What retirement advice would you offer to younger people?

Save as much as possible for retirement, never too early to do so. Work overtime if available when you're young to save extra. Don't buy anything with your credit cards unless you can pay them off in full when the bill comes. Don't deny yourself nice vacations, good food, nice vehicles....but don't throw away money on junk purchases, things you won't use or even look at for years. Pay your mortgage/vehicles in full before retiring. Pretty much what the folks above me already mentioned. An try and take care of your health, you will benefit during your retirement if you're mobile and can get around and be independent.
 

Pecos says marry wisely, we marry when we are ignorant.
Solution: none that I know of... flip a coin? what?
 

Capt Lightning said:
Retire as soon as you can afford to... BUT... make sure you start off debt free, have reasonable savings and above all, have things to keep you occupied. The first two things may mean some hard graft and a lot of saving. The third thing may not cost you much, but is vital for your sanity.
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You know, there's a lot of discussion about "how much is enough". We know people that are filthy rich that don't think they may have enough. They are living well and have millions, lots of money over their current lifestyle overheads,but still keep worrying.

Wondering - "how much actually is enough" these days!!!
 
jerry r. garner said:
All good stuff, but experience is the best teacher.
I did not pay attention to the old folks advise; did you?
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Actually, I did pay attention. I started saving early -- not much at first, but steadily -- and refused all temptation to touch those savings no matter what. Besides my little amount of allocated savings, I put all "found money" -- like Christmas bonuses, tax refunds, etc. -- into those savings/mutual funds/whatever. I'm glad I did it.
 
Lvstotrvl said:
If at all possible, pay off your mortgage before you retire. For me it was the best thing we did, also if you have children once they leave the nest start seriously saving as much as you can.

Be careful with the credit cards, only charge what you can pay off at the end of the month. Paying interest is like throwing money away.
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I couldn't have said it better or as succinctly.

Tony
 
jerry r. garner said:
All good stuff, but experience is the best teacher.
I did not pay attention to the old folks advise; did you?
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We bought our condo when the building was 5 years old (built in 1983). At that time, we were the youngest in the building, in our mid-40s. Many of the people there had sold their big houses in the suburbs once the kids were gone, and bought in this building close in to the city. These were the "Depression Babies", while we represented the "Baby Boomers". It is amazing to realize the difference in attitudes toward money. My generation seems to love credit, borrowing for anything and everything. Those "Depression Babies" were far more conservative.

Many in the building at that time didn't borrow to buy cars, instead paying themselves and using that instead of having to pay interest. They had a conservative approach to running our association too, and we are in a much better financial position today as a result of continuing their policies. Their conservative approach meant spending where needed to keep the building in good repair (and not going cheap because quality work costs less in the long run), making sure that the association fees were enough to both maintain the building and build a solid reserve fund, and to not spend money on frivolous items. They were adamantly opposed to borrowing money to get work done on the building, instead making sure that we had the money when it was needed by planning ahead.

We had a reserve study done by a third party vendor two years ago. They told me that our association is among the best run they have seen, and that many are in various states of trouble due to some of the policies used, such as "delayed maintenance" and not collecting enough to build a solid reserve, in an effort to keep association fees artificially low. We on the board used to get complaints when we would raise the fees a modest amount each year instead of a big bump every few years. Always the question was along the lines of "I have a buddy who lives over in ... association and he doesn't pay the fees we do". Well, now folks are seeing that we did right by the association because trying to play catch up on reserve funds is like starting to save for retirement at age 60. It doesn't work. We have never had an assessment, while we are now hearing from other people in other associations that are paying large assessments for work that needs to be done, and we have a large reserve that covers what work needs to be done.

I spent many years on the board with these people and yes, I learned a lot from them. Today, I remain on the board and have been president for several years. I do my best to make sure that we continue along the path set for us by those "Depression Babies" back then, and hope we continue along that path at least for as long as we continue to live in the building.

Living among these folks, I learned a lot about handling financial issues as well as observing what it is like to be retired. When working, we don't see those who retire. They just disappear and we don't get to observe what goes right and what issues they have. In our association, I saw and heard about the issues, and have been able to prepare accordingly. We learned how to handle our finances, and it is nothing like those slick, big talkers who spew all that stock market talk. Common sense tops that sort of thing every time. The main thing I would tell somebody starting out today is "spend less than you earn and always pay yourself first". Until a person can do that, discussion about what to do with that money will have to wait because it is pointless if the money isn't there to do anything with in the first place.

Tony
 
Well, first, younger folks of today simply aren't going to listen to the word "save" and "use cash" or pretty much any other advice us old/older folks can tell them.

We are now in the "day and age" of spending, not nearly as much saving as some of us did. Some want to take their family to Disneyland, Disney World, on a family cruise, new car/truck, nice house, out to eat and so forth. When Christmas comes around, the young folks want all of the new electronic stuff, plus. They don't care about the cost, because they are making such a nice salary.

As far as "paying by cash", very few of the younger folks will do that, unless they can't get credit. The name of the game today is credit cards..…….period!
 
We always pay off our credit cards at the end of the month, and normally use them once a week when we go out for a meal. They are too easy to use.

Okay, if you need it for a large purchase, use it .. but pay it off as soon as possible. I worked with a young woman who furnished her apartment with a credit card, only to have it all revoked because she couldn't make her minimum payments.
 
Don't get married. If you must, think very very carefully about kids and then, this is the important part, stay married! Don't get divorced. Now go back to the start of my post and chant it like a mantra... Do this till you fall asleep and when you wake up tomorrow, have fun, live in the moment, give thanks to God. 😇
 
Pecos said:
Recognize that all retirements are different:
If you truly love your work, then your long term financial security is largely dependent on how long you work rather than how much you make.
Otherwise, marry wisely, save like the devil, invest smartly, hope for the best, and plan for the worst.
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Marry wisely?? What does that mean?
 
Just out of curiosity...I'm reading a lot of "save as much as you can"..."max out 401k"..."get investments" but, what I wanna know...is how much money do you people have that you can afford all that plus a house, plus a car?

I live on food service wages & they work me to death. I need every penny I make just to get by. And the very idea of a 2nd job isn't gonna happen. I can barely manage the one I have. A decent car and a house are totally out of budget for me. By the time I pay for my rent, bills, medications and food...that's at least one paycheck right there. The other check I have to hang onto in case of emergencies. I live paycheck to paycheck. I need furniture and curtains worse than I do an IRA acct. I didn't have the opportunity to go to college so I could make a decent living. So I've been forced to spend a lifetime at near poverty level. I tried the marriage route. That didn't go well at all. So here I am. Telling me to max out a 401k? With what money? I've had financial set backs for years. I have nothing to pilfer from to save.
 
Aunt Bea said:
That's true but you have to look at the other side of the coin too, my first real job paid $3.60/hour gross.

IMO the only thing that has changed is the numbers.
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And way way more people everywhere. How did we ever get so many people in this country...lol.
 
Needs are those things required for basic survival: food, clothing, shelter. Meet the needs first, but do it frugally - don't be swayed by advertising or trying to 'keep up with the Joneses.' Always buy used/pre-owned homes or cars. Learn how to be a do-it-yourselfer. Repair if possible, don't replace. Live within your means, not on credit. Set aside the money you saved by being frugal for a rainy day fund. If you have a dollar to spare at the end of the month, buy a chocolate bar!
 
MarciKS said:
Just out of curiosity...I'm reading a lot of "save as much as you can"..."max out 401k"..."get investments" but, what I wanna know...is how much money do you people have that you can afford all that plus a house, plus a car?

I live on food service wages & they work me to death. I need every penny I make just to get by. And the very idea of a 2nd job isn't gonna happen. I can barely manage the one I have. A decent car and a house are totally out of budget for me. By the time I pay for my rent, bills, medications and food...that's at least one paycheck right there. The other check I have to hang onto in case of emergencies. I live paycheck to paycheck. I need furniture and curtains worse than I do an IRA acct. I didn't have the opportunity to go to college so I could make a decent living. So I've been forced to spend a lifetime at near poverty level. I tried the marriage route. That didn't go well at all. So here I am. Telling me to max out a 401k? With what money? I've had financial set backs for years. I have nothing to pilfer from to save.
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Been there, done that. I was "poor girl" in my 20's and early 30's. What helped me was I followed my mother's advice and "rented" an apartment in a co-op development when I was 24. Didn't even know I owned the unit until our stock holder certificates were issued a couple of years later. I thought the downpayment ($700) was a security deposit. I started out paying $181 a month back then. My take home was only $350 a month. Blessedly, I could walk to work and home for lunch. My son's school was right around the corner form my job so I didn't need a car. Eventually I managed to start saving...starting with $6 a paycheck ; I got paid every two weeks. My mother used to tell me I needed carpet; I'd say to her I couldn't afford it. To my surprise, I got an unsolicited credit card from Chase when I was 23. I used it sparingly and always paid my bill in full and on time. I never paid bank fees back then (courtesy of direct deposit) and still don't. I shopped at thrift shops for my clothes but bought my son's at a department store when they had great sales, plus he got some good hand me downs. I was on partial welfare for about 6 months. Every time we got our little raises, I upped my savings a little. Also I used to get healthy tax returns. I'd divide that into thirds. 1/3 into savings, 1/3 to pay off bills, 1/3 to do whatever I wanted.

I didn't go to college until I was 37 and only went for two years. My life and income started changing for the better during that time due to a supervisor who offered me a field position, then later a change to state payroll. I was in the right place at the right time with very supportive co-workers. Still I feel for you and your plight, especially since you don't have options. I have known many people in your same situation. I have a good friend who can't catch a break no matter how hard she works. One online friend I've had for over a decade is living on only his Social Security, has several health issues and barely has a dime left over at the end of the month.

My grandson was on the honor roll all through college..made the Dean's list, the President's list, was inducted into the Phi Theta Kappa and the National Honor Society. Still he could not find a job in his chosen field and didn't work for almost 2 years after he graduated. He still isn't working to his capacity. My son never went to college, now he's considered an essential worker (truck driver) and makes a decent living. So having attended college isn't a guarantee of being able to find a good paying job. Don't diminish your self worth because you couldn't go. I hope that somehow your situation changes for the better Marci.
 
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OneEyedDiva said:
Been there, done that. I was "poor girl" in my 20's and early 30's. What helped me was I followed my mother's advice and "rented" an apartment in a co-op development when I was 24. Didn't even know I owned the unit until our stock holder certificates were issued a couple of years later. I thought the downpayment ($700) was a security deposit. I started out paying $181 a month back then. My take home was only $350 a month. Blessedly, I could walk to work and home for lunch. My son's school was right around the corner form my job so I didn't need a car. Eventually I managed to start saving...starting with $6 a paycheck ; I got paid every two weeks. My mother used to tell me I needed carpet; I'd say to her I couldn't afford it. To my surprise, I got an unsolicited credit card from Chase when I was 23. I used it sparingly and always paid my bill in full and on time. I never paid bank fees back then (courtesy of direct deposit) and still don't. I shopped at thrift shops for my clothes but bought my son's at a department store when they had great sales, plus he got some good hand me downs. I was on partial welfare for about 6 months. Every time we got our little raises, I upped my savings a little. Also I used to get healthy tax returns. I'd divide that into thirds. 1/3 into savings, 1/3 to pay off bills, 1/3 to do whatever I wanted.

I didn't go to college until I was 37 and only went for two years. My life and income started changing for the better during that time due to a supervisor who offered me a field position, then later a change to state payroll. I was in the right place at the right time with very supportive co-workers. Still I feel for you and your plight, especially since you don't have options. I have known many people in your same situation. I have a good friend who can't catch a break no matter how hard she works. One online friend I've had for over a decade is living on only his Social Security, has several health issues and barely has a dime left over at the end of the month.

My grandson was on the honor roll all through college..made the Dean's list, the President's list, was inducted into the Phi Theta Kappa and the National Honor Society. Still he could not find a job in his chosen field and didn't work for almost 2 years after he graduated. He still isn't working to his capacity. My son never went to college, now he's considered an essential worker (truck driver) and makes a decent living. So having attended college isn't a guarantee of being able to find a good paying job. Don't diminish your self worth because you couldn't go. I hope that somehow your situation changes for the better Marci.
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In order for me to have any hope at a half way decent vehicle I would have to start saving my tax refund for that. I guess if I have big bills that need paying off they will just have to come second fiddle.
 
All excellent advice so far!

I would say: "Have goals and always plan, but be flexible in those plans. Be on the lookout for all ways to improve your financial situation and go after those opportunities. Think very carefully about everything you spend even for something as small as that delicious candy bar calling your name. Spend the majority of your money only on those things most important to you and do the rest on the cheap. Balance in everything."
 
MarciKS there are millions just like you living from paycheck to paycheck, life isn't fair. Way to many variables to try to explain why that is. College isn't always the ticket or way to a higher standard of living, if it was there wouldn't be so many returning home to live with their parents. Where you live, your job opportunities , your age, your health, what skills you have, on & on for trying to figure out why you didn't get that lucky place in life.

Meanwhile there is a bright side. You could have been born in a 3rd. world country living in a shack with no indoor plumbing, & both parents sick with HIV. It's all in how you look at what you have as opposed to what you don't have.
 


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