so much in a depressed manner as it is in a WTF manner. The passage of time blows my mind. I think a variety of things about my future. I don't want to have any regrets, no shoulda coulda's.

[FAHQTOO]

As I approach the big 5-0 (in a couple of years) I find myself thinking more and more about retirement. Will I be ready (financially)? WTF do I want to do? At what age will I be able to retire? You know....shit like that.

I guess it's more the financial shit that I think about. If I stick with my current mortgage, fuck, I'll be 77 when this house is paid off. I certainly don't want to work until that age.

I'm dumping 8% into my 401K...I know, I know..should be 10%-15%...but shit, there goes my fun money. Last year I had almost a 28% return..which kicked ass...this year, after spending the first 4 months with a -2% YTD, I dumped some funds, and invested in others..at least I've turned that around with a 4% return YTD (not bad, considering where I was a month ago)..but still, a far cry from 28%. I look back and kick myself in the as for not starting to save for my future when I was in my late 20's. I've got a nice little nest egg in my 401K...but that's in todays dollars..who knows what 2030 dollars are gonna be like? Hell, who knows if we're gonna crash like we did on 08/09? Boom, there goes the nest egg.

I look at my car, which I love by the way....and think...man, that's 5 bills a month I could be dumping into savings...did I REALLY need it?

Social Security...meh..what's that gonna be $1400/month or so? Assuming it stays solvent?

Anybody else around my age starting to think about this shit, and get a little depressed?

Yep.

I didn't start my 401 until I was 39. Like you, I regret not starting a lot earlier. I don't dwell on it...it's too depressing wondering what the future holds financially.

[Carsman]

As I approach the big 5-0 (in a couple of years) I find myself thinking more and more about retirement. Will I be ready (financially)? WTF do I want to do? At what age will I be able to retire? You know....shit like that.

I guess it's more the financial shit that I think about. If I stick with my current mortgage, fuck, I'll be 77 when this house is paid off. I certainly don't want to work until that age.

I'm dumping 8% into my 401K...I know, I know..should be 10%-15%...but shit, there goes my fun money. Last year I had almost a 28% return..which kicked ass...this year, after spending the first 4 months with a -2% YTD, I dumped some funds, and invested in others..at least I've turned that around with a 4% return YTD (not bad, considering where I was a month ago)..but still, a far cry from 28%. I look back and kick myself in the as for not starting to save for my future when I was in my late 20's. I've got a nice little nest egg in my 401K...but that's in todays dollars..who knows what 2030 dollars are gonna be like? Hell, who knows if we're gonna crash like we did on 08/09? Boom, there goes the nest egg.

I look at my car, which I love by the way....and think...man, that's 5 bills a month I could be dumping into savings...did I REALLY need it?

Social Security...meh..what's that gonna be $1400/month or so? Assuming it stays solvent?

Anybody else around my age starting to think about this shit, and get a little depressed?

I was a little older then you (around 53 54) when my better half finally convinced me to start dumping all I could into my 401K. Luckily for me, (us) (thank God) I did, and I started to put in 20% of my salary for the next 9 or so years. (of which my company matched 50 cents on the dollar, up to 16%.) Prior to that, I was only putting in 12%. Anyway, when I retired, I wound up financially comfortable. Had I started putting 20% away 20 years earlier, I would have been RICH. Oh well, still doing OK.
The moral is time without money, stinks, conversely, money without time also stinks. Need to find a happy medium.

In addition, not to mention, many of the things you currently physically do now, you most likely will need to "pay" someone to do it for you when you are older, & retired. And that takes money, (like mow the lawn as I used to do, I changed oil in our cars, & rotated tires, I painted the house, to name just a a few) I now pay for lawn service, pay garage to change oil, pay painter to paint house, etc.. Money rules!

[crash]

We have compulsory Superannuation here. Currently your employer must put 9% of your salary (on top of your salary) into your nominated fund. You can contribute as well, taxed at a rate of 15%. Maximum contributions as a percentage of your salary are on a sliding scale for age groups. I think the maximum is 50% at age 50 up to a maximum of $35k before you have to pay extra tax.

I was lucky. My longest career job gave me 12% for the years I worked there. They matched employee contributions dollar for dollar to a maximum of $10k pa too. And a defined benefits super fund. I rolled out of there with a healthy balance.

Anyway, my point is that we put a lot of time and effort and forewent a lot if things in our life to have all this money for our retirement years. I know you never know what's coming, but I'd be lying if I said I didn't wish we hadn't just enjoyed the money we could have had at the time.

So, cars, I wholeheartedly agree; time with no money, and money with no time both stink, but money and time, without the one you put all that plan together with, stinks pretty hard too..

Your sig line us right; life is short, make the most of it.. Maybe I should get outta here for a while

[Duchess]

Is Cars telling people to get out of Mock? Cars! Sumbitch!

[Carsman]

Is Cars telling people to get out of Mock? Cars! Sumbitch!

As the saying goes: If the fue shits. Actually not really out of Mock, out of WWW. There's more to life then WWW. That's why I jump in & then usually out in a half hour or so. 3 or sometimes 4 times a day.
(Not to mention, any longer hurts my eyes.)

That's been my siggy line from day one!

[thekid65]

Yeah...maybe depressed was not the appropriate word. "Concerned" would be a better fit.

That doesn't sound like a bad deal Crash...except for the "taxed" comment. That's the good thing about our 401k's, the money that one contributes is not taxed. However, it's heavily taxed if you withdraw early. Our employer used to match contributions, up to 5%, but I guess that got pretty expensive, so they discontinued that practice, instead, making a one time annual contribution, based on the profitability of the company.

I'm curious though, Crash...do you, as the employee, have a choice of how your money is invested?

[crash]

I'm curious though, Crash...do you, as the employee, have a choice of how your money is invested?

Yes you do. You have the choice of which fund you wish your employer to pay into and many superannuation funds let you choose how you invest. Domestic share portfolios, international, blue chip, high risk or a mix of all. You can choose to just put it in term deposit.

You can also create your own self managed super fund, but there are strict rules. You can create your own share portfolio. You can buy property with it, but you can't, nor can your family or friends, live there. The property must show a rental return consistent with the market rate yada yada. Your smsf can also borrow money to acquire property and you can negative gear that property to offset the 15% tax on your fund.

Your smsf must prepare a quarterly report called a Business Activity Statement to the tax office.

The tax part sounds odd I guess, but we have a far different tax system here to the US. We pay federal tax on our income. We don't pay state tax on it. Any self contributions to your super are before tax. So paying 15% is better than ~30%, if you are in the higher tax bracket, to put it away for later. Taking it away 'before tax' also lowers the amount the tax office calculates as your 'taxable income' which means you pay less overall income tax.

You cannot draw on your super in Australia until you are 55, with the exception of a few extenuating circumstances. Most people gear their super to rollover into an annuity fund, and they avoid paying any further tax when drawing on the money.

[Carsman]

OK now to be the sumbitch, and throw a monkey wrench into the mix.


Years ago, when I was young and working with a older healthy guy friend, he was always figuring out his finances. Calculating his projected raises over the years, how much approximately the prices of food, gas, electric, heating oil, insurance, and other necessities would rise over the years, so he could figure out just how much money he would need to have to retire comfortably. (little odd I know, but other then that he was a good guy)

Anyway, he did this for several years, (never taking vacations, never buying a new car, not dining out, they cost too much) and his goal he finally figured out was that he could retire at the ripe old age of 60. He was happy.

Well he happily worked until fifty nine and a half, and as the fickle finger of fate would have it, he checked out early!

So, you never know, you need to save some, and spend some along the
way, and live a little while you can.

Cause today is the present, and tomorrow is a gift that may not always come.

[Maggot]

I will be fine in retirement but I cannot sit still for more than a week so I will probably never retire unless I'm forced.

[Midwest Spy]

My employers maximum contribution is 2% and only if contribute at least 8%, so that's what I've been doing the last 6 years.

I figure with two pretty young kids I'll have to work until 65ish, but hopefully by then (knock on wood) retirement will look okay.

[Carsman]

I will be fine in retirement but I cannot sit still for more than a week so I will probably never retire unless I'm forced.

Can you paint, & change oil in a car, I know someone who will pay you to do it for them.

[Maggot]

I will be fine in retirement but I cannot sit still for more than a week so I will probably never retire unless I'm forced.

Can you paint, & change oil in a car, I know someone who will pay you to do it for them.

Brother, I have all I can do to do that crap for me!!