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Old 11-24-2013, 10:12 AM   #21
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I know several people who wouldn't be saving if it wasn't for the automatic enrollments that companies perform now sadly...
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Old 11-24-2013, 10:32 AM   #22
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I know several people who wouldn't be saving if it wasn't for the automatic enrollments that companies perform now sadly...
Maybe they perform these happily? Oh, I whistle while I work...
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Old 11-24-2013, 10:42 AM   #23
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From the article:

"Generations X and Y have come of age in an era of 401(k)s, which did not even exist in the tax code until 1978."

Actually, it was not until November 10, 1981 that the IRS formerly described the rules for 401(k)'s, and the first contributions under those rules started in 1982.

In 1982, both my wife/me were 34 years of age and neither of us had contributed a penny toward our retirement. Why? Simply because each of us were employed by (different) companies - each with pension programs.

Unfortunately, when the 401(k) materialized, our respective pensions were eliminated.

1982 was pivital in two ways; we both enrolled in our companies 401(k) plans, and we started contributing to our respecive IRA's which was the first year that we were able to contribute, since we both had DB pension plans prior to that time.

IRA contributions and deductions remained the exclusive benefit of only uncovered workers until 1981, when the Economic Recovery Tax Act lifted that limitation. Signed into law by President Ronald Reagan, ERTA allowed all workers, regardless of their employers’ retirement plans, to contribute and deduct up to $2,000 to an IRA.

While we both actually were only to start retirement contributions on our own at age 34, I can only think of the extra $$$ starting at a much earlier age, regardless of contribution level.

For me (as a bleeding edge boomer), that's one of the main reasons why "my generation" is not well prepared for retirement (personal situation being the exception ). Most folks formed their savings/spending habits much earlier in life and many were not willing to reduce their lifestyle they had become accustomed to in order to prepare for their eventual retirement.

FWIW...
When 401ks came of age in the early 80s, so did yuppieism. The up and coming who were still DINKS were obsessed with presenting an upper class standard of living, rather than contributing to a 401k retirement plan that they did not think they would need because they assumed they would be "lifers" and retire from MegaCorp with a fat pension like their parents had. They were busy building a standard of living that they would later not want to reduce.

This is what DH and I observed in the early 80s when we began our careers at MegaCorp. Without mortgages or kids, the opportunity was there, but many took a pass in favor of conspicuous consumption.
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Old 11-24-2013, 10:50 AM   #24
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On average, baby boomers don't need help to look like spendthrifts.
Really?
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Old 11-24-2013, 11:10 AM   #25
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I know several people who wouldn't be saving if it wasn't for the automatic enrollments that companies perform now sadly...
I knew several people who would not have retired at all if it wasn't for the pension system in place when they were employed many years ago. I don't see anything wrong with the automatic enrollments today.
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Old 11-24-2013, 11:59 AM   #26
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I knew several people who would not have retired at all if it wasn't for the pension system in place when they were employed many years ago. I don't see anything wrong with the automatic enrollments today.
I am a very strong supporter of automatic enrollment. It just boggles me with the amount of people who would have saved nothing if the saving wasn't done for them.
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Old 11-25-2013, 12:05 PM   #27
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When I was hired at MegaCorp for my first full-time job on Jan 2, 1982, the HR person mentioned in passing that they had a brand new program they had just started called a 401K. She didn't know much about it, but gave me the information packet and told me to think about it overnight to see if I was interested ("Quote: We have an exceptional pension plan, so nobody I know is very interested in this, but for completeness sake, I need you to look at it")(!!!). I jumped on it like a duck on a june-bug, maxed out my contributions, and increased my % every raise.

One of my better decisions, as the defined pension plan "POOF!" magically disappeared several years later, but the 401K kept chugging along
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Old 11-25-2013, 12:48 PM   #28
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The article doesn't really mention how they found out the data. Making a blanket statement that 20 somethings are these aggressive savers, well..........let's just say they didn't hang out at the local Starbucks or trendy restaurant, which are always packed with folks under 30 in my area. Maybe they all make 6 figures..........
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Old 11-25-2013, 01:00 PM   #29
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DD has a nanny at $15 something an hour for 40 hours a week, plus DD pays all her SS, for one child, city of Chicago. Three kids might come to $60k, especially if one added in the non-nanny cost of little classes etc. Elite city daycare schools would easily come to $60k for 3 kids.
We were DINKS so I have no first hand knowledge of this, but doesn't Day Care imply an "economies of scale" situation where you don't have a 1:1 employee to child ratio so the per child cost would go down accordingly?

I remember when I was in elementary school, back in the day, that there were 40 kids to a classroom of one teacher....

-gauss
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Old 11-25-2013, 04:27 PM   #30
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I remember when I was in elementary school, back in the day, that there were 40 kids to a classroom of one teacher....

-gauss
55+ plus kids in my elementary school class. Of course, the class was headed by a penguin who had eyes in back (and top) of her head and could make any child rue the day they messed with her ...
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