# MSN article - why you'll retire poor



## Micheal (Jan 28, 2009)

Just read an article on MSN Money about "7 Reasons you'll retire poor". Listed are the reasons (without the comment or explanation they gave with each).

1. Busy keeping up with the Jones.
2. Not saving enough money.
3. Your savings priorities are all wrong.
4. you save your money in the wrong accounts.
5. you finance everything.
6. you let your credit score go.
7. your a chicken when it comes to investments.

Just thought I'd list them and let you voice what you think of the list....

My thought was "DUHHHHH", common sense at it's lowest.
If your doing #1 your not doing #2. 
#4 proves #3.
#5 goes to #1.
#6 because of #1 and #5.
#7 just because you want the money to go to all the above (more or less).

:hysterical:ound::hysterical:


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## Ramblin Wreck (Jun 10, 2005)

Saw a slightly different version of an article on the same topic. It included a bullet point about the pitfalls of letting your adult children drain your retirement savings to cover their own financial problems.


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## COSunflower (Dec 4, 2006)

My BF did that with his wife. He worked as a diesel mechanic in Alaska, Greenland etc. for years. Put away alot of money in a retirement fund. Didn't marry until he was 37 - to a woman with several children from a previous marriage. The marriage lasted long enough to father a little girl before his wife had an affair with her boss (the doctor that she worked for). When they married he took his retirement fund to buy a large house to fit everyone in and to support the other children whose father was not in the picture. In 6 years he lost it all but at least he does have his lovely daughter.  NEVER spend your retirement fund on ANYTHING but retirement!!!!!!!!!!!!!!!!!!!!!!


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## Bentley (Jul 10, 2008)

Michael, your post just said almost everything I wrote in a post just a few minutes ago on a different thread. Your post did it with a lot fewer words...lol. 

Excellent post. Hope young folks will listen.

B


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## MoonShadows (Jan 11, 2014)

Unfortunately, in today's world, most Americans can't delay gratification, so most will be poor when they retire.


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## TnAndy (Sep 15, 2005)

1. The only Jones I ever knew was a drunk, so there wasn't a whole lot to keep up with.

2. We saved a fair amount of money thru the years, but probably not in the 'traditional' sense, in that is isn't in paper instruments that can go "poof" in the night.

3. Nah, don't think so......

4. Most people do.....if they save any at all. 

But Money Magazine is oriented toward 'accounts' that are also wrong, IMHO. They think the only game in town is the Casino on Wall St rather than a conventional savings account or conservative bonds. All of those are paper promises, subject to being gone with the wind. Personally, I think NONE of the main stream media, or financial advisors, have a clue on what real wealth is or advice on how to attain it.

5. We financed very little in life. Huge purchases, such as our land, yes. Even then, paid off a 20 year note in 9 years. One thing we did was do most everything for ourselves in life, including build the two new homes we owned ( the previous one and the present one). That meant we spent way less on housing, and didn't have any mortgage after the early 90's.

Cars, we save up and pay either all, or most all, cash.

I did finance my Woodmizer sawmill back in 1991 thru Woodmizer, but since it paid for itself about a dozen times over, I don't even consider that more than some operating expense.

Never owned much in the way of 'toys'....no boat, RV, camper, vacation condo, etc.....so there was none of that depreciating crap TO finance.

6. I honestly don't know what my credit score is, since we haven't used it in 20 years or so.

7. I'm not chicken, but I'm not stupid either. I have done the mutual fund and stock market thing.....I just finally came to the conclusion both were designed to enrich others at the expense of the average 'investor', and went a different route.

We decided years back, my wife would continue to work at a local school system, got her Masters and EdD to max out pay, and get the pension offered by the State. She put in 32 years. Her retirement, plus SS, is around 48k/yr. ( after our health insurance is deducted ) And since she is a teacher at heart, she teaches line dancing on Monday nights at the Senior Center, along with carrying bunch of our excess eggs to people there ( has more requests for them than we have eggs ), so she comes home with 300/mo in 'mad money'.....ahahahaaa

I put in 7yrs teaching building trades, withdrew mine when I left, and invested it in the farm. I was self employed after that, and did IRA mutual funds, until I realized the folly of them, pulled it out, paid the tax/penalty, bought physical silver at around $6/oz, which has tripled while the typical mutual fund has done about zero over the same time period ( less, if you factor inflation ). I also built 3 rental houses for cash we earned along the way, and later sold them for many times what we had in them, and bought gold in the 600-800 range. My sole 'retirement' check is SS at just shy of 900/mo. (10.5k/yr). 

We also bought some raw land along the way, and right around the time we retired, sold it, owner financed. Guy has paid on it 3 years now, of 15, and just recently surpassed the amount we paid for it initially (with his down payment)....and we either have another 12yrs of income (17k/yr) at 6% interest, or a large payout if he decides to go that route.

So, with no debt, very low monthly expenses ( solar produces all our electric power, plus the utility paid us $1100 last year for excess put back to the grid, water is gravity fed spring, private septic, wood heat, we raise 80%+ of what we eat, heck I even negotiated my Dish bill down to 20 bucks....ahahahaa), we make out OK on a gross of 75k/yr.

We have a pretty good pile of assets, between the farm, pile of metals, and some bank accounts, (Not a big believer in excess piles of Federal Reserve Notes, since they really are NOT money) should the need come to tap them.

For a couple of kids that married and left home in our teens, I think we've done OK.
And I might have thumbed thru one or two issues of Money Mag in my lifetime, but I didn't take them too seriously.


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## Guest (Jun 13, 2014)

What's wrong with being poor?


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## Micheal (Jan 28, 2009)

zong said:


> What's wrong with being poor?


Nothing! That is if you choose to be that way. 

The problem with a good many people is that they didn't plan on being that way. 
It's the all of a sudden eye opening, nerve rattling, and earth shattering event that smacks you twix the eyes and really, really hurts. The thought that once you get ready to, or do retire, the money isn't rolling in any longer ...... if it was there at all.


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## ET1 SS (Oct 22, 2005)

I have been on pension for 13 years. This is great, now I finally have time to build stuff, garden and raise livestock.

We had to look around for a long time to find a region where we could live on my pension. Most places where we lived when I was working just cost way too much to live.


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## Horseyrider (Aug 8, 2010)

Weird article, they're not talking about me.

1. Busy keeping up with the Jones.

~~ That wasn't us. I have, to this day, little interest in what anyone else is doing. I feel sad for people who confuse what they own with who they are.

2. Not saving enough money.

~~ That wasn't us, either. We've always saved and invested between 16-20%. It was so hard in the early years; all I could think about is what I needed right then. But DH was more long-sighted, and taught me about the power of compounding over time. It made a huge difference in our bottom line. And I have no memory whatsoever of what I did without. It was just *stuff.*

3. Your savings priorities are all wrong.

~~ Priorities are as individual as noses and toeses. What works for me won't work for you and yours, so we all have to be realistic and true to ourselves. Someday, we won't even remember what the Jones looked like, let alone what their priorities were; so build your nest for the kind of bird you are.

4. you save your money in the wrong accounts.

~~ If they mean things like CDs, that's not us either. 

5. you finance everything.

~~ Financing things is not an inherently dirty word. Sometimes it's cheaper to finance something than to buy outright. It's always a good idea to calculate true total costs several different ways, and make a choice with manageable risk levels that works for you and your family. Of course, one must be able to tell the difference between needs and wants. They're not really the same at all.

6. you let your credit score go.

~~ Oh criminy, NEVER. NEVER did we let our credit score go. Last time I checked it was 824. I found out because I was shopping for the money to buy the year old used car with the same intensity I had in shopping for the used car. I ended up paying cash, because I couldn't find a deal that promised better use of my resources.

7. your a chicken when it comes to investments

~~ Nah. Not chicken at all; prudently diversified, and comfortable with my personal level of risk. Little pennies make big dollars over time, as long as you leave them alone to grow. You can plant an acorn and let it grow an oak tree, but if you chop it down before it's mature, all you have is kindling, and no shade for your elder years. Most people want to DO something with their investments, when actually the best thing much of the time is to let it sit. We made no moves in the 2008 recession, and those investments have bounced back and exceeded the position we were at. We just tightened our belts a little bit and decided to ride the ride. The economy is cyclical, and down cycles are followed by upswings. It worked okay.

I really do feel bad for people who have what I think of as Scarlett O'Hara thinking about building their retirement nest-- that tomorrow is another day. You get to that day and it's not tomorrow anymore, it's today; and then the act of getting serious about saving is deferred way too late to take advantage of long term compounding. I hear all the time about how folks can't retire because they didn't get serious until they were almost there, and then it's flat too late. That's why I believe many people retire poor.

I think of a lady I saw years ago on TV who used compounding very wisely. She was a librarian and made all of $18K a year; but she saved from a young age, let the multiplying effect of compounding let her money make money, and when retirement age came, she had over $1M set aside. 

Money doesn't buy happiness, but it does buy choice.


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## Litlbits (Jan 6, 2014)

Those types of lists are geared to instill anxiety and fear and usually suggest getting with a financial advisor who would be very happy to take control of your money and your "future". I prefer to keep my money (what little I have) under my own control. I am retired and my nest egg is small by most standards but I am content and happy. My home and car are paid off, I have enough food to eat. I don't consider myself "poor" but statistically I live below the poverty level. Back in 1979 my husband injured his back, had three major surgeries which only made it worse. He could no longer work. We lived in St Louis county in a middle class neighborhood with a 3 bed/2 bath home at that time. Our son was 6 years old. We chose to find a small home on a few acres that we could buy outright. We ended up in Lebanon Mo area with a very small home on 3 acres. The cost was $16,500. Our total income each month was $480. We gardened, canned our own food, bought a few goats (5 pregnant does for a total of $50.00) from a man from the area and 13 older chickens from the neighbor across the road. Lots of good milk and eggs. We heated with wood and there was one small window air conditioner for cooling in the summer. Talk about a lifestyle adjustment!!! My point being is that we were forced by unforeseen circumstances to change our standard of living and learn some very important life lessons. Those were some of the best years of our lives. We learned to live contentedly with less stuff and a lot less money. God blessed us so much with those tough lessons and I am so grateful. Some would say we were poor, I would say we were rich, it's a matter of perspective and realizing what is truly important. DH past away in 2009 but I still treasure those years.


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## Alice Kramden (Mar 26, 2008)

Why one will retire poor: The massive inflation promulgated by the Fed and this tax happy, spend happy government.


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## Bret (Oct 3, 2003)

There is a certain richness to it.


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## Nevada (Sep 9, 2004)

Alice Kramden said:


> Why one will retire poor: The massive inflation promulgated by the Fed and this tax happy, spend happy government.


Inflation is only about 1.5%. That's not massive. It's not even what most consider to be normal.


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## corynski (Jun 26, 2014)

I don't think you can trust any government numbers on inflation. Here's John Williams "true" rates of inflation:

http://www.shadowstats.com/alternate_data/inflation-charts

At last notice, the US postage stamp that as a child was 0.03 cents, is now somewhere above 0.45 cents, "Forever" they've called it....... The 'nickel' cokes and ice cream are now way above a dollar. My chart shows $1.00 in 1937 is now worth 0.02 cents!

Shame, shame on our bankers and government officials for destroying our money!


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## sss3 (Jul 15, 2007)

Knew a woman, worked as a Bank Teller. Her DH owned a small Mom and Pop style store. Even though she didn't make a lot of money, her investments were wise. This was back in the days this was possible. She'd watch how the wealthy people that came in the bank invested their money. She'd do the same; at retirement, she had well over $1mil. Too bad, it didn't make her a nice person.


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## Nevada (Sep 9, 2004)

corynski said:


> I don't think you can trust any government numbers on inflation.


I'll admit that I don't believe 1.5%. I think 5% to 7% is more realistic. But it's no where near the 10% inflation we saw in the late 1970s through the early 1980s.


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## mnn2501 (Apr 2, 2008)

Government numbers do not reflect real life purchases of most people.
it includes: refrigerators, cars, furniture, etc. Like everyone goes out and replaces those items every year.

It SHOULD contain: a specific number of food items, gasoline, electricity, natural gas/heating oil, etc. Things 99% of people actual purchase throughout the year.


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## Nevada (Sep 9, 2004)

mnn2501 said:


> Government numbers do not reflect real life purchases of most people.
> it includes: refrigerators, cars, furniture, etc. Like everyone goes out and replaces those items every year.
> 
> It SHOULD contain: a specific number of food items, gasoline, electricity, natural gas/heating oil, etc. Things 99% of people actual purchase throughout the year.


I find it difficult to believe that any reasonable measure of inflation will show as low as 1.5%.


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