PBS Frontline : The Retirement Gamble, sorta Must See (4 Viewers)

[Grahamburn]

Do those of you who are Roth IRA eligible just dump the principal in at the beginning of the year or dollar cost average? Does it even matter when it's such a small amount?

 

[NewlyRetired]

Good article that gives you comps based on age and income level. Guessing Dentist is dragging down the averages here.

http://www.fool.com/investing/general/2015/01/05/the-average-american-has-this-much-saved-in-a-401k.aspx

Those are truly pathetic numbers across every single age level and income level. For those of you curious, i have over double the over 65 year old mean balance and I'm 37.

But hey if are wiling to work until you're 70 and spend your retirement playing bridge, fishing at the local pond, babysitting grandchildren, watching jeoprody and eating early bird specials and your "travels" are to the local state park, it could still work out.

I never know what to say when I see numbers like this but they are really lower than I would have guessed.The 55-64 age group is just frightening. You can almost see that affect of paying for college for kids in their 40's had in that older demographic. :(

The only reason I hold back on going too crazy about these low numbers is that this is just 401k's. I know there is a solid subsection of people who invest in things like real estate instead of the market and that artificially makes some of these numbers look worse, but even saying that,....... wow.

Why is 55-64 number that shocking? 401k have really only been around for about 20 years, and really only about 10 years in any widely used way outside of fortune 500 companies.

That is a good point.

Since they were at every company I ever worked for since the late 80's (401k came into being in 1978), I assumed everyone had access to them.

 

[mquinnjr]

Do those of you who are Roth IRA eligible just dump the principal in at the beginning of the year or dollar cost average? Does it even matter when it's such a small amount?

I dump the max into my Roth IRA by the end of March each year for that tax year. I could just do the Roth 401k at my work, but I like all the pluses of the IRA version and the portability while I'm still within the threshold. I like my portfolio, so I balance via purchases vs. re-balancing. I'm only selling if there's been a huge swing in my portfolio, and since I'm in indexes I never really have to enter sell transactions.

 

[Tiger Fan]

Do those of you who are Roth IRA eligible just dump the principal in at the beginning of the year or dollar cost average? Does it even matter when it's such a small amount?

Dollar cost average when I had it. Would definitely think it matters....it adds up over time

 

[Random]

Good article that gives you comps based on age and income level. Guessing Dentist is dragging down the averages here.

http://www.fool.com/investing/general/2015/01/05/the-average-american-has-this-much-saved-in-a-401k.aspx

Those are truly pathetic numbers across every single age level and income level. For those of you curious, i have over double the over 65 year old mean balance and I'm 37.

But hey if are wiling to work until you're 70 and spend your retirement playing bridge, fishing at the local pond, babysitting grandchildren, watching jeoprody and eating early bird specials and your "travels" are to the local state park, it could still work out.

I never know what to say when I see numbers like this but they are really lower than I would have guessed.The 55-64 age group is just frightening. You can almost see that affect of paying for college for kids in their 40's had in that older demographic. :(

The only reason I hold back on going too crazy about these low numbers is that this is just 401k's. I know there is a solid subsection of people who invest in things like real estate instead of the market and that artificially makes some of these numbers look worse, but even saying that,....... wow.

Even with significant investments outside of my 401K, I'm over double my age demographic.

 

[Johnnymac]

I'm just about to the average for my age group. I'm almost 52 so not sure if/when I will be able to retire.

 

[humpback]

Do those of you who are Roth IRA eligible just dump the principal in at the beginning of the year or dollar cost average? Does it even matter when it's such a small amount?

Dollar cost average when I had it. Would definitely think it matters....it adds up over time

DCA makes a lot of sense for most people, but it doesn't always help. If the market continues to advance throughout the year, you'd (likely) be better off if you had dumped it all in at once in the beginning.

 

[culdeus]

I'm lazy in my IRA. I just use those target year plans and buy more. Sue me. I focus more on low expenses in my bigger accounts.

 

[Tiger Fan]

Do those of you who are Roth IRA eligible just dump the principal in at the beginning of the year or dollar cost average? Does it even matter when it's such a small amount?

Dollar cost average when I had it. Would definitely think it matters....it adds up over time

DCA makes a lot of sense for most people, but it doesn't always help. If the market continues to advance throughout the year, you'd (likely) be better off if you had dumped it all in at once in the beginning.

well obviously, but I can say the same for the opposite. Nobody has a crystal ball. Retirement accounts aren't to get cute with. By DCA, you're covering peaks and valleys.

 

[Dentist]

Good article that gives you comps based on age and income level. Guessing Dentist is dragging down the averages here.

http://www.fool.com/investing/general/2015/01/05/the-average-american-has-this-much-saved-in-a-401k.aspx

Those are truly pathetic numbers across every single age level and income level. For those of you curious, i have over double the over 65 year old mean balance and I'm 37.

But hey if are wiling to work until you're 70 and spend your retirement playing bridge, fishing at the local pond, babysitting grandchildren, watching jeoprody and eating early bird specials and your "travels" are to the local state park, it could still work out.

I never know what to say when I see numbers like this but they are really lower than I would have guessed.The 55-64 age group is just frightening. You can almost see that affect of paying for college for kids in their 40's had in that older demographic. :(

The only reason I hold back on going too crazy about these low numbers is that this is just 401k's. I know there is a solid subsection of people who invest in things like real estate instead of the market and that artificially makes some of these numbers look worse, but even saying that,....... wow.

Why is 55-64 number that shocking? 401k have really only been around for about 20 years, and really only about 10 years in any widely used way outside of fortune 500 companies.

because even if they only started into it 10 years ago they should have more money in it than that.

And Roth IRA balances are generally paltry as well because... well it's pretty hard to get a decent amount of money into an account at 5K a year... and when I started contributing to one years ago the limit was like 3-4K.

Also let's face it.. most people don't somehow have a lot of real estate equity or something.

Elderly poverty is going to be a big issue soon...

 

[Sand]

Do those of you who are Roth IRA eligible just dump the principal in at the beginning of the year or dollar cost average? Does it even matter when it's such a small amount?

Dollar cost average when I had it. Would definitely think it matters....it adds up over time

It does add up - studies have shown that while the variance is higher a lump sum averages out to a bit better return. Which makes sense.

 

[Dentist]

Do those of you who are Roth IRA eligible just dump the principal in at the beginning of the year or dollar cost average? Does it even matter when it's such a small amount?

Dollar cost average when I had it. Would definitely think it matters....it adds up over time

DCA makes a lot of sense for most people, but it doesn't always help. If the market continues to advance throughout the year, you'd (likely) be better off if you had dumped it all in at once in the beginning.

well obviously, but I can say the same for the opposite. Nobody has a crystal ball. Retirement accounts aren't to get cute with. By DCA, you're covering peaks and valleys.

I've never done DCA with my Roth accounts. I do the backdoor conversion at some point throughout the year and do a lump sum buy.

 

[Donny Loved Bowling]

I have until this point in my life been very ignorant of retirement planning. Like many younger people I suspect, it always seemed like a concept that was so far off that it was easy to put off thinking about it. I am now 38, certainly nowhere near retirement age, but old enough to know that I need to start paying attention. Hopefully I have not waited too long. I would definitely be interested in reading a couple of good personal finance books if someone in here had some recommendations.

With so many apparently knowledgeable opinions available in this thread, perhaps someone would be willing to offer me an assessment of my personal situation? I am fortunate enough to have a local government, union-protected job that now pays me about $60k a year, with annual raises in the 2-3% range. I have been working there for the past 14 years, and while I don't love it, I also don't dislike it enough to leave. I have a defined benefit pension with a mandatory 9% annual contribution that is matched by my employer. I also have a second pension that is designed to cover the cost of medical benefits post-retirement. Am I in decent shape moving forward? Should I be looking for additional investment vehicles? What is the best way to get information on potential options?

Any advice would be appreciated.

 

[humpback]

Do those of you who are Roth IRA eligible just dump the principal in at the beginning of the year or dollar cost average? Does it even matter when it's such a small amount?

Dollar cost average when I had it. Would definitely think it matters....it adds up over time

DCA makes a lot of sense for most people, but it doesn't always help. If the market continues to advance throughout the year, you'd (likely) be better off if you had dumped it all in at once in the beginning.

well obviously, but I can say the same for the opposite. Nobody has a crystal ball. Retirement accounts aren't to get cute with. By DCA, you're covering peaks and valleys.

You made it seem like it was always a good thing for your returns, just pointing out that it isn't.

 

[Dentist]

I have until this point in my life been very ignorant of retirement planning. Like many younger people I suspect, it always seemed like a concept that was so far off that it was easy to put off thinking about it. I am now 38, certainly nowhere near retirement age, but old enough to know that I need to start paying attention. Hopefully I have not waited too long. I would definitely be interested in reading a couple of good personal finance books if someone in here had some recommendations.

With so many apparently knowledgeable opinions available in this thread, perhaps someone would be willing to offer me an assessment of my personal situation? I am fortunate enough to have a local government, union-protected job that now pays me about $60k a year, with annual raises in the 2-3% range. I have been working there for the past 14 years, and while I don't love it, I also don't dislike it enough to leave. I have a defined benefit pension with a mandatory 9% annual contribution that is matched by my employer. I also have a second pension that is designed to cover the cost of medical benefits post-retirement. Am I in decent shape moving forward? Should I be looking for additional investment vehicles? What is the best way to get information on potential options?

Any advice would be appreciated.

Pensions are a good deal and very few people have them.

If I were you I'd start with looking to open a Roth IRA account. Fund that as much as you can each year... hopefully up to the $5500 maximum.

A Roth combined with your pension should give you a pretty solid plan.

But i say that without knowing anything about your debt situation

 

[humpback]

I have until this point in my life been very ignorant of retirement planning. Like many younger people I suspect, it always seemed like a concept that was so far off that it was easy to put off thinking about it. I am now 38, certainly nowhere near retirement age, but old enough to know that I need to start paying attention. Hopefully I have not waited too long. I would definitely be interested in reading a couple of good personal finance books if someone in here had some recommendations.

With so many apparently knowledgeable opinions available in this thread, perhaps someone would be willing to offer me an assessment of my personal situation? I am fortunate enough to have a local government, union-protected job that now pays me about $60k a year, with annual raises in the 2-3% range. I have been working there for the past 14 years, and while I don't love it, I also don't dislike it enough to leave. I have a defined benefit pension with a mandatory 9% annual contribution that is matched by my employer. I also have a second pension that is designed to cover the cost of medical benefits post-retirement. Am I in decent shape moving forward? Should I be looking for additional investment vehicles? What is the best way to get information on potential options?

Any advice would be appreciated.

Would need a lot more info., but generically if you don't have high interest debt and make enough to have an emergency fund, it would make a lot of sense to open and fund a Roth IRA.

 

[Grahamburn]

Do those of you who are Roth IRA eligible just dump the principal in at the beginning of the year or dollar cost average? Does it even matter when it's such a small amount?

Dollar cost average when I had it. Would definitely think it matters....it adds up over time

DCA makes a lot of sense for most people, but it doesn't always help. If the market continues to advance throughout the year, you'd (likely) be better off if you had dumped it all in at once in the beginning.

My account is with Vanguard, and most of their funds I'm interested in have a minimum anyway, so when you're only talking about $5,500 I didn't think it made too much of a difference whether I just max it out at the beginning of the year or put the other couple grand in over the course of the year.

 

[NutterButter]

Elderly poverty is going to be a big issue soon...

If you're referring to seniors being below the poverty level, wouldn't SS push them above that by itself?

 

[Dentist]

Elderly poverty is going to be a big issue soon...

If you're referring to seniors being below the poverty level, wouldn't SS push them above that by itself?

You're correct. I"m wrong. SS + Medicare would eliminate most from being truly at poverty level.

but it's going to be far from the "fabulous" retirement you see marketed on AARP things.

 

[NutterButter]

Elderly poverty is going to be a big issue soon...

If you're referring to seniors being below the poverty level, wouldn't SS push them above that by itself?

You're correct. I"m wrong. SS + Medicare would eliminate most from being truly at poverty level.

but it's going to be far from the "fabulous" retirement you see marketed on AARP things.

Exactly. Retirement is going to blow for them, but for most people, they made their choice and now they'll have to live with the consequences.

 

[Tiger Fan]

Do those of you who are Roth IRA eligible just dump the principal in at the beginning of the year or dollar cost average? Does it even matter when it's such a small amount?

Dollar cost average when I had it. Would definitely think it matters....it adds up over time

DCA makes a lot of sense for most people, but it doesn't always help. If the market continues to advance throughout the year, you'd (likely) be better off if you had dumped it all in at once in the beginning.

well obviously, but I can say the same for the opposite. Nobody has a crystal ball. Retirement accounts aren't to get cute with. By DCA, you're covering peaks and valleys.

You made it seem like it was always a good thing for your returns, just pointing out that it isn't.

It only isn't if you have a crystal ball.

 

[Donny Loved Bowling]

Can anyone recommend a good book on personal finance? I'm no dummy, but I'd prefer one that is geared towards the novice level individual.

 

[wilked]

TF, you are in the wrong here...lump sum is mathematically better. That said, if the $$ amount is enough that you couldn't sleep if it lost 50% the next day, you are better off DCA.

For what it's worth I have lump sum'd $30K and didn't think twice about it (big bonus money for a Saudi startup I did)

 

[Gawain]

Can anyone recommend a good book on personal finance? I'm no dummy, but I'd prefer one that is geared towards the novice level individual.

I gave my wife a copy of The Millionaire Next Door, but that's cause the basic message is live below your means.

Doesn't really have investment advice.

 

[wilked]

Another way to think of DCA, you are adding $5K to your current balance. If you are worried about that $5K dropping by 'mistiming' the market, you should be doubly (triply, etc) worried about your entire portfolio. Basically you need to be ok with your equities dropping by 50% at some point, recognizing that this is the natural ebb and flow of the market. Since overall the market is projected to rise given enough time the math supports getting your money in the game as quickly as possible, vs DCA

 

[mquinnjr]

Can anyone recommend a good book on personal finance? I'm no dummy, but I'd prefer one that is geared towards the novice level individual.

I gave my wife a copy of The Millionaire Next Door, but that's cause the basic message is live below your means.

Doesn't really have investment advice.

http://www.amazon.com/Bogleheads-Guide-Investing-Taylor-Larimore/dp/0470067365

Great read, highly recommend.

 

[humpback]

Do those of you who are Roth IRA eligible just dump the principal in at the beginning of the year or dollar cost average? Does it even matter when it's such a small amount?

Dollar cost average when I had it. Would definitely think it matters....it adds up over time

DCA makes a lot of sense for most people, but it doesn't always help. If the market continues to advance throughout the year, you'd (likely) be better off if you had dumped it all in at once in the beginning.

well obviously, but I can say the same for the opposite. Nobody has a crystal ball. Retirement accounts aren't to get cute with. By DCA, you're covering peaks and valleys.

You made it seem like it was always a good thing for your returns, just pointing out that it isn't.

It only isn't if you have a crystal ball.

Completely incorrect, but you obviously want to believe that so I'll leave it be.

 

[Dentist]

Elderly poverty is going to be a big issue soon...

If you're referring to seniors being below the poverty level, wouldn't SS push them above that by itself?

You're correct. I"m wrong. SS + Medicare would eliminate most from being truly at poverty level.

but it's going to be far from the "fabulous" retirement you see marketed on AARP things.

Exactly. Retirement is going to blow for them, but for most people, they made their choice and now they'll have to live with the consequences.

You see, that is what worries me... that some politician is going to run on a platform of somehow subsidizing these people's lives more and people are going to vote for it in droves to make up for their poor choices, and the money is going to come out of my pocket somehow.. or my son's.

 

[moleculo]

Good article that gives you comps based on age and income level. Guessing Dentist is dragging down the averages here.

http://www.fool.com/investing/general/2015/01/05/the-average-american-has-this-much-saved-in-a-401k.aspx

Those are truly pathetic numbers across every single age level and income level. For those of you curious, i have over double the over 65 year old mean balance and I'm 37.

But hey if are wiling to work until you're 70 and spend your retirement playing bridge, fishing at the local pond, babysitting grandchildren, watching jeoprody and eating early bird specials and your "travels" are to the local state park, it could still work out.

My 401(k) numbers are just a little north of that...not too far off.

Of course, my 401(k) is only 6 years old, as I've only been at at this job for 6 years. All of my previous 401(k) has been rolled over into an IRA, not an IRA. I also have a roth IRA that wouldn't count in a 401(k) valuation.

just sayin - 401(k) account only is a portion of available retirement vehicles.

 

[Tiger Fan]

TF, you are in the wrong here...lump sum is mathematically better. That said, if the $$ amount is enough that you couldn't sleep if it lost 50% the next day, you are better off DCA.

For what it's worth I have lump sum'd $30K and didn't think twice about it (big bonus money for a Saudi startup I did)

Hmm...any link to support it? I've always heard DCA is better.

 

[Tiger Fan]

Do those of you who are Roth IRA eligible just dump the principal in at the beginning of the year or dollar cost average? Does it even matter when it's such a small amount?

Dollar cost average when I had it. Would definitely think it matters....it adds up over time

DCA makes a lot of sense for most people, but it doesn't always help. If the market continues to advance throughout the year, you'd (likely) be better off if you had dumped it all in at once in the beginning.

well obviously, but I can say the same for the opposite. Nobody has a crystal ball. Retirement accounts aren't to get cute with. By DCA, you're covering peaks and valleys.

You made it seem like it was always a good thing for your returns, just pointing out that it isn't.

It only isn't if you have a crystal ball.

Completely incorrect, but you obviously want to believe that so I'll leave it be.

See my post above. Sorry if I came off harsh, not my intention. Will completley admit if if wrong, just hadn't seen anything to support that

 

[NutterButter]

Elderly poverty is going to be a big issue soon...

If you're referring to seniors being below the poverty level, wouldn't SS push them above that by itself?

You're correct. I"m wrong. SS + Medicare would eliminate most from being truly at poverty level.

but it's going to be far from the "fabulous" retirement you see marketed on AARP things.

Exactly. Retirement is going to blow for them, but for most people, they made their choice and now they'll have to live with the consequences.

You see, that is what worries me... that some politician is going to run on a platform of somehow subsidizing these people's lives more and people are going to vote for it in droves to make up for their poor choices, and the money is going to come out of my pocket somehow.. or my son's.

Already happened during Bush 43's terms when they passed that monstrous prescription drug bill. I've stopped worrying about that along time ago. I like living in the US and its the price you have to pay. You could always move to some other country and renounce your citizenship.

 

[Tom Hagen]

Good article that gives you comps based on age and income level. Guessing Dentist is dragging down the averages here.

http://www.fool.com/investing/general/2015/01/05/the-average-american-has-this-much-saved-in-a-401k.aspx

Those are truly pathetic numbers across every single age level and income level. For those of you curious, i have over double the over 65 year old mean balance and I'm 37.

But hey if are wiling to work until you're 70 and spend your retirement playing bridge, fishing at the local pond, babysitting grandchildren, watching jeoprody and eating early bird specials and your "travels" are to the local state park, it could still work out.

I'm pretty far above the numbers in that link for my age but honestly this doesn't sound like a bad retirement. I'm sure a lot of people would be content with that. Then again I love what I do and could easily see myself working until 70+.

 

[KCitons]

Do those of you who are Roth IRA eligible just dump the principal in at the beginning of the year or dollar cost average? Does it even matter when it's such a small amount?

Dollar cost average when I had it. Would definitely think it matters....it adds up over time

DCA makes a lot of sense for most people, but it doesn't always help. If the market continues to advance throughout the year, you'd (likely) be better off if you had dumped it all in at once in the beginning.

My account is with Vanguard, and most of their funds I'm interested in have a minimum anyway, so when you're only talking about $5,500 I didn't think it made too much of a difference whether I just max it out at the beginning of the year or put the other couple grand in over the course of the year.

Same here. I just deposited max for both myself and my wife today. Since it's diversified into different funds, I felt it was better to get the money into the Roth account. My other options were the savings account (earning minimal interest) or investing in individual stocks (which could tank also tank suddenly)

 

[humpback]

Do those of you who are Roth IRA eligible just dump the principal in at the beginning of the year or dollar cost average? Does it even matter when it's such a small amount?

Dollar cost average when I had it. Would definitely think it matters....it adds up over time

DCA makes a lot of sense for most people, but it doesn't always help. If the market continues to advance throughout the year, you'd (likely) be better off if you had dumped it all in at once in the beginning.

well obviously, but I can say the same for the opposite. Nobody has a crystal ball. Retirement accounts aren't to get cute with. By DCA, you're covering peaks and valleys.

You made it seem like it was always a good thing for your returns, just pointing out that it isn't.

It only isn't if you have a crystal ball.

Completely incorrect, but you obviously want to believe that so I'll leave it be.

See my post above. Sorry if I came off harsh, not my intention. Will completley admit if if wrong, just hadn't seen anything to support that

Very simplistic, but think about it this way- if the market goes down from when you would have made the lump sum, you would have been better off dollar cost averaging (buying some at lower prices). If it goes up, you would have been better off doing the lump sum (get all of your money in when prices were lower). It goes up more often than it goes down, so lump sum comes out ahead more often than DCA does.

 

[Gawain]

If you deposit DCA though, do you pay the transaction fee each deposit?

I'm going to start a Fidelity Roth this week and was planning on putting 2500 in and then 60 a week for the next 50 weeks.

However, it looks like there's a transaction fee whenever anything is purchased, so would it be better to just deposit 2,750 now and then the next 2,750 when I have it free in a few months?

 

[Big Blue Wrecking Crew]

If one is like most FBGs and exceeds the modified AGI for Roth contributions, and are maxing 401(K) option, what are other recommended retirement vehicles?

 

[humpback]

If you deposit DCA though, do you pay the transaction fee each deposit?

I'm going to start a Fidelity Roth this week and was planning on putting 2500 in and then 60 a week for the next 50 weeks.

However, it looks like there's a transaction fee whenever anything is purchased, so would it be better to just deposit 2,750 now and then the next 2,750 when I have it free in a few months?

Are you talking about individual stocks? Pretty much every brokerage has hundreds if not thousands of mutual funds (some ETFs too) that are no load/fees/commissions. Here is what I'm seeing for Fidelity- 2,824 mutual funds with no transaction fees.

 

[Gawain]

If you deposit DCA though, do you pay the transaction fee each deposit?

I'm going to start a Fidelity Roth this week and was planning on putting 2500 in and then 60 a week for the next 50 weeks.

However, it looks like there's a transaction fee whenever anything is purchased, so would it be better to just deposit 2,750 now and then the next 2,750 when I have it free in a few months?

Are you talking about individual stocks? Pretty much every brokerage has hundreds if not thousands of mutual funds (some ETFs too) that are no load/fee/commissions. Here is what I'm see for Fidelity- 2,284 mutual funds with no transaction fees.

Yep, I'm an idiot. Thanks

 

[NewlyRetired]

If one is like most FBGs and exceeds the modified AGI for Roth contributions, and are maxing 401(K) option, what are other recommended retirement vehicles?

Read here for how to use Roth IRA's even if you exceed the income limit.

http://www.bogleheads.org/wiki/Backdoor_Roth_IRA

 

[Tiger Fan]

Do those of you who are Roth IRA eligible just dump the principal in at the beginning of the year or dollar cost average? Does it even matter when it's such a small amount?

Dollar cost average when I had it. Would definitely think it matters....it adds up over time

DCA makes a lot of sense for most people, but it doesn't always help. If the market continues to advance throughout the year, you'd (likely) be better off if you had dumped it all in at once in the beginning.

well obviously, but I can say the same for the opposite. Nobody has a crystal ball. Retirement accounts aren't to get cute with. By DCA, you're covering peaks and valleys.

You made it seem like it was always a good thing for your returns, just pointing out that it isn't.

It only isn't if you have a crystal ball.

Completely incorrect, but you obviously want to believe that so I'll leave it be.

See my post above. Sorry if I came off harsh, not my intention. Will completley admit if if wrong, just hadn't seen anything to support that

Very simplistic, but think about it this way- if the market goes down from when you would have made the lump sum, you would have been better off dollar cost averaging (buying some at lower prices). If it goes up, you would have been better off doing the lump sum (get all of your money in when prices were lower). It goes up more often than it goes down, so lump sum comes out ahead more often than DCA does.

yes, sorry, it makes complete sense that going lump sum immediately moves your money into a higher class of investments (assuming you're moving from a cash account).

Where I was coming from was assuming you don't have $5000 to invest on January 1st, it makes more sense to DCA over the course of the year vs. saving up and lump sum at the end of the year.

Sorry for the mix up

 

[Doctor Detroit]

Good article that gives you comps based on age and income level. Guessing Dentist is dragging down the averages here.

http://www.fool.com/investing/general/2015/01/05/the-average-american-has-this-much-saved-in-a-401k.aspx

Those are truly pathetic numbers across every single age level and income level. For those of you curious, i have over double the over 65 year old mean balance and I'm 37.

But hey if are wiling to work until you're 70 and spend your retirement playing bridge, fishing at the local pond, babysitting grandchildren, watching jeoprody and eating early bird specials and your "travels" are to the local state park, it could still work out.

The thing is Dentist, not everyone thinks like you. I think most people I know would be happy having just that kind of retirement.

People should have goals for these things before 50, but some people don't start thinking of this stuff until well into their 50s. Others think about it and even run the numbers, but still don't press like they could.

The fact is the segment who starts thinking about retirement monies in their 20s (me and many in this thread), are fairly rare. Personnel finances are largely a self-learned endeavor, schools and parents alike are bad at passing this information on.

Regardless, if people are saving something, anything...they have an advantage over the many saving nothing at all. Those are the people you/we have to worry about, the others will get by and probably enjoy their golden years on fixed but sustainable incomes.

 

[Dentist]

Good article that gives you comps based on age and income level. Guessing Dentist is dragging down the averages here.

http://www.fool.com/investing/general/2015/01/05/the-average-american-has-this-much-saved-in-a-401k.aspx

Those are truly pathetic numbers across every single age level and income level. For those of you curious, i have over double the over 65 year old mean balance and I'm 37.

But hey if are wiling to work until you're 70 and spend your retirement playing bridge, fishing at the local pond, babysitting grandchildren, watching jeoprody and eating early bird specials and your "travels" are to the local state park, it could still work out.

The thing is Dentist, not everyone thinks like you. I think most people I know would be happy having just that kind of retirement. People should have goals for these things before 50, but some people don't start thinking of this stuff until well into their 50s. Others think about it and even run the numbers, but still don't press like they could.

The fact is the segment who starts thinking about retirement monies in their 20s (me and many in this thread), are fairly rare. Personnel finances are largely a self-learned endeavor, schools and parents alike are bad at passing this information on.

Regardless, if people are saving something, anything...they have an advantage over the many saving nothing at all. Those are the people you/we have to worry about, the others will get by and probably enjoy their golden years on fixed bstainable incomes.

The real problem comes when people say things like I'll just work till I'm dead or until 70 but then their body or mind or profession doesn't allow it.

You can't assume you'll hold up and everything will be ok. I see plenty of people break down or get fired or burn out... And now what?

Over preparation is the way I've always been taught going back to boy scouts.

If I gun to retire by 55 and meet or beat it.. great, I have tons of options. At least then if I miss hopefully I'll at least make 62. If you resign to 70 where is your fallback?

And for the record the retirement I described sucks. I want to be snow birding in Barbados and sitting in premium seats at mlb games and going to the us tennis open and playing wsop events and eating crab legs for dinner once a week while sipping 30 year old scotch. Not watching jeopardy and going to some ####ty state park

 

[Doctor Detroit]

And like I said, not everyone is you. That's not my ideal retirement either but I don't disparage people who like to go to the State Park with their grandkids.

 

[NutterButter]

Good article that gives you comps based on age and income level. Guessing Dentist is dragging down the averages here.

http://www.fool.com/investing/general/2015/01/05/the-average-american-has-this-much-saved-in-a-401k.aspx

Those are truly pathetic numbers across every single age level and income level. For those of you curious, i have over double the over 65 year old mean balance and I'm 37.

But hey if are wiling to work until you're 70 and spend your retirement playing bridge, fishing at the local pond, babysitting grandchildren, watching jeoprody and eating early bird specials and your "travels" are to the local state park, it could still work out.

I'm pretty far above the numbers in that link for my age but honestly this doesn't sound like a bad retirement. I'm sure a lot of people would be content with that. Then again I love what I do and could easily see myself working until 70+.

Agreed. Sprinkle in a little ganja and I'd be cool with that.

 

[NutterButter]

Good article that gives you comps based on age and income level. Guessing Dentist is dragging down the averages here.

http://www.fool.com/investing/general/2015/01/05/the-average-american-has-this-much-saved-in-a-401k.aspx

Those are truly pathetic numbers across every single age level and income level. For those of you curious, i have over double the over 65 year old mean balance and I'm 37.

But hey if are wiling to work until you're 70 and spend your retirement playing bridge, fishing at the local pond, babysitting grandchildren, watching jeoprody and eating early bird specials and your "travels" are to the local state park, it could still work out.

The thing is Dentist, not everyone thinks like you. I think most people I know would be happy having just that kind of retirement. People should have goals for these things before 50, but some people don't start thinking of this stuff until well into their 50s. Others think about it and even run the numbers, but still don't press like they could.

The fact is the segment who starts thinking about retirement monies in their 20s (me and many in this thread), are fairly rare. Personnel finances are largely a self-learned endeavor, schools and parents alike are bad at passing this information on.

Regardless, if people are saving something, anything...they have an advantage over the many saving nothing at all. Those are the people you/we have to worry about, the others will get by and probably enjoy their golden years on fixed bstainable incomes.

The real problem comes when people say things like I'll just work till I'm dead or until 70 but then their body or mind or profession doesn't allow it.

You can't assume you'll hold up and everything will be ok. I see plenty of people break down or get fired or burn out... And now what?

Over preparation is the way I've always been taught going back to boy scouts.

If I gun to retire by 55 and meet or beat it.. great, I have tons of options. At least then if I miss hopefully I'll at least make 62. If you resign to 70 where is your fallback?

And for the record the retirement I described sucks. I want to be snow birding in Barbados and sitting in premium seats at mlb games and going to the us tennis open and playing wsop events and eating crab legs for dinner once a week while sipping 30 year old scotch. Not watching jeopardy and going to some ####ty state park

Your approach of shooting for a lower retirement age is the same approach I follow. What I don't get and I know I'm in the minority on this, but this retirement you envision for yourself, I don't know how you work a job you don't like for so many years or live a life that's far different from your retirement and then when you retire, flip a switch and move into this ideal life. My approach is just live an easy, simple life all the time.

 

[eoMMan]

And like I said, not everyone is you. That's not my ideal retirement either but I don't disparage people who like to go to the State Park with their grandkids.

Exactly. It's not like everyone needs $100k coming in each year for retirement income. People have different lifestyles. It's not like the person with $40k of retirement income will be forced to eat cat food....they just will be limited in what they can do. This isn't anything new.

 

[KCitons]

My parents were very frugal up until retirement. Never took expensive trips or bought new cars. Now that they are retired, they still don't take expensive trips (the only plane ride they've been on, was a trip us kids bought for them 5 years ago) Also, they're still driving the same vehicles.

 

[Tom Hagen]

My parents were very frugal up until retirement. Never took expensive trips or bought new cars. Now that they are retired, they still don't take expensive trips (the only plane ride they've been on, was a trip us kids bought for them 5 years ago) Also, they're still driving the same vehicles.

This is common. People that spend a lifetime as disciplined savers often have a very hard time allowing themselves to spend that savings in retirement. In fact, many of them feel the need to continue saving well into their retirement years.

 

[Slapdash]

I'm just about to the average for my age group. I'm almost 52 so not sure if/when I will be able to retire.

No time like the present to step up your contributions. Gotta get some compounding before you retire.