I will work until I cannot. That said, it is awful hard to put away the millions they advise when you get hit from every angle with taxes and rising prices, low investment returns, all the while salaries stay basically static.
The one thing my ex father-in-law said that I agreed with was you will never get rich working for somebody else. I have just never been in a place to make that jump without enormous risk (that I cannot take with my kiddos).
I look at retirement like the false premise of home ownership. Buy a house, pay it off, but stop paying taxes and see how long you own it. The federal beast is in a catch 22. On one hand they need you to work forever and pay taxes and on the other they need you to retire and make room for other workforce acquisitions.
It’s even harder to put away the amount they say you should, when you don’t make enough to do that in the first place.
RE: it is awful hard to put away the millions they advise when you get hit from every angle with taxes and rising prices,
Heads up, according to Obama’s recent budget proposal, you cannot save too much. He is proposing to cap your 401K and IRA to a max. of $3 Million.
Of course most people will shrug and say — Hey, it doesn’t affect me, I don’t have that much money for retirement.
But note — IT ALWAYS STARTS WITH A HIGH NUMBER, and then slowly, but surely as the government runs out of money, the number goes DOWN.
The Saul Alinsky playbook is always GRADUAL, not a big bang. Get people complacent and used to tiny oppressions until they become pliable.
Obama majored in this in college and he is applying what he learned. That is why he does not want his college records released.
You are so correct, we never really own an thing as long as the tax monster lives.
As for retirement, unless one saves about 25% of gross at a RoR of at least 6% per year from age 20 or so until age 60 or so and has no debt at that time... forget about it. Retirement is not going to happen.
Your F-I-L was right, you are most likely never going to get rich working for someone else. Not so sure that it is possible very often even now with the tax monster we have.
It’s never too late to start.
I did when I started my current job in 1985, my wife did in 1994 when she accepted a postion in a Corp. HQ. We started low. I had 25 bucks a pay (bi-weekly) deposited in a TSA (403b). The wife had more put in hers because her company matched hers with 50%. You will Never find investments that will constantly earn you that rate.
Every year or two based on our monthly bills we talked about how much should be increase that amount.
We Have taken a few vacations over the last 30 years but even they are on the cheap. Tent to the Big Lake, camp out and fish, a hunting trip out west or Canada. But not every year.
We also rarely eat out. Nor do we do the Movies. Maybe once or twice a year. We raise a garden, chickens and a few hogs. Sell a couple to friends to cover part of the cost.
You may never get “rich” working for someone else, however I think a more appropriate saying is “It is not how much you make it’s how much you spend”.
My personal opinion is that Way to many people think life consists of eating out every night, trips to the bar and or Movies and other forms of costly entertainment over the weekend. Same with Phone, internet and cable TV costs.
The other biggy to me is what people spend on Vehicles. Maybe it’s my age but spending 35-50k on a vehicle that most can’t afford and then full coverage Insurance is like getting your paycheck cashed into twenties then piling it up and burning it.
We drive used vehicles. When we buy they are 2-4 years old low milage vehicles. We drive them until the fall apart. Usually get 10-12 years out them.
Start small and pay attention to all the small stuff that you spend money on. Cut some of the non essential out and stick it away. After a few years you will see what a small amount can turn into.
/rant
I’ve come to the conclusion that God meant for Man to work as long as he could.
That is my plan. The house is paid off when I reach 70. Can’t retire before then. Work at least that long, and I’m thinking 72, socking some money away into the 401K. You can do that, so I’ve read.
I turned 65, today, so I’m thinking 7 more years. I’m in good health; I like what I do, the company I work for; the people I work with. Why not? I knew a man who was still working at 80.