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Old 09-03-2014, 07:35 AM   #21
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Originally Posted by growing_older View Post
But even among them, a surprising number have read advice about saving at least enough to get the full employer match and talk about how they are maxing out their contributions because they are putting in the full 6% (with 50 cents on the dollar matching from the employer).
I wonder if people are starting to get confused by some of that Suze Orman/Dave Ramsey advice, where they tell you that you should at least put enough into your 401k to get the full company match. Then max out a Roth IRA if you qualify. Then, if you still have money to invest, continue putting into the 401k until it's maxed out. Then do after-tax investing.

Maybe a lot of people just hear that first sentence of "put in enough to get the company match" and then their eyes glaze over from the rest?
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Old 09-03-2014, 07:50 AM   #22
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I don't think the system is "rigged" or is setup "unfairly" or that a large portion of people are "doomed to fail".

There are probably some that are doomed to fall through the cracks, but no matter what system is implemented I believe that is an inescapable truth.

I know plenty of intelligent people that had good upbringings that do very little financial planning for the future. A lot of the time it is an active choice for instant gratification and not a rigged system.
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Old 09-03-2014, 08:38 AM   #23
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Patricia might be smart or foolish, I won't judge her because I don't know her or how she got to where she is. Sounds like she's in a pickle though.

Were she here my advice might be...

Social security is mainly intended to supplement other income or maybe keep you alive but not maintaining a lifestyle.

Make a choice now. Redefine your idea of "need" and find a way to be happy living very very modestly (include radical solutions like relocating) -or- seek additional income by working...or a mix of both. I think the latter is entirely feasible. I'd probably recommend self employment vs. say being a WalMart greeter :-). One example would be working as a Nanny which at least where I live is highly in demand and easily arranged as a less than full time gig.
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Old 09-03-2014, 12:50 PM   #24
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I wonder if people are starting to get confused by some of that Suze Orman/Dave Ramsey advice, where they tell you that you should at least put enough into your 401k to get the full company match. Then max out a Roth IRA if you qualify. Then, if you still have money to invest, continue putting into the 401k until it's maxed out. Then do after-tax investing.

Maybe a lot of people just hear that first sentence of "put in enough to get the company match" and then their eyes glaze over from the rest?
I think you may be right on this. At least for the few that listen at all. I knew far too many that didn't even contribute enough to get the full company match.

Even just the company match might work for some. When my old company dropped the pension for new employees, they gave those people an "enhanced match" 401K. They get a 50% match on up to 15% of their salary. pensioned employees like me only got 50% on the first 6% of salary. At higher salary ranges you couldn't take advantages of the new limits but the majority of employees could. Since so many were not getting the full match before, I doubt the company will have to pay out much on this new offer.
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