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GAO report on retirement savings. Very sad!

Discussion in 'Non-Vegas Chat' started by Joe, Nov 20, 2015.

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  1. Joe

    Joe VIP Whale

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    I was reading a May 2015 report from the Government Accountability Office (GAO) and it was shocking to me.

    The report stated that half of households age 55 and older have no retirement savings such as a 401k or IRA. It further went on that of that 50% with no savings, 29% have no Defined Benefit Plan. Apparently they don't call it a pension anymore, it's now a DB.

    My oldest friend of 58 years is in this predicament. Yes, I've known him since kindergarten. He started saving very late and when we meet for a couple of drinks every few months, he is resigned to working until he dies. He just never was a saver.

    I understand there are reasons some people had to put off savings, college tuition for the kids, or because of medical expenses they had to dip into their savings, but 50% of the population. That is just unbelievable.
     
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  2. Suekel

    Suekel VIP Whale

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    It is sad, but it's a reality for many many people that they barely make enough to keep the roof over their heads and food on the table, and saving simply isn't in the equation. My late in laws fell in this category, and my FIL worked until he died. They had SS and that's it. Their kids helped out as much as possible too.

    I know people around my age (late 40's) who spend everything they make, always wanting new "toys" and who don't save enough or at all. It's frustrating to me but you can't tell someone how to manage their money I guess.


    Not having kids, it's been extra important to my husband and I to save aggressively. We both have 401K's and I have a pension plan as well as some assorted investments. Barring any unforeseen circumstances, we should be in good shape.
     
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  3. merlin

    merlin VIP Whale

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    The casino's are holding my retirement savings...someday I'll run hot and get it back! :wink2:
     
  4. h0und10

    h0und10 Low-Roller

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    At 23 i am debt free. working full time. 401k match with my employer. and starting a Roth IRA on the side. No ill never be "rich" or making tons of money each year. but living within my means and saving early will give me a huge advantage later on in life. 40 years of compound interest for me! :beer:
     
  5. KellyLovesVegas

    KellyLovesVegas certified personal trainer/retired space nerd

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    ^^^ Very smart approach, h0und10! ^^^

    This is the approach my husband and I took back when we got married in 1985. We both put the maximum allowed into our 401k accounts (which secured the maximum 401k match from our employer), avoided debt (except for mortgage), and invested in complementary stocks and mutual funds through our broker. Like SueKel, hubby and I are childfree - which allowed us to save very aggressively through the years.
    It's a strategy that worked well for us. I retired at age 55 at the end of August, and hubby will retire in 2016 after he concludes a capstone proposal.
     
  6. flyguyfl

    flyguyfl Low-Roller

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    Smart approach for both of you. God to see someone as young as 23 thinking forward. I wasn't much of a saver when I met my soon to be wife and partied hard in the USAF. I actually had to cash some savings bonds in to afford our honeymoon. She got us started saving a minimum of $100 a month when pay was pretty low. That grew larger as we grew older and then in the corporate world I maxed out my 401K and was making far more than the USAF. Now I have that USAF retirement and still collect pay so we spend less than we take in every month.
    All that said, I still am more of a low roller than others when I could afford higher losses.
     
  7. marcianofan

    marcianofan Low-Roller

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    My mother in law (and my late parents) saved all their lives, put money into savings and CDs . Now with interest rates basically zero for the last few years, she's having a tough time without touching the principal. Makes her very nervous and upset when she has to dip into savings.
     
  8. merlin

    merlin VIP Whale

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    Actually you are going to be very rich, keep it up through good years and bad and you will have hundreds of thousands(todays money) stashed away in 25 - 30 years.
     
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