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40 Comments
- MMNManiac, on 10/12/2007, -0/+13yes - just don't stop working :p
The concept of retirement is quite new actually. Most people usually worked until they died or were no long physically able to. There was no such thing as "retiring at (insert your ideal number here)." - Nightfall, on 10/12/2007, -0/+7I agree!
Personally, I don't see myself fully retiring. I have goals to eventually get my Masters degree and maybe even my doctorate and teach college in my later years. Most people think they have to work in crappy jobs for the rest of their lives. If you put your mind to it and get the education, you can do just about anything you want when you get into your 60s. There are numerous organizations that can benefit from your knowledge and experience and would be willing to pay for it.
A good example is my dad. He flew helicopters and performed saftey inspections for the military and after he had to retire, he worked as a safety inspector in the private sector. Very low stress job that paid very well. He utilitzed all the years of military experiece to his advantage later in life.
There are jobs out there that are just like that. You just have to put your mind to it and get the educational requirements out of the way. The experience will make you a shooo-in. - toxicredm, on 10/12/2007, -1/+7That's because people usually didn't live as long as they do now.
- optikshell, on 10/12/2007, -0/+4Good informative read. This is something I find most younger people (myself included) don't think about early/often enough.
Good post, dugg. - endgame, on 10/12/2007, -0/+3Another good book I read was The Richest Man in Babylon. That book really taught me about saving & how it works. =)
What worries me are the people in there 30's & 40's who have no concept of saving for retirement. I know many folks who have about $100.00 in the life savings account & just don't save anything. YET they buy BMW's and fancy cars etc. - yahoofrom, on 10/12/2007, -1/+31. No problem if you are Bill Gates.
2. Your sons and daughters. you'll know what I mean if you are Asian.
this worries me sometimes. you thought you can use your money whatever you want to buy if you ever become an adult, but if you become adult, you realize that you have to save money to prepare life after marriage, raising children, life after retirement. Darn. I want to go back to childhood. I want freedom back.
If you don't marry, who's gonna weep for you when you die old? let aside lonelyness.
Life is tough. One gain, one loss. - RatherDashing, on 10/12/2007, -0/+2But, a little bit goes a long way when it comes to investing. $500 a month and 7% instead of 5% (a more reasonable rate of return) gives you 400K+. Bring that number up to 40 years(meaning you start saving when you are 25 and retire at 65). That brings you up to 1.3+ million.
Personally 10% of my salary goes into a 401k ($500 a month) and I'm 23. You don't even notice it coming out of your paycheck and its a simple way to save, set it and forget it. After working a little more than a year I have almost 10K in there, after employer matching and returns on investments. - PoVRAZOR, on 10/12/2007, -1/+3Pshaw... no problem. Just save 5 million dollars, and that'll let you live for 100 years at $50k a year. No problem at all.
O_o - zarex, on 10/12/2007, -2/+4The retirement standards are ridiculous; you have no "right" to retire at 60-65 if you can't afford it. With longer expected life-spans, it's only appropriate to expect people to work longer.
- betasp, on 10/12/2007, -0/+2I don't know if you have an investment person, but I am 30, married, and saving less than that a month and I stand to retire with close to $2m. If you don't have an investment person, you may want to talk to one.
- Nightfall, on 10/12/2007, -0/+277.6 is the official life expectancy number as of December of 2005. Imagine what that number will be in another 50 years.
- Nightfall, on 10/12/2007, -0/+2I have to agree. The life expectancy is going up every few years. The medical advances mean we are living longer healthier lives. In 1900, people were only living to be about 48 on average. Today we are averaging about 70 or so. To say we are going to retire at 65 was a number they came out with about 20+ years ago. I know some 70+ year olds still working and making good money. Not because they don't have enough money for retirement, but because they want to stay active and busy on something.
- inactive, on 10/12/2007, -1/+3@PhantomRogue
I fail to see how avoiding school can pay dividends.
Using your numbers: 5% over 25 years while contributing $300 every month for those 25 years gives us a grand total of: $179,669.
Do you think you can retire and live off $180,000 worth of investments? I know I can't.
For what it's worth, I believe Nightfall was talking about his own specific plan, not outlining a course of action for 'millions'. I'd imagine your mileage will vary.
mo - malfourmed, on 10/12/2007, -0/+1I shall do neither. I have killed my captain ... and my friend.
- Jawood, on 10/12/2007, -1/+2"Millionaire Next Door"
I harp on this book all the time. The book is about how regular folks became millionaires.
Your library will have many copies on hand, so don't buy it! There's one strategy that'll help you on your way - for free! - betasp, on 10/12/2007, -0/+1You realize the stock market is almost at am all-time high and the un-employment rate is really low compared to historic levels.
- WeetaBiX, on 10/12/2007, -1/+2Read the books by Robert T. Kiyosaki, especially "Cashflow Quadrant". Also some good advice from Doug Wead "When you plant corn, you get back corn, when you plant time, you get back time" Its all about "Thinking Different" :)
- inactive, on 10/12/2007, -2/+3Well, its not that hard, provided you take care of all your debt and dont accumulate giant ones just to have the biggest house or best car.
Do what it takes to make your own retirement, dont rely on your companies. - Jawood, on 10/12/2007, -2/+3@betasp
Your numbers are factual, but I'd like to add that our real incomes, as a nation, have stayed flat for the few years. In other words, our purchasing power isn't what it was. The only folks who have seen an increase in their standard of living is the highest end of income earners.
Now, I'm going to be flamed for being a leftist, liberal, Moveon.org reading moron. The above opinion isn't my own, I read that in "The Economist" a few weeks ago and I'm trying to find the article online. Sept, 28, 2006 issue - sorry, you need a subscription :-( - endgame, on 10/12/2007, -1/+2When I was younger around 21 my best friend HOUNDED me to save as much money as I could for retirement. Well I agreed with him & at 21 started my ROTH IRA and I'm now 32 married with no kids. I save on average about $700.00 per month not including my 401K. I have managed to put away about 50K and let me tell you the freedom you feel knowing if you lost your job for a few months it would not be a problem. I averaged it out & if I stay on this track I should be at about 1.2 million by the time I retire. Although I have no plans on stopping work unless computers & networks start fixing themselves... =)
- WeetaBiX, on 10/12/2007, -0/+1No rich dad, but there is wisdom in it?
- WeetaBiX, on 10/12/2007, -0/+1http://www.ripoffreport.com/reports/ripoff65784.htm
Something about John T.Reed - Pharaoh777, on 10/12/2007, -0/+1You have to take inflation into account.
I have done my own retirement plan and if I want to retire at 65 and I plan to live until I am 110 (a very low estimate considering nanomedicine will be far into full swing by then) - Will need to save just over $11 million (assuming I want to have today's equivalent of $200,000 per year). I can do that by saving $500 per month and investing it into a mutual fund that appreciates at least 10% annually. Not too difficult, but you have to start early. - SanTe, on 10/12/2007, -0/+1@Jawood: I read the same article. There was a column on the inside back cover, I believe in the same issue, that decried the widening gap in America between the rich and the poor and said it was dangerous. I had to pick my jaw up off the floor when I saw it. Never thought I'd see something like that in a conservative rag like The Economist.
- stimcaps, on 10/12/2007, -1/+2Kiyosaki is a huckster and a liar. There is no "Rich Dad". See http://www.johntreed.com/Kiyosaki.html
- Nightfall, on 10/12/2007, -0/+1betasp:
Did you just look up an investment person in the phone book or did you know someone personally? Would you recommend someone who handles your 401k at work or someone totally separate? My wife and I put away 10% into our 401k, but have never seen a investment advisor other than our workplace 401k investment reps. - endgame, on 10/12/2007, -0/+1@Rockefeller
As much as i hate to agree with that statement I feel it's true. Particularly with the Gen X & Y crowd. - Nightfall, on 10/12/2007, -1/+1Oh, I wasn't saying to avoid puting money into a 401k! My wife and I put in 10% of our incomes into them. I was merely saying that retiring at 60 or 65 really isn't something I agree with. Especially since we are living longer and healthier lives. You still can have a lot of productivity at that age. I have been puting away 10% of my income since I graduated college and got my first job. By the time I hit 65, I will have a nice nest egg saved up. :)
Sure, there are a lot of people that will be aiming for those university teaching jobs down the road, which is why it is wise to get that Masters degree or even a PhD. There are a lot of university teaching jobs out there right now, and a lack of willing teachers due to the fact that they don't pay well. However, the insurance is great as well as the low stress environment. That along with a strong 25 years of experience in the industry make you a shoo-in. :)
Hey though, this is just my plan. Worse case, I can be a walmart greeter or something. ;) - rockefeller, on 10/12/2007, -0/+0Yeah, I married a foreign girl and they have this tradition of providing for their parents. I guess that makes me part of the "*****" generation. Provide for foreign parents and fund my own retirement because I know my ungrateful USA born children won't reciprocate the same to me. What a ***** job!!!!!
- wbeavis, on 10/12/2007, -1/+1Ya know if the economy were better and I received a better income, I would be saving. Currently, my income is significantly below the average for my title in my area. After looking for over a year and a half I am still stuck.
- retirementcoach, on 10/12/2007, -0/+0There are 10,000 Americans turning 50 every day. Cornell Retirement and Wellbeing group surveyed those who had retired and found 60% wished they had planned better for retirement - non-financial.
If we extrapolate the % to those retiring we see there will be bunches sitting on the bench or worse yet sitting in the bleachers watching their retirement game!
To win the retirement game you need to be an active player on the field. This requires planning well before you retire. Peter Drucker says a minimum of 5 years. From my experience I would suggest even farther out! Planning takes time and cannot be done over night.
To those who think they can't retire because of $ may want to rethink that position. Retirement doesn't mean you don't work, rather you will be doing something you love to do and get paid for it! What would compell you to continue to work at a job that is boring, unrewarding, and unfulfilling when you could be pursuing your passion?!
If you want to win the retirement game and to retire happy, wild and free start putting your game plan together now! Game is On! - satanatnmtedu, on 10/12/2007, -1/+1Show me the many University jobs out there. Getting into a professorship is one of the most cutthraot and difficult propositions out there.
Your ideas are unrealistic. - anodos, on 10/12/2007, -1/+1Go visit an Amish community sometime and learn how they deal with retirement. To put it simply: children. They invest in their children, and when their children grow up and become adults, they take care of their parents.
My grandfather was a farmer and somehow became friends with a family in an Amish community, so I got an opportunity to visit an Amish family and see how they work. The family we visited had just added on to their house because the "grandparents" of the family could no longer live on their own, and so came to live with their children. Along with the grandparents came the great grandparents. In that one house I got to meet the children, from infant to teen, their parents, their grandparents, and their great grandparents, all under one roof. The Amish aren't alone in this. There are places in the world that still carry on this tradition while still meshing with modern day life. - giant96, on 10/10/2007, -0/+0Yup, you can learn some lesson from rich dad poor dad. You can read the summary at http://www.richdad.us
- nybble41, on 10/12/2007, -0/+0Better yet, you could live off the $250,000/yr. interest (5%) indefinitely.
Assuming 5% return you should be able to get $50,000/yr. in interest from just $1 million initial investment. Of course, that $50,000 will buy less over time due to inflation, something you should take into account when measuring average rates of return. - Jawood, on 10/12/2007, -1/+0Dude, 31 yr old Scotch! It tastes better, it's cheaper, and you don't need a prescription or access to a drug dealer!
- NanoStuff, on 10/12/2007, -1/+0People that save up for retirement are the same people that resign themselves to death. I don't save for retirement, I save for the future; whatever that may bring, whenever.
- ShyGuy91284, on 10/12/2007, -1/+0I have to disagree that people will be living longer and longer, at least for the next 50 years or so. Although that has been the trend for a couple centuries now, People currently in their 40's and older were raised in a generation that was not as focused on the quick and easy meals that have caused so many health problems in the US due to their nutritional value. People around my age (22), however, were. If anything, it is probable there may be a downward trend in life expectancy for a period of time.
- Billistic, on 10/12/2007, -3/+1My plan is to get to the point where I want to retire, buy a bunch of drugs and O.D.
- PhantomRogue, on 10/12/2007, -5/+1@Nightfall
Except that you need to remember that there are millions aiming for those jobs, with more/better work experience, will work for less and have went to better schools.
Not saying its not a nice goal, but dont plan on just going up to University and saying, Hire me as a teacher because im 50 and Have 25 years on the job, because there will most likely be a line out the front door and into the street composed of people with the same idea as you.
Best way to Retire is know going in and save early. Dont pay for school, put that extra 200-300 a month into an IRA or other 4-5% interest account. Doing that for 25 years is better than working till your 65+ (which some of my college professors were).
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