TOTALLY GEEKED!

Lady Gaga Snerd · Guru

Sorry, Americans are Broke

FNW · Guru

It's scary how many people live paycheck to paycheck, going into their retirement years. My MIL worked up until she started chemo, had a beautifully furnished home, but had less than $1k in the bank.

I know what to do_sometimes · Frozen Sucks!

Well remember the large numbers on welfare. It has to be impossible to have savings when living off the Gov't. The 20-30 demographic, I understand. I didn't have more than $1k in savings at that age. I was poor, trying to finish up a degree and working my butt off to pay the bills and the tuition. But the seniors; that blows me away. My father is in that category.

Lady Gaga Snerd · Guru

That would scare the bejeepers out of me. We have no family to fall back on. Our parents are gone. I wouldn't know what to do if in that position.

Lady Gaga Snerd · Guru

However, not having a savings account doesn't mean people dont' have money in retirement accounts or other investments. I think 'savings" should include all of that to be accurate.

I know what to do_sometimes · Frozen Sucks!

Lady Gaga Snerd wrote:
However, not having a savings account doesn't mean people dont' have money in retirement accounts or other investments. I think 'savings" should include all of that to be accurate.

Good point. These articles can twist truths.

I know what to do_sometimes · Frozen Sucks!

Actually I see the article does mention retirement accounts as being relied on in an emergency. That is disturbing. I know someone who, after raising 5 children, decided she wanted more out of life and divorced her husband of 25 years. They had not saved much and had no equity in their house so she walked away with nothing. She just assumed she would meet some rich guy that would support her in the way she wanted. She didn't save money, she just took any extra money and spent it on clothes, jewelry, and a nice car. Then the lease was up on the car and she had filed her taxes wrong claiming some of her adult children as dependents. She raided her 401K to pay for it all. She is broke, nearly 60YO and will have to work the rest of her life.

ed11563 · Guru

I know what to do_sometimes wrote:
Actually I see the article does mention retirement accounts as being relied on in an emergency. That is disturbing. I know someone who, after raising 5 children, decided she wanted more out of life and divorced her husband of 25 years. They had not saved much and had no equity in their house so she walked away with nothing. She just assumed she would meet some rich guy that would support her in the way she wanted. She didn't save money, she just took any extra money and spent it on clothes, jewelry, and a nice car. Then the lease was up on the car and she had filed her taxes wrong claiming some of her adult children as dependents. She raided her 401K to pay for it all. She is broke, nearly 60YO and will have to work the rest of her life.

Magical thinking, wishing and hoping, and bad decisions. That seems to be pretty common.

Southern_Belle · Nothing's Impossible

ed11563 wrote:
I know what to do_sometimes wrote:
Actually I see the article does mention retirement accounts as being relied on in an emergency. That is disturbing. I know someone who, after raising 5 children, decided she wanted more out of life and divorced her husband of 25 years. They had not saved much and had no equity in their house so she walked away with nothing. She just assumed she would meet some rich guy that would support her in the way she wanted. She didn't save money, she just took any extra money and spent it on clothes, jewelry, and a nice car. Then the lease was up on the car and she had filed her taxes wrong claiming some of her adult children as dependents. She raided her 401K to pay for it all. She is broke, nearly 60YO and will have to work the rest of her life.
Magical thinking, wishing and hoping, and bad decisions. That seems to be pretty common.

I know a woman who dumped her husband as soon as she finished nursing school. She thought she was going to snag a doctor. She chased two docs, one was married, one recently widowed. His wife hadn't even been gone three months. Neither one wanted anything to do with her. She's still single 15 years later. Bad decisions!

I know what to do_sometimes · Frozen Sucks!

ed11563 wrote:
I know what to do_sometimes wrote:
Actually I see the article does mention retirement accounts as being relied on in an emergency. That is disturbing. I know someone who, after raising 5 children, decided she wanted more out of life and divorced her husband of 25 years. They had not saved much and had no equity in their house so she walked away with nothing. She just assumed she would meet some rich guy that would support her in the way she wanted. She didn't save money, she just took any extra money and spent it on clothes, jewelry, and a nice car. Then the lease was up on the car and she had filed her taxes wrong claiming some of her adult children as dependents. She raided her 401K to pay for it all. She is broke, nearly 60YO and will have to work the rest of her life.
Magical thinking, wishing and hoping, and bad decisions. That seems to be pretty common.

I was not able to save much toward retirement until about 18 years ago. I do the 20%. It's hard sometimes in that it is a big chunk of my paycheck, but I have no issue paying the bills. I just don't buy expensive jewelry and I don't need to buy a new wardrobe every year and vacations are done on a budget. Thing is I know that I won't be struggling in retirement and that is peace of mind. It amazes me how many have not planned for their future.

Mellow Momma · Sniff...sniff, sniff. Yay! A Bum!

I know what to do_sometimes wrote:
ed11563 wrote:
I know what to do_sometimes wrote:
Actually I see the article does mention retirement accounts as being relied on in an emergency. That is disturbing. I know someone who, after raising 5 children, decided she wanted more out of life and divorced her husband of 25 years. They had not saved much and had no equity in their house so she walked away with nothing. She just assumed she would meet some rich guy that would support her in the way she wanted. She didn't save money, she just took any extra money and spent it on clothes, jewelry, and a nice car. Then the lease was up on the car and she had filed her taxes wrong claiming some of her adult children as dependents. She raided her 401K to pay for it all. She is broke, nearly 60YO and will have to work the rest of her life.
Magical thinking, wishing and hoping, and bad decisions. That seems to be pretty common.

I was not able to save much toward retirement until about 18 years ago. I do the 20%. It's hard sometimes in that it is a big chunk of my paycheck, but I have no issue paying the bills. I just don't buy expensive jewelry and I don't need to buy a new wardrobe every year and vacations are done on a budget. Thing is I know that I won't be struggling in retirement and that is peace of mind. It amazes me how many have not planned for their future.

Same here. When we were in our 20's and early 30's we had small children, DH was in school and then grad school, we had to invest in the "now". Once we leveled out, I started socking as much as we could afford to. DH didn't understand it for awhile. I signed up to automatically put any raises right into my 401k and I had the option to put bonuses in too. Now that he sees the decent nest egg we have he gets it. We could still do better, but it's more than a lot of people we know have in retirement.

flan327 · Itty bitty's Grammy

Mellow Momma wrote:
I know what to do_sometimes wrote:
ed11563 wrote:
I know what to do_sometimes wrote:
Actually I see the article does mention retirement accounts as being relied on in an emergency. That is disturbing. I know someone who, after raising 5 children, decided she wanted more out of life and divorced her husband of 25 years. They had not saved much and had no equity in their house so she walked away with nothing. She just assumed she would meet some rich guy that would support her in the way she wanted. She didn't save money, she just took any extra money and spent it on clothes, jewelry, and a nice car. Then the lease was up on the car and she had filed her taxes wrong claiming some of her adult children as dependents. She raided her 401K to pay for it all. She is broke, nearly 60YO and will have to work the rest of her life.
Magical thinking, wishing and hoping, and bad decisions. That seems to be pretty common.

I was not able to save much toward retirement until about 18 years ago. I do the 20%. It's hard sometimes in that it is a big chunk of my paycheck, but I have no issue paying the bills. I just don't buy expensive jewelry and I don't need to buy a new wardrobe every year and vacations are done on a budget. Thing is I know that I won't be struggling in retirement and that is peace of mind. It amazes me how many have not planned for their future.
Same here. When we were in our 20's and early 30's we had small children, DH was in school and then grad school, we had to invest in the "now". Once we leveled out, I started socking as much as we could afford to. DH didn't understand it for awhile. I signed up to automatically put any raises right into my 401k and I had the option to put bonuses in too. Now that he sees the decent nest egg we have he gets it. We could still do better, but it's more than a lot of people we know have in retirement.

Will you adopt me?

evileye

flan

Mellow Momma · Sniff...sniff, sniff. Yay! A Bum!

Lol. Would you like to live with 500 teenagers?

flan327 · Itty bitty's Grammy

Mellow Momma wrote:
Lol. Would you like to live with 500 teenagers?

Well, there's THAT!

flan

FNW · Guru

We are both savers, although his ex was a spender so when we got married he didn't have much saved up. But his income about quadrupled around the time we got married and he received a substantial windfall when the company was bought out (he was an officer and received a cut) so we were able to sock a lot of it away and it's been growing ever since. And we continue to save both in our retirement accounts as well as the boys' 529 plans so we should be in good shape.

burns07 · Guru

pay yourself first--always--by doing so and staying with it, everything else will pretty much fall into place

huskerbb · Guru

You can't take it with you.

I know what to do_sometimes · Frozen Sucks!

huskerbb wrote:
You can't take it with you.

Your point is what? You shouldn't save for retirement so you can never retire and live comfortably?

Lady Gaga Snerd · Guru

huskerbb wrote:
You can't take it with you.

So what then? There is a point where a lot of people outlive their incomes. Or, do you feel that you should be our responsibility for piss poor planning?

huskerbb · Guru

A savings account is NEVER going to cover a retirement--not at these interest rates. That's not even what they are for.

burns07 · Guru

Jesus saves but moses invests.

Mellow Momma · Sniff...sniff, sniff. Yay! A Bum!

huskerbb wrote:
A savings account is NEVER going to cover a retirement--not at these interest rates. That's not even what they are for.

So don't even try to save since you can never save enough?! Jesus, your logic is downright illogical. You make no sense whatsoever.

huskerbb · Guru

Mellow Momma wrote:
huskerbb wrote:
A savings account is NEVER going to cover a retirement--not at these interest rates. That's not even what they are for.
So don't even try to save since you can never save enough?! Jesus, your logic is downright illogical. You make no sense whatsoever.

You can save enough--but not if you are putting it into a savings account.

Mellow Momma · Sniff...sniff, sniff. Yay! A Bum!

huskerbb wrote:
Mellow Momma wrote:
huskerbb wrote:
A savings account is NEVER going to cover a retirement--not at these interest rates. That's not even what they are for.
So don't even try to save since you can never save enough?! Jesus, your logic is downright illogical. You make no sense whatsoever.
You can save enough--but not if you are putting it into a savings account.

I don't think anyone here advocated for JUST a savings account. And if it's a choice of a savings account or nothing, I think a savings account is better than nothing.

Mellow Momma · Sniff...sniff, sniff. Yay! A Bum!

In re reading this thread, no one brings up a savings account except YOU.

actually Gaga does mention a savings account but she mentions it in conjunction with other savings vehicles.

-- Edited by Mellow Momma on Saturday 26th of December 2015 07:26:14 PM

huskerbb · Guru

??? The article did. Read the first paragraph.

huskerbb · Guru

I don't even have a savings account and I'm going to bet my retirement will be better funded than most.

Mellow Momma · Sniff...sniff, sniff. Yay! A Bum!

huskerbb wrote:
I don't even have a savings account and I'm going to bet my retirement will be better funded than most.

Well we all can't inherit the family land. Some of us live in, gasp, other areas of the country! It's a shock I know. But try and figure it out.

Mellow Momma · Sniff...sniff, sniff. Yay! A Bum!

huskerbb wrote:
Mellow Momma wrote:
huskerbb wrote:
A savings account is NEVER going to cover a retirement--not at these interest rates. That's not even what they are for.
So don't even try to save since you can never save enough?! Jesus, your logic is downright illogical. You make no sense whatsoever.
You can save enough--but not if you are putting it into a savings account.

The article doesn't mention a savings account as the means to save for retirement. It mentions a savings account to pay for emergencies and unexpected expenses. Which is totally logical. So I understand your inability to comprehend it.

huskerbb · Guru

Mellow Momma wrote:
huskerbb wrote:
I don't even have a savings account and I'm going to bet my retirement will be better funded than most.
Well we all can't inherit the family land. Some of us live in, gasp, other areas of the country! It's a shock I know. But try and figure it out.

I have bought land. The inherited land won't do me much good since we aren't going to sell it and the rental income will be ploughed back in to purchasing more. Plus, I have a defined benefits plan.

Lady Gaga Snerd · Guru

huskerbb wrote:
I don't even have a savings account and I'm going to bet my retirement will be better funded than most.

Goody for you!

huskerbb · Guru

Mellow Momma wrote:
huskerbb wrote:
Mellow Momma wrote:
huskerbb wrote:
A savings account is NEVER going to cover a retirement--not at these interest rates. That's not even what they are for.
So don't even try to save since you can never save enough?! Jesus, your logic is downright illogical. You make no sense whatsoever.
You can save enough--but not if you are putting it into a savings account.

The article doesn't mention a savings account as the means to save for retirement. It mentions a savings account to pay for emergencies and unexpected expenses. Which is totally logical. So I understand your inability to comprehend it.

They are a rip off. The interest rate is so low it's absurd.

huskerbb · Guru

Lady Gaga Snerd wrote:
huskerbb wrote:
I don't even have a savings account and I'm going to bet my retirement will be better funded than most.
Goody for you!

Hey, YOU were the one who was all worried about "piss poor planning" and other such nonsense.

huskerbb · Guru

But, actually, I doubt I will live long enough to really have to worry about retirement, anyway, so I'd rather enjoy myself now.

Dad worked his fingers to the bone. Scrimped, saved--then died at 64. Didn't truly enjoy a dime of it.

Lady Gaga Snerd · Guru

Ok.So glom onto that. Most of the rest of us worked for all we have.

Mellow Momma · Sniff...sniff, sniff. Yay! A Bum!

huskerbb wrote:
Mellow Momma wrote:
huskerbb wrote:
Mellow Momma wrote:
huskerbb wrote:
A savings account is NEVER going to cover a retirement--not at these interest rates. That's not even what they are for.
So don't even try to save since you can never save enough?! Jesus, your logic is downright illogical. You make no sense whatsoever.
You can save enough--but not if you are putting it into a savings account.

The article doesn't mention a savings account as the means to save for retirement. It mentions a savings account to pay for emergencies and unexpected expenses. Which is totally logical. So I understand your inability to comprehend it.
They are a rip off. The interest rate is so low it's absurd.

But if you need cash in a hurry for an emergency expense, it's the proper place to have that cash. You don't want to have to sell something or pay penalties if you need money in a hurry.

Plus, again, most people don't have the access to land for sale. There just isn't any land available in a lot of places and if there is it's because no one wants it so it would be a bad investment. Again, not everyone lives in an area similar to yours. How is it you have lived this long and you can't grasp this simple concept. It prohibits you from having any sort of context or empathy for any situation that arises. How can one have such a narrow world view?!

I know what to do_sometimes · Frozen Sucks!

Husker, give it up.

I know what to do_sometimes · Frozen Sucks!

Mellow Momma wrote:
huskerbb wrote:
Mellow Momma wrote:
huskerbb wrote:
Mellow Momma wrote:
huskerbb wrote:
A savings account is NEVER going to cover a retirement--not at these interest rates. That's not even what they are for.
So don't even try to save since you can never save enough?! Jesus, your logic is downright illogical. You make no sense whatsoever.
You can save enough--but not if you are putting it into a savings account.

The article doesn't mention a savings account as the means to save for retirement. It mentions a savings account to pay for emergencies and unexpected expenses. Which is totally logical. So I understand your inability to comprehend it.
They are a rip off. The interest rate is so low it's absurd.
But if you need cash in a hurry for an emergency expense, it's the proper place to have that cash. You don't want to have to sell something or pay penalties if you need money in a hurry.

Plus, again, most people don't have the access to land for sale. There just isn't any land available in a lot of places and if there is it's because no one wants it so it would be a bad investment. Again, not everyone lives in an area similar to yours. How is it you have lived this long and you can't grasp this simple concept. It prohibits you from having any sort of context or empathy for any situation that arises. How can one have such a narrow world view?!

Land is hard to sell, unless in a hot area for development, it is not worth the investment.

Mellow Momma · Sniff...sniff, sniff. Yay! A Bum!

I know what to do_sometimes wrote:
Mellow Momma wrote:
huskerbb wrote:
Mellow Momma wrote:
huskerbb wrote:
Mellow Momma wrote:
huskerbb wrote:
A savings account is NEVER going to cover a retirement--not at these interest rates. That's not even what they are for.
So don't even try to save since you can never save enough?! Jesus, your logic is downright illogical. You make no sense whatsoever.
You can save enough--but not if you are putting it into a savings account.

The article doesn't mention a savings account as the means to save for retirement. It mentions a savings account to pay for emergencies and unexpected expenses. Which is totally logical. So I understand your inability to comprehend it.
They are a rip off. The interest rate is so low it's absurd.
But if you need cash in a hurry for an emergency expense, it's the proper place to have that cash. You don't want to have to sell something or pay penalties if you need money in a hurry.

Plus, again, most people don't have the access to land for sale. There just isn't any land available in a lot of places and if there is it's because no one wants it so it would be a bad investment. Again, not everyone lives in an area similar to yours. How is it you have lived this long and you can't grasp this simple concept. It prohibits you from having any sort of context or empathy for any situation that arises. How can one have such a narrow world view?!
Land is hard to sell, unless in a hot area for development, it is not worth the investment.

Exactly. And the EPA studies they do on the land now makes a lot of it more expense than it's worth in most areas.

ed11563 · Guru

A savings account might help you pay ransom when someone kidnaps you kid. Or your dog.

But with interest rates around one percent, there's no reason to put extra money THERE. Might just as well leave it in checking.

Or a money market account.

huskerbb · Guru

I know what to do_sometimes wrote:
Mellow Momma wrote:
huskerbb wrote:
Mellow Momma wrote:
huskerbb wrote:
Mellow Momma wrote:
huskerbb wrote:
A savings account is NEVER going to cover a retirement--not at these interest rates. That's not even what they are for.
So don't even try to save since you can never save enough?! Jesus, your logic is downright illogical. You make no sense whatsoever.
You can save enough--but not if you are putting it into a savings account.

The article doesn't mention a savings account as the means to save for retirement. It mentions a savings account to pay for emergencies and unexpected expenses. Which is totally logical. So I understand your inability to comprehend it.
They are a rip off. The interest rate is so low it's absurd.
But if you need cash in a hurry for an emergency expense, it's the proper place to have that cash. You don't want to have to sell something or pay penalties if you need money in a hurry.

Plus, again, most people don't have the access to land for sale. There just isn't any land available in a lot of places and if there is it's because no one wants it so it would be a bad investment. Again, not everyone lives in an area similar to yours. How is it you have lived this long and you can't grasp this simple concept. It prohibits you from having any sort of context or empathy for any situation that arises. How can one have such a narrow world view?!
Land is hard to sell, unless in a hot area for development, it is not worth the investment.

No way. The real estate market has been hot for several years. It's down a little bit this year, but over the course of the last 10, land values have tripled in many markets.

Land is well worth the investment. It will generate income apart from selling it. A savings account will not--at least not enough to be worth it.

burns07 · Guru

raw land is not very liquid--particularly is you don't own it free and clear--income property is better, especially commercial or multi-family--unless you're in the development business, holding raw land for appreciation ( especially if it's mortgaged ) is a speculative investment

huskerbb · Guru

burns07 wrote:

raw land is not very liquid--particularly is you don't own it free and clear--income property is better, especially commercial or multi-family--unless you're in the development business, holding raw land for appreciation ( especially if it's mortgaged ) is a speculative investment

Land generates income.

FNW · Guru

Not a fan of being a landlord.

Like anything else, it depends on when you buy, and when you sell. MIL owned apartment buildings next door to her house. Unfortunately, she bought high. Rents just about covered expenses, but not necessarily improvements. After her death, it was sold and everyone broke even. So, in this case, land was not a good investment.

Brother bought a condo for "investment income". Yeah, right. And they're lucky, they've had good tenants. But in no way, shape, or form is this going to pay for their daughter's college, as was their original intent.

Now I have an old boyfriend who bought income property in various areas in California when he was in his 20's. Those have provided him with some income, but even then, it's a PIA at times.

SIL rents out the space above her barn. Doesn't really get much in the way of income, but I suppose she might get a tax break here or there or it might help offset some of her expenses.

-- Edited by FNW on Monday 28th of December 2015 11:22:17 AM

TOTALLY GEEKED!

Google Consumer Surveys found that almost two-thirds of Americans are “savings poor,” with less than $1,000 in their savings accounts. About one in five are so broke they have nothing saved.