life getting scarer.

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floridacatlover
Posts: 2924
Joined: Fri Aug 28, 2015 7:21 am

Re: life getting scarer.

Post by floridacatlover » Sun Apr 14, 2019 10:05 am

RecoveringDreamer wrote:
Sat Apr 13, 2019 9:40 am
I'm in my 30s, but the reality of what I could be facing in the next 30 years is a little daunting. My coworker who hired in the same month I did always jokes that we will have to work 50 years before we can retire ("Only 48 years, 2 months, 5 days left to go!").

I am saving 9% of my pay into my 401k, plus a 6% match at 100% and an additional 2% service contribution (when the company stopped offering a pension, they started adding the 2% to our 401k). I have it set up so every January my contribution increases by 1%. I am working on paying down debt, so want to have money available for that now. As I get closer to retirement, this plan will help me learn to live on less and less of my paycheck while increasing the amount I'm putting away. By 20 years in, I'll be contributing 26% of my income, plus 6% match and at that point a 4% service contribution. Unless I get a big unexpected raise at some point, I shouldn't knock into the contribution limits, but when I start getting closer, I'll do the math and if need be halt increases of my contribution to the 401k and direct the savings into a different type of account.

All this is to say, I worry a lot about retirement.
RD, you are doing great. You are far ahead of most working-age people. A 6% match plus 2% bonus to your 401k is excellent.

Going forward, think about diversifying by contributing to a Roth IRA (if you qualify) instead of so much into the 401k. (Definitely put enough into the 401k to get that full match, however.) When you retire, you’ll have to pay taxes on everything that you withdraw from your 401k. With a Roth IRA you pay the taxes on the money invested now and it grows tax free so when you withdraw it in 20-25 years there is no tax. Of course the rules could change I know.

For myself I have been happy to have my 401k which does have a major chunk of my money but also a Roth IRA and also some “regular” money in CDs.

clemencia2us
Posts: 4245
Joined: Fri Aug 28, 2015 9:21 am

Re: life getting scarer.

Post by clemencia2us » Tue Apr 16, 2019 12:45 pm

What i find scary around here is the number of older folks having to take care of grandkids and great grandkids. Their own children going off on the wrong path

Yesterday one lady was telling me about having to take in her niece and the children

The niece will take off and leave her with the kids. Drugs are involved. She herself has heart issues.

its nuts

RecoveringDreamer
Posts: 346
Joined: Thu Aug 27, 2015 10:00 pm

Re: life getting scarer.

Post by RecoveringDreamer » Wed Apr 17, 2019 5:43 pm

floridacatlover wrote:
Sun Apr 14, 2019 10:05 am
RD, you are doing great. You are far ahead of most working-age people. A 6% match plus 2% bonus to your 401k is excellent.

Going forward, think about diversifying by contributing to a Roth IRA (if you qualify) instead of so much into the 401k. (Definitely put enough into the 401k to get that full match, however.) When you retire, you’ll have to pay taxes on everything that you withdraw from your 401k. With a Roth IRA you pay the taxes on the money invested now and it grows tax free so when you withdraw it in 20-25 years there is no tax. Of course the rules could change I know.

For myself I have been happy to have my 401k which does have a major chunk of my money but also a Roth IRA and also some “regular” money in CDs.
Hubby puts his retirement money into a Roth IRA so we get a good balance. I love the ROTH, especially for younger people. I encouraged all of my sisters to start one when they got their first part time jobs at 15 (one sister has funded hers from 15-now at 28 and has a very solid fund already). It is such a great resource, especially since financial aid for college doesn't factor in retirement savings.
A Life Beyond Money
Self Sufficiency. Simple Living. Frugality.

www.alifebeyondmoney.blogspot.com

ownedbydogs
Posts: 381
Joined: Fri Aug 28, 2015 7:26 am

Re: life getting scarer.

Post by ownedbydogs » Thu Apr 18, 2019 4:48 pm

icfrugal1 wrote:
Thu Apr 04, 2019 12:31 pm
I was at lunch with a friend the other day, she is in her 70's and her parents are in their 90's. Her parents have outlived their money, Their only income is their SS and their medical bills for RX's are $700.00 a month. Thank God their house is paid for and they have taken out a home equity loan, but that can only work for so long. :(

Another friend, a widow in her 70's just took out a reverse mortgage on her house.She paid off her bills and her mortgage, but her only income is SS (I think), she claims that the reverse morgage is due in 4 years???????? she is very worried.

Another friend about 63 has rented out a room in her house to help pay the bills.

And that is not even talking about my "Sunday friend" her house is falling apart and even though her house payment is "only" $500 including taxes and ins, because of her medical bills she is in a very bad place. Her house is a 2 bed 1 bath and she does not want a roommate. :(

I'm watching me spending more money all of the time, little things are adding up. Yes, it's a ME problem. Well part of it is a Goldie problem :roll: :D :roll: let me tell you there is no such thing as a free puppy LOL But I do need to pull back somewhere.

IC

RecoveringDreamer
Posts: 346
Joined: Thu Aug 27, 2015 10:00 pm

Re: life getting scarer.

Post by RecoveringDreamer » Thu Apr 18, 2019 7:05 pm

clemencia2us wrote:
Tue Apr 16, 2019 12:45 pm
What i find scary around here is the number of older folks having to take care of grandkids and great grandkids. Their own children going off on the wrong path

Yesterday one lady was telling me about having to take in her niece and the children

The niece will take off and leave her with the kids. Drugs are involved. She herself has heart issues.

its nuts
This is a huge problem. My parents retired last year. Now they are raising two babies. My dad started a business in retirement (his dream), so he wakes up and spends 5 hours cleaning the house and prepping things so Mom doesn't have to do a bunch except care for the babies, and then goes and works a 10-12 hour work day.
A Life Beyond Money
Self Sufficiency. Simple Living. Frugality.

www.alifebeyondmoney.blogspot.com

User avatar
Jackielou
Posts: 6105
Joined: Tue Aug 25, 2015 7:51 pm

Re: life getting scarer.

Post by Jackielou » Thu Apr 18, 2019 8:35 pm

Is life really getting scarier? I think it is more about actually knowing more about what is happening around us. I think people are just more open about what what is happening in their lives.

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