Retirement years.... Is bankruptcy in your future?

[ZZman]

Originally Posted by gfh77665
Its the "bail me out" mindset. Just like all the student loan debt that has spiraled out of control. Everybody wants their debt bailed out, paid by those who lived responsibly.


Could also be the avg workers income hasn't kept up over the decades while costs including healthcare has risen greatly.

 

[ZZman]

Originally Posted by Bud
Delay gratification. Spend less. Save more. Problem solved.


Been retired twelve years and live comfortably without money worries. Did exactly what you said throughout my working career.[/quote]


Awesome. Glad you are doing well!

 

[jeepman3071]

There are many factors to this. I think rising healthcare costs, living expenses, and poor financial planning are the big ones.

 

[JeffKeryk]

This is a complicated and serious issue. It does not help to simplify...
I believe the answer lies in education.
I have used Calculus exactly 1 time in my business career and that was a more theoretical exercise; it was not put into use.
Students should not get out of 8th grade without an understanding of banking.
No one should get outta high school without an understanding of credit, investing and especially the time value of money.

The economy is good for people like me. It is not good for most of America.
FYI, the #1 reason for bankruptcy is medical costs and the vast majority of those people have insurance. Of course unaffordable mortgages is #2. Spending and divorce are high on the list.

 

[atikovi]

Lot of 30 and 40 somethings just got to have the latest Lexus or Bmw at $800 a month, go on $5000 vacations every year, spend $2000 or $3000 a year on gifts for people they don't really even care for, yet are living paycheck to paycheck on $100K per year.

 

[gfh77665]

Some things will always cost more, thats natural. However keep in mind overall inflation is LOW. Just 1.5% - 2% per year.

We are no where near runaway inflation. Runaway spending and runaway DEBT is the problem.

 

[gfh77665]

Originally Posted by ZZman

That is easier for those with dual incomes, 6 figure incomes etc.... Those who have play money to invest.


Dual income? Not here. I work an hourly job at a decent but at a modest wage (below 6 figures for sure), and I raised a family of 5 and put all three kids through college on this one income.

How? Work ethic. Delayed gratification. Financial discipline. Diligent saving plan.

 

[jeepman3071]

Originally Posted by atikovi
Lot of 30 and 40 somethings just got to have the latest Lexus or Bmw at $800 a month, go on $5000 vacations every year, spend $2000 or $3000 a year on gifts for people they don't really even care for, yet are living paycheck to paycheck on $100K per year.



It really is crazy, but I think that is a different issue. For them it's a lack of financial education and planning. Nobody should be living paycheck to paycheck at $100k a year. A lot of it is just doing research and being smart about purchases as well as saving up for things like stated above. I've been lucky in that I was always able to save up for cars and pay cash, but then again I can fix things myself and wait to have what I want when I can find a good deal.

For many elderly I think they are in a different situation. Many are on a fixed income, have lost a significant other (who might have been the bread winner), and have to deal with sickness and rising healthcare costs. They are also taken advantage of quite frequently by corporations looking to make a few extra bucks. I remember when my grandma was living by herself, she would always have people calling looking to get her to sign up for something, car dealerships trying to charge her for maintenance she didn't need, and the health insurance companies attempting to send her into a whirlwind of debt. She was very good at financial planning and saving, but in the end a lot of her savings ended up going to her last two years living in a nursing home.

 

[ZZman]

Originally Posted by gfh77665
Some things will always cost more, thats natural. However keep in mind overall inflation is LOW. Just 1.5% - 2% per year.

We are no where near runaway inflation. Runaway spending and runaway DEBT is the problem.


True. But if you get no raises and your healthcare goes up you are going backwards. No matter the % you are still going backwards.

 

[John_K]

Originally Posted by gfh77665
Originally Posted by ZZman

May not be complicated but is hard for the majority of Americans who make avg to low incomes and are still trying to live the American dream. Saving is hard. Also depends if your employer has a 401 and contributes or matches. Many don't.


The American dream is achievable to anyone with a good work ethic and a disciplined money management mindset. The American dream also has to be realistic. 20 somethings just starting out in their entry level job should not buy a new SUV and a McMansion, then whine when ends don't meet. Thats what the entitlement generation does.


These 20 year olds wanting their first place to have granite countertops and stainless steel appliances. My first apartment had mismatched hand me downs and stuff I got cheap at thrift stores. The HGTV generation!

 

[maxdustington]

Originally Posted by gfh77665
The American dream is achievable to anyone with a good work ethic and a disciplined money management mindset. The American dream also has to be realistic. 20 somethings just starting out in their entry level job should not buy a new SUV and a McMansion, then whine when ends don't meet. Thats what the entitlement generation does.
Entry level jobs require 4+ years of xp now, real estate was much cheaper back in the day. A blue collar could support a 2+ kid, 2+ car household on a single income in the boomer days. Not to mention more foreigners and women in the workplace driving wages down, why do you think cars are so much more expensive than they were 30 years ago?

Classic boomer telling you to just work harder, while their house they bought 30 years ago has tripled in value over the past decade. It takes $120k a year income to own a house in Toronto, my Dad owned three at one point on a single blue collar salary 30 years ago. The times have changed, old timer.

 

[Quattro Pete]

Originally Posted by ZZman
Originally Posted by gfh77665
Originally Posted by ZZman
The median of money saved in retirement accounts is way too low.


Delay gratification. Spend less. Save more. Problem solved.


That is easier for those with dual incomes, 6 figure incomes etc.... Those who have play money to invest.

How to lose weight: exercise more, eat less. Problem solved right?.... Not so easy.

Nobody said it's easy. Saving for retirement is often hard work and involves self discipline and restraint.

 

[ZZman]

Originally Posted by Quattro Pete
Originally Posted by ZZman
Originally Posted by gfh77665
Originally Posted by ZZman
The median of money saved in retirement accounts is way too low.


Delay gratification. Spend less. Save more. Problem solved.


That is easier for those with dual incomes, 6 figure incomes etc.... Those who have play money to invest.

How to lose weight: exercise more, eat less. Problem solved right?.... Not so easy.

Nobody said it's easy. Saving for retirement is often hard work and involves self discipline and restraint.


True.... Which is the same reason most Americans are overweight.

 

[ZZman]

The American Dream has changed. You used to easily get a blue collar job that paid good pay and benefits and raise a family on it. Many of those jobs disappeared or pay far lower wages now.

College costs skyrocketed saddling many if not most kids with huge debt while trying to do the right thing.

I am fortunate to live in a very reasonable housing market and still have my health to work and a pension.

 

[Quattro Pete]

Originally Posted by ZZman
True.... Which is the same reason most Americans are overweight.

The obesity issue is even more complex, I think. Obesity in US is dominant in low income families, leading to health issues which further strain a low income family budget.

Obesity truly is a serious issue in this country, and we are all paying for it.

 

[BigD1]

Failing pensions are a big contributor to the problem. Get sick, reduced payments from pension, and then it's the poor house.

 

[Mr Nice]

A person is responsible for their own retirement future, not the government.

Retired people can collect shopping carts at Walmart if they forgot to save for retirement.

 

[gfh77665]

Originally Posted by maxdustington
Entry level jobs require 4+ years of xp now, real estate was much cheaper back in the day. A blue collar could support a 2+ kid, 2+ car household on a single income in the boomer days. Not to mention more foreigners and women in the workplace driving wages down, why do you think cars are so much more expensive than they were 30 years ago?

Classic boomer telling you to just work harder, while their house they bought 30 years ago has tripled in value over the past decade. It takes $120k a year income to own a house in Toronto, my Dad owned three at one point on a single blue collar salary 30 years ago. The times have changed, old timer.


Entry level jobs do not require "4+ years experience". Thats not an entry job then. My son is just turned 21. He just got a job that pays $15/hr, without a degree (yet) or any experience. Literally his first job.

Boomer days? Do some research on the early 80's. Google "stagflation". Mortgages were over 10% then. Today they are just 4%!

Very decent cars can be found for $5,000. Kids go to stealership showrooms today wanting sparkling new $50,000 SUV's.

Old timer?? I am still putting my son (above) through college. I am not old. You need to recalculate, Max.

 

[doitmyself]

Originally Posted by gfh77665
Had many of "the elderly" saved, planned, and spent more wisely earlier on, they would not go bankrupt. Too many 30, 40 and 50 somethings today ignore saving for the future, but go on expensive vacations, buy expensive toys and generally live it up like crazy. They will be ones crying "life is not fair" 15-20 years from now.

If we golden parachute baby boomers are having trouble in retirement as the OP link implies, I can't image what is going to happen to those 30,40, and 50 somethings! I have a good hunch that I will probably die before I stop delaying my gratification, LOL. Enough of this, I need to go call someone on my flip phone!

 

[PimTac]

Originally Posted by maxdustington
Originally Posted by gfh77665
The American dream is achievable to anyone with a good work ethic and a disciplined money management mindset. The American dream also has to be realistic. 20 somethings just starting out in their entry level job should not buy a new SUV and a McMansion, then whine when ends don't meet. Thats what the entitlement generation does.
Entry level jobs require 4+ years of xp now, real estate was much cheaper back in the day. A blue collar could support a 2+ kid, 2+ car household on a single income in the boomer days. Not to mention more foreigners and women in the workplace driving wages down, why do you think cars are so much more expensive than they were 30 years ago?

Classic boomer telling you to just work harder, while their house they bought 30 years ago has tripled in value over the past decade. It takes $120k a year income to own a house in Toronto, my Dad owned three at one point on a single blue collar salary 30 years ago. The times have changed, old timer.





Classic case of envy.

Every generation has its own situation. Don't use prior generations circumstances to compare to your own.