rick81721
Lothar
If it goes under (and it won't) someone is going to get burned. So when you retire in 20 years you won't care if you get little or nothing back??
How the hell are we supposed to retire?
- Thread starter rlb
- Start date
If it goes under (and it won't) someone is going to get burned. So when you retire in 20 years you won't care if you get little or nothing back??
Other than #3, these are all wildly subjective. For the most part, the people that this is advice is targeting haven't done/aren't doing a good job making those types of subjective judgements.
Cassinonorth
Well-Known Member
I mean those are great ground rules....that flowchart is way more complex because you're dealing with how to not get taxed to high hell by retiring early. If you have a pension guaranteeing $2k/month for life after 30 years you can just get by with your Roth IRA after that.
When you're dealing with 22 year old software engineers making $200k who have an extra $10k a month they have no idea what to do with, that's where that flowchart starts to come into play. Maybe this one would resonate better:
THATmanMANNY
Well-Known Member
Oh yea I agree always 100% contribute to at least get the Co match.
this thread should be merged with “things that make your frown”
oh okay I’m a little confused because my employer plan has a Roth plan. You can pick Roth or traditonal or split it how every you want
this thread should be merged with “things that make your frown”
oh okay I’m a little confused because my employer plan has a Roth plan. You can pick Roth or traditonal or split it how every you want
Cassinonorth
Well-Known Member
Basically it'll come down to are you going to be taxed more today or in retirement. Very few people fall into the latter.
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When Does It Make Sense to Contribute to a Roth 401(k)?
A Roth 401(k) uses post-tax dollars, while a traditional 401(k) uses pre-tax dollars. Discover how to choose the best type of retirement account for your needs.
Mine does as well. I will have a pension in retirement and my wife plans to work for quite a while after I retire. So I expect to be one of the people who falls into the category of potentially being taxed more in retirement. Plus I'm in a position to contribute the max into the Roth without a significant impact on my current lifestyle, so I think it makes sense for me.
and with two workers in the family, it has to be done across both employers. Perhaps putting a bare min in one, to take advantage of the other (employers like participation,
they need it because there are ratios they must meet to say the plan is "fair" across all classes of workers that can participate)
As a business owner I could do a SEP or a SIMPLE, while my wife worked for very large companies, with the generous 401k, ESOPs, etc.
fun times - much of it with a spreadsheet, pencil, and paper.
summarized the sections, and gave no direction on how to do it, which is what "kids" don't know.
Budget -
Save for retirement
avoid/reduce debt
save for life stuff (college, gap years, emergency)
live w/i means
Shit happens. have your car under-insured cause you couldn't swing it, then get hit by an uninsured driver.
have your employer go belly-up. Theft, health emergency, no family/friends support when needed.
break a rear triangle....
etc
what about working the income side? increase skills, find a higher paying employer (stable, as mentioned),
get a second job to get out of debt (preferably doing something ya like)
after actually making a budget, the hardest thing is sticking to it ??? whadaya think?
not easy in this world of instant purchases and instant financing.
Or to throw that extra $50 into savings vs two 4 packs of OH.
TimBay
Well-Known Member
Somebody's gonna get burned if it goes away, sure. I'm not happy about it, but I also just figure my 401k and whatever other savings I build will be what I have. Unless/until stock market capitalism crashes. Not much to do but work, save and hope for the best.
Also need to keep an eye on 401k fees.
Many companies have 401ks that are so atrocious with the fees that you're better off with an IRA in Vanguard/Fidelity/Etc after hitting the match.
Cassinonorth
Well-Known Member
Yeah, when you're 10+ years out from retirement and at least a new administration away there's no sense in getting up in arms about something that may happen in 2034. I have a sneaking suspicion they'll figure it out though.
rick81721
Lothar
"how to do it?" How do you give direction on how to spend less than you make? It's self discipline - same as not drinking too much, not eating too much, etc.
See above - same principle. We never "made a budget"
Cassinonorth
Well-Known Member
One of the books I've read lately "I Will Teach You to be Rich" by Ramit Sethi pushes people away from budgets. Put your savings on autopilot and spend the rest how you want without guilt.
I absolutely loved the quote: “Spend extravagantly on things you love, and cut mercilessly on things you don't.”
this quote is exactly how i live my life, spend the bare minimum on stuff i NEED (but dont want) spend on what i want (as long as it doesnt require loans)
after setting aside savings for the critical stuff of course.
you understand addiction?
rick81721
Lothar
you understand the difference between addiction and self-discipline?
A Potted Plant
Honorary Sod
That's just discipline in the other direction
A Potted Plant
Honorary Sod
Alright here are things that I have done, consider that I bought my first home on my 25th birthday I think that is saying something for someone who wasn't gifted down payment money.
Don't try things you can't afford, like ever. I have a very narrow scope of things I like and I don't try new things very often. In 2013 or 14 went on my first group ride with an 88 univega, was suggested I come back with a bike that had a fork so I came back with a 2001 giant that had a fork that didn't do shit. We're about another 10 years from me getting a FS at this rate. If I ever own a car with heated seats they most likely wont work anymore.
Go without, and the longer you go without the less you'll need it. Some things you will need any you learn pretty quick what those are.
Charity starts at home, don't go giving out when you don't have for yourself and if you can't afford to tip you can't afford to eat out.
Pirate everything, autocad, Netflix and adobe have one thing in common I aint paying them for shit.
Amazon, do you know how much free shit is on people's porches in the middle of the day, play your cards right you'll get free tires off of @Soundguy's front door.
face it I'm not retiring, when I can't work anymore I'm going on vacation in Scandinavia hopefully I can do something bad enough to end up in prison for the rest of my life.
o and buy doge
Don't try things you can't afford, like ever. I have a very narrow scope of things I like and I don't try new things very often. In 2013 or 14 went on my first group ride with an 88 univega, was suggested I come back with a bike that had a fork so I came back with a 2001 giant that had a fork that didn't do shit. We're about another 10 years from me getting a FS at this rate. If I ever own a car with heated seats they most likely wont work anymore.
Go without, and the longer you go without the less you'll need it. Some things you will need any you learn pretty quick what those are.
Charity starts at home, don't go giving out when you don't have for yourself and if you can't afford to tip you can't afford to eat out.
Pirate everything, autocad, Netflix and adobe have one thing in common I aint paying them for shit.
Amazon, do you know how much free shit is on people's porches in the middle of the day, play your cards right you'll get free tires off of @Soundguy's front door.
face it I'm not retiring, when I can't work anymore I'm going on vacation in Scandinavia hopefully I can do something bad enough to end up in prison for the rest of my life.
o and buy doge