That is one point of view, but I know people in their 70s/80's that have a stock of guns, ammo, MRE's and survival food, that are not able to work, working at Wal Mart, trying to cope with this OUT OF CONTROL INFLATION! It takes money to live after e retirement!
Find a stock market chart from a reliable sorce, and look at WHAT THE STOCK MARKET HAS ACTUALLY DONE THE LAST 100 YEARS, INCLUDING THE GREAT DEPRESSION! This is fact, not rumor, and the chart looks like Mt EVEREST, and continually goes up, with dips! Sure the entire world economy could crash, and burn, but if that happens, the only thing that will matter is food, and ammo! We must plan for what is likely to happen!
Agree with much of that. Unfortunately news and education have dumbed all of us down, we have some good financial instruments if one is young, and one if lucky can choose their standard of living in retirement. Most people now think they will pay off their home and social security will give them enough to survive (especially young progressives.) Saving is critical. Real estate, rental property, a business one can sell, stocks, mutual funds are all good instruments to save in assuming the government doesn't screw with them badly.
You must put something back for a rainy day and retirement. It’s going to rain and if you live long enough you’ll retire.
Look to the people that are worth some $ and talk with them. Discuss pros and cons. Most people want to help younger people do well. But don’t take financial advice from broke people. Just like you wouldn’t take diet advice from me.
At minimum, I’d get that “free” 6% that you’re earning every month. Invest it a the 401k across several categories.
Then, I’d set up a Roth for myself and spouse. You can do $500/mo per adult (you and wife). If you can’t do $1k, do a hundred or two. You got $50 extra at the end of the month above the emergency fund, put it in the Roth. You can do this yourself or use a firm like Fidelity, etc.
Once you get to 15% of your gross income going into 401k & Roth, then pay down your debts, smallest to largest. Finishing with the house. Also, may consider college funds for the kiddos as well. You be surprised what $100-150 a month can do in 12-18 years.
The HSA is awesome too. It lowers your taxable income, you can invest inside of it, it withdraws, grows and spends tax free. You should max this out if finances allow. You can even use this well into retirement for medical expenses.
Doing something=better than doing nothing.
Look to the people that are worth some $ and talk with them. Discuss pros and cons. Most people want to help younger people do well. But don’t take financial advice from broke people. Just like you wouldn’t take diet advice from me.
At minimum, I’d get that “free” 6% that you’re earning every month. Invest it a the 401k across several categories.
Then, I’d set up a Roth for myself and spouse. You can do $500/mo per adult (you and wife). If you can’t do $1k, do a hundred or two. You got $50 extra at the end of the month above the emergency fund, put it in the Roth. You can do this yourself or use a firm like Fidelity, etc.
Once you get to 15% of your gross income going into 401k & Roth, then pay down your debts, smallest to largest. Finishing with the house. Also, may consider college funds for the kiddos as well. You be surprised what $100-150 a month can do in 12-18 years.
The HSA is awesome too. It lowers your taxable income, you can invest inside of it, it withdraws, grows and spends tax free. You should max this out if finances allow. You can even use this well into retirement for medical expenses.
Doing something=better than doing nothing.
SS has been broke of decades, and is operating on credit now! I seriuously doubt the younger Americans will get anything, from all their FORCED contributions! Whipping a dead horse, gets us nowhere, We tried to plan so we could have a decent life style, no matter what SS did, and if we got SS, that was just a hedge on inflation! That plan turned out to right on! If inflation is 5% per year, it was 12/15% in 2021, for 10 years that is 50%! People living on fixed income standard of living, (parching power) went down 50%! That seems to be the most common mistake I see, starting out with a sufficiant income, but being overwhelmed by inflation! I suspect the, lion feeds on not only the lame antelope, but the ones that don't use their heads as well, and both improve the species?
I did say progressives, they are still banging the drum on universal income and socialized medicine. Odds are if we do get those healthcare will not pay the cost of treating the diseases that afflict older Americans.
AMEN on that!!! always take advantage of a matching 401k
Thank you all for your responses. I’m going to contribute 6% to get their match. Rumor is they’re increasing their match next year so Ill probably be increasing again, raises and bonuses should be coming as well. We will see how it plays out.
My boss made quite a bit more than i did but never invested into a 401k because he was too cheap.I retired several years before he did and he still lives in a 50 year old 1000 square foot house and will rely on social security the rest of his life.SS is a few years away for me but it will be icing on the cake.
I built a spreadsheet with each paycheck, showing my pay and the amount of withholdings. I was able to calculate the exact amount of taxes that I will pay over the year and the amount of 401k withholding to keep me in a lower marginal rate. If my calculations are right, I will get an immaterial
refund and I’m saving the higher marginal tax rate by contributing more to my
401k.
Similar threads
