Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
quotes like this drive me nuts
Old 07-28-2008, 08:38 AM   #1
Full time employment: Posting here.
 
Join Date: Aug 2007
Posts: 894
quotes like this drive me nuts

I was reading this article on msnbc and when I get to the end, it had quote that is just wrong. For some reason, it irked me more than most of these articles tend to. Economy hitting elderly especially hard - Retirement - MSNBC.com

Quote:
I have been saving every year for some 40 years now trying to get ready for this moment where I might be able to have a little more time for family, for friends, Looney said.

Now he expects to have to work for at least five more years.

If anyone should know, its John Looney. He works for AARP.
And I ask myself, how can someone have been saving for 40 years, especially the last 40 years where the S&P500 has returned over 10% on average, and not have enough to retire on? Of course, the article wont actually provide numbers; that would hinder the authors ability to get his message across: that the elderly are having problems retiring.

Don't get me wrong: overall it's a sad situation. I suspect that a good part of it comes because most people don't prepare properly and it's not necessarily their fault, just the reality of the situation.

It's just the quote at the end that rubbed me wrong. 40 years savings, yeah, right. More articles like this, and then nobody will save. After all, if he can't do it after 40 years, then what chance do I have...
__________________

__________________
tulak is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-28-2008, 08:45 AM   #2
Full time employment: Posting here.
 
Join Date: Feb 2006
Posts: 987
Quote:
Originally Posted by kiki View Post
I suspect that a good part of it comes because most people don't prepare properly and it's not necessarily their fault
In most cases it is their fault.

OK - 40 years. So, how much did he put away (e.g. percentage of retirement income)?

BTW, I retired last year (age 59) and I volunteer 1-2x week for Meals on Wheels (and get no reimbursement for gas, even though I am a driver).

This "news" is just "static". Plan your (financial) retirement, execute the plan, and ignore the "static" (including CNBC ).

- Ron
__________________

__________________
rs0460a is offline   Reply With Quote
Old 07-28-2008, 08:46 AM   #3
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,613
The bottom line is that stuff like this happens all the time and in all economies. But the media, always looking for "we're all doomed and the economy and the markets are killing everyone" stories, only highlight stories like this when people are feeling gloomy already, just increasing the feeling of helplessness and futility.

Pretty rotten, I think. Way to help ensure the self-fulfilling prophecy, guys.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 07-28-2008, 08:54 AM   #4
Thinks s/he gets paid by the post
OAG's Avatar
 
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,598
Hey, he dropped his change in the jar for 40 years and now can afford the "burial" policy that is advertised on TV - an it will pay for two burials (at today's rates).

We must have more journalists than lawyers (no offense Martha) in this country now. They do not have to even search for these stories - just go to the local Bingo Parlor, pot luck dinner, attend the FA "free lunches" and the stories will be there. It's entertainment!

I also know there are many, many people having a real rough time of it, but most I would suggest, are doing their best and are not whining about it (at least not in public).
__________________
Vietnam Veteran, CW4 USA, Retired 1979
OAG is offline   Reply With Quote
Old 07-28-2008, 08:54 AM   #5
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,375
I completely agree with how annoying quotes like these are.

Probably Looney (a) likes his job a lot and doesn't want to leave anyway or (b) wants to retire with exactly the same lifestyle he has always enjoyed or (c) possibly refinanced all the equity from his home (and used it for something other than his home) and now is upside down on his mortgage? He definitely should come clean about that quote and why he hasn't saved enough to retire, since he works for the organization that presumably helps people have a satisfying retirement.
__________________
Bestwifeever is offline   Reply With Quote
Old 07-28-2008, 08:58 AM   #6
Full time employment: Posting here.
 
Join Date: Aug 2007
Posts: 894
Quote:
Originally Posted by rs0460a View Post
In most cases it is their fault.
Deep down, I agree with you, but I figure I should give them the benefit of the doubt, especially when I haven't even been around for 40 years.

But I do know that if the next 40 is like the last, I'll be done saving in a less than 20 years for a retirement that lasts over 40 years. Which is why this guy irked me so much.
__________________
tulak is offline   Reply With Quote
Old 07-28-2008, 09:05 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
He probably put $100 a month into the company plan in a money market account, or into something with a bunch of high expenses that underperformed the s&p500 by 5% a year.

Unfortunately putting money aside every month for a long time isnt the only thing you need to get right.

When I met my wife she'd been signed up by her employer for a variable annuity that was withdrawing money from her paycheck and putting it into a money market fund...for the prior 6 years...that would have been from 1994-2000.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Old 07-28-2008, 09:07 AM   #8
Full time employment: Posting here.
Frugality_of_Apathy's Avatar
 
Join Date: Jul 2008
Posts: 622
Quote:
Originally Posted by kiki View Post
I was reading this article on msnbc and when I get to the end, it had quote that is just wrong. For some reason, it irked me more than most of these articles tend to. Economy hitting elderly especially hard - Retirement - MSNBC.com



And I ask myself, how can someone have been saving for 40 years, especially the last 40 years where the S&P500 has returned over 10% on average, and not have enough to retire on? Of course, the article wont actually provide numbers; that would hinder the authors ability to get his message across: that the elderly are having problems retiring.

Don't get me wrong: overall it's a sad situation. I suspect that a good part of it comes because most people don't prepare properly and it's not necessarily their fault, just the reality of the situation.

It's just the quote at the end that rubbed me wrong. 40 years savings, yeah, right. More articles like this, and then nobody will save. After all, if he can't do it after 40 years, then what chance do I have...
When most people think about saving they usually mean they put some money in a savings account and if it should ever hit the the 5 digit mark then they are gonna spend that on some luxury vacation or getting that boat they always wanted. Saving and investing are mutually exclusive in most peoples minds and "windfall profits" must be spent immediately. That's just common sense.

The thing that irks me more is that AARP is "formerly the American Association for Retired Persons." So now AARP doesn't stand for anything it's just a random bunch of letters with name recognition.
__________________
Frugality_of_Apathy is offline   Reply With Quote
Old 07-28-2008, 09:13 AM   #9
Full time employment: Posting here.
CitricAcid's Avatar
 
Join Date: May 2008
Posts: 546
Quote:
Originally Posted by Frugality_of_Apathy View Post
When most people think about saving they usually mean they put some money in a savings account and if it should ever hit the the 5 digit mark then they are gonna spend that on some luxury vacation or getting that boat they always wanted. Saving and investing are mutually exclusive in most peoples minds and "windfall profits" must be spent immediately. That's just common sense.

The thing that irks me more is that AARP is "formerly the American Association for Retired Persons." So now AARP doesn't stand for anything it's just a random bunch of letters with name recognition.
Like the SAT...

To this person, I predictably agree with most of the posters. It is admirable that this person (maybe because he works for AARP) saves money every month for the last 40 years, it is far better than most do. How much did he save? Did he invest it well? Has he taken anything out of his "savings"? As FoA said, I think many people think of saving and investing as entirely different things. Saving means not spending it this instant, and will probably be spent two months from now. Investing means risking all your money!

I just think it comes down to the fact that people expect the situation to be perfect (a perfect economy, a perfect savings plan), yet the responsbility for their safe retirement boils down to them alone. During this economic times, nobody is saying that it is incredibly easy. Other households, however, are cutting back on spending a little, pushing back retirement maybe one year, shifting their investments around possibly, but then again nobody promised them a retirement as a guarantee anyway.
__________________
CitricAcid is offline   Reply With Quote
Old 07-28-2008, 09:37 AM   #10
Recycles dryer sheets
Pete's Avatar
 
Join Date: May 2008
Posts: 350
Quote:
Originally Posted by ziggy29 View Post
But the media, always looking for "we're all doomed and the economy and the markets are killing everyone" stories
I don't think this is true. The media gives us what we want or at least what we will pay attention to. It wasn't long ago they were trotting out a bunch of DOW 26,000 types and we bought all that hype too.
__________________
Pete is offline   Reply With Quote
Old 07-28-2008, 09:40 AM   #11
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,613
Quote:
Originally Posted by Pete View Post
I don't think this is true. The media gives us what we want or at least what we will pay attention to. It wasn't long ago they were trotting out a bunch of DOW 26,000 types and we bought all that hype too.
Yes, when the market was flying high. Fear and greed sell. Then, it was greed. Now, it is fear. They play into both emotions and fuel both panic and irrational exuberance.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 07-28-2008, 09:55 AM   #12
Moderator Emeritus
CuppaJoe's Avatar
 
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,866
Guy at the coffee shop was a frugal b*stard all of his life. Worked low paying jobs, somewhat above minimum wage, six days a week, 10 hours a day. Started collecting Social Security at age 65 while still working, saved every penny of his SS check, probably in a basic savings account. Worked until he could work no longer. Was okay with SS plus an equal amount of saved SS for a couple of years. Times are very tough for him now.... Some people spring for meals, sometimes the coffee shop employees say, "it's on me...."

So you ridicule him, but the big difference between he and I is that I was much better paid and I learned how to invest. When could he have learned to invest, on his 10 minute coffee break on Wednesdays?

I suspect that the AARP pays diddli-squat. But we will never know the full story. Judge not!
__________________
CuppaJoe is offline   Reply With Quote
Old 07-28-2008, 10:08 AM   #13
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 16,375
You're right, we don't know the circumstances of the AARP guy's life, so who knows why he can't retire yet (or how old he is, even).

Here is a quote from the AARP/Careers with AARP site:

Quote:
AARP is a great place to work. We offer competitive salaries, excellent benefits, and opportunities to learn, grow, and advance. But even more, every day at AARP, we have the chance to improve people’s lives. That’s what we mean by: “The power to make it better.”
__________________
Bestwifeever is offline   Reply With Quote
Old 07-28-2008, 10:16 AM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,409
Sooo - we should pass the hat - to buy an Ultimate Cheapskate book to enlighten this dude AND help a new forum member!

heh heh heh -Where's my Curmudgeon Certificate? - CUT SPENDING STUPID! - or maybe Jeff can give him the soft sell on frugal.
__________________
unclemick is offline   Reply With Quote
Old 07-28-2008, 10:22 AM   #15
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,613
Quote:
Originally Posted by CuppaJoe View Post
Guy at the coffee shop was a frugal b*stard all of his life. Worked low paying jobs, somewhat above minimum wage, six days a week, 10 hours a day. Started collecting Social Security at age 65 while still working, saved every penny of his SS check, probably in a basic savings account. Worked until he could work no longer. Was okay with SS plus an equal amount of saved SS for a couple of years. Times are very tough for him now.... Some people spring for meals, sometimes the coffee shop employees say, "it's on me...."

So you ridicule him, but the big difference between he and I is that I was much better paid and I learned how to invest. When could he have learned to invest, on his 10 minute coffee break on Wednesdays?

I suspect that the AARP pays diddli-squat. But we will never know the full story. Judge not!
Maybe, maybe not. But IMO, the point is that this is just another "the economy sucks and you're doomed" article in the mainstream media.

In other words, it is the current economy being blamed and not decades of low salary and/or savings rate. It's all the economy's fault. It's taking us all down and there is no hope. Where did I put my roll of Reynolds Wrap?
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 07-28-2008, 10:24 AM   #16
Thinks s/he gets paid by the post
 
Join Date: Jan 2008
Posts: 2,020
Yes, to be meaningful, it'd have to say "he saved x% of his salary for 40 years in a x account and now it's just not enough". That'd require real reporting, though. Oh, and even then, could he have managed to save more to get ready for this point?

My wife has a coworker that puts all of her 401k money in the stable value option because she can't stand the thought of losing money.
__________________
Marquette is offline   Reply With Quote
The Silver Lining
Old 07-28-2008, 10:36 AM   #17
Thinks s/he gets paid by the post
Milton's Avatar
 
Join Date: Apr 2007
Posts: 2,079
The Silver Lining

Interesting 'sidebar':
Quote:
Among Americans 50 and older:
45 percent say food prices have caused a hardship for their budgets
39 percent think at least some foods will have to be rationed within a year
47 percent are shopping for food less frequently
41 percent are eating less meat
18 percent have started eliminating some meals
Eating less, and especially eating less meat, are good ideas for many people in late middle age and old age. Highly processed foods can be replaced by relatively inexpensive fruits and vegetables.
__________________
"To know what you prefer, instead of humbly saying Amen to what the world tells you you ought to prefer, is to have kept your soul alive". Robert Louis Stevenson, An Inland Voyage (1878)
Milton is offline   Reply With Quote
Old 07-28-2008, 10:38 AM   #18
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
cute fuzzy bunny's Avatar
 
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,697
Quote:
Originally Posted by Marquette View Post
My wife has a coworker that puts all of her 401k money in the stable value option because she can't stand the thought of losing money.
Yeah thats a good one, since she's implicitly losing money.

I think that was the "question #2" regarding inflation that so many people over the age of 50 didnt understand?
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
cute fuzzy bunny is offline   Reply With Quote
Old 07-28-2008, 10:39 AM   #19
Moderator Emeritus
CuppaJoe's Avatar
 
Join Date: Jun 2007
Location: At The Cafe
Posts: 6,866
Quote:
Originally Posted by Bestwifeever View Post
You're right, we don't know the circumstances of the AARP guy's life, so who knows why he can't retire yet (or how old he is, even).

Here is a quote from the AARP/Careers with AARP site:
Interesting, BestWifeEver, got me thinking. What do they do at the AARP, it's several publications and maybe some envelop stuffing. I'm being simplistic but I can tell you about my business neighbors on the floor I work on. One group is the West Coast site for two national magazines and the other puts out a regional newspaper. Both organizations bring in extra help at certain times of the month--I doubt that any of them bring home a full diddi-squat paycheck.

We might guess that some people violate the first rule of investing--start with the highest possible salary you can attain. What's 10% of diddli?
__________________
CuppaJoe is offline   Reply With Quote
Old 07-28-2008, 10:39 AM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jul 2003
Location: Kansas City
Posts: 7,409
I've said this more than once on this forum: skip the Norwegian widow for the moment and flash back to the 7th grade circa 1950's in the PacNW. My Father's Aunt - aka 'da Swedish maid' died in New York. Left him 10-15k in mutual funds(1950's $) plus a paid trip to take her remains back to a family plot in Finland.

After the trip - he dumps those evil stocks and we get a house in the city - with real sidewalks. I go to the library and read up - cause I'm curious about these here mutual fund things.

She was a maid all her working life.

heh heh heh - When I sold the house in 93, the records said it cost 7500 in 1958. It was painted and reroofed before we moved in.
__________________

__________________
unclemick is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Amazing?? Really?? More like Nuts! newguy88 Other topics 9 05-11-2008 05:56 PM
This is nuts REWahoo Other topics 31 04-06-2007 07:12 PM
House v. Condo--are we nuts here? OKLibrarian Young Dreamers 11 03-31-2007 11:09 AM
Am I nuts? WanderALot Other topics 16 07-20-2006 11:49 AM
This is nuts farmerEd Young Dreamers 49 06-05-2005 03:38 PM

 

 
All times are GMT -6. The time now is 04:19 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.