Observations on life

No way to save? Give me a break πŸ€‘

I read an article recently about the need for states to set up retirement savings vehicles and requiring employers to participate. The rationale was that lower income and employees of small employers have no way to save for retirement. 

Here are some of the existing ways to save for retirement already on the books. Using some of them takes a little initiative on the part of the individual. There are several ways to set up automatic saving arrangements. Why in the world do we need states getting into this business and managing citizen’s money; states that in many cases can’t even manage their own pension funds?

401(k)’s, 403(b)’s, 457s, I.R.A.s, Roth I.R.A.s, Solo 401(k)’s, and all the rest.

The key to saving is first having the will and second setting ones standard of living after saving occurs … and this applies to all but the poorest individuals. 

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5 replies »

  1. Once again… I posted a detailed comment that never showed…
    so I posted it again… and it still never showed. Last time that
    happened I posted a notice like this and the notice showed up
    but never the detailed comment… very strange.

    .

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    • I tried posting my detailed comment just now for the third time. I received a message that said I already posted it.. but it’s not posted. Strange.

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      • As far as I can see what you are posting as a comment appear on the site. There is nothing missing or pending.

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  2. Dick, you and I are lucky. We had a pension plan we were enrolled in without asking and a 401k plan that was started in the 80’s. I was also lucky I had a manager who told me put the max into my 401k I can always reduce it later ( I did not). And don’t forget the 6% discount for buying company stock. We all know of people that put the minimum in the 401k plan and took money out for cars, trips, etc. and have little left. These were educated people. I hate to admit it but there must be a mandatory savings plan for all worker because we will see the shock when all those benefits 2000 people retire with nothing but their social security.

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    • I know of people who didn’t join the 401k. Several of my benefit 2000 co-workers see no hope between medical costs and lack of a pension so they do not even try. Some openly admit that they are living for the now because they will have to work until at least 65 or later for the younger ones (67+).

      I am lucky. I get to retire in 6 weeks at age 55. I saved enough to make up for the difference of my regular pay and my pension, grant it was only 1/3 of the difference unlike the benefits 2000 people who may have to save 2/3 or more due to lack of medical.

      But it is just not the educated worker preventing people from saving. There is a saying “happy wife, happy life”. My wife and I had many disagreements over how much I was saving and me refusing to buying that McMansion. Took a while to get the credit card debt under control too. After all I was making good money, why aren’t we spending it. The spouse can put great pressure on the lack of savings because they do not see the benefits today but a new car or a trip is instant gratification.

      My wife was working under the table for a while but I insisted that she get a 1099 form so that I could paid her social security taxes. She looked at it as giving away money. I did that for about 10 years which happen to be more than enough qualifying quarters for social security and raised her earnings. I also insist that she pay into her 401K at her next job too.

      She no longer complains and she can’t wait until I retire and she has admitted that I was right for saving so much. Can you imagine if I was wrong after 30 years. I still might not be right. We will know if we don’t outlive our money.

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