Do you feel besieged, financially speaking?

[FIREd]

Just to be clear. I am happy with our current financial situation. Our income and net worth have never been higher and we made a lot of money in the market over the past year. I don't know whether the future will be better or worse (hoping for better). But some things do worry me (I am a worrywart after all). I guess we'll have to roll with the punches and make the best of whatever comes our way. As others mentioned, if anything, I think that we will be better positioned to deal with the problem than a lot of people.

I am a bit surprised at the number of optimistic folks, especially given the somber and belligerent mood on this board over the past month or so.

 

[WM]

I'm with LOL, I feel great about the future. I'm also with W2R, I don't like saying that out loud for fear of jinxing things.

We are about 5 years out from our expected FIRE date and I'm really happy with how we're doing financially. I expect the economy to be mediocre at best for quite a while, but I don't expect a lot of dire personal ramifications from that, and I expect things to recover eventually. I do worry about how it will affect other people who are not so lucky/prepared.

 

[traineeinvestor]

I feel confident about the future.

There are a lot of things which could adversely affect our financial future - higher taxes, higher education costs, higher health care costs, inflation, deflation and probably a few unforseen things that I have not considered. Some of them will happen.

But even though I am only 44, I have already experienced:

1. the 1987 sharemarket crash - which in my home country was followed by the worst recession since the 1930s

2. the Asian crisis of 1997 - property prices fell by 60% over a 7 year period

3. the dot-com crash of 2000 - actually not that big a deal here

4. the SARS epidemic - which was actually quite scary

5. the credit crisis of 2007-8 - which locally at least was not anywhere near as bad as #1 or #2

And I survived economically and actually did quite well out of the recoveries which followed. Having lived through and successfully dealt with difficult economic conditions several times gives me confidence in my ability to get through whatever the future may throw at me. No doubt, these will prove to be famous last words but I am an optimist.

However, I worry about current and future retirees in general - there are far too many people expecting far too much from a future that they have not properly provided for (either by choice or by circumstances). That said, I worry about current and future taxpayers even more.

 

[Moemg]

I am more worried about my daughter and my SO's children . It seems like that generation is really being hit hard with the job layoffs and the dropping home values . I was out to dinner with several friends recently and we all echoed the same sentiments about our children.

 

[Purron]

I am a bit surprised at the number of optimistic folks, especially given the somber and belligerent mood on this board over the past month or so.

Yeah, we like to bitch and complain a lot, but we're really a pretty jolly bunch

 

[DoingHomework]

I work in research at a university. We have a constant stream of student workers. It is sad to watch them graduate over the last few years with very few getting jobs recently. Too many go back and live with Mom and Dad. When I graduated from the same university in the same field (engineering) 20 years ago, everyone got jobs, it was a matter of how good the offer was. Even in a bad year it usually just meant you had to wait 6 months to start.

 

[RonBoyd]

I feel giddy when I think about the future. For now I am in a very vulnerable position. Most of my money comes from my w-2 income. However, in four or five years I'll be in great shape. I believe by then my investment income will be able to fund 33% of my yearly expenses.

I am not tying my investment income to the US. I invest globally. With each new investment purchase I not only diversify my income away from the w-2 salary, but also globalise my income.

I believe that my financial security will be much greater in the future.

It goes something like this:

In an ancient kingdom there once was a Thief who was caught and brought before the King. The King was handing out death sentences right and left. The Thief, thinking quickly said, "If your majesty will but give me a year, I will teach your favorite horse to talk".

Perhaps the King believed, perhaps He was amused, perhaps He tired of handing out death - He figured why not? and gave him the year.

The Thief stayed at the stable and every morning he'd get up and go to the king's favorite horse and say "MaMa." At first, the stable boys would watch, stunned, but soon they laughed. One said to the boldest, "Ask him what he expects?" and burst out laughing again. He went to the Thief and asked him, "Why do you do this?". The Thief answered, "I have a year. During that time, the king may die - or I may die - or, who knows? the horse may talk

.

 

[endthefed]

I think it is fair to say that there is a huge amount of angst out there regarding the future. Almost everyone I know (from working folks to retired folks and youngins) feels like they are going to suffer financially in the future one way or the other. Escalating health care costs, higher taxes, high unemployment, lower wages, low interest rates, fear of inflation or deflation, benefits cuts, low returns on investments, high deficits, relatives requiring significant financial aid, the list goes on and on... Whether those fears are founded or not, they seem to exist nonetheless.

Do you feel like your financial future is at risk? What are your fears and hopes for the future?

I am not looking for a political debate or hysterics, just some honest truth about how people around here feel about the future...

there have been some band-aids applied, but the structural problems remain.

with unemployment at 20%...47% of public paying zero in income tax....record numbers on welfare....housing in freefall....banks lying about their balance sheets...states, cities, counties, school districts suffering...another unjust war being pushed....civil liberties under attack via terrorism hype...social security is now in the red....

dark days are here, and will continue to be -

the answer? inflate the money supply...which will further devalue the dollar versus what we purchase.

i dont see mad max in the near future. i see high inflation.

 

[Bestwifeever]

I do worry and I hate that seeing the color of the numbers for the markets, green or red, affects my mood a little. Like some of the previous posters I worry about the future of the next generation (and the present for them in terms of jobs). I wish I could remember that from adversity comes strength and innovation.

 

[Purron]

dark days are here, and will continue to be -

Hey there. Life is a beautiful thing. Yeah, we all worry 'bout stuff. But know what? Life is too short. Catch a wave, hug a kitten, drink a brewski, listen to beautiful music, look at the stars, love life.

If the dark days are comin', so be it. Personally, I don't think it's happening, but what do I know? If it's true, I'd like to get an excellent bottle of champagne and sit on my rooftop with my darling hubby and observe. Watching the storm coming but relishing every moment I can before it gets here.

Cheers,

Purron

 

[endthefed]

Hey there. Life is a beautiful thing. Yeah, we all worry 'bout stuff. But know what? Life is too short. Catch a wave, hug a kitten, drink a brewski, listen to beautiful music, look at the stars, love life.

If the dark days are comin', so be it. Personally, I don't think it's happening, but what do I know? If it's true, I'd like to get an excellent bottle of champagne and sit on my rooftop with my darling hubby and observe. Watching the storm coming but relishing every moment I can before it gets here.

Cheers,

Purron

i personally have skated through it - so i've been able to sniff the flowers.

my heart hurts for the millions that are suffering. i hope they take your advice

 

[Spanky]

I am a bit surprised at the number of optimistic folks, especially given the somber and belligerent mood on this board over the past month or so.

Me too - it's amazing that so many people feel rosy about the future. Though not besieged, I do have concerns about the future albeit it isn't much I can do other than continuing updating my skills, saving, and diversifying out portfolio. In the interim, all what can do is to enjoy the present and do not worry about what tomorrow brings as there's so little we can do something about it.

 

[Spanky]

i personally have skated through it - so i've been able to sniff the flowers.

my heart hurts for the millions that are suffering. i hope they take your advice

There are many enjoyable things that are free, e.g, walking in the parks, watching the stars above, listening to chirping of birds, sound of leaves from gentle breeze and rain drops, etc.

 

[Spanky]

I work in research at a university. We have a constant stream of student workers. It is sad to watch them graduate over the last few years with very few getting jobs recently. Too many go back and live with Mom and Dad. When I graduated from the same university in the same field (engineering) 20 years ago, everyone got jobs, it was a matter of how good the offer was. Even in a bad year it usually just meant you had to wait 6 months to start.

It was true that many engineering graduates had received multiple offers before they graduated in the past. Recently, it may take 3 to 4 months after graduation to receive an offer. There are always exceptions. My daughter's friend had 2 offers before graduation, but he was a straight A student. We had two summer interns graduated 6 months ago finally land a job recently. Companies are starting to hire more workers but at a cautious pace.

 

[Stevewc]

Firedreamer,
Don't you cop out on me. You are not allowed to get despondent.
I was thinking the other day how you may be the guy with that great tip to help my son move into the work force after he gets his degree. I was showing him & the DW Internet pictures and reading about the work complex you mentioned you are associated with. I'm sure you know how it is to be in school and wonder what tha heck your going to do when you get out.
Steve

PS. I often use the chem major folks on bogleheads and this forum to encourage my son.
So if you have a strange feeling someone is talking about you, it might be me.

 

[FIREd]

Firedreamer,
Don't you cop out on me. You are not allowed to get despondent.
I was thinking the other day how you may be the guy with that great tip to help my son move into the work force after he gets his degree. I was showing him & the DW Internet pictures and reading about the work complex you mentioned you are associated with. I'm sure you know how it is to be in school and wonder what tha heck your going to do when you get out.
Steve

PS. I often use the chem major folks on bogleheads and this forum to encourage my son.
So if you have a strange feeling someone is talking about you, it might be me.

So that was you talking about me?

Don't worry, DW and I are not despondent about our choice of career or the prospects for our industry at all.

I had to read again the pm I sent you a few months ago, and I stand by what I wrote.

 

[Stevewc]

So that was you talking about me?

Don't worry, DW and I are not despondent about our choice of career or the prospects for our industry at all.

I had to read again the pm I sent you a few months ago, and I stand by what I wrote.

I went back a day or so ago and read it myself.
Wanted to be sure I was repeating some things you wrote correctly.
With our family ties in that area I'm always interested in possibilties for the future.
Steve

 

[harley]

I am more worried about my daughter and my SO's children . It seems like that generation is really being hit hard with the job layoffs and the dropping home values . I was out to dinner with several friends recently and we all echoed the same sentiments about our children.

I do worry and I hate that seeing the color of the numbers for the markets, green or red, affects my mood a little. Like some of the previous posters I worry about the future of the next generation (and the present for them in terms of jobs). I wish I could remember that from adversity comes strength and innovation.

I'm pretty confident about my financial situation going forward. If I end up in deep trouble, it will have to be so much worse for most others that I will be thanking God for my blessings.

However, like Moemg and BWE, I worry about the future generations. I have a daughter and a 4 y.o. granddaughter. I feel really bad that we have mortgaged their future to pay for our health system and to bail out the irresponsible, unethical, and amoral. I can't do anything for the vast majority out there, but I plan to leave money and knowledge behind when I go (protected to the best of my ability from grabbing gov't fingers) to help them get by. A bit of payback, as it were. Of course, hopefully DD will be pretty old when she gets it. I'm not feeling guilty enough to die young.

 

[bbbamI]

I am a bit surprised at the number of optimistic folks, especially given the somber and belligerent mood on this board over the past month or so.

...and don't you just know I'm the crankiest one of all!



Hmmm...think I'll pop a cherry in my mouth....now that's better.

 

[Koolau]

I'm sort of the designated worry wart. Just ask DW. I DO have to remind myself quite often:

"Most of the things you worry about never happen".

Without getting political, I do see our "system" collapsing around us. While I've made provisions for my family, I can see that there are also plenty of folks who would just as soon take it away from me as work for it like I did. I fear we've reached the tipping point where those who vote themselves "free" (you name it - but health care comes to mind) outnumber those who said "get out of my way, I can do this myself."

Still, I don't sit around thinking about it all the time. Just once in a while - when someone asks the question, heh, heh - I can begin to dwell on the negative. My bad.

 

[WhoDaresWins]

Like many on the forum I am not particularly worried about myself but more so for the younger generations. I fear that we have sold their birthright for a mess of pottage in many respects.

 

[rescueme]

Almost everyone I know (from working folks to retired folks and youngins) feels like they are going to suffer financially in the future one way or the other.

This retiree dosen't feel that way at all.

Both financially and in all other "life matters", things for me were much, much worse many years ago.

Life is great...

 

[shotgunner]

Sometimes I do feel that way, it has always been my nature to prepare for worst case scenarios, yet I know they seldom happen. To fight this tendency I try to take stock of my blessings.

Health, at 53 things are good, same issues I have had since I was 30 all minor.

Wealth, in spite of the recession and market losses I still have 25X of the current salary I would need to pay myself with no work.

Income, I have a part-time job, 4 hours a day, it provides 2/3 of my annual living expenses.

Security, my house is paid off, my vehicle is a 2010 and it is paid off.

Ok I feel better now, (I'll keep repeating these things until it works, hopefully)

However if I listen to or read the news, I can quickly come to the conclusion that there is no good news, no reason to be optimistic and the world as I knew it has changed for the worse and good times will never return.

I was talking with my neighbor yesterday after mowing the lawn. He is a smart guy, a little older than me and he is not retired. He was very down on the condition of the government, the economy and the future in the USA for all of us. He said he didn't see a way out. One of my comments to him as I agree with many or your points but I also believe the people our age in the Depression didn't see a way out either, yet it happened.

 

[CyclingInvestor]

I do not feel any anxiety at all about my financial future (51, retired almost 4 years ago from programming, 100% invested in individual high quality stocks mostly in IRAs, no pension, paid off house).

Dividends (extracted via 72t from my IRAs) are up almost 10%/year (up 39% in 3.6 years) since retirement.
While my health insurance rates are up more, my total expenses are up less, and easily covered now.
If I see any SS some day, great, a nice bonus. If not, I do not count on it anyway.

The various 'crisis of the day' reported by the financial press are irrelevant (to me), each quickly forgotten as soon as the next one hits the headlines. Our economy is by nature cyclical. There will always be some problems ahead. Wasting energy worrying about each one seems pointless.

 

[Walt34]

Never before in our lives have we been better off than we are now. We have Zero Debt (important to us) a DB pension with COLAs, medical & prescription coverage - although what will happen to that is anyone's guess - the bulk of the income from the job I have now is going to savings/investments to be spent later, (I'm assuming there will be a "later" - that in itself is optimism) we have a few minor medical issues typical of those in their 50s but nothing serious, so life is good.

If the economy crashes hard we'll be in a lot better shape than many others we know. I'm fairly certain that some living high on the hog now will be living in small trailers eating rice and beans. "The Piper Will Be Paid" and we've already paid him so that's behind us.

Things are so bad that the decision I'm agonizing the most over now, given that the weather is forecast to be near perfect tomorrow, is whether to go for a long motorcycle ride or take the boat out on the river. I tell ya, times are tough.