Time To Raise Retirement Age

[VolAgent]

If I didn't know better, it sounds like people are saying there isn't a one size fits all solution. Don't tell DC or the Ramseys and Ormans of the world, they wouldn't be able to peddle their over simplified solutions then.

Everyone has their own idea of what retirement should be like, and when it should start, if ever. Not only that, but it changes through the years. But one thing I do believe, it is a lot easier to stop saving in later years, versus making up for lost years later in life. Saving and investing now gives you more options later on.

 

[Robert Barney]

If I didn't know better, it sounds like people are saying there isn't a one size fits all solution. Don't tell DC or the Ramseys and Ormans of the world, they wouldn't be able to peddle their over simplified solutions then.

Everyone has their own idea of what retirement should be like, and when it should start, if ever. Not only that, but it changes through the years. But one thing I do believe, it is a lot easier to stop saving in later years, versus making up for lost years later in life. Saving and investing now gives you more options later on.

Disciplined saving and investing is a good habit to cultivate at a young age. Having said that, the ability to save greater volumes of your income should grow as we get older.

Generally, people enjoy their highest income earning abilities as they get older. Younger people usually start at the bottom and have to work their way up.

Further, raising children and paying off a home are big demands on income for younger adults and those costs should reduce later.

What amazes me are people who, as they earn more income, feel the need to buy a bigger house, drive more expensive automobiles, blow money on expensive vacations, etc. The problem there is the inability to comprehend how much money they need to set aside for their later years. Too many adopt the view: Eat drink and be merry, and let tomorrow take care of itself.

Once again, I save aggressively for retirement not because I intend to stop working, but because I may not be able to work later in life. We are all one stroke away from being incapacitated. The one thing I prefer not to have happen, is become dependent on my kids to take care of me in retirement, because I blew it on the way there.

 

[VolAgent]

I don't care why you save, nothing bad comes from living beneath your means and saving money for something. Sure, if your income is truly just enough to survive on, that is one thing. But a thought has started to evolve that survival is a McMansion, two SUVs, private schools, and expensive vacations. That family can step down the standard of living slightly and never notice, but they will definitely appreciate the savings down the road.

 

[Robert Barney]

I don't care why you save...

I do. It's hard to argue for a strong military budget if people don't appreciate the threats that face the nation.

Likewise, why should people set aside significant percentages of their income rather than enjoy that money?

I am convinced that most people have no clue how much investment capital it takes to produce an income over a period of time. I am also convinced that most people have no clue what the impact of inflation is on forecasting that income replacement 20, 30 or 40 years into the future.

It's "why" I save, and frankly the problem faces everyone, unless you've been given 6 months to live by your doctor and don't care about (or have) dependants.

Consider the 5th post (mine) on this page:

Time To Raise Retirement Age - Page 2

 

[VolAgent]

I do. It's hard to argue for a strong military budget if people don't appreciate the threats that face the nation.

Likewise, why should people set aside significant percentages of their income rather than enjoy that money?

I am convinced that most people have no clue how much investment capital it takes to produce an income over a period of time. I am also convinced that most people have no clue what the impact of inflation is on forecasting that income replacement 20, 30 or 40 years into the future.

It's "why" I save, and frankly the problem faces everyone, unless you've been given 6 months to live by your doctor and don't care about (or have) dependants.

Consider the 5th post (mine) on this page:

Time To Raise Retirement Age - Page 2

Ok...

Why is it my concern why you save? My point is, pick a reason and do it. I don't care if you are saving to buy a new car, just save some money for once. Save to buy a boat when you retire, whatever. Pick a reason and do it, those savings will give you options and will probably be re-purposed from the original intent.

 

[Robert Barney]

Assuming you advise people about their finances, I would think if you can enlighten them as to a serious problem and "need", versus appealing to a frivilous want, that you would see the importance of doing so.

 

[VolAgent]

Assuming you advise people about their finances, I would think if you can enlighten them as to a serious problem and "need", versus appealing to a frivilous want, that you would see the importance of doing so.

Very good point. Right now I am talking generalities and the population as a whole. For my clients, I try to determine what their retirement goals are, and then show what needs to be done to achieve it and plan for it.

But again, I'm talking about America as a whole right now, and as much as I wish it was possible, all of America isn't going to be a client. Most Americans live paycheck to paycheck, and most Americans aren't my clients.

 

[YouGotMyMoney]

What amazes me are people who, as they earn more income, feel the need to buy a bigger house, drive more expensive automobiles, blow money on expensive vacations, etc. The problem there is the inability to comprehend how much money they need to set aside for their later years. Too many adopt the view: Eat drink and be merry, and let tomorrow take care of itself.

Robert, you know our society is one of "Instant Gratification".

"Oh my military husband's away overseas, and I'm lonely, I'll just go sleep with this thug for validation and worry about my Spec Ops hubby later"

Also, most people fail to realize they won't be on top of their game forever. Look at Bill Gates, at one point he was worth $100 billion, then it dropped to $50 (which isn't REAL money....if the stock market completely tanked he would likely be worth very little, but still more than anybody else), still the richest man in the world, but the point I wanted to make is when your doing very well....milk it dry, and pocket that $$$ away.


Celebrities are a prime example, you always hear about them making millions per movie, but they keep spending and spending to keep their image up, etc etc.....look at Gary Coleman......dude hooked up with some hoe, and she spent all his money banging one night stands in Vegas, he couldn't get health insurance or so they say, and the trick said there was no money for a funeral?

 

[VolAgent]

In Gary's defense, his parents blew all the money he earned as a child. He never got a chance to be responsible or not with it. I believe he sued once he was an adult, but only recovered a fraction of what he should have had.

 

[Robert Barney]

Robert, you know our society is one of "Instant Gratification".

I know full well the weakness of the human flesh. And it has very historical roots.

Romans 3:23 (New International Version, ©2010)​

23 for all have sinned and fall short of the glory of God,​

Romans 3:10​

10 As it is written: "There is no one righteous, not even one;​

Psalm 14:1-3​

For the director of music. Of David.​

1 The fool[a] says in his heart, "There is no God."​

They are corrupt, their deeds are vile; there is no one who does good.​

2 The LORD looks down from heaven on all mankind to see if there are any who understand,​

any who seek God.​

3 All have turned away, all have become corrupt; there is no one who does good, not even one.​

Footnotes:​

a.Psalm 14:1 The Hebrew words rendered fool in Psalms denote one who is morally deficient.​

We are born with our problems, they are for lack of a better term, genetic/inherited. We are born with a strong disposition to do what is wrong; but that does not mean we need to resign ourselves to it, nor does it mean we should embrace it. No one rises above their problems by being told they cannot deal with them.

As member of the financial community, we should recognize the ignorance surrounding us, and shine a little light into the darkness.