People who don't save for retirement

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Those stats might not be accurate. Average 401k balance doesn’t mean total net worth.

I have a Roth IRA with only $7000 in it and another IRA with 60k. One of my 401k’s has 120k. Total net worth is in the millions.

But why didn't you take advantage of tax free growth for years?

I only directly contributed $2k to my Roth when I was in my mid 20’s and low earning. As soon as I became high earning I’m no longer eligible. I currently do a mega backdoor Roth 401k and contribute 20k a year into that. I could do a normal backdoor conversion to my IRA but I’m too lazy.

So why didn't you do a Roth until you got over the $160K+ and why didn't you do a reg Ira after taxes once Roth wasn't available. I too have a "small Roth" of $40k because it was only a few years i could contribute but I have a $400k+ Ira that is solely from Ira (not any rollover 401k --have about $500k for that and I haven't worked in 25 years (not yet 60)

But I get tax free growth for years by doing so

Income climbed quickly and I couldn’t really spare the few thousand a year back then

Ok, but why no regular Ira? It still grows tax free

OMG let it go

[Anonymous]

Anonymous wrote:

Anonymous wrote:I will be working until I die. I can't afford to retire. That's for rich people.

Actually, rich people don’t retire, they keep working. People who dream about retirement are poor people with bad jobs.

Tons of UHNW people worth like $30MM+ retire. One neighbor sold his business at 60 and called it a day. Another retired doctor…could have just cut back his hours, but he didn’t see the point.

Now, the billionaires don’t retire…but they aren’t really “working”. They make decisions, but they aren’t crunching spreadsheets or doing any nitty gritty work.

[Anonymous]

The one flaw is the average 401k balance theory is people like me to lazy to roll them over. I have seven 401ks and a 457b. I actually rolled four of them. If I did not I would have had 11 401ks.

So if you look at some you say holy shit tgis dude is near retirement and only has 15k.

They need to find a way to consolidate 401ks, IRAs, pensions, 457b by person

[Anonymous]

Anonymous wrote:Everytime I look up what I should have saved up, I get stats on what the average American actually has. And they don’t have much. So what do all these people actually do when they reach their 60s and 70s?

They work. I know several 70 year olds that are working jobs.

[Anonymous]

Anonymous wrote:Everytime I look up what I should have saved up, I get stats on what the average American actually has. And they don’t have much. So what do all these people actually do when they reach their 60s and 70s?

My mom lives on her SS. I know posters will say that's impossible but it isn't. Her house was paid off shortly before she retired. She owes about $5-6k in property taxes on it. She has fairly low expenses since it's just her.

[Anonymous]

Anonymous wrote:The one flaw is the average 401k balance theory is people like me to lazy to roll them over. I have seven 401ks and a 457b. I actually rolled four of them. If I did not I would have had 11 401ks.

So if you look at some you say holy shit tgis dude is near retirement and only has 15k.

They need to find a way to consolidate 401ks, IRAs, pensions, 457b by person

I’m guilty of this. I have 401ks strewed across the landscape. I know it’s not wise. It looks like I have little money but I have about 2 million by myself. Not including DH.

[Anonymous]

My in-laws just take from our kids and us.

[Anonymous]

They live with their children/partners, collect SS and also work part time.
I'm a poor immigrant whose retirement is set. Wasn't hard at all.
My 19-year old college kid will have $20k invested towards retirement by the end of the year. He is way ahead of me. I had $8k at his age, but had no idea how to invest it.

[Anonymous]

They work, and they live in poverty. I remember as a kid when we found out my grandma wasn't eating - her kids stepped in, but they weren't rich either.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The one flaw is the average 401k balance theory is people like me to lazy to roll them over. I have seven 401ks and a 457b. I actually rolled four of them. If I did not I would have had 11 401ks.

So if you look at some you say holy shit tgis dude is near retirement and only has 15k.

They need to find a way to consolidate 401ks, IRAs, pensions, 457b by person

I’m guilty of this. I have 401ks strewed across the landscape. I know it’s not wise. It looks like I have little money but I have about 2 million by myself. Not including DH.

Roll them over into one. It isn't that hard, I was lazy about it myself and had 3 different 401ks and just filled out the forms and did it. Now they're all in one place. Literally took about 15 minutes to download, print, fill out and submit forms. Just do it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Everytime I look up what I should have saved up, I get stats on what the average American actually has. And they don’t have much. So what do all these people actually do when they reach their 60s and 70s?

They work. I know several 70 year olds that are working jobs.

I’ll probably work until 70. I would like to retire from my “real” job in 5 years, collect small pension and work a part time easier job and hold off on SS until 67.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Everytime I look up what I should have saved up, I get stats on what the average American actually has. And they don’t have much. So what do all these people actually do when they reach their 60s and 70s?

They work. I know several 70 year olds that are working jobs.

I’ll probably work until 70. I would like to retire from my “real” job in 5 years, collect small pension and work a part time easier job and hold off on SS until 67.

The brutal reality is that like 50% of retirees are forced into retirement for health reasons. Guess what, the folks who can survive on $3k/month in SS usually aren’t the healthiest.

Another good 30% retire because they are laid off…that group could work at Walmart if they wanted, but they usually have savings to supplement SS and just call it a day.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I will be working until I die. I can't afford to retire. That's for rich people.

Actually, rich people don’t retire, they keep working. People who dream about retirement are poor people with bad jobs.

Definately not true!! Mid 50/ and retired, uhnw so I'd call that "rich"

[Anonymous]

Anonymous wrote:

Anonymous wrote:Everytime I look up what I should have saved up, I get stats on what the average American actually has. And they don’t have much. So what do all these people actually do when they reach their 60s and 70s?

My mom lives on her SS. I know posters will say that's impossible but it isn't. Her house was paid off shortly before she retired. She owes about $5-6k in property taxes on it. She has fairly low expenses since it's just her.

I think the paid off house saves a lot of the elderly. Renting into old age is where the problem comes in.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I know many immigrants who came to the U.S. later in life to be with their adult kids.
They have section 8, SSI and Medicaid. Their adult kids help them with food and other essentials. They manage to save part of their SSI and their kids usually inherit a bunch of cash.

The worst situation is when someone works all their life and gets SS that is too high for Medicaid and other benefits but not enough to get by. I feel bad for Americans who are in this predicament.

l don’t understand your statement about the worst situation. Don’t retirees 65+ regardless of income get Medicare? If someone chooses to retire early they didn’t “work all their life” - why do you feel bad for them?

NP. The PP didn't articulate it well, but there are a lot of retirees who have too many assets to qualify for Medicaid (which is different than Medicare) but need long-term nursing home care. These people need to spend down all their assets until they qualify for Medicaid. Working hard all your life to amass modest savings to then fork it over to the nursing home is painful. There are ways to get around this if you plan ahead of time, but most people don't.