What scares you most about retirement/the economy? (Informal poll) - Page 2 - Doberman Forum : Doberman Breed Dog Forums

**dax0402** · 01-31-2013, 07:54 AM

Quote:

Originally Posted by dobermansrule

I don't oft respond to my own post, but to continue the thought...

in the old days, I was preached the magic of compounding. I think 7% interest was used to make it sound so enticing to save.

FV = PV (1 + i)^N
FV = Future Value (the amount you will have in the future)
PV = Present Value (the amount you have today)
i = Interest (your rate of return or interest rate earned)
N = Number of Years (the length of time you invest)

examples:
say you start with $10,000 in the bank and have 30 years to save. And you can put in faithfully $1000 per year. And you get monthly compounding of interest.

at the 7% some financial planners and reading material still seem to think exists: in 30 years, you'll have $183,337.

at todays 0.1%: you'll have $40, 760.

then, who's to say in 30 years, what purchasing power that money will have.

Our Federal Reserve is openly pursuing a zero interest rate policy. Savers get killed. One is either forced to suffer with no yield for the perception of safety, or, take huge risk to pursue higher yields.

Everytime I go into my local bank, they ask if I want to talk to their investment advisor since we have a decent sum in savings account. I talked to that person once; they are pushing annuities. The promise of guaranteed yield and steady payout. But nothing is free - their are costs to everything, and risk.

You are so right with that last paragraph. We get the same thing with each bank we go to. When we moved, we changed banks and had to hear this same thing all over. They all push annuities and mutual funds. DH and I have a good amount in the stock market for our age. Certainly don't want anymore in it. It is my feeling that the individual investor only has a gamblers chance of making it in the stock market. Everything is controlled by the mutual funds and large instititions.

Beaumont67 · 02-01-2013, 01:22 PM

I am in an early forced retirement (almost 3 decades, in last job), since 52 y/o...department completely wipped out earlier.
- with 4 years of Engineering Technology College & 4 years of night school University in Certified Management
- our post WWII automotive supply factory is closing, spring this year (just finalized this week) / always made a profit & jobs are still moving...WTF
- my post secondary career training, is obsolute in our area (like mini Detroit), and I am not working at a big box store / so dabling in home reno's
Helps that my wife has a good job, with +30 years service, but now she will work more years, instead of earlier retirement - our plans are all delayed.

Must watch video: http://www.cbc.ca/doczone/episode/ge...ge=infographic
Generation Jobless - Thursday January 31, 2013 AT 9:00 PM on CBC-TV
- higher education is actually preparing jobs for the past & massive early student life debt / the younger working class, is largely screwed now
- unless your very outstanding, in many ways & worth big $$ // average Joe can graduate with a low paying entry level career, even if one can be found

Sherryh · 02-01-2013, 02:28 PM

If I told you what happened to us you would shake your head ....we were doing well until a partner took the business to closing. We have 6,000 dollars in uncashable checks. We picked ourselves up and started again but you have to have money to grow...no one is letting go of their funds to invest in a new company. We were near closing and a man called us to work for him and that's where we are headed. We lost our home in foreclosure we have to be out soon. We are relocating to the Miami area. We are involved in transportation which is busy in season from Nov-April . I'll keep you posted on how we are doing.

**dax0402** · 02-01-2013, 04:11 PM

Quote:

Originally Posted by Sherryh

If I told you what happened to us you would shake your head ....we were doing well until a partner took the business to closing. We have 6,000 dollars in uncashable checks. We picked ourselves up and started again but you have to have money to grow...no one is letting go of their funds to invest in a new company. We were near closing and a man called us to work for him and that's where we are headed. We lost our home in foreclosure we have to be out soon. We are relocating to the Miami area. We are involved in transportation which is busy in season from Nov-April . I'll keep you posted on how we are doing.

So very sorry to read this. This economy screwed a lot of good people. Hoping and praying everything works out well for you and better than before.

InSearchOf · 02-01-2013, 04:41 PM

Quote:

Originally Posted by Sherryh

If I told you what happened to us you would shake your head ....we were doing well until a partner took the business to closing. We have 6,000 dollars in uncashable checks. We picked ourselves up and started again but you have to have money to grow...no one is letting go of their funds to invest in a new company. We were near closing and a man called us to work for him and that's where we are headed. We lost our home in foreclosure we have to be out soon. We are relocating to the Miami area. We are involved in transportation which is busy in season from Nov-April . I'll keep you posted on how we are doing.

Sherryh - Thanks for sharing, I know it must be hard. Please do keep us posted and my best wishes to you and your family.

Beaumont67 · 02-01-2013, 04:57 PM

Sherry - I truly hope, only the very best for you, hubby & Devon's happiness, moving forward.
- this economy SUCKS big time, and the younger generation doesn't even know what their getting hit between the eyeballs with (anymore)
- many in all age brackets have been affected, and it hurts to see the kindest & hard working ones dealing with stuff, beyong their responsible control

dobermansrule · 02-01-2013, 07:00 PM

I know we talk about "this economy" generically... the economy is an inanimate thing undeserving of our scorn. On the other hand, we can thank governments for meddling and manipulating, resulting in economic and financial conditions. 'We' elected the goobers responsible for much of the mess - over many many years.

falnfenix · 02-01-2013, 10:43 PM

the banks hold a LOT of blame.

brw1982 · 02-01-2013, 10:52 PM

I grew up being told from a very young age I would never have social security and most of my generation won't be able to retire. I expect I'll be working until I've got at least one foot in the grave but I don't lose sleep over it. Instead I'm just trying to make money doing something I love so I don't have to be miserable with working until I die.

**dax0402** · 02-02-2013, 08:56 AM

Quote:

Originally Posted by brw1982

I grew up being told from a very young age I would never have social security and most of my generation won't be able to retire. I expect I'll be working until I've got at least one foot in the grave but I don't lose sleep over it. Instead I'm just trying to make money doing something I love so I don't have to be miserable with working until I die.

That is such a good attitude. I worked a job for a big company (now bankrupt) for 28 years. The last 10/11 years with the worst days of my life. It was a nightmare day after day. Don't know how I came through sane but I did. But I always tell young people I know to find something they really enjoy doing because it is no fun working day after day at something you hate.

Sherryh · 02-02-2013, 10:51 AM

I don't really like to share personal things but this I thought was important because if the younger generation can learn by our mistakes hopefully it will not be repeated. It doesn't matter about party lines...this happens about every ten years there is a change and challenge. I believe it's really the spirit of people it doesn't matter if you're in USA or across the country. I have friends in Russia that have had the same challenges. I don't blame it on anyone ...It's very important to take responsibility and act. Dr Phil was just in Detriot and spoke to many college educated adults who lost their jobs. It may mean not shopping at Macy's every week. For me I've learned how to shop at Good Will stores which is new used clothing,etc. I still shop at Publix Grocery store but use their brand which is the same. I don't keep alot of groceries in my house because we will be moving soon. The company that called us was referred from an old employer who knew how we worked. So never burn your bridges. I'm in my 50's and we had a nice life. But never think it can't happen to me because it just may sadly........my faith has also been my rock......Thank you for your prayers.....I love this site!! Devon is doing well she has been alot of comfort to us........

falnfenix · 02-02-2013, 11:38 AM

i think you're overly optimistic if you think GenY will change their shopping habits and overall behaviors. they were trained by the late Boomers to do exactly what they're doing, and almost none have realized the error of their ways.

us GenXers aren't plentiful enough to exact any real change.

DobeAndBorderCollie · 02-02-2013, 06:54 PM

Thank you everyone for sharing. It's really help me craft a (hopefully) enlightening presentation. Part of the reason I chose my career path is because I wanted to be able to help people. Like some of you, i too suffered a lay off from a company I spent 10 years at (I'm only 30 so that's saying something!) I was left to rebuilt and reevaluate. I decided to start my own company because I never wanted to face being left out in the cold by a company that I devoted my life to.

I hope that if we've learned anything from this Great Recession it's that we are resilient and can have a better understanding of what's truly important and develop a healthy respect for the money we all work hard to earn.

Again I truly appreciate your input!

By the way, my next project is developing an entrepreneurship course to be piloted at a local high school and hopefully offered to the rest of the district at some point. It will have a focus on developing a business, marketing, investing and managing personal and business finances. I wish they had that when I was in school!

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sandy2233 · 02-02-2013, 09:10 PM

Looking at 65, I will have to spend $40000. to keep my health insurance and that's if it doesn't go up. Fat chance. $20,000 deducible keeps me out of a drs office unless I'm dying. When I did invest 14 yrs ago, I asked my "advisor" to keep everything in low risk investments. Well guess how many 'bubbles" have broken since then. My nest egg broke a long time ago. My father in law (eighth grade education) had a huge nest egg and it was from CD's. Granted, he never got 7 or 8% returns most of the time, but he never lost what was in the bank. I will work until I die because I have to. Alot to look forward to.

**EmilyB** · 02-02-2013, 10:28 PM

A repeat of the dirty thirties.

I used to hear many stories from my mom.

Our economy is in better shape than the US but our cost of living is much higher.

I regret not getting into a profession with a pension plan.

Should we be so likely to live until we can't work, we'll probably have to move to a small town.

Matey · 02-02-2013, 11:01 PM

if i could play bass better i would retire tomorro being married to a woman who earns nearly 250k and is a bit of a work aholic makes it easier .my work colleges ask why i even bother working, hope fully the house will be paid in the next few years then i will be definaltly winding down and im not 50 ..yet

dobermansrule · 02-03-2013, 12:47 AM

Quote:

Originally Posted by falnfenix

the banks hold a LOT of blame.

the 'banks' and the government became incestuously joined with the creation of the Federal Reserve in 1913. And even though the Federal Reserve is nominally a private bank, it is supposed to operate under congressional oversight. Congress can't even audit the Fed. Those books are closed. And fractional banking and smoke and mirrors ensures nobody will be able to really figure out what the heck they do. But yes, the Federal Reserve holds a lot of the blame for creating bubbles and inflating the currency and robbing from the citizens through the stealth inflation tax.

ajp240 · 02-03-2013, 04:49 PM

We are definitely considering retiring abroad if that is an option for us in retirement age...but I am 25 and hubby will be 28. We have plenty of time. I started investing in a 401k at 22 (investing 12% now,) my company has a pension plan (not counting on it, but could be nice) and I just started a Roth IRA a couple months ago. We are trying to build up a savings but it's not easy to do.

We tried the rental thing but our first one was a flop and she got evicted. Had to go through court, etc, and ended up costing us thousands in the end. Paying two mortgages sucks. So, we're going to try to sell the house, but we'll lose tens of thousands since we bought it in 08 right before the bubble burst.

Steveb · 02-03-2013, 04:56 PM

I just retired after 26+ years as a policeman. A funny thing I have noticed about policemen. Some ALWAYS hang around with other policemen, they always talk about police work, their whole identity is that of the policeman. I always say these people "LIVE SO THEY CAN WORK". Others seem to live more normal lives. More well rounded. These people "WORK SO THEY CAN LIVE" The second type handle retirement MUCH better.

River · 02-03-2013, 05:26 PM

Quote:

Originally Posted by brw1982

I grew up being told from a very young age I would never have social security and most of my generation won't be able to retire. I expect I'll be working until I've got at least one foot in the grave but I don't lose sleep over it. Instead I'm just trying to make money doing something I love so I don't have to be miserable with working until I die.

Agree 100%. I don't believe that Social Security will be there when I retire. I doubt I'll be able to afford to retire. Heck, I can't even afford to buy a house in my area. I do count myself very lucky that I have a career that I like, and have a balance between working to live and living to work.

I also think that what you wrote is going to be reality for we younger Gen Xers and everyone who came after us. The key is going to be living within our means, not trying to keep up with the Jonses, and being willing to relocate to a low-cost area after retirement- if we can retire at all. And maybe, getting across that doing whatever it takes to escape college (if you go) with no student loans is very important. Being debt-free after college will allow you to start saving for retirement immediately after you graduate.

ajp240 · 02-03-2013, 05:31 PM

Quote:

Originally Posted by River

And maybe, getting across that doing whatever it takes to escape college (if you go) with no student loans is very important. Being debt-free after college will allow you to start saving for retirement immediately after you graduate.

I worked my way through college with a corporate/office job. What I will say is, I had no friends, no "college experience." Guess what? I don't feel like I missed out on much. Upon graduation, I got a better corporate job and was able to move up quickly with all of my experience.

I don't think college is and should be for everyone, but that is the current mentality. I also think my generation is kidding themselves. I watched a handful of people I graduated with not take jobs for 1-2 years because it didn't make their min requirement of making $40k a year. I started entry level making below poverty line, because to me that's better than sitting around waiting for my "minimum pay requirements" to come around.

DobeAndBorderCollie · 02-04-2013, 02:23 PM

Quote:

Originally Posted by dobermansrule

and question back to the financial planner:

what advise are you giving clients, in this low interest rate environment?

let me guess:

Index Mutual funds (stock market)
Growth stock mutual funds (stock market)

It depends on the client of course, but my firm bases recommendations that follow most endowment philosophies (Yale, Harvard, Cornell, etc). This usually involves a core of mutual funds however the old Modern Portfolio theory of "having a diversified blend of mutual funds and you can weather any market" was majorly disproved in 2008. We, like most endowments, focus a lot on involving alternative asset classes: options, private and public reits, oil and gas limited partnerships, currency hedging, etc.

These are well diversified where no more than 10% is in any one area as these can be risky and/or illiquid investments on their own. And you have to know how to evaluate these types of investments or hire someone whom you can trust.

I don't file my own taxes I hire a CPA. I don't know if most people should be managing their own investments, however I understand that it's difficult to find someone you can trust who isn't just going to sell you an equity indexed annuity at a 10% commission, then never talk to you again

sometimes I really hate some of the people that work in my field.

If you invest like everyone else you can expect the same results as everyone else. Look up how major universities invest their endowment funds. It's quite interesting.

Due to my licenses, I can not give specific advice in a public forum.

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DobeAndBorderCollie · 02-04-2013, 02:29 PM

Quote:

Originally Posted by Steveb

I just retired after 26+ years as a policeman. A funny thing I have noticed about policemen. Some ALWAYS hang around with other policemen, they always talk about police work, their whole identity is that of the policeman. I always say these people "LIVE SO THEY CAN WORK". Others seem to live more normal lives. More well rounded. These people "WORK SO THEY CAN LIVE" The second type handle retirement MUCH better.

I completely agree. Hence why a day of the course is taught by a psychiatrist who discuses the feelings you'll have as you transition to normal life. Unfortunately one of the officers recently committed suicide a few months after retiring. Very sad that someone can devote their life to a relatively thankless job and is unable to handle the transition to "normal", civilian life. I absolutely can not stand when people say they "hate cops". I love cops they really are some of the most selfless people I know and I certainly wouldn't last one day in that job!

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Lori Z · 02-04-2013, 04:09 PM

I plan to retire in 1 1/2 years at 56. My husband, who is older than I am, will retire in 3 years. We get retirement from our jobs and have saved a great deal. My concern is health insurance for me. He, at this point, will have part medicare and part whatever else we decide when he retires, I will have to pay. I am not sure how much but have budgeted for 600-700 a month. It could be more though.

LuvMyDobes · 02-06-2013, 08:57 AM

I am retired and the biggest threat has been that the cost of living and taxes have increased at such a fast pace that what was/is considered a generous retirement fund has not kept up and other than going back to work, there is no way increase income. The hit taken by stocks (where we had major investments) when the bailouts were done dropped our annual income by 40% and while the market has come back to some degree the dividends are not anywhere near what they once were. I recommend people sit down and figure what amount they need monthly to live comfortably, then add another 50% to make sure emergencies are covered.