The most rediculas thing from economic Advisors on TV

[hikerchick]

Oh, I agree. There is a big difference between the ideal and the realistic. But shouldn't the "experts" let you know what the ideal is? Even if you fall far short, you know what you should be aiming for. All I can manage- if you can call it managing - is to put away 4% of my salary in order to get the 2% match from my company - otherwise, I am turning down free money. It's far short of what I will need, but it is better than nothing. Can I really "afford" to do this- well, I am losing my house, so I guess not. But truly - can I afford not to do it?

 

[Big Daddy]

I think the advice is directed at people that sill have steady jobs. Remember unemployment is at 11-20% depending on who you listen to. That leaves 80-90% employed. Out of those probably half are underemployed and sucking wind. So they are talking to about 40% of the population. Remember those shows are directed at more affluent people. Our local evening news stations usually give tips on things to do to save money.

This recession is certainly showing the inadequacies of our social safety net.

 

[Big Daddy]

Oh, I agree. There is a big difference between the ideal and the realistic. But shouldn't the "experts" let you know what the ideal is? Even if you fall far short, you know what you should be aiming for. All I can manage- if you can call it managing - is to put away 4% of my salary in order to get the 2% match from my company - otherwise, I am turning down free money. It's far short of what I will need, but it is better than nothing. Can I really "afford" to do this- well, I am losing my house, so I guess not. But truly - can I afford not to do it?

Would that 4% save your house? Then it would be stupid to throw away the 2%. Besides it's pretax income and you never see it. If you quit the withdrawal you would probably barely notice the difference. I do the same thing. My company matches 3% if you contribute 6%. The only way we will be able to survive at retirement is if we pay our house down below 50%. Then we'll get a reverse mortgage. I wish we would have gotten serious 24 years ago when we 1st got married. Of course we both had really crummy jobs then.

 

[hikerchick]

Exactly, BD- the 4% would not have made the difference in keeping my house but it may, combined with the free 2%, make a difference in my retirement. So, I keep doing it. My company also gives you 3% of your salary in addition to the match. So, I am getting 5% of my salary put away every paycheck in addition to the 4% I put in. It is still way less than they recommend, especially at my advanced age, and considering I just started doing this. But every little bit helps. It beats doing nothing and turning down free $$

 

[Big Daddy]

Exactly, BD- the 4% would not have made the difference in keeping my house but it may, combined with the free 2%, make a difference in my retirement. So, I keep doing it. My company also gives you 3% of your salary in addition to the match. So, I am getting 5% of my salary put away every paycheck in addition to the 4% I put in. It is still way less than they recommend, especially at my advanced age, and considering I just started doing this. But every little bit helps. It beats doing nothing and turning down free $$

Hopefully social security will still be around by the time you retire. I'm sure that by then we will have socialized medicine too. So between your 401k and entitlements you might be able to have a comfortable retirement. No drafty box under the bridge and begging on street corners. Just be careful where your money is in the 401k.

 

[hikerchick]

Really the most realistic plan I have had heretofore was just to die young.

 

[Ladyhawke1]

Hello, Here I like to see if I am the only one who feels this way, alot of times on the Todays show or Good morning America on abc/nbc and cbs, comes this lady of the economY advisor who I really don't know her name, but God she makes me real mad when she starts speaking about how to save money and make a saving acount or 401k or an IRA account lablab lab :/ , well what about the ppl like me who are selfemployeed and still building thier businesses and not making any real money , and still going no where, why this economic advisors think that all ppl can save $$ or that all ppl have good paying jobs like them, or are they giving the Advice only for the fortunate ppl with good paying Jobs.
Give me a break, how can you save cash every month when your bills are more than yur income???
And please if I am doing something wrong let me know always can learn a trick or two on how to make better money with broken economy like today.

I thought here I can vent some, so thankyou fr readig

Omran

Dear Omran:

I just got through posting this on http://www.sufficientself.com/forum/viewtopic.php?pid=102515#p102515

My post is number 167.

You have every right to be angry. What counts is just what it is that WE intend to do with that anger? Do we keep fighting and killing others for just a sliver the pie when we collectively own the pie?

 

[Ladyhawke1]

I guess it just depends on what your bills are, versus your income.

Some people (not saying you at all, just people in general ) say that they don't have ay extra money and then go out to eat once a week... or buy brand new clothes, or have steak dinners, or a flat screen tv... you get the idea.

I put 10% of what I make away for retirement, because I watch my parents who are 61 and 65... they have nothing saved for retirement and will have to work for a while. Dad just had triple by-pass and they have no idea how to pay for his medication. That scares me.

I don't make a ton of money... around 20K/year... but I cut all my living expenses down and am putting away money and living within my means. I don't have any credit cards, so I can't spend more each month than I make. It's not that much fun right now, and it means my TV isn't a flat screen, I don't have an xbox, I live in a small house that needs work, and have to budget every bit of groceries that I buy (which is why we want to work on the self sufficiency thing ) but at least I'm not going to have to count on the government to support me when I retire, since Canada Pension Plan probably will be bankrupt by then...

I'm trying to get a small portrait business going, but there's no way I can live on what I make from it now so I continue to work full time.

Oh and welcome to sufficientself Omran

And you have such good free healthcare.

 

[sylvie]

A little known game companies play, and with your signed consent, is the 401K game.
I know too many who faithfully contributed their maximum %, only to lose the company match if the company closes within, say, the 5 year minimum for contributions, if that is what the agreement states. They end up with only the amount of their contribution and no interest on the money, either. Happened at DH's company. They could have invested same funds in a mutual fund of their own choosing and done better.

Another 401K scheme is that all your contributions, not to mention the company matches, are lost if you leave employment within a certain amount of time. Happened to SIL and I thought she was pretty savvy.

Read your 401K material closely, ask for clarification if you suspect the language is deliberately confusing you. Watch what you sign.

OK, Susie Orman, how do ya plan for that? That sets you years behind and with no wiggle room if you are nearing retirement with the volatile job market that exists now.

ETA Oh and welcome to SS, Omran! I think I have read your posts on BYC!

 

[hikerchick]

I guess my question is, what are the options? Just dont' save? Keep your money under a mattress? Forego the 401K match in just in case the company goes under? You will still have your own contributions in any event.