Excellent Retirement Crisis Analysis

[trumpeting_angel]

It took me 49 years to realize that I was working way too hard. I have been walking a tightrope, trying to teach my daughter that working hard brings rewards, but working too hard just wears you out.

I still work hard, at times, but I work a lot less. She also has her father's example to follow. He works all the time, but doesn't make any money. . .

8)

Anne

 

[haha]

 She also has her father's example to follow.  He works all the time, but doesn't make any money. . . Anne

A bad combination of circumstances in a spouse. I used to say to my wife, I wouldn't mind as much you never being available if you were a neurosurgeon, but this is just too much!

Mikey

 

[trumpeting_angel]

Mikey,

My thoughts exactly.

He worked as a contractor. I don't know how he managed to make so very little money. I finally talked him into going back into teaching shop. But then I dreaded the summer, when the money-draining "second job" would begin. I think when one is barely breaking even, it should probably be classified as a "hobby" instead of a business!

Good think he's teaching, now that I've divorced him.

Oh well, no bitterness! I was lucky enough to inherit some money so this isn't the impoverished life I was contemplating when I decided to divorce.

Anne

 

[John Galt]

I had the worst possible situation.
My former spouse
refused to work and spent money like Mike Tyson. My divorce was
absolutely necessary for me to ER. A sad tale but
true.

John Galt

 

[cute fuzzy bunny]

How is it that Mike Tyson slips into a great number of threads here?

 

[John Galt]

Re. Tyson, he is great example of what not to do with your life/finances. Other than that, you can't beat a good Tyson joke, not that I have a corner on the market.
It's so easy to come up with a punch line. Tyson jokes are really my favorite
sort of black humor. It's easy once you know the ropes.
Anyway, let's not fight about it, even if it's not your bag.

John Galt

 

[wabmester]

John Galt, those are some knockout puns. I love slap-stick humor. Bloody funny stuff, that. Good punchlines, too. Especially when you took a jab at Tyson. I practically bust my gut.

 

[Lili]

Hi everyone,
Didn't feel like signing in under my name Liltime. Here's my two cents.
jkirzec: and everyone else. A must read is The Coming Generational Storm, a review is on the first page of retire early homepage. Full of stats but it is an easy read. Chapter 8 "Securing your Future" is good for all.
Speaking as a Generation Xer I would say that assumption is not correct, we are not willing to work hard. We want more of a balance between work/family/leisure. What seems to be a common theme with this generation which can be misinterpreted is that we don't feel as much loyalty to a particular employer, we are somewhat disenfranchised. I personally do not plan to work like a dog till I drop then pay a good chunk in taxes. In 13-15 years I plan to be out of the 9-5 salaried employee category and do some consultant work and have some passive income that is not taxed as highly. I hope others in my generation are paying attention or they will be in for a rude awakening. Higher taxes to pay for Social Security, Medicare, and Medicaid and very little benefit from Social Security by the time we retire, which is already up to age 67(full benefits) and I'm betting will be age 70 by the time I actually get there.

 

[John Galt]

Just remember Lili, Murphy was an optimist!

JOhn Galt

 

[lili]

hey john that sounds funny coming from you! I think i am pretty optimistic but I also like to look at facts. BTW after looking at scenario ER seems more realistic with other half ( recall subject Er plans derailed) DH who works for fed gov't (former jar-head) has defined pension benefit also adjusted to inflation to a degree would make ER possible in 10 years for me although I am younger and planning to re-enter workforce part-time after childcare leave. Calculating ER with only my income in mind although not impossible but not probable before 55. With 2 little ones there's always college, dance, soccer, music, art class etc..... You know!

 

[JOhn Galt]

Yes, Lili I do know. I will be 60 on Friday (anyone
sending gifts should e-mail me for address) and am
still dealing with college expenses for my youngest.

John Galt

 

[cute fuzzy bunny]

John -

Regarding gifts, if we send you a small paper bag full of poo, will you be so kind as to put it on your front porch and light it on fire?

 

[trumpeting_angel]

John,

I'm sending you my "Kerry Kit," produced by Moveon.org, so that you can view the film and listen to the liberals and get a bumper sticker for your bike. Send address right away!

Anne

 

[Lili]

Hey John an early Happy Birthday! So you survived the kids and made it to your 60th b-day. I can only imagine what's in store. My almost 6 year old is on the right track, she is interested in selling lemonade and some of her toys to earn money. I hope everyone reads the book, got my copy from the library. Too bad I spent the savings on Starbucks and lunch out.

 

[John Galt]

Thanks everyone! My wife bought me a king size bed
for my birthday (what a woman!).. I hope it's because
she thinks I'm a king and not in order to put some distance between us

By the way TH, someone actually delivered some "poo"
once. I didn't set it on fire though. I personally
returned it to the sender. It's a good story but I will
save for now.

John Galt

 

[Martha]

Happy birthday John Galt. In honor of your birthday, a parody of Julie Andrew's song "These are a Few of My Favorite Things:"

Wondrous Things

Maalox and nose drops and needles for knitting,
Walkers and handrails and new dental fittings,
Bundles of magazines tied up in string,
These are a few of my favorite things.

Cadillacs and cataracts and hearing aids and glasses,
Polident and Fixodent and false teeth in glasses,
Pacemakers, golf carts and porches with swings,
These are a few of my favorite things.

When the pipes leak,
When the bones creak,
When the knees go bad,
I simply remember my favorite things,
And then I don't feel so bad.

Hot tea and crumpets, and corn pads for bunions,
No spicy hot food or food cooked with onions,
Bathrobes and heat pads and hot meals they bring,
These are a few of my favorite things.

Back pains, confused brains, and no fear of sinnin,
Thin bones and fractures and hair that is thinin,
And we won't mention our short shrunken frames,
When we remember our favorite things.

When the joints ache, when the hips break,
When the eyes grow dim,
Then I remember the great life I've had,
And then I don't feel so bad.

Author Unknown

 

[Whakamole]

Hi everyone,
Didn't feel like signing in under my name Liltime. Here's my two cents.
jkirzec: and everyone else. A must read is The Coming Generational Storm, a review is on the first page of retire early homepage. Full of stats but it is an easy read. Chapter 8 "Securing your Future" is good for all.
Speaking as a Generation Xer I would say that assumption is not correct, we are not willing to work hard. We want more of a balance between work/family/leisure. What seems to be a common theme with this generation which can be misinterpreted is that we don't feel as much loyalty to a particular employer, we are somewhat disenfranchised. I personally do not plan to work like a dog till I drop then pay a good chunk in taxes. In 13-15 years I plan to be out of the 9-5 salaried employee category and do some consultant work and have some passive income that is not taxed as highly. I hope others in my generation are paying attention or they will be in for a rude awakening. Higher taxes to pay for Social Security, Medicare, and Medicaid and very little benefit from Social Security by the time we retire, which is already up to age 67(full benefits) and I'm betting will be age 70 by the time I actually get there.

A fellow GenX here...

You are correct, we aren't particularly loyal - but neither are the companies. They're not loyal to us in particular, or American workers in general. The Fourth Turning calls us Nomads, and that is pretty close.

If you're coming from a background of seeing a lot of layoffs as a kid, and seeing outsourcing today, then you are definitely going to feel that:
1. Loyalty isn't rewarded
2. Hard work is rewarded but only as much as it helps your career
3. You need to be able to support yourself when you are let go, though savings/investments/etc.
4. Why not just RE and get out of this mess and enjoy life?

I've spent the last year adding to my cash balance. I think I have more cash on hand than most of the REs here, and I work for a company that isn't going away, or doesn't even have any plans to do the overseas move - not that I know of, anyway.

 

[Lili]

hey Whakamole,
I wish I could say I was well on my way, as you are. I will just be getting on track again by the end of the year when I start at a JOB and make plans for my exit at the same time. Small business and real estate is the way to go from what I have read and seen. I can't do the
9-5 for 30 years. We seem to be in a precarious situation, Xer's. It has been noted we will be the first generation who will not do as well as our parents. Not a pretty picture. I'm wondering when did you start saving for ER and what is your plan? If posted that info on another thread just give the link.

 

[bruce1]

Good Morning
Lili, I think that you, and others from GENX (for want of a better term) who think like you are, will be far ahead of 99% of your generation and still ahead of 98% of the Boomers (me). On average, of course, you are correct about your generation not doing as well as your parents.

Do not trust your future ER to a corporate entity. They have no loyalty or consience and cannot see beyond the next dividend or stock price increase. However, use corporate entities as ruthlessly as they would use you to futher your ER plans whenever you can. Government in a similiar manner can't see beyond the next election.

Invest in yourself emotionally, with education, and of course with savings.

my 2 cents

Have fun all

BRuce

 

[haha]

It has been noted we will be the first generation who will not do as well as our parents.

Noted, but in no way proven. There is a long term US tendency for generations to prosper relatively more or less, according to whether the included birth cohorts are larger or smaller than the preceding generation. There was a baby boom from the end of WW1 to the crash in 1929. Then a baby bust from then until the post WW2 years. The Boomer Generation that began after WW2 created the Boomer name, because it was so much larger than the small birth cohorts of the 30's and War Years. This "Big Boom" peaked in 1957, but continued with relatively high birth cohorts until about 1964-66. After this began a series of low birth years, during which the average fertility per woman decreased from well above 3 children to just slightly above 2. This period ended in the mid eighties or so, with the advent of the echo boomers. Fertility per woman remained low, but there were so many women from the post war boom having children, that the absolute number of births again reached 4 million as it had in 1957. The Big Boom is actually a tough generation to belong to, lots of competition on the job, lots of competition to buy a house, lots of competition to buy stocks and other retirement assets. Even with almost all women working, the boomers are in sad shape heading into retirement.

If things hold true to form, x-ers should be the beneficiaries of boomer pain, buying stocks and other assets including houses from them at relatively good prices, and then selling them much later to "echo-boomers" at newly inflated prices.

This is only a theory, although it has played out in the past, and it makes sense. There is a rich academic literature on this topic. I think it is very likely to hold true, especially with respect to stocks. After all, the "bubble" of the second half of the 90s was caused by boomer excesses and retirement panic.

In may not hold true of houses, especially on the coasts, because of intense immigration. Many immigrants have good incomes (Chinese, Indians, Russians and Ukrainians) and many groups that don't nevertheless band together and can afford a suburban house. To some one used to living in a tin shack made from Coca-Cola signs in Guatemala, are 15 or so people in a suburban house a problem?

Mikey

 

[farmerEd]

>>Even with almost all women working, the boomers are in sad shape heading into retirement.


Is this indisputably true? I have heard it so many times, and wouldn't be suprised if it is true, but where are the facts? and why is it so?

 

[haha]

>>Even with almost all women working, the boomers are in sad shape heading into retirement.


Is this indisputably true? I have heard it so many times,  and wouldn't be suprised if it is true, but where are the facts? and why is it so?

? I guess damn little is indisputably true. On this particualr topic, TH has posted recent survey results in another thread. I leave it to you to find the post, or use Google. I can't remember where it is, but it was within the last week or so.

As to why, first you will need to satisfy yourself that it is true. Then, if you are satisfied as to the veracity of the assertion, re-read my post above for one idea as to why. You might do your own research for other possibilites. I am sure there are many. I would interested in seeing anything you find.

 

[Hyperborea]

If things hold true to form, x-ers should be the beneficiaries of boomer pain, buying stocks and other assets including houses from them at relatively good prices, and then selling them much later to "echo-boomers" at newly inflated prices.

If this is true it will not benefit the X-ers very much if any.  We've had to compete with boomers who've filled up the corporate ranks and left few to no openings for us. The recession in the early 90's was particularly bad on the leading edge X-ers who were just leaving school and had trouble getting their first job. The boomers have driven up housing and stock prices that the X-ers buy.  The ones who will likely do well will be the leading edge of the boom-echo who will be into buying time when the selling begins and the prices drop.

 

[Lili]

Hi Mikey,

 

[Lili]

Hi Mikey,
Don't know how I accidently posted that blank one. A few factors to look at: people of the X-gen have been moving back home in recent years in large numbers, in the near future we will pay a hefty amount in taxes to support S.S, Medicare and the new drug benefit. The cost is out of hand and there will not be enough workers to support those that will be retired, that is a fact. There have been many surveys and much research on this topic they all seem to come to the same conclusion. It is not that dismal for all Boomers although a good number will be in dire straits. Personally I am trying to see my way out of this generational and financial dilemma. My Dad is already past the age for Social Security and he is still working full time.