Why are people obsessed with putting $$ in retirement?

[Anonymous]

Anonymous wrote:

Anonymous wrote:...Because after you stop working, the paychecks stop. The money you put into a retirement fund is for you to live on for the rest of your life after you stop working.

what about social security?

Seriously, how old are you? You seem to have no real grasp on how the world works.

[Anonymous]

Anonymous wrote:Because I don't want to be a greeter at Walmart when I'm 80.

Pretty much this. And I'd like to be able to retire before I'm 80. My mom retired at 62. Why? She gets a full pension from her job. So she still gets a paycheck at about 80% of what it was when she stopped working. That type of awesome deal does not exist anymore, so I've got to sock away cash to be able to retire before my 70s.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:...Because after you stop working, the paychecks stop. The money you put into a retirement fund is for you to live on for the rest of your life after you stop working.

what about social security?

Seriously, how old are you? You seem to have no real grasp on how the world works.

OP here. I am 32. People are just afraid of running out of money. I think all will be okay.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:...Because after you stop working, the paychecks stop. The money you put into a retirement fund is for you to live on for the rest of your life after you stop working.

what about social security?

Seriously, how old are you? You seem to have no real grasp on how the world works.

OP here. I am 32. People are just afraid of running out of money. I think all will be okay.

LOL OP. Seriously, bless your heart.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:...Because after you stop working, the paychecks stop. The money you put into a retirement fund is for you to live on for the rest of your life after you stop working.

what about social security?

Seriously, how old are you? You seem to have no real grasp on how the world works.

OP here. I am 32. People are just afraid of running out of money. I think all will be okay.

Have you run the numbers, or you just rolling with your gut?

[Anonymous]

Anonymous wrote:

Anonymous wrote:How old are you OP? How long have you been working?

I'm guessing a millenial with no sense of forward thinking.

I'm an older millennial (born 85) who frankly, has been overly aggressive with saving. HHI for the last 5 years, while married, has ranged between $125K - $230K. We've got $600K in retirement, $100K in other investments, and $300K in home equity. No large gifts or inheritances.

That's a lot in a relatively short period of time. I lived extremely frugally for a long time. And that's a good thing, we have so many options. The time factor of compounding interest is unreal.

However, I will say - being so tight with the purse strings has made it hard to relax and enjoy some of it too. Those habits are extremely hard to break and can cause anxiety and a lack of balance when all you do is stockpile money. We were at over a 60% savings rate for quite awhile.

We actually hired a fee-only financial adviser about a year ago, and it was one of the best things we've done. Yes, we could do the math and pick the mutual funds, but 1 -- we hated it and avoided it and 2-- the adviser has given us SO much more peace of mind that we're on track, encourages us to balance spending now, is an "expert" voice telling us what is normal/reasonable for our lifestyle, etc.

I'd rather err on the side of saving too much than saving too little, but don't be fooled - there are downsides to saving too much, and a big one is becoming neurotic and miserly about it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP (if this is a serious question), do you have any older family members on a fixed income?

OP here. Yes, this is a serious questions. My parents are in their mid 70's and live fine with SS and my mother working part-time. They travel internationally once a year. I would like to spend more money while I'm younger (now) rather than when I'm 65+ with health issues.

I only believe this if their house is paid off, they live in a low property-tax state, and they have a very low COL. And they are very healthy, so have no health care costs.

If you have health issues, that is where your money will go. Medicare has all kinds of copays.

[Anonymous]

People regularly live to be 90+ these days. What happens when your mom can no longer work PT, or their health declines?

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP (if this is a serious question), do you have any older family members on a fixed income?

OP here. Yes, this is a serious questions. My parents are in their mid 70's and live fine with SS and my mother working part-time. They travel internationally once a year. I would like to spend more money while I'm younger (now) rather than when I'm 65+ with health issues.

There is such a thing as a balance. You save for retirement while also doing some traveling while you are young. Its not all or nothing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP (if this is a serious question), do you have any older family members on a fixed income?

OP here. Yes, this is a serious questions. My parents are in their mid 70's and live fine with SS and my mother working part-time. They travel internationally once a year. I would like to spend more money while I'm younger (now) rather than when I'm 65+ with health issues.

Have you heard the way some millennials are accusing us of being spendthrifts and deserving to die on an ice floe? (Not really the last part but sometimes it feels like that) Seriously, there's a fair number of younger people out there who are accusing a whole generation of being irresponsible.

Anyway, the way to enjoy your money when you're 65+ is to eat right, work out, and live as healthy a life as you can so you're ready to have a great time when you retire.

[Anonymous]

^^ For example, we just moved into a larger house with a pool, which honestly is my dream home. I'm feeling anxiety over the $140/month for pool care, which is completely unfounded. We easily have $3000+/month left over. But I've gotten into such a protestant work ethic "save at all costs" mindset, that even reasonable purchases feel challenging for me if I see them as indulgences instead of necessities.

I haven't rehired a cleaning lady since we moved and probably won't, because in my mind, doing my own cleaning offsets the pool service and increase in lawn service costs. Given my career and the cash we have left every month, it's ridiculous -- but it's a mindset that's hard to break.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How old are you OP? How long have you been working?

I'm guessing a millenial with no sense of forward thinking.

I'm an older millennial (born 85) who frankly, has been overly aggressive with saving. HHI for the last 5 years, while married, has ranged between $125K - $230K. We've got $600K in retirement, $100K in other investments, and $300K in home equity. No large gifts or inheritances.

That's a lot in a relatively short period of time. I lived extremely frugally for a long time. And that's a good thing, we have so many options. The time factor of compounding interest is unreal.

However, I will say - being so tight with the purse strings has made it hard to relax and enjoy some of it too. Those habits are extremely hard to break and can cause anxiety and a lack of balance when all you do is stockpile money. We were at over a 60% savings rate for quite awhile.

We actually hired a fee-only financial adviser about a year ago, and it was one of the best things we've done. Yes, we could do the math and pick the mutual funds, but 1 -- we hated it and avoided it and 2-- the adviser has given us SO much more peace of mind that we're on track, encourages us to balance spending now, is an "expert" voice telling us what is normal/reasonable for our lifestyle, etc.

I'd rather err on the side of saving too much than saving too little, but don't be fooled - there are downsides to saving too much, and a big one is becoming neurotic and miserly about it.

OP here. We are the same age. Glad to hear both sides. Enjoy your hard earned money

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:...Because after you stop working, the paychecks stop. The money you put into a retirement fund is for you to live on for the rest of your life after you stop working.

what about social security?

Seriously, how old are you? You seem to have no real grasp on how the world works.

OP here. I am 32. People are just afraid of running out of money. I think all will be okay.

Oh wow, you haven't read about how little many older Americans have saved and how many people can't survive on Social Security alone.

[Anonymous]

OP, if you are a very high earner, then no, you don't need to save all your money, unless you want to live in luxury in retirement (which a lot of high earners do -- why would they want to give up lifestyle just when they no longer have to work?).

The max social security benefit pays under 40K/yr. And most people don't qualify for the max.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:OP (if this is a serious question), do you have any older family members on a fixed income?

OP here. Yes, this is a serious questions. My parents are in their mid 70's and live fine with SS and my mother working part-time. They travel internationally once a year. I would like to spend more money while I'm younger (now) rather than when I'm 65+ with health issues.

I only believe this if their house is paid off, they live in a low property-tax state, and they have a very low COL. And they are very healthy, so have no health care costs.

If you have health issues, that is where your money will go. Medicare has all kinds of copays.

Their house is paid off, but that's it. Some health issues so they have co-pays