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Re: Young Workers Not Saving Article
Old 07-08-2005, 04:38 PM   #21
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Re: Young Workers Not Saving Article

If they are going to means test for soc. sec., please let me know now so that I can fit around my retirement planning

I think the point has been made that middle class has been given lots of goodies like iras and 401ks for retirement with the idea that soc. security wont be there or at least not the feedbag that it once was.

I wonder why medicare/medicaid isnt being talked about? yet?
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Re: Young Workers Not Saving Article
Old 07-08-2005, 05:07 PM   #22
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Re: Young Workers Not Saving Article

Quote:
Originally Posted by jimhcom
The problem is our educational system. No one can do the math. In the average tax bracket it only takes 7 dollars take home pay to invest 10 dollars, it's a no brainer. If you ask these people if they would like to buy 10 dollars for 7 dollars they would understand, but make it slightly more complicated and you have lost them. If you take into consideration the compound interest on just the tax free portion over 20-30 years the numbers are staggering. Unfortunatly you can show the un-educated the way but you can't make them understand.
I agree it is the educational system - I somehow made it through high school, college, and 25 years of working without knowing the first thing about investing, stocks, bonds, retirement planing, 401K's or anything similar.* The sum total of my financial education was doing a tax return in the 11th grade - (and I still do my own today).* Luckly I had been frugal and when I finally realized that I was going to have to retire at some point, I had saved enough to use in my own self taught education of how to invest. (and luckly I didn't lose it all paying my dues in the beginning)*
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Re: Young Workers Not Saving Article
Old 07-08-2005, 08:16 PM   #23
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Re: Young Workers Not Saving Article

Quote:
Originally Posted by Mountain_Mike
Another teacher commented in amazement that she had, "an extra couple hundred bucks laying around" that could be used for this purchase. It is amazing to me how teachers who make $60,000 per year could have such a tight cash-flow situation.
WOW! $60,000 teachers? In KY, I live in the highest paid teacher county, but new teachers make $26,000 or $28,000 and get no educational benefits even though there is heavy pressure to get advanced degrees.
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Re: Young Workers Not Saving Article
Old 07-08-2005, 09:27 PM   #24
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Re: Young Workers Not Saving Article

I am wondering how the author of that article expects those of us under 30 to have huge balances when we are just starting out. We are making entry level salaries and have not had a lot of TVM yet. Give us a break. My company only lets me invest up to 15% of my salary, which will not bring me near the maximum dollar amount.
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Re: Young Workers Not Saving Article
Old 07-08-2005, 11:21 PM   #25
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Re: Young Workers Not Saving Article

even 50 per payperiod in an index fund or as sally struthers used to say "for just the cost of a cup of coffee every day".
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Re: Young Workers Not Saving Article
Old 07-08-2005, 11:22 PM   #26
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Re: Young Workers Not Saving Article

Just before she ate the cameraman.

Last we saw of him, two little feet kicking...
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Re: Young Workers Not Saving Article
Old 07-09-2005, 06:22 AM   #27
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Re: Young Workers Not Saving Article

Quote:
Originally Posted by Sillysal
I am wondering how the author of that article expects those of us under 30 to have huge balances when we are just starting out.* We are making entry level salaries and have not had a lot of TVM yet.* Give us a break.* My company only lets me invest up to 15% of my salary, which will not bring me near the maximum dollar amount.
It's simple. You don't need a "huge balance". I didn't have much of anything
(and no real planning either). Worked out great anyway. BTW, don't blame your company for restricting you to 15%. There are a gazillion other ways
to save for retirement.

JG
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Re: Young Workers Not Saving Article
Old 07-09-2005, 07:03 AM   #28
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Re: Young Workers Not Saving Article

I am not blaming anyone or making up an excuse not to save. But it is a little ridiculous to lump in everyone from 18 to 30 into one group and write an article on how small the balances in their 401ks are. The article didn't mention IRAs or any other savings vehicles, such as savings for that house most people get. Young people have to save for more than just retirement and on small salaries. I am just pointing out that the article was pretty crappy as a measurement of savings rates for young people. I currently save 10% of my income from retirement, with it set to icrease by 1% every enrollment period until it reaches the max. I am also saving another 15% of my income after tax for a house downpayment. Trust me, the actual dollar amounts aren't big - because my income isn't yet. So instead of focusing on dollar balances young people have in 401ks, I just think the savings rate would have been more useful to study.
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Re: Young Workers Not Saving Article
Old 07-09-2005, 08:57 AM   #29
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Re: Young Workers Not Saving Article

Quote:
Originally Posted by Sillysal
I am not blaming anyone or making up an excuse not to save.* But it is a little ridiculous to lump in everyone from 18 to 30 into one group and write an article on how small the balances in their 401ks are.* The article didn't mention IRAs or any other savings vehicles, such as savings for that house most people get.* Young people have to save for more than just retirement and on small salaries.* I am just pointing out that the article was pretty crappy as a measurement of savings rates for young people.* I currently save 10% of my income from retirement, with it set to icrease by 1% every enrollment period until it reaches the max.* I am also saving another 15% of my income after tax for a house downpayment.* Trust me, the actual dollar amounts aren't big - because my income isn't yet.* So instead of focusing on dollar balances young people have in 401ks, I just think the savings rate would have been more useful to study.*
I'd say you are off to a decent start silly, but no lay out of a "young" person's financial prowess can be complete until you are able to step up to the mike and loudly proclaim- - - - "AND I AIN'T GOT NO STINKIN CREDIT CARD DEBT"
Can you do that silly?
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Re: Young Workers Not Saving Article
Old 07-09-2005, 09:02 AM   #30
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Re: Young Workers Not Saving Article

probably, the study has bias as do most but investing as early as possible is the key to taking advantage of compounding. I think this is more important to anything else in your planning.
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Re: Young Workers Not Saving Article
Old 07-09-2005, 09:40 AM   #31
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Re: Young Workers Not Saving Article

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Originally Posted by bigfoot
WOW! $60,000 teachers? In KY, I live in the highest paid teacher county, but new teachers make $26,000 or $28,000 and get no educational benefits even though there is heavy pressure to get advanced degrees.
You should see it here in the burbs north of chicago. Avg teacher salary is about $75-85. They top out in the low $100s after 10 year on the job. Full tenure (this is for Jr HS and HS) get full healthcare for which they pay nothing. On top of all that, they get 80% lifetime pension at 30 years.

That of course may explain why the taxes on my little condo (1100 sq ft) are almost $6K per year.
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Re: Young Workers Not Saving Article
Old 07-09-2005, 09:59 AM   #32
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Re: Young Workers Not Saving Article

>>That of course may explain why the taxes on my little condo (1100 sq ft) are almost $6K per year.

That also explains why govt workers can retire in their 40 and 50's and private sector employees counting on SS are going to have to work another 20-30 years more.
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Re: Young Workers Not Saving Article
Old 07-09-2005, 12:48 PM   #33
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Re: Young Workers Not Saving Article

J Patrick - I paid off the CC debt I accumulated in college a few months ago. I am now putting all the extra money that was going toward it toward my auto loan so that I can get that paid off by the end of the year, which will be about 22 months earlier than the term of the loan. Then the only debt I will have is my student loan debt, fixed at 3.28%.
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Re: Young Workers Not Saving Article
Old 07-09-2005, 01:10 PM   #34
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Re: Young Workers Not Saving Article

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Originally Posted by Sillysal
J Patrick - I paid off the CC debt I accumulated in college a few months ago.* I am now putting all the extra money that was going toward it toward my auto loan so that I can get that paid off by the end of the year, which will be about 22 months earlier than the term of the loan.* Then the only debt I will have is my student loan debt, fixed at 3.28%.
Wow!* You really are on the right track.
Just keep on keeping on, and maybe go a little easy on those $3 Starbucks
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Re: Young Workers Not Saving Article
Old 07-09-2005, 02:54 PM   #35
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Re: Young Workers Not Saving Article

Quote:
Originally Posted by jimhcom
The problem is our educational system. No one can do the math. In the average tax bracket it only takes 7 dollars take home pay to invest 10 dollars, it's a no brainer. If you ask these people if they would like to buy 10 dollars for 7 dollars they would understand, but make it slightly more complicated and you have lost them.
No, they still do not (want to) understand. I tried to convince my fellow engineer to start saving in his 401K to at least up to the company match. He is at leat 45 years old. He can do math and I even did it for him. Including the scenario that he would put in the 5% for a 100% company match and then take it out with a 10% withdrawal penalty. Still not convinced.... He understands that he could almost double his money that way but then he would have to wait maybe a few weeks/months. Wants to have and spend it right now. He also just cashed in his pension plan. Paid the pension plan extra to overnight the check to him. Nice guy but I don't feel sorry him if he has to get a greeter's job at Walmart in his golden years.

Vicky
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Re: Young Workers Not Saving Article
Old 07-09-2005, 04:37 PM   #36
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Re: Young Workers Not Saving Article

I know one of them (for 29 yrs and counting) - lived large in the 70's, 80's and 90's.

Walmart greeter jobs are hard to come by - he's still working his way up from bringing in the shopping carts. That and part time cab driver - health permitting.
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Re: Young Workers Not Saving Article
Old 07-09-2005, 04:48 PM   #37
 
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Re: Young Workers Not Saving Article

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I know one of them (for 29 yrs and counting) - lived large in the 70's, 80's and 90's.

Walmart greeter jobs are hard to come by - he's still working his way up from bringing in the shopping carts. That and part time cab driver - health permitting.
Actually, most of these folks take care of their health about as well as their finances. A lot of them will be dead in their 60's and never retire.

The guys I know that were making 6 figures and in heavy credit card debt in their 30's and 40's - Are now in their 50's with type 2 diabetes, 75 extra pounds, and the only exercise they get is flicking the remote control.
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Re: Young Workers Not Saving Article
Old 07-09-2005, 04:56 PM   #38
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Re: Young Workers Not Saving Article

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Originally Posted by Cut-Throat
Actually, most of these folks take care of their health about as well as their finances. A lot of them will be dead in their 60's and never retire.

The guys I know that were making 6 figures and in heavy credit card debt in their 30's and 40's - Are now in their 50's with type 2 diabetes, 75 extra pounds, and the only exercise they get is flicking the remote control.
Hey, not all of us! I don't get much exercise, but I also watch very little TV.
Also, low stress and no-debt (except CC flippin'). I could live another 40 years.
Okay with me as long as I'm havin' fun........................

JG
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Re: Young Workers Not Saving Article
Old 07-09-2005, 09:59 PM   #39
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Re: Young Workers Not Saving Article

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You should see it here in the burbs north of chicago. Avg teacher salary is about $75-85. They top out in the low $100s after 10 year on the job. Full tenure (this is for Jr HS and HS) get full healthcare for which they pay nothing. On top of all that, they get 80% lifetime pension at 30 years.
WOW! I have a friend who teaches in Robinson, IL who gets nothing close to that...more similar to what they pay here.
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Re: Young Workers Not Saving Article
Old 07-10-2005, 11:26 AM   #40
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Re: Young Workers Not Saving Article

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Also, low stress and no-debt (except CC flippin')
Amazing. Someone with 100k in credit card debt can dismiss it by calling it 'flippin'.

When you owe someone $100,000 and they expect you to pay it some day, thats called 'debt'.
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