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Financial Status and Opinion - General Poll

Discussion in 'The Okie Corral' started by bwphoto, Mar 31, 2012.

  1. bwphoto

    bwphoto Lifetime Member

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    Well, I didn't win the lotto tonight and neither did a friend of mine. We got to talking about the state of our finances, at 30 years old, and those of various people we know.

    I've got the feeling that the career path our grandparents had - work from 18 until 55/60, retire and relax until death, is something fewer and fewer people - especially from my generation - will be able to do.

    How about you? Is retirement and long term finances something you are thinking about now in your 20s and 30s - or is it something to worry about later? What about other people you know? What will happen when social security is bankrupt and so are America's AARP members?

    More experienced gents - any wisdom to pass down?
     
  2. bwphoto

    bwphoto Lifetime Member

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    Personally, it has been in the back of my mind. After this market meltdown and losing a sizable amount in a family business, I'm very close to being back to nothing and looking at ways to rapidly, if uncomfortably, play catch-up.
     

  3. Rabbi

    Rabbi The Bombdiggity Lifetime Member

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    Old you is counting on young you.

    Choose wisely.
     
  4. c01

    c01 Crazy Eye

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    Looking at 63. I'm happy with that. It has meant that my wide and I will not upgrade to a new house on the future. We have 12 years left on ours. I'm 43.

    Sent from my DROIDX
     
  5. c01

    c01 Crazy Eye

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    Looking at 63. I'm happy with that. It has meant that my wife and I will not upgrade to a new house in the future. We have 12 years left on ours. I'm 43.

    Sent from my DROIDX
     
  6. silentpoet

    silentpoet

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    Make wise choices now have a better future. Make poor choices now, have a poor future.
     
  7. faawrenchbndr

    faawrenchbndr DirtyThirty fan CLM

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    Start putting away at least 15% of every pay check!
    Pay yourself first!
     
  8. RC-RAMIE

    RC-RAMIE

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    It hit me hard this past couple of years I'm 34. I'm in the motorcycle business and this economy slow down caught me off guard I'm working on paying off debt and starting a retirement plan.


    "Let it not be said that no one cared, that no one objected once it is realized that our liberties and wealth are in jeopardy. - Ron Paul
     
  9. RC-RAMIE

    RC-RAMIE

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    It was a video on TED called the battle between current self and future self that got me thinking about it.


    "Let it not be said that no one cared, that no one objected once it is realized that our liberties and wealth are in jeopardy. - Ron Paul
     
  10. Dubble-Tapper

    Dubble-Tapper

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    you got me thinking on that one Rabbi.
     
  11. 427

    427

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    For me, realistically, I'll probably never be able to "retire". But if I can turn my hobby into a money making business, it won't matter.

    Even if I'd won the lottery, I wouldn't retire, I'd find something meaningful to do with my time.
     
    Last edited: Mar 31, 2012
  12. Hyksos

    Hyksos

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    About to be 26 and I got six figure education debt. Also, I got a career that has my fellow professionals suing their alma maters for lying about employment figures.
     
  13. DanaT

    DanaT Pharaoh

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    Talk about the American way.

    When life doesn't go 100% your way, sue someone because its not your fault.

    It will be an ironic turn of events when people start suing their lawyers when they lose a court case.

    -Dana
     
    Last edited: Mar 31, 2012
  14. vwluv10338

    vwluv10338

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    Its funny because I rarely get to talk about this becauase I dont like to talk about money with my friends. However, I feel like I am in a better position than most people. My parents sat me down with a chart of compounding interest when I was about 15 and explained IRAs and 401ks. They opened a ROTH IRA for me at the same time and put money into it without me knowing. Eventually they turned it over to me when I got out of college. I opened a 401k at work as soon as I was able at 21 years old. Another lucky break was buying my house from my grandmother. She bought it to move into after my grandfather died but then never moved.

    So now I'm 30, married, have a 6 month old baby girl. My daily driver car is paid off, (I'll never do that again, no more auto loans) my fun car is paid off, my truck is paid off, my motorcycle is paid off. I get a deal through work on a lease for my wife. I have 6 months living expences in cash and PMs, I have stocks for fun and profit, and a little over 6 figures in retirement accounts. As for depts, my house will be paid off in 8 years and I owe the last $10k on my wifes school that I put on my home equity line. She has about 3 more years before she finishes her PhD and gets a real job. At least I'm not currently paying for her school anymore but when she gets a job her income will go up 4x or so.

    Sometimes I hate my job. After college I decided not to go to grad school and went into a mechanic program. Now I work on my feet destroying my body every day for 11 hours a day with a paycheck that is up or down $800 a month. I am trying to decide if it makes more sence to do something else because after 8 years in the field I have no where to go. Maybe management but I doubt it.
     
    Last edited: Mar 31, 2012
  15. BobbyT

    BobbyT

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    You want real advice? Here are two starting points:

    1. Don't compare yourself to your peers, or the population at large.
    2. Ignore those silly 10-15% savings recommendations. Put aside 50%.


    By definition, most people our age aren't making much money yet. On top of that they're spending like idiots. Even if you expand your comparison to the general population, most people are in abysmal shape. You can be more responsible than nearly everyone you know, and still not be in that great of shape.

    At 26 I make double what many of my friends do, so I'd expect to be able to do anything they do. Not the case -- they still manage to spend at a rate I'd be uncomfortable matching. Comparing with my peers would only lure me into a false sense of security.

    As for your savings rate, those silly 10/12/15% recommendations are for people who blow their entire paycheck. I suppose anything is better than nothing, but putting aside 12% and assuming 2% inflation and 10+% perpetual returns plus Social Security is a shaky foundation.

    The way I see it, until you're saving HALF what you make, there's room for improvement. If you can't afford to do that, reevaluate your spending, then work towards making more. Once you hit 50%, you can relax a bit on the spending side, but you should still be trying to make more.
     
    Last edited: Mar 31, 2012
  16. boomhower

    boomhower

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    While a lofty goal, it's pretty unrealistic for most people. By the time you account for decent living arrangements and monthly bills most families just can't do it. Sure spend less and make more is a lofty goal but again, not realistic. I bought a house for $58k, can't get much cheaper. Cars paid for. We do splurge on the cell phone and cable but other than that don't do luxuries and there is no way we could get in the ballpark 50%.

    As for the OP, it will largely depend on what happens with my pension. If it isn't gutted I'll retire at 55-57.(55 is the minimum or wait until for 57 for max at 30 years) I won't quite working at that time but will retire from my career and find something less dangerous to do. If my pension is gutted I'll work longer. I already count on SS being non-existent. I turn 30 next month.
     
  17. Von Hayes

    Von Hayes

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    Young me is having fun. Old me can reminisce.
     
  18. Naelbis

    Naelbis

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    Who can possibly afford to save half of what they make unless they make six figures? That is completely unrealistic for the vast majority of workers. To be honest, many people are just starting to realize that retirement is becoming a pipedream. No one who depends on a tax shelter designed for executives for their savings is ever going to be able to comfortably retire unless they make commisurate pay...
     
  19. A/C Guy

    A/C Guy

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    I agree. No one knows how long they are going to live. I have seen healthy guys die in their late 30's and others in their 40's.
    Living like a miser as some others suggest, is not living. How sad it would be to live that way and save every penny, then die at or near retirement age. :shocked:

    Enjoy life now, you do not know what the future holds.
     
    Last edited: Mar 31, 2012
  20. .264 magnum

    .264 magnum CLM

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    Lawyer?

    I'd find a way to go into corporate law. Young associates and especially pre-bar clerks are getting crucified right now.

    Best of luck.