Are you financially secure?

[Bialy]

I was thinking about this today as I went to my credit union. I'm a "planner" and think about the future often, but it wasn't until two years ago that I really started to contribute to a retirement plan, thanks to my job. (I'm 34.)

 

Before that, I pretty much focused on staying debt-free and living within my means, but not putting much away retirement plan-wise. Today, I was pretty happy to open up a Roth IRA account. I'm disappointed I didn't do this 5 years ago, but better late than never.

 

I still rent. For now, this works because home ownership in my area of the US is obscenely high. Without a dual income, it's damn hard.

 

How about you? Have you had any setbacks? Are you financially secure for the future? Are you playing catch up? Are you a recent grad and not thinking about it just yet? Or, are you one of those lucky folks who doesn't need to worry?

[Gr8fuln2020]

How about you? Have you had any setbacks? Are you financially secure for the future? Are you playing catch up? Are you a recent grad and not thinking about it just yet? Or, are you one of those lucky folks who doesn't need to worry?

 

I am financially secure and have been putting aside for retirement for sometime now. Not at early as I would have liked, but according to SSA (if it exisits when I retire) and my retirement plan (unless there's another financial collapse), I will be earning enough in retirement to live comfortably when its time. I also put away plenty for my kids education and savings for other expenses, emergencies, travel, etc. Not rich by any means, but I live below my means and save a lot.

 

It is b/c of the above that I refuse to date any woman that does not have her finances in order.

[Bialy]

Very nice!

 

I don't know what the future holds for me, so I'm at that stage in life where I'm trying to set things in place for the next 15+ years. I contribute 7% of my salary towards my 401K equivalent at my job (they match me at 5%), I receive a separate pension, and then I opened up my Roth IRA account today with maximum yearly contribution. The only thing I'm contemplating at this point is opening up an ETF account.

 

 

I know how to drive, but I'Ve never owned a car because it's an unnecessary expense. I can do public transportation, ride my bike, or Uber in a pinch. I rent when I'm on vacation somewhere or if I'm visiting my parents - I take their car out for a spin.

[basil67]

We are fortunate enough to have bought a house before Australia's cost of housing exploded. So we're quite comfortable.

 

However, I fear for the financial security for Gen Y and Gen Z. Unfortunately, Baby Boomers turned our housing market away houses being shelter to being an investment vehicle. So many young people will never get a start.

[Bialy]

Unfortunately, Baby Boomers turned our housing market away houses being shelter to being an investment vehicle. So many young people will never get a start.

Agreed! Baby boomers have done so much economically harm in the US as well. No shortage of articles on it.

[carhill]

I was thinking about this today as I went to my credit union. I'm a "planner" and think about the future often, but it wasn't until two years ago that I really started to contribute to a retirement plan, thanks to my job. (I'm 34.)

Yeah I was too for many years until life happened.

 

Before that, I pretty much focused on staying debt-free and living within my means, but not putting much away retirement plan-wise. Today, I was pretty happy to open up a Roth IRA account. I'm disappointed I didn't do this 5 years ago, but better late than never.

Sounds about right for your age. Some folks start younger. I probably wouldn't have except for my father being a CPA and tax guy and getting me started as a child.

 

I still rent. For now, this works because home ownership in my area of the US is obscenely high. Without a dual income, it's damn hard.

 

Yeah, the entry requirements are tough these days. Back when I bought 30-some years ago for the first time, the problem was 18% real estate loan interest. I lived at home long enough to save a 20% down payment. Once in the system, owning isn't that difficult. I own three homes now.

 

How about you? Have you had any setbacks?

I did fine until I got married That and caregiving fell into the 'life happens' category, as well as much of my industry being offshored to China.

Are you financially secure for the future?

Things can change at any time so I don't worry about it anymore, instead live simply and enjoy life.

Are you playing catch up? Are you a recent grad and not thinking about it just yet? Or, are you one of those lucky folks who doesn't need to worry?

 

The main challenge is age. Catching up is harder as one gets older, all else being equal, especially in our highly competitive capitalist society. Being a 'killer' as Trump talks about is definitely a plus today. I don't worry about personal stuff so much rather am more concerned about our future in general. However, that's a perspective of someone who hasn't been employed in decades, rather make my own way through life doing what I enjoy and dealing with the detritus of our society definitely detracts from that enjoyment. It's like everything is a battle. It didn't used to be that way.

[lana-banana]

When I was 22 and just starting out, I contributed 10% to my 401k and had 4% employer matching. I was always pretty fanatical about saving thanks to my parents. I increased about one percent every year until I hit 15%. I'm now 30 and contributing 15%, have a conservative mutual fund for emergency savings, a checking account that meets my needs with enough for a luxury vacation about once a year or two, and enough for a down payment on a house in the city where I live. I don't have any debt but we are about to have a hefty mortgage (that will still be less than rent...rent in major cities is bananas!).

 

Am I financially secure? It really doesn't feel like it. I think unless you're fabulously wealthy, it's impossible to have enough to be truly secure. There could always be a catastrophic sickness, extended period of job loss, etc. Anything could happen and I try to keep that in mind. I tell myself I'll feel relaxed once I have $50k in emergency savings but I'm sure as soon as I do I'll change it to $80k, and so on...

[Bialy]

All of you are amazing! I come across more people my age (30's and 40's) in awful predicaments.

 

My closest friends in grad school don't make more than $40-50k and have massive amounts of student loan debt left.

 

At work, a former coworker resigned from her very good job because her husband wanted to move out to the burbs. The commute was too much. They have two young children. Loads of debt and a property they can't get rid of.

 

The only people I know who are doing VERY well don't have any children.

[anika99]

I'm not as financially secure as I'd like to be. I got a late start on saving because I had kids too young and spent many years living pay check to pay check. Didn't really start saving until I was into my forties. Now I have a decent retirement plan and savings but if I were to lose my job I would burn through my savings and so I do worry a bit. Lately I haven't been saving as much as I would like to because I have a dog with some costly issues, an elderly mother who I help financially and grandkids that I like to take out and spoil. Recently I've been thinking I need to budget more and be more frugal but on the other hand I also want to enjoy life right now too. Have to find a healthy balance.

[Els]

I think different people have different definitions of 'financially secure'. I think I'm doing okay for my age group (late 20s) - I'm still renting and haven't contributed to a retirement fund (various reasons for this, but IMO owning a paid-off house is the most important part of retirement funding in my country and my line of work), but I have no debt and I have enough savings to live comfortably by myself for 12 months without a job. Of course some people would perceive it differently, and it certainly isn't enough to stay this way forever (I'd def want to own a home with the mortgage paid off before I retire), but considering that I'm >35 yrs away from retirement and I've always picked fulfillment over money in my career choices, I think it's not too bad by my standards.

 

I think you're doing okay, too. I guess there's not much point comparing ourselves to others? We all come from different backgrounds, had different opportunities, different privileges. I know people my age who are not only homeowners but also managed to travel around the world while saving up for a deposit (and I'd be lying if I said I didn't feel a wee bit insecure around them!), but they have/had privileges that I didn't have. Similarly I know people my age who are mired in debt, but that isn't necessarily their fault either - I have privileges that they don't.

Edited August 16, 2016 by Elswyth

[basil67]

When we're looking at friends who are struggling, the one which really worries me are the renters who are paying more than 30% of their income in rent and can't save for the future. When they are too old to work, how will they continue to pay rent?

[Popsicle]

I am 10 years older than you and I own no real estate at the moment, I am enjoying the feeling of being untethered right now, but supposedly I am well on track to retirement and have no debt. I have had a financial adviser mention that I may not have to contribute so much anymore but I ignored that. I won't be satisfied until I hit my retirement goal. Currently I am contributing 15.5% of my income to savings/retirement. I am working on building my emergency savings up to have 6 months of living expenses (I don't think I'd be unemployed longer than that). I should be there in a couple of years if I don't keep spending it on vacations. I might buy some real estate in a few years too.

 

But, no, I don't feel financially secure and won't until I have enough money saved to retire. That will be a while.

Edited August 16, 2016 by Popsicle

[Toodaloo]

Not as secure as I would want to be but I get by just fine.

 

I may not have much but I don't have any debts. I am also happy with what I have although more would be nice its not a "need". I don't need more than I have.

[l8estnews]

I am not that financially secured, but like Toodaloo, I am doing fine for now. But if things will not improve in the future, I don't think I'll get by in my 40s. Lol.

 

I need my income to increase soon.

[Art_Critic]

I was thinking about this today as I went to my credit union. I'm a "planner" and think about the future often, but it wasn't until two years ago that I really started to contribute to a retirement plan, thanks to my job. (I'm 34.)

 

Before that, I pretty much focused on staying debt-free and living within my means, but not putting much away retirement plan-wise. Today, I was pretty happy to open up a Roth IRA account. I'm disappointed I didn't do this 5 years ago, but better late than never.

 

Keep it up Bialy... success for retirement take time... once you get older you will see...

 

I've been investing in my 401-k since I was about 20 and building a very nice personal portfolio of investments and income generating rental property, all commercial.

 

I would say I'm secure but my future looks pretty good, its a good thing I took a chance and listened to my financial planner in my teens...

I have consistently used one since, they plan everything including your needs for insurance, wills.. trusts etc..

Money well spent...

[Toodaloo]

The thing about money is that it can disappear very quickly.

 

In the US you guys have medical bills and insurances etc... In the UK we have soaring house prices and other problems.

 

Its not so much how much you have, its how well you utilise what you have...

 

Hope that makes sense.

[BikerAccnt]

We are fortunate enough to have bought a house before Australia's cost of housing exploded. So we're quite comfortable.

 

However, I fear for the financial security for Gen Y and Gen Z. Unfortunately, Baby Boomers turned our housing market away houses being shelter to being an investment vehicle. So many young people will never get a start.

 

Can't lay this totally at our feet. I'm 55 and I know a good deal of younger folk who thought houses were a bank and took our second mortgages and home lines of credit. Houses are not banks, nor investments. they are places to live.

 

Additionally, there is still plenty of good inexpensive housing available, if you are willing to look outside of the big cities.

 

I don't know the situation in Australia, but here in the US, all age groups were to blame in the housing mess; at least those who owned a house anyway.

 

A house, in my opinion, is the place where you raise your family.

 

As far as financially secure...I'm doing ok. As ok as someone without a government, or other pension, can be doing. And as well as a divorce lets you be. Still hoping to retire at 65, but...you never know.

[BikerAccnt]

What really worries me about younger people, at least in the US, is the staggering amount of student loans so many have. It's this that is causing so much insecurity.

 

When I went to college I was able to pay for it myself, with no loans, and a part time job. OF course, it was just a local college but, you can't even do that these days!

 

But then, there were more teachers than adminitrators, and I think that's flipped. Campus' weren't so fancy and my dorm room was like a prison cell..but..

 

The loan load is incredible and has really exploded since the Gov. took over. The more you give...the more they (colleges) take. I feel incredibly bad about how un affordable a University education is becoming. Hell, most jobs don't pay enough to pay back the kind of debt accumulation.

[GorillaTheater]

Still hoping to retire at 65, but...you never know.

 

 

Yeah, me too, or at least thereabouts. My youngest will be theoretically graduating from college when I'm 66, and I imagine I'll be working until then.

[amaysngrace]

I think some people can get caught up in having more and more but I'm not about that. That's how debt happens and can add up pretty quickly.

 

The trick for me is being happy with what I have because the things that matter most don't come with a price tag. To me anyway.

 

As far as retirement goes, I plan to work until the day I die anyway no matter how much money I have.

[jen1447]

I would say I'm secure but my future looks pretty good, its a good thing I took a chance and listened to my financial planner in my teens...

I have consistently used one since, they plan everything including your needs for insurance, wills.. trusts etc..

Money well spent...

 

Yep. I'm not much of a planner and know nothing about money/investments so I just have someone do it for me who does. That way I can focus on the stuff that does interest me.

 

And yes I'm pretty secure. Yay!

[thefooloftheyear]

I have enough for me to retire now and my kid to live a comfortable life if she doesn't screw it up.., Heck, if I got out of this high cost of living area and moved out to East Bumblefck, I could live like the Kennedy's...

 

I own everything and owe nothing...I won't collect a SS check, don't care, and never answered to anyone but myself and my clients....

 

As long as I can continue to hustle(not in a drug dealer or pimp way). I have no worries..

 

Not bad for a moron....

 

TFY

[carhill]

I think some people can get caught up in having more and more but I'm not about that. That's how debt happens and can add up pretty quickly.

I've seen a more socially ingrained perspective develop in my lifetime, starting with 'keeping up with the Joneses' and continuing with the increasing focus on short-term results and debt-based economies and business.

 

The trick for me is being happy with what I have because the things that matter most don't come with a price tag. To me anyway.

Yeah, there was a time when I lost that message but it's really become bright in recent years.

 

As far as retirement goes, I plan to work until the day I die anyway no matter how much money I have.

Yeah, I'm seeing some of the retirement examples right now with good male friends who have no concerns financially but are increasingly bored and frustrated after retiring. My goal is somewhat like yours, working enough to live simply and then continuing to contribute my skills to the community as giveback and to mentor young folks who might have the odd interest in pursuing the skillset life has taught me. I've seen enough death to know that financial security doesn't thwart the grim reaper though it can feather the bed of death more pleasantly. It's still death. We each walk the path in our own way.

 

Right now I'm watching a documentary on the Depression and the folks who got behind Upton Sinclair in California and one theme often mentioned was the old folks not having a 'safety net'. That period was a good example of how money wasn't always the security that it seemed. I saw those realities in real time as both my parents had grown up and survived the Depression, as well as WW2. I got a reminder of it the other day when cleaning things out and finding a canning jar full of nails my mom had straightened out Those were the realities.

[central]

I'm financially secure again, after divorce a decade ago set me back some. (It would have been much worse if she hadn't had a good job, too.)

 

 

We married young, but we both started saving for retirement early on. The more you can put aside early, the better, and may enable you to retire early, too. (Roth is the best route, IMO, and you can withdraw the contribution amounts without penalty prior to age 59 1/2 if the money has been in the account for at least 5 years.) Current wife and I are doing our best to maximize 401k and IRA contributions for a few more years, to have an extra cushion later on.

 

 

At this point, we can - at minimum - replace our current income from retirement savings, plus have enough extra to do some major travel each year. We expect out-of-pocket health costs to rise over time, but as we get older we'll probably travel less too, so it may balance out.

[scooby-philly]

I just turned 35 this summer.

 

I graduated from college (no debt) and went into the Seminary for 6 years. So no savings when I left. Took till I was 30 to land a "corporate job" - had money saved but no 401k.

 

Had two major financial setbacks with ex gfs/fiances - yes....I have learned my lesson. Also have done loans to my two older brothers - one hasn't paid me back the other is on his second loan (paid back the first) and is paying be back over 9 months starting in September. Not huge sums there, but combined with unexpected car payments, etc. I don't have as much stocked away as I would like now.

 

I've got 18k in my 401k after only 4 years of contributing (4 years in corporate, but 1 year on contract). I've got 10k in the bank and at the end of this year, my car is paid off. I should be able to start saving 1.5 to 2.5k a month now (depending on if I get a new job I've been interviewing for).

 

I live with my parents as a result of some of those mistakes, but they're supportive and I want to have enough stocked away so fall/winter of 2017 I can move out, rent, and then have enough of a down payment for when I'm ready to buy at some point.

 

Overall, I can't complain. By the end of this year I won't have any significant debt, I have a masters' degree, and I've got money in the bank, money for retirement building, and a good career.