Why work so long?

[rod]

Better than my fathers $0.00 a month pension.

If you look around that is what the majority of workers get unless they have had a Union job.

 

[Brownslave688]

If you look around that is what the majority of workers get unless they have had a Union job.

It is. However I feel bad for the people that started work 30-40 years ago. When they started work the mentality was work for 30 years and retire. My company pension will be my retirement. Things changed on them fast and left many unprepared.

 

[rod]

It is. However I feel bad for the people that started work 30-40 years ago. When they started work the mentality was work for 30 years and retire. My company pension will be my retirement. Things changed on them fast and left many unprepared.

And things will continue to change as far as everyone's pension goes -- and unfortunately not for the better.

 

[Mugarolla]

You'd still need a 33% pay cut. Not really close.

I would not advise anyone to retire with 2 kids still in the house.

It is not really a 33% cut between that and poverty. The family of 4 only making $23K will get free medical, food stamps to buy food and subsidized housing from the government.

If you take my $35K example and subtract food and housing (I already included the medical), that leaves around $20K left. The family making $23K has these things, or a percentage of them, paid for.

Looks closer to poverty to me than the 33% difference.

 

[olroadbeech]

they say you need 80% of your pay for retirement but I think that is way too high if you are smart.

i'll save at least 5 grand a year on gas and wear and tear on cars for example. if your house is paid off ( and it should be ) you save another 1500-2000 a month or more.

we made a list last year of everything we need before I retire. a new roof, tools , new appliances, computer, nice cars , etc etc etc. get everything set that way.

this year we are writing down all our expenses every month including monthly extra budget for home maintenance, emergencies, etc and seeing if our expenses come close to my potential pension.

I plan on working part time or taking my hobby to a PT business but I want to do those things for fun, not out of necessity.

 

[Mugarolla]

they say you need 80% of your pay for retirement but I think that is way too high if you are smart.

i'll save at least 5 grand a year on gas and wear and tear on cars for example. if your house is paid off ( and it should be ) you save another 1500-2000 a month or more.

we made a list last year of everything we need before I retire. a new roof, tools , new appliances, computer, nice cars , etc etc etc. get everything set that way.

this year we are writing down all our expenses every month including monthly extra budget for home maintenance, emergencies, etc and seeing if our expenses come close to my potential pension.

I plan on working part time or taking my hobby to a PT business but I want to do those things for fun, not out of necessity.

That's all well and good, but for the guys that say they are retiring at 50 and get the roof fixed, new cars, appliances and such before they retire, will need to do it all over again when they are 65. New cars, appliances, possibly a roof.

So plan that into the equation. If you retire at 60-62, most of those things will probably last. But if you retire at 50, how many of those things are going to last for 30 years? Maybe the roof.

 

[rod]

That's all well and good, but for the guys that say they are retiring at 50 and get the roof fixed, new cars, appliances and such before they retire, will need to do it all over again when they are 65. New cars, appliances, possibly a roof.

So plan that into the equation. If you retire at 60-62, most of those things will probably last. But if you retire at 50, how many of those things are going to last for 30 years? Maybe the roof.

Who says you have to quit buying the good stuff when you retire? Since retiring at 53 I have bought a new VW Passat in 2000 (worst car I ever owned by the way), a new Honda Accord in 2007, a new Chevy Silverado 4 X 4 in 2008, a new Harley Ultra Classic in 2011, a new 27 foot Toy Hauler camper in 2011 and a new Ford Escape in 2014. Paid cash for everyone of them. I think next on the list in a couple of years is a new pickup--again. If you plan ahead, get a good financial adviser and don't owe anyone a dime when you retire it isn't hard to maintain your life style. I always said-I wasn't a rich person when I was working so I didn't expect to be one when I retired--but I do just fine---thank-you. P.S. I forgot to mention that we also built a new house since being retired.

 

[clean hairy]

One money guy I listen to may have said it well.
"Too many folks chase a number, once they reach that number, say $1 mil, they will then retire. Too many times, they never reach that number they are chasing and never do get to retire"
As he explained it, say a person is chasing $1mil.
Suppose their 401k is worth $300,000 and due to the economy it drops to $200k.Now, they figure they have to keep working to make up the $100k drop in the value of the 401k.
The advice this financial guy gave, is retire when you feel financially able to, and do not let a number prevent you from retiring.
Hope I explained it half as good the money talk guy.
Now, 1 friend I know said his 401k dropped by 40% due to economic downturn so he would have to work several more years to make up for the shortfall.
I tried to explain to him, but he has his goals, and I cannot fault him for it.

 

[Mugarolla]

Who says you have to quit buying the good stuff when you retire? Since retiring at 53 I have bought a new VW Passat in 2000 (worst car I ever owned by the way), a new Honda Accord in 2007, a new Chevy Silverado 4 X 4 in 2008, a new Harley Ultra Classic in 2011, a new 27 foot Toy Hauler camper in 2011 and a new Ford Escape in 2014. Paid cash for everyone of them. I think next on the list in a couple of years is a new pickup--again. If you plan ahead, get a good financial adviser and don't owe anyone a dime when you retire it isn't hard to maintain your life style. I always said-I wasn't a rich person when I was working so I didn't expect to be one when I retired--but I do just fine---thank-you. P.S. I forgot to mention that we also built a new house since being retired.

I didn't say you had to stop. But you're the exception. There are some like you that saved quite a bit of money to buy all those things with cash, but most people just save enough to get by during retirement.

You're probably also getting $1500-$2000 a month in social security. While you may not need it, that will buy a lot of good stuff. It probably won't be around when I retire.

I also have all that good stuff now. I want to enjoy life now instead of skimping so that I can have all that good stuff when I retire.

I will just have to work a few more years to have enough money to have all the good stuff when I retire.

Trying to save $20K a year on a $65K job only leaves $45K to live on. While that is decent money, kids, college, houses are expensive.

I can't see having a quarter of a million dollar house, 2 nice vehicles, motorcycles, 4 wheelers, college expenses etc. on a $45K job.

I have all that now and still plan on retiring when I'm 62 with plenty of "play" money.

 

[Jones]

I didn't say you had to stop. But you're the exception. There are some like you that saved quite a bit of money to buy all those things with cash, but most people just save enough to get by during retirement.

You're probably also getting $1500-$2000 a month in social security. While you may not need it, that will buy a lot of good stuff. It probably won't be around when I retire.

I also have all that good stuff now. I want to enjoy life now instead of skimping so that I can have all that good stuff when I retire.

I will just have to work a few more years to have enough money to have all the good stuff when I retire.

Trying to save $20K a year on a $65K job only leaves $45K to live on. While that is decent money, kids, college, houses are expensive.

I can't see having a quarter of a million dollar house, 2 nice vehicles, motorcycles, 4 wheelers, college expenses etc. on a $45K job.

I have all that now and still plan on retiring when I'm 62 with plenty of "play" money.

65K? You part time?

 

[Mugarolla]

65K? You part time?

OK... $70K based on 8 hours per day.

Point being that I don't plan on buying brand new vehicles every five years and building a new house after I retire.

I'm enjoying life to the fullest now while still saving to be well off when I retire. Right now I have everything I ever wanted. I have not said that I cannot afford to buy this because then I won't be able to save that $20K this year.

I may not be well off enough to build a brand new house like rod when I retire, but I don't plan on having any worries.

I have that brand new house right now.

 

[brownmonster]

One money guy I listen to may have said it well.
"Too many folks chase a number, once they reach that number, say $1 mil, they will then retire. Too many times, they never reach that number they are chasing and never do get to retire"
As he explained it, say a person is chasing $1mil.
Suppose their 401k is worth $300,000 and due to the economy it drops to $200k.Now, they figure they have to keep working to make up the $100k drop in the value of the 401k.
The advice this financial guy gave, is retire when you feel financially able to, and do not let a number prevent you from retiring.
Hope I explained it half as good the money talk guy.
Now, 1 friend I know said his 401k dropped by 40% due to economic downturn so he would have to work several more years to make up for the shortfall.
I tried to explain to him, but he has his goals, and I cannot fault him for it.

If the guy hasn't recovered from the downturn yet he missed the boat. I have nearly triple what I had at the bottom in March of 2009.

 

[Brownslave688]

One money guy I listen to may have said it well.
"Too many folks chase a number, once they reach that number, say $1 mil, they will then retire. Too many times, they never reach that number they are chasing and never do get to retire"
As he explained it, say a person is chasing $1mil.
Suppose their 401k is worth $300,000 and due to the economy it drops to $200k.Now, they figure they have to keep working to make up the $100k drop in the value of the 401k.
The advice this financial guy gave, is retire when you feel financially able to, and do not let a number prevent you from retiring.
Hope I explained it half as good the money talk guy.
Now, 1 friend I know said his 401k dropped by 40% due to economic downturn so he would have to work several more years to make up for the shortfall.
I tried to explain to him, but he has his goals, and I cannot fault him for it.

The market was back up 40% within a few years so your friend either pulled out like an idiot or was blowing smoke.

 

[Brownslave688]

I didn't say you had to stop. But you're the exception. There are some like you that saved quite a bit of money to buy all those things with cash, but most people just save enough to get by during retirement.

You're probably also getting $1500-$2000 a month in social security. While you may not need it, that will buy a lot of good stuff. It probably won't be around when I retire.

I also have all that good stuff now. I want to enjoy life now instead of skimping so that I can have all that good stuff when I retire.

I will just have to work a few more years to have enough money to have all the good stuff when I retire.

Trying to save $20K a year on a $65K job only leaves $45K to live on. While that is decent money, kids, college, houses are expensive.

I can't see having a quarter of a million dollar house, 2 nice vehicles, motorcycles, 4 wheelers, college expenses etc. on a $45K job.

I have all that now and still plan on retiring when I'm 62 with plenty of "play" money.

Don't work longer just to pay for your kids college. There's lots of ways they can py for college.

 

[Brownslave688]

OK... $70K based on 8 hours per day.

Point being that I don't plan on buying brand new vehicles every five years and building a new house after I retire.
.

Article 22? I took off probably 30+ days unpaid last year and still made almost 80k. No one works 8 hours everyday here.

I do plan on buying nice things and probably doing a total remodel on the house along with traveling among other things when I retire. It's ehy I drive an almost 20 year old truck to work and back everyday. It's why I gight with my wife everyday day that yes she must max out her 401k and drive a 10 year old car while all of her co workers drive range rovers and such.

I'll quote Dave Ramsey here. "Live like no one now. So I can live like no one else later."

 

[oldngray]

Article 22? I took off probably 30+ days unpaid last year and still made almost 80k. No one works 8 hours everyday here.

I do plan on buying nice things and probably doing a total remodel on the house along with traveling among other things when I retire. It's ehy I drive an almost 20 year old truck to work and back everyday. It's why I gight with my wife everyday day that yes she must max out her 401k and drive a 10 year old car while all of her co workers drive range rovers and such.

I'll quote Dave Ramsey here. "Live like no one now. So I can live like no one else later."

That always irritated me when customers would comment about all the days off we got. But if you factor in how many hours we worked per week we averaged working more total hours than most people.

 

[olroadbeech]

One money guy I listen to may have said it well.
"Too many folks chase a number, once they reach that number, say $1 mil, they will then retire. Too many times, they never reach that number they are chasing and never do get to retire"
As he explained it, say a person is chasing $1mil.
Suppose their 401k is worth $300,000 and due to the economy it drops to $200k.Now, they figure they have to keep working to make up the $100k drop in the value of the 401k.
The advice this financial guy gave, is retire when you feel financially able to, and do not let a number prevent you from retiring.
Hope I explained it half as good the money talk guy.
Now, 1 friend I know said his 401k dropped by 40% due to economic downturn so he would have to work several more years to make up for the shortfall.
I tried to explain to him, but he has his goals, and I cannot fault him for it.

my 401k bounced back pretty good since the meltdown in 2008. in fact it is much higher now. anyway you are only supposed to take 4-5% out a year from it if you want it to last your lifetime. it can still weather storms and recover.

 

[OLDMAN3]

An interesting life expectancy calculator available free to use and anonymous; here...

http://gosset.wharton.upenn.edu/mortality/perl/CalcForm.html

Mine came out to 83+ years

 

[Babagounj]

Took your test....age 82 .
But I know that is wrong , my father lived to 87 , never worked out and drank like a fish .
I plan on passing his mark just like most of my siblings do .

 

[OLDMAN3]

Here is a really useful free anonymous online retirement calculator from Vanguard...
https://retirementplans.vanguard.com/VGApp/pe/pubeducation/calculators/RetirementIncomeCalc.jsf
It allows you to measure a variety of inputs using sliders to generate a potential monthly retirement income target, based on hypothetical investment returns. You can toggle on or off Social Security and pension incomes. It also includes a Social Security estimator; I added my wife's expected SS benefits. UPSers.com is useful to estimate your potential pension at different ages.