$200K/ yr income, 58 yrs old and no retirement savings

Every story is different of course.
I retired at 57 yo. and always saved every year, but not to the level of LBYM which some folks did on this site.
We cut our expenses around 60% over a course of 3 years near retirement, including moving from a HCOL area to a MCOL.
Luckily, I had a high paying job. OTOH, I paid out between almost 600k in divorce payments between house and cash.
Lots of different ways to get to the promised land.
 
Planned early retirement does not suck

Tuesday – six month mark for retiring at 58 with planning and saving for over 30 years. Showered and put on long pants before 0830 – and for crying out loud it wasn’t even Sunday! I thought about shaving, but that is for corporate hacks. Dress up (with a really nice t-shirt and sneakers) was to see a Fidelity Rep to ensure we would not be eating cat food in our 70’s. (DW said cat food is far too expensive – it would have to be dog food.)

Our Fidelity ‘guy’ wore a blue suit with white shirt and red tie, held our hands and in solemn tones said that we would not have to eat cat food at 70 or live under a bridge in a box at 80 because we had planned well and saved. Dog food dinners always remain a remote possibility in a black swan event. Andy is about 32 years young and we are old enough to be his parents. Nice guy, but he probably has more experience receiving allowance from mom and dad than working for wages.

To celebrate a future without cat food, we stopped at a high falutin furniture store on the island for ideas when we win the lottery. Next stop was at the Salvation Army where we dropped of a bazillion old table cloths and bed sheets. Some of these were old enough to have been purchased with S&H Green Stamps. Then we went to Publix and actually bought several steaks and laundry detergent (on sale). DW commented on what a fun date I was.

A neighbor cornered us after the Publix registers and challenged me to take DW on a lunch date; challenge accepted. The Citrus Grill café on the beach with blue sky and pounding surf was a perfect setting. Turkey bacon sandwich and Salmon on rye accompanied by Pino Grigio were great meals. There, DW found and chatted up an old acquaintance and compared the lives of our respective adult children. Back home, DW buckled down and did work for the church. I am so proud of her ministry work.

On the other end of the morality scale, I fortified myself with a rum and coke and plunged into the solar heated pool to repair an underwater light fixture (and pondered how friends and family north of the Mason Dixon Line were fairing this winter). Downing another rum and coke, it was time for the power tool portion of the show. As a sobriety test, I successfully sorted the recyclable trash to ensure that I would not cut off opposable thumbs with the demolition saw that the wife in chief gave me for Christmas. Passing the test, I cut the suction pipe of the pool pump in order to double whammy wrap the pump inlet threads with Teflon tape and stop an air ingress leak.

Back in the kitchen, DW was making delicious chicken burritos. My culinary contribution was to shred the chicken, using a pair of forks after failing to see a safe way to employ the demolition saw. A late dinner with some TV preceded my snoring.

Yes – With a little luck, advanced planning and saving, retired life does not suck at all.
 
The story said the cause was divorce and business failure. Not the same as never saving anything for decades.
+1 Some of these stories feature people who make irresponsible decisions others feature
people for whom sh** happens. I can understand people struggling to keep a business they love alive and making what is clear in hindsight was a bad decision. I knew guys who lost their jobs in their early 50s and struggled to recover. Anyone can get slammed by a devastating illness. Like others here, I was always a bit paranoid about the future and socked away everything I could. But it is easy to see how things could have gone south.
 
This is the case, at least for me. For example, I completely fail to comprehend how someone cannot plan ahead for something as essential, inevitable, and readily foreseeable for something like a new roof.

They think the current one is going to last forever maybe?

They think they're immortal? That they'll never get seriously sick or injured? That what happened to their parents and their friend's parents cannot happen to them?

I just don't get it.



Seems to me the same applies to planning and preparing for one’s inevitable and readily foreseeable death...sometimes (often?) people are simply overwhelmed by the thought.
 
Tuesday – six month mark for retiring at 58 with planning and saving for over 30 years. Showered and put on long pants before 0830 – and for crying out loud it wasn’t even Sunday! I thought about shaving, but that is for corporate hacks. Dress up (with a really nice t-shirt and sneakers) was to see a Fidelity Rep to ensure we would not be eating cat food in our 70’s. (DW said cat food is far too expensive – it would have to be dog food.)

Our Fidelity ‘guy’ wore a blue suit with white shirt and red tie, held our hands and in solemn tones said that we would not have to eat cat food at 70 or live under a bridge in a box at 80 because we had planned well and saved. Dog food dinners always remain a remote possibility in a black swan event. Andy is about 32 years young and we are old enough to be his parents. Nice guy, but he probably has more experience receiving allowance from mom and dad than working for wages.

To celebrate a future without cat food, we stopped at a high falutin furniture store on the island for ideas when we win the lottery. Next stop was at the Salvation Army where we dropped of a bazillion old table cloths and bed sheets. Some of these were old enough to have been purchased with S&H Green Stamps. Then we went to Publix and actually bought several steaks and laundry detergent (on sale). DW commented on what a fun date I was.

A neighbor cornered us after the Publix registers and challenged me to take DW on a lunch date; challenge accepted. The Citrus Grill café on the beach with blue sky and pounding surf was a perfect setting. Turkey bacon sandwich and Salmon on rye accompanied by Pino Grigio were great meals. There, DW found and chatted up an old acquaintance and compared the lives of our respective adult children. Back home, DW buckled down and did work for the church. I am so proud of her ministry work.

On the other end of the morality scale, I fortified myself with a rum and coke and plunged into the solar heated pool to repair an underwater light fixture (and pondered how friends and family north of the Mason Dixon Line were fairing this winter). Downing another rum and coke, it was time for the power tool portion of the show. As a sobriety test, I successfully sorted the recyclable trash to ensure that I would not cut off opposable thumbs with the demolition saw that the wife in chief gave me for Christmas. Passing the test, I cut the suction pipe of the pool pump in order to double whammy wrap the pump inlet threads with Teflon tape and stop an air ingress leak.

Back in the kitchen, DW was making delicious chicken burritos. My culinary contribution was to shred the chicken, using a pair of forks after failing to see a safe way to employ the demolition saw. A late dinner with some TV preceded my snoring.

Yes – With a little luck, advanced planning and saving, retired life does not suck at all.


Love this story. Sounds a lot like the wife and me.
We never had children but the rest sounds like our every day decision making. We often hem and haw for an hour while on the road about stopping for lunch and then convince our selves to just go home and make our own!
 
Of course unfortunate events can devastate your finances. For sure.

For most of us, it is hard to imagine routinely spending 150k per year. But it is easy. Eat out all the time. Buy new $70K SUV every 2 years. $15k vacations are easy to attain. Etc.

I appreciate the "experiences not things" trend. But... Some "things" save you money, like a few simple cooking appliances so you can cook your own meals. Can't have them in the "no things" world, the counter must be clean.

The price of restaurant meals has really gone up. It would kill us to go out every meal -- which a LOT of people do. Every. Dang. Meal.

DW and I enjoyed vacations here in the USA, driving to national parks, going to our local or regional attractions, etc. All for a fraction of the big trips.

And we can go on. LBYM after all is the #1 umbrella topic on this forum.
 
Got to know a customer who made a GS15 salary (six figure) and was still working well into his late 70's. His pension would EASILY carry his living expenses.

BUT he was on wife number 5 and ex-wife #4 latched onto the only thing she could ... his pension. And he swore "she'll never see a penny" .... so he continues to work.

Can't make this stuff up!
 
Of course unfortunate events can devastate your finances. For sure.

For most of us, it is hard to imagine routinely spending 150k per year. But it is easy. Eat out all the time. Buy new $70K SUV every 2 years. $15k vacations are easy to attain. Etc.

I appreciate the "experiences not things" trend. But... Some "things" save you money, like a few simple cooking appliances so you can cook your own meals. Can't have them in the "no things" world, the counter must be clean.

The price of restaurant meals has really gone up. It would kill us to go out every meal -- which a LOT of people do. Every. Dang. Meal.

DW and I enjoyed vacations here in the USA, driving to national parks, going to our local or regional attractions, etc. All for a fraction of the big trips.

And we can go on. LBYM after all is the #1 umbrella topic on this forum.

True enough.
OTOH IIRC, there are perhaps 15-20% on this forum who spend or reduce their portfolio yearly by 120k+ (At least ones who responded to a poll).
If 3% of my investment assets equaled 150k, I would have no issues spending that kind of dough.
 
True enough.
OTOH IIRC, there are perhaps 15-20% on this forum who spend or reduce their portfolio yearly by 120k+ (At least ones who responded to a poll).
If 3% of my investment assets equaled 150k, I would have no issues spending that kind of dough.
Either would I.

We're finally taking those $10k vacations as our portfolio can afford them. If I could spend 150k, a new car would be in the works to replace the over 10 year old versions we have. It is really unbelievable how much you can save when you have decent automobiles and don't replace them constantly.
 
Divorce needn't be a complete financial disaster. I divorced in 1997 after 20+ years of marriage. We both had professional jobs and we just split assets 50/50. I was soon able to max out retirement contributions and eventually retired just fine, possibly a few years later than if the divorce hadn't happened, oh well.

I imagine the situation could be quite different if only one of the couple had a decent employment history, so don't let that happen to you...
 
not uncommon

some people spend every gol darned dime they make
 
I read the post about potholes in life and trying to steer your kids around them because they lack experience.

Then I read all the posts about people making foolish decisions - likely because they never had role models/parents to show them that some people don’t spend all their money.

It is hard to change your behavior after many years. So is it luck/responsibility or early learning?
 
My ex and I always lived below our means. We had a million saved. When we divorced after 22 years he had managed to hide all but 150 k. Looking back I should have hired a private investigator before I left him.
 
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It is hard to change your behavior after many years. So is it luck/responsibility or early learning?

My parents were born in the 20s so growing up frugal and saving is just the way we were raised. I turned out not that frugal but did end up saving a lot after I started working and paid off my bar tabs.
 
I read the post about potholes in life and trying to steer your kids around them because they lack experience.

Then I read all the posts about people making foolish decisions - likely because they never had role models/parents to show them that some people don’t spend all their money.

It is hard to change your behavior after many years. So is it luck/responsibility or early learning?
No kidding. My dad saved very little so I continued until 30 on the same path and then I learned on my own that you don't have to retire at 65. It's possible to retire a lot sooner. In my case, we're are targeting 50. My daughter is in high school and is already eyeing on fat fire at 40. She has showed some good traits already: Need vs want, comparision shopping, focus on education, shy of frivolous things and show off, etc.
 
Got to know a customer who made a GS15 salary (six figure) and was still working well into his late 70's. His pension would EASILY carry his living expenses.

BUT he was on wife number 5 and ex-wife #4 latched onto the only thing she could ... his pension. And he swore "she'll never see a penny" .... so he continues to work.

If wife #4 gets all or most of the pension, what's wife #5 going to live on after he's gone? (Generally, when dividing a pension in divorce, there's some formula to basically "tie a knot" in it and divide what was earned during the marriage from what was earned afterwards, but this isn't always done perfectly.)
 
As for how does this happen? As said in the article, divorce and business failure. I'm sure those were big hits, but my presumption is that he also spent a lot on money along the way and didn't save any money or have the habit of saving money. It's going to be real hard to turn that habit around.

To be fair, it said he's making $200k in his new job. It didn't mention his salary history in the past, so anything's possible.

At least he has the benefit of the current salary and hopefully can keep at it for 12 years, and the job is secure, and he stays healthy.
 
A man, his dogs, and their truck

I agree. People either get it, or they don't. I am in a "transportation" phase right now where I am driving a $1300, 18 year old car with two dirty dogs in the back.

If you drove a pickup, having dogs in it would make it worth more...

...at least it does for me. A truck without dogs looks incomplete.
 
Divorce needn't be a complete financial disaster. I divorced in 1997 after 20+ years of marriage. We both had professional jobs and we just split assets 50/50. I was soon able to max out retirement contributions and eventually retired just fine, possibly a few years later than if the divorce hadn't happened, oh well.

I imagine the situation could be quite different if only one of the couple had a decent employment history, so don't let that happen to you...
This happened to me nine years ago and I have one more year of monthly payments to pay my ex half of our net worth at the time we separated. I still managed to retire three years ago at 50 and haven’t been particularly frugal (apart from never paying anyone to do anything I can do myself) but I have owned only one house and I keep my cars (nice cars don’t cost the earth if you look after them yourself). I also had a well-paid job with a final salary pension that I could take at 50 plus an extra defined contribution pension due at 55. During my marriage we built up a huge debt paying for IVF but I paid that mostly off each year with my bonus, and when I retired it was timed to coincide with redundancy so my final £100k debt was cleared with some left over. Maybe I’ve been lucky but some say you make your own luck :)
 
One observation is that many who hit the $200K salary level treat it as entitlement/lottery. They feel it gives them the "right" to spend more, and they expect that they will stay at that level. It is reminiscent of one of the "themes" in the "Millionaire Next Door", that many people who are not millionaires want to spend as if they are millionaires.

The years our income exceeded $200K made DW and I more fearful than anything else. Our attitude was "with this much income, if we blow it financially we have no one to blame but ourselves". We felt we had to be good stewards with that money, to enjoy it both now and later. And so we acted accordingly.
 
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