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Retirement

flossy_log_ladyflossy_log_lady
edited July 2013
This is a dreaded topic, I know. No one likes to think about it. The world will be shitty shitterson before we even get there, and I think most of us would be happy with a decent income right now, let alone a decent "retirement income" to get us by in our old age.

But, seriously, how/what are people thinking about retirement? How are you even wrapping your heads around it? I need someone to give me some input, because I'm finally starting to think seriously about what's going to happen to me when I'm old and, according to the math, if I start putting $100/mo into a "balanced fund" right now (which, c'mon, can I even do that?), I will be able to retire when I'm 105 years old, even if I'm only shooting for a $30,000 income in my old age (definitely NOT enough to pay for nursing care or anything, which I will probably need well before I'm 105 years old.).

WHAT ARE WE SUPPOSED TO DO?? Who is writing about this and giving good advice? Help!

Comments

  • flossy_log_ladyflossy_log_lady
    Also, I find this kind of funny. I use mint.com for banking, and it helps me "set goals" etc. I'm playing with setting different kinds of goals, and it shows me how much I will have left over each month, then tells me what I could do with that money. The way I have it set now, it's telling me, "With your leftover money, you could either buy a home one year sooner than your projected date OR retire 25 years sooner than your projected date!"

    Hmmmmmm.
  • NickNick
    I don't think it will be possible for anyone "our age" to have a normal retirement under the current system.

    Don't worry about it and die young?
  • SchlabeSchlabe
    Buy (or check out) this book: I will teach you to be rich:
    http://www.powells.com/biblio/1-9780761147480-0

    I bought it at 26 and it helped me get my shit together, then I gave it away to someone else so it could help them. My finances are on point now: I've got no debt at all, and I'm saving for retirement and wedding and a house (and I grew up mega-poor).

    I'm a big fan of T-Rowe Price for retirement accounts - really great service and fairly good returns.

    Another thing: If you bank at Advantis Credit Union, you not only get quite possibly the best checking account in the world, but access to a financial adviser for free.
  • swamp_knobbler_mahanswamp_knobbler_mahan
    ELOPE, that way you can spend the $$$ for a wedding on something cooler, like trips or going into space or whatever.
  • kdawgkdawg
    I actually really like Suze Orman! Her advice is good!
  • flossy_log_ladyflossy_log_lady
    Cool! I will look into these peeps.
  • swamp_knobbler_mahanswamp_knobbler_mahan
    Betterment plans have been kind to me and their fees are low:
    https://www.betterment.com
  • swamp_knobbler_mahanswamp_knobbler_mahan
    Lemme know if you're interested in signing up and I'll refer you, cause you'll get free $ (like $10 or $20) and so will I.
  • SchlabeSchlabe
    I also like Betterment - I think Mike is on it too.
  • lolololo
    Abe, I didn't know about the free advisor from Advantis! That's my credit union, yo!

    I just started a 401K!
  • ManInTheIvoryTowerManInTheIvoryTower
    edited July 2013
    As with anything investment-related in the US, the system is rigged against you...

    The original intent of the 401k was to be part of a three-legged stool, along with SocSec and a pension. However the corporate world saw an opportunity to rid themselves of those pesky pension plans with the invention of the employer match. By tossing a few measly percentages points of salary[1] at their employees they divested themselves of the responsibility of providing a defined benefit plan for their retirees. Labor costs are much cheaper when you can use up your employees and toss them out when they get old!

    Don't let the futility of it all keep you from investing for the long term. "Pay yourself first" is the best mantra for your personal finance plans. Building up a 401k or IRA gives you a financial cushion that can be used in emergencies --most 401k plans allow you to loan money to yourself without suffering tax penalties, for example. (Only do that if you REALLY need it as it can be a trap. Entire balance is due when you quit or are laid-off!)

    But yeah, we will all be working until we are in our 80s. I recommend learning to code[2] if you don't already know how, keeping up with technology, and taking good care of your hands and eyes.


    [1] The standard 3% contribution rate in the US is the lowest in the advanced world. Australia's contribution rate is equal to nine percent of pay. Denmark's is 11.8 percent, Hungary's is 8 percent, Mexico's is 6.5 percent, Poland's is 7.3 percent and the Slovak Republic's is 9 percent.

    [2] See: codeacademy.com, code.org
  • YoursTrulyYoursTruly
    Yeah, there's no way any of us are going to retire, unless we come from big money--and it will need to be much bigger money than it used to be, too, because now in addition to skyrocketing cost of living and cost of college for the children people apparently keep having, we're also going to be the second generation that has to pay for long-term elder care for our parents, which costs about as much as a nice liberal arts college. If you add up 4 parents plus 2 kids on average plus retirement/elder care for yourself and your partner it comes out to several million dollars, which, lets not fool ourselves with our emo $100 contributions to 401ks or whatever.

    If you ever want to hear something that will keep you up at night ask me to tell you how much money my grandparents saved up over a lifetime of hard work and good decisions, vs. how much of that money is left now after 5 years in a mid-range nursing home. Lets just say it is "an incredible shit-ton" vs. "zero dollars."

    I don't know what's going to happen, but I'm pretty sure that no matter what decisions we make now there's no way we're ever going to have enough money to take care of the latter third of our lives (retirement, kids' college, parents' heinously drawn-out deaths).

    UNLESS we are in computers/tech/engineering, or the act of generating capital from other capital, which are the only industries our current society values. In that case probably retirement funds might be enough to see you through, barring crazy emergencies.

    Our main hope is that the neoliberalism currently governing all decisions made in the Western world--and which is admittedly a system prone to failure and crisis--crumbles during our lifetime. However, whether it will give way to something better remains to be seen.

    This is what people are talking about when they talk about the death of the middle class. That's us! Dying

    have fun out there
  • lolololo
    To live in a nursing home is $260 per day in a semi-private room/$300 private room + any incontinence supplies (as needed) + cost of medications (copays) + wound supplies (as needed)
  • SchlabeSchlabe
    Technology is changing though - there are now affordable, portable, one-person nursing homes you can put in your kid's backyard: http://www.medcottage.com/
  • YoursTrulyYoursTruly
    "wound supplies"
  • lolololo
    MORE MED COTTAGES PLEASE!!!
  • YoursTrulyYoursTruly
    god, the end of life is so fucking lonely
  • MirandaJulyMirandaJuly
    Might take up wing suit flying as a hobby, because why not?
  • flossy_log_ladyflossy_log_lady
    Can we just assign every old person (once he/she hits a certain age) an end-of-life counselor? This should absolutely be a new "job." Get your Master's in End of Life Counseling! - study elder law, human development, a little bit of medicine, different spiritual approaches to dying, family therapy/mediation, etc. All old people get one so that ALL old people have a plan, and hopefully that plan saves the whole system tons of money and reduces stress about dying on the part of the old person and his/her family.

  • lolololo
    flossy -- I WISH THAT EXSISTED.

  • YoursTrulyYoursTruly
    we prob need actual health care and to stop dismantling every vestige of the welfare state before that could happen, but one can always dream, 'tis a lovely dream
  • lolololo
    We need our government to rename Medicare or Medicaid so that people will stop thinking they're the same things.

    Hey ya'll -- word up -- Medicare doesn't cover nursing homes. Remember that!
  • flossy_log_ladyflossy_log_lady
    But the medicare website says it covers: Medicare Part A (Hospital Insurance) benefits, like inpatient hospital care, skilled nursing facility care, home health care, and hospice care.

    Is a "skilled nursing facility" different from a "nursing home?"
  • lolololo
    Yup.
  • SchlabeSchlabe
    I'm just going to put on some boxing gloves and fly to Africa to go box lions (if there are any). Go out like a champ!
  • YoursTrulyYoursTruly
    i'm just going to starve myself to death probably
  • YoursTrulyYoursTruly
    or jump in a shark tank

    i can't decide
  • YoursTrulyYoursTruly
    or just ascend to the heavenly plane in my earthly body
  • kdawgkdawg
    And then I go and watch this
    http://www.pbs.org/wgbh/pages/frontline/two-american-families/

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