*Retirement*

[Montgomery]

Food for thought, especially for you young guns, I know this sounds a bit too "pie in the sky" to many ,but this is some solid advice.

If you can't pinpoint exactly how much money you'll need in retirement, you're not alone.

In a recent report, Merrill Edge finds that "many Americans are unable to articulate their 'magic number,' and those who can underestimate the amount" they will require.

More than half of respondents don't think they'll need more than $1 million, the amount financial advisors traditionally recommend savers aim for, and 19 percent simply don't know their number.


Merrill Edge Report Fall 2016
How much money do you need for retirement?
The answer is highly personal, and specific dollar amounts can be arbitrary, but according to retirement-plan provider Fidelity Investments, a good rule of thumb is to have 10 times your final salary in savings if you want to retire by age 67.

Fidelity also suggests a timeline to use in order to get to that magic number:

By 30: Have the equivalent of your salary saved
By 40: Have three times your salary saved
By 50: Have six times your salary saved
By 60: Have eight times your salary saved
By 67: Have 10 times your salary saved

 

[RickRock]

Food for thought, especially for you young guns, I know this sounds a bit too "pie in the sky" to many ,but this is some solid advice.

If you can't pinpoint exactly how much money you'll need in retirement, you're not alone.

In a recent report, Merrill Edge finds that "many Americans are unable to articulate their 'magic number,' and those who can underestimate the amount" they will require.

More than half of respondents don't think they'll need more than $1 million, the amount financial advisors traditionally recommend savers aim for, and 19 percent simply don't know their number.


Merrill Edge Report Fall 2016
How much money do you need for retirement?
The answer is highly personal, and specific dollar amounts can be arbitrary, but according to retirement-plan provider Fidelity Investments, a good rule of thumb is to have 10 times your final salary in savings if you want to retire by age 67.

Fidelity also suggests a timeline to use in order to get to that magic number:

By 30: Have the equivalent of your salary saved
By 40: Have three times your salary saved
By 50: Have six times your salary saved
By 60: Have eight times your salary saved
By 67: Have 10 times your salary saved

Good info brother. Judging by this info, I guess I'm pretty close to being on track with what I have in my 401k. I'm 42, and have around 3 times my salary in there right now. Thankfully I got in my 401k early enough to start saving early and wasn't a dumbass putting it off too long

 

[Montgomery]

Good to hear Rick!
I was fortunate enough to have had solid advice from a young age and I'm talking young!!
My Dad got me money magazine when I was 8 years old..

People need to realize we are living longer and SS is running out of money, even what they pay now in 40 years the percentage to inflation will be an absolute joke!!

Here is an EYE opening stat….you have a million dollars in the bank, in the past 5 years the average return(if you are lucky) is around 5%
That is $50,000 a year…….how far is that going to take you in the year 2040……scary shit

 

[RickRock]

Good to hear Rick!
I was fortunate enough to have had solid advice from a young age and I'm talking young!!
My Dad got me money magazine when I was 8 years old..

People need to realize we are living longer and SS is running out of money, even what they pay now in 40 years the percentage to inflation will be an absolute joke!!

Here is an EYE opening stat….you have a million dollars in the bank, in the past 5 years the average return(if you are lucky) is around 5%
That is $50,000 a year…….how far is that going to take you in the year 2040……scary shit

Yes that is very scary bro when you out it in that perspective. I know a lot of people are counting on social security and their pensions to bail them out when they get to retirement more than anything, but who knows where social security will be in another 20 years, and pensions are starting to get phased out as a thing of the past. They have done that at my employer for any new employees coming after 2011. I'm grandfathered into my pension, but thepension itself is just thereto supplement, and nothing you can live off of entirely by any means. That's why I'm just trying to save what I can. Right now Im contributing 6% per week which is to get the most I can from the company match. I'd like to contribute a bit more and go to around 10% per week, once I free up some more expenses I'm working on

 

[Montgomery]

You are lucky you have a pension…I never had them being self employed.
You sure sound like you have a solid plan already in place good for you.
People can make "Luxury" sacrifices to be able to save a lot more money then they are now.
I know everyone young wants to have fun and live life, but a little sacrifice today, will make a wheelbarrow of cash difference 20-30 years from now..

 

[Montgomery]

The longer one waits the harder it gets…and I'm talking hard!!
There is another chart out somewhere that shows the difference for the race to a Million.
It is crazy…like at age 20 you need to save $100/Month and if you wait until 40…it's like $2500/Month

 

[Montgomery]

look at this chart as your jaw hits the ground…the young guy didn't contribute past 30…the other guy did up until 65

 

[RickRock]

look at this chart as your jaw hits the ground…the young guy didn't contribute past 30…the other guy did up until 65

That's pretty insane right there. That just goes to show you what that money can do over time if you get it in early without even have to put more in.

 

[caleb18]

What kind of account gives you a $400 return on $5000? This is very helpful stuff!


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[caleb18]

Investments that average at 8% a year. Not an unreasonable growth rate.

Okay I was assuming he was talking about RRSPs or something. My work has a great plan where I put in 6% of my cheque and they match it. And after years of service they put in a higher %.


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[caleb18]

RRSP is the Canadian equivalent to an American IRA. You're allowed to contribute up to $5,500/yr currently into traditional and ROTH IRAs here in the US. They're tax exempt accounts that are taxed at either at the time of investment or at the time of withdrawing money. You can invest many different ways, individual funds or most pick portfolios(a large mix of funds) that are managed by large investment firms like Janus or Fidelity.

Oh okay so pretty similar, I can contribute maximum 18% of my yearly income into RRSP. So then from there you can choose if you want them to invest your money on high risk or low risk investments?


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[44YOGearHead]

Retirement also needs to be understood as a period of living comfortably at a 'reduced' standard allowing you to stay within your means and STILL save. My wife is horrible with finances and is a point of contention. Soon as I retired she wanted to quit work. She works for the government, you don't quit those jobs you retire from them for sake of the benefits and continuing pay. I'm comfortable, unlike many Americans, however retirement does need to be thought out and at the same time understood by all parties. If I were single I'd be sailing the world. Instead I'm trying to get my simple ass wife to comprehend life post retirement. Love her, but no matter how good you might have it, common sense is required. My advice to the young men of the world? Be single, amass your fortune and then enjoy life. Love is better when your older, wiser and secure.


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[Montgomery]

Rich or poor…..it's always nice to have money…..old proverb

 

[WOLFSBLOOD]

Really Good info.

 

[44YOGearHead]

Rich or poor…..it's always nice to have money…..old proverb

Money is the great equalizer of all things except death. I'm just glad to have the shit.


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[RickRock]

Money can't buy happiness....that is very true. However, it sure makes life a lot more comfortable and makes it easier to be happy doing the things you love without stressing over being broke. I've been at the bottom before and know what it's like. Being broke as fuck from a divorce to my first wife, without a pot to piss in left with nothing, and forced into bankruptcy having to live with my mom til I got back on my feet. It took years but I rose above it and rebuilt myself, my income, my credit, and managed to learn everything about money and finances to get myself into a pretty good comfortable life now with excellent credit and money saved for now and the future. I'm far from being well off or rich, but I live within my means, all my bills are paid, money is saved, and I still get to enjoy life pretty well.

 

[44YOGearHead]

Money can't buy happiness....that is very true. However, it sure makes life a lot more comfortable and makes it easier to be happy doing the things you love without stressing over being broke. I've been at the bottom before and know what it's like. Being broke as fuck from a divorce to my first wife, without a pot to piss in left with nothing, and forced into bankruptcy having to live with my mom til I got back on my feet. It took years but I rose above it and rebuilt myself, my income, my credit, and managed to learn everything about money and finances to get myself into a pretty good comfortable life now with excellent credit and money saved for now and the future. I'm far from being well off or rich, but I live within my means, all my bills are paid, money is saved, and I still get to enjoy life pretty well.

Amen.


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[44YOGearHead]

Money [emoji383] is freedom for the most part. Just unbind yourself from the leaches and the air smells better, tastes better and is just BETTER period. I might hate my in laws and look at my wife like she is living in a fantasy world where she thinks I actually don't mind listening to her family beg for money, but I'd rather hear them beg and say NO than not have money indeed.


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[Flanex]

Money can't buy happiness.

I've never understood this saying.I'd be happy AF if I was rich.

As far as "retirement" goes,unless I hit a jackpot at a casino or the lottery I'll be working til the day I die.

 

[Flanex]

Because money only allows you the freedom to chase happiness doesn't provide it directly. I also think there is a difference between fun and happiness, fun to a large degree can be bought. At least that's my opinion.

That's really a great analogy between fun & happiness Red.Thanks bro.When you spend your whole life worrying about money & bills & keeping your head above water,it's easy to think being rich AF would cure everything.