# Future Retirees - Here's the answer!



## Micheal (Jan 28, 2009)

Was reading an article about "retirement matters" and it stated:

"...the foundation for a comfortable retirement is laid years in advance, by spending carefully, minimizing debt, and maximizing savings.
These personal-finance basics allow you to accumlate resources and maintain your lifestyle with some continuity."

Ahhh, if'n it was only that simple and life didn't throw you so many curves that rock that foundation building process....... 
Opinions? eep:


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## Tarheel (Jan 24, 2010)

Micheal said:


> Ahhh, if'n it was only that simple and life didn't throw you so many curves that rock that foundation building process.......
> Opinions? eep:


Yep........2008 rocked most people's plans. Live within your means (and below) and keep digging, we will get there.

Life is good!


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## Big Dave (Feb 5, 2006)

A stout medical bill could still do your finances in. Speaking from experience.


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## where I want to (Oct 28, 2008)

Let's see- according to the latest political philosophy, you can save, denying yourself goodies for years, invest conservatively and then the government can use those savings to bail out banks, Wall Street, and all those people who did not do this. 
I love all those investment people saying to "save save save then let me use that money to make myself rich." 
There was a point in the 1980s and 1990s where accumulation was taxed less and it was possible to flip houses to become rich. But it's going to be much harder now.


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## TnAndy (Sep 15, 2005)

Tarheel said:


> Live within your means (and below) and keep digging...


Lot of wisdom in that short sentence.

1. *Live below your means.* Lot of folks are just the opposite.

2. * Keep digging.* To me, that means a 40 hr week is enough to 'get by' , but not get ahead, for most people. But most people are content to 'get by'.

We started planning to retire 30 years ago. Now we are, and life IS good.


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## Ramblin Wreck (Jun 10, 2005)

Yeah, I think they got the foundation right. There are exceptions that can get you there quicker (win the lottery or take a lot of investment risks) or cause you to fail in your retirment quest (health problems or natural disasters).


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## Horseyrider (Aug 8, 2010)

TnAndy said:


> Lot of wisdom in that short sentence.
> 
> 1. *Live below your means.* Lot of folks are just the opposite.
> 
> ...


^^This.^^

Indeed, live below your means. Provide for your old age first. The power of compounding interest over time will smooth out the bumps of temporary adjustments in the market. People think they *need* so much; when actually they only want it. Learn the difference between needs and wants.

You can work into your plans the predictable but unpleasant things life throws at you, even the big ones like major illness. Provide for these things; and if they happen, you'll be protected. If they don't, then you simply have more interest bearing resources.

We started planning to retire in our early twenties. We have a few years left to go before stepping off the merry-go-round, but we're on track for 120% or so of current income. DH is going through some major health challenges now, but we have excellent insurance and lengthy short term disability which pays at 100%, so even though he could retire today, he chooses to wait. 

I'll be the first to acknowledge that when we were young, I thought we needed so many things. But DH was able to look further down the road than I could, and his careful planning has provided a safety net that will be there whether one of us passes too early or not. It's nice to know too, that if both of us go early, our daughter has a good leg up on her safety net due to our efforts. 

I look back on those early years and realize I gave up nothing of any real importance; and now I'm reaping the rewards of his patient saving in long term security.


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## Nevada (Sep 9, 2004)

Big Dave said:


> A stout medical bill could still do your finances in. Speaking from experience.


Not if you don't pay it. Medical bills are an unsecured debt so they don't have a lot of teeth.


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## Tarheel (Jan 24, 2010)

Nevada said:


> Not if you don't pay it. Medical bills are an unsecured debt so they don't have a lot of teeth.


You are correct......but are you going to get the best treatment possible next time ?


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## Nevada (Sep 9, 2004)

Tarheel said:


> You are correct......but are you going to get the best treatment possible next time ?


It won't make any difference. They'll get their money for treating you by inflated tax write-off. They don't care where it comes from as long as they get it.


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## Huntmo1 (Nov 30, 2011)

I love reading all these "retirement" articles online and in magazines...they make it sound so easy. For example, I was reading an article about someone who was 40 yrs old and hadn't saved anything and the article said, something like, "but it's not too late, you can save up to the IRS limit of $16,500/yr and by the time you're 65, you'll have xxx $s."

Sure, like everyone can just instantly start saving the IRS limit every year...for some, that is 1/2 of their entire salary and saving $100/month is hard enough.

I got a fairly late start, but we have been focusing a lot more on it in the past few years and I'm constantly talking to my kids about the importance of saving early on...something I wish someone would have spent time doing to me when I was 20.



Micheal said:


> Was reading an article about "retirement matters" and it stated:
> 
> "...the foundation for a comfortable retirement is laid years in advance, by spending carefully, minimizing debt, and maximizing savings.
> These personal-finance basics allow you to accumlate resources and maintain your lifestyle with some continuity."
> ...


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## Shrek (May 1, 2002)

Life's road is always full of curves and obstacles. Retirement is nothing more than the last part of the journey where the clearing at the end is at. In the direction of that clearing provided you have planned your past path adequately you get the opportunity to trade your latest "heavy duty all terrain life vehicle " that most everyone's life paths force them to upgrade to depending on life conditions and travel route choices in for a lifestyle touring car or maybe a golf cart as we all reach that clearing at the end with a variety of recreation choices just inside the clearing and the peaceful cemetery at the back side of it.

Our lives are nothing more than our travel to our space in the memorial garden at the backside of our life end clearing. 

All we can do is enjoy the ride over the all terrain parts when young, endure the rougher ride as we age, plan for when our life vehicle can become less rough riding and if our travels get detoured enroute to the clearing at the end put off trading in our rough duty life vehicle or trading our rough terrain vehicle for a less heavy grade one if needed as we continue our travels to the Clearing at the End.

If along the way we roll our heavy duty life vehicle in a curve or plow head on into an obstacle we get fast forwarded to the no frills budget rate section of the clearing nearest the memorial garden on the back end.

Thats my take on life and my journey through it. My father taught me in my teens that the day I was born I started to die and began my trip to the Summerland Clearing at the end and to keep my eye on the Clearing but enjoy the ride to it and keep myself putting a bit aside for when I traded "the rough road in for the last section better maintained and with fewer curves".

I took that turn off 12 years ago when I turned 41. Sure there have been a few potholes to dodge but its a lot easier of a ride than that logging road and superhighway of life I rode to the exit and its still has some excitement just not all the frills I imagined at various times of my life____but it doesn't have all the white knuckle gripping of the wheel either. 

As one of my favorite poker pros said in an interview when asked how he could appear happy playing quarter ante dollar limit card games in Gardenia CA after a lifetime of winning and losing fortunes said, he put away enough to retire to Gardenia and the quarter ante dollar limit games were still "some action".

I took my life turn and turned away from the hustle bustle and headaches but I got a roof , some outdoor space to myself. enough social life to satisfy me and my own form of action reminiscent of the life through which I have traveled____it's all gooooooddd


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## nostawmama (Dec 29, 2011)

I had a thought the other day and wonder what people would think about it. I have no retirement and currently cannot save for retirement and this concerns me greatly, but I am doing the best I can right now. My thought actually has to do with my children- they are currently very young but of course I have thought about their future. The thought stems from my worry over my current situation.

What do you all (at or near retirement) think about investing the money that my children make from 14-17 for their retirement? I wrote a post with some details on my blog here.

Do you think that my children will be thankful for it later or do you think that they will forever curse my name?


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## Shrek (May 1, 2002)

nostawmama said:


> I had a thought the other day and wonder what people would think about it. I have no retirement and currently cannot save for retirement and this concerns me greatly, but I am doing the best I can right now. My thought actually has to do with my children- they are currently very young but of course I have thought about their future. The thought stems from my worry over my current situation.
> 
> What do you all (at or near retirement) think about investing the money that my children make from 14-17 for their retirement? I wrote a post with some details on my blog here.
> 
> Do you think that my children will be thankful for it later or do you think that they will forever curse my name?


From the time I set up my first job at 10 cutting lawns until I graduated junior college , got my first adult job and moved out of my parents home at age 21, my father charged me 30% of whatever my net income was for room and board and put it into savings for my final two years of college or my future.

As it was my employer paid for the rest of my education so my father kept investing the room and board he collected from me for those 11 years.

16 years later he gave me the down money I needed for my farm from my room and board fund and after I had my place paid off and was on my way into my company contract buyout retirement he transferred the safely invested account to me and I maintain it as he did.

A side effect of his charging me room and board was that when I first moved out on my own when I was 22 I was able to happily search for a one bedroom / no room mates apartment that fit into 30% of my net income even though it was not as luxurious as some of the apartments other young coworkers selected and required two or three room mates using one bathroom to afford.


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## SageLady (Jun 10, 2008)

Nevada said:


> Not if you don't pay it. Medical bills are an unsecured debt so they don't have a lot of teeth.


My sister got her wages garnished for not paying her medical bills. It's about to kill her financially. She lives in Kansas, and the hospital and doctor both got court ordered judgements against her... 

Guess they can't garnish retiree's pensions or SS if we can't pay?


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## mekasmom (Jan 19, 2010)

SageLady said:


> My sister got her wages garnished for not paying her medical bills. It's about to kill her financially. She lives in Kansas, and the hospital and doctor both got court ordered judgements against her...
> 
> Guess they can't garnish retiree's pensions or SS if we can't pay?


That is what bankruptcy laws are for..... And no, SS is not garnishable.
Back when newt redid the laws, dems wanted medical bill bankruptcy under a special law or something. It didn't happen. I don't remember all the details (sorry), but people do have to do a traditional bankruptcy to get rid of them. But, there is no reason for your sister to be stuck with those garnishments and bills. That is what bankruptcy laws are for.


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## SageLady (Jun 10, 2008)

mekasmom said:


> That is what bankruptcy laws are for..... And no, SS is not garnishable.
> Back when newt redid the laws, dems wanted medical bill bankruptcy under a special law or something. It didn't happen. I don't remember all the details (sorry), but people do have to do a traditional bankruptcy to get rid of them. But, there is no reason for your sister to be stuck with those garnishments and bills. That is what bankruptcy laws are for.


 
My sister and her DH split up a couple years ago. They claimed bankruptcy then. She isn't allowed to have another bankruptcy so soon. She has no assets at this point because she lost her house, etc., but has a job that pays just enough to keep a roof over her head, etc. Now the garnishment is taking that from her. I'm helping her some financially at this point...


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## Mattemma (Jan 1, 2013)

Looking at my parents and their friends in their 60's+ I have learned that it is best to get things out of your name.Have nothing on paper.Any amount of savings or investment will disqualify you for any sort of help when you need it.

Get sick and need 24 hour care short or long term? Expect a latch onto your home to pay for those bills.Best to transfer title in old age,because bill collectors can latch on to that home up to 5 years retro. Have met far to many people who have lost a home they owned to pay medical bills.

Even if you saved well the cost of living will prevent you from living decent.Use less water? Turn that heat down in the winter? Doesn't matter! Utility companies just raise their rates to make up the difference.


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## pancho (Oct 23, 2006)

Give some thought before signing away your belongings to another person.
They might decide they are going to kick you out and sell it.


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