The new American way

[Montecresto]

It appears that Americans are less thrifty and less likely to save. 60% have no retirement savings.
Most Americans have less than $1,000 in savings

What do you guys think is the best way to save??? I prefer realestate.

 

[Gator]

Well... Having a SxS is not helping.

Real estate is good. It seems to be outpacing the market.
If your employer offers a matching 401K, that is free money. Take it.

I have preached to my boys to ALWAYS put 10% in savings. Even if you have to take it right back out to pay the bills. At least you saved it. One day you will make it to the next paycheck without having to withdraw that 10% you deposited. Then another. Sooner or later you will find it becomes easier.

 

[Montecresto]

Well... Having a SxS is not helping.

Real estate is good. It seems to be outpacing the market.
If your employer offers a matching 401K, that is free money. Take it.

I have preached to my boys to ALWAYS put 10% in savings. Even if you have to take it right back out to pay the bills. At least you saved it. One day you will make it to the next paycheck without having to withdraw that 10% you deposited. Then another. Sooner or later you will find it becomes easier.

That's an interesting concept. Are the boys taking that advice?
I never got into the stock market, I've known people that have and both done well, and done poorly. Realestate is slower, you can't have stock splits, but it is steady and safe.

 

[Montecresto]

Unfortunately we've got government in the way of saving just like other things.
The real message on America's Tax Day: don't bother saving | Heather Long
Why U.S. tax policy makes saving a sucker's game.

 

[Montecresto]

Many economic advisors council people to include realestate in their retirement plan.
Why Real Estate Should Be A Part Of Your Retirement Strategy

 

[LandPioneer]

Thank God I was raised different than most people my age. I worked very hard to get 6 months of living expenses in a savings account. It is amazing how much better you feel when you know you can afford (with cash) anything that comes along. I also was taught not to carry debt except for Houses. That being said I don't think there is any one place to save money. Diversifying yourself is the best strategy. My next goal however is setting up rental properties to get some mailbox money for when I retire LOL.

 

[JACKAL]

Interesting topic, and sadly too many Americans have no savings or plan. The generation of instant graftication is borrowing its way into oblivion. Much like our Government.

I started putting 15% of my income towards retirement over 27 years ago into managed annuity plans. It has allowed Me to retire at age 50, draw 84K a year in annuity dividends with a 3% cost of living adjustment compounded annually. Now that it has matured the annuity is funded to last me (and wife if I preceed her in death) at that pace until I am well past 100. Which I don't anticipate happening.

Best advice is put aside 10-15% for retirement investment. Never take out a 30 yr mortgage. On a 250K note at 4% intrest a 15 yr mortgage will save you over 180K in payments to the bank all for a $300 higher payment for 15 years and no payments after that. Pay off your home get a little $$$ in the bank and be in a position of F.U. to a system of financial enslavement.

 

[Montecresto]

Thank God I was raised different than most people my age. I worked very hard to get 6 months of living expenses in a savings account. It is amazing how much better you feel when you know you can afford (with cash) anything that comes along. I also was taught not to carry debt except for Houses. That being said I don't think there is any one place to save money. Diversifying yourself is the best strategy. My next goal however is setting up rental properties to get some mailbox money for when I retire LOL.

I totally agree that you must be diversified. I run no debt other than new vehicles every four years or so. No credit card debt, whatever was charged that month is what gets paid. I've not paid credit card interest in 15 years. Home is long paid for.

 

[Montecresto]

Nothing I say has any impact on the children, they all think that they don't have to wait for things like we did, new cars now, nice vacations every year, a bigger house then they need/can afford. Economists have been suggesting this isn't going to be anything nice in a generations time. I already pointed out that the IRS has disincentives for saving, and neither major political party even mentions this. The likelihood that you're going to be affected by a terrorist attack is 1 in 4 billion, but that sells and consumes valuable time in the presidential debate, but this subject, saving and retirement most certainly will affect each and everyone of us, and it gets no mention except by the third parties. If we want America to be great again, this is one of the things we need to redirect focus on. SAVING FOR RETIREMENT.

 

[JACKAL]

Nothing I say has any impact on the children, they all think that they don't have to wait for things like we did, new cars now, nice vacations every year, a bigger house then they need/can afford. Economists have been suggesting this isn't going to be anything nice in a generations time. I already pointed out that the IRS has disincentives for saving, and neither major political party even mentions this. The likelihood that you're going to be affected by a terrorist attack is 1 in 4 billion, but that sells and consumes valuable time in the presidential debate, but this subject, saving and retirement most certainly will affect each and everyone of us, and it gets no mention except by the third parties. If we want America to be great again, this is one of the things we need to redirect focus on. SAVING FOR RETIREMENT.

I agree 1000% However personal fiscal discipline and individual responsibility is the only savior for each person. No politician or government can save a person from themselves.

 

[Montecresto]

If I remember correctly, 401-K's require an employee to remain on the job at least five years (for obvious reason) in order to get it. Yet statistically, people are changing jobs faster than that.

Typical U.S. worker now lasts 4.6 years on job

 

[Montecresto]

I agree 1000% However personal fiscal discipline and individual responsibility is the only savior for each person. No politician or government can save a person from themselves.

Um...yeah, I'm talking about government getting out of the way.

 

[Gator]

Yes, many employers have a period of "vesting". Mine is immediate.

You asked about the boys listening. Well, partly. One will tell me exactly what he needs to be doing. But he doesn't do it.
One is in college and not employed but says he will save.

One has taken my advice to an entire new level. I have told them all...
Remain Drug free, Debt free, and Child free and the world is yours. He is drug free, debt free, child free, and job free. He has no debt and no wants. He isn't at all concerned about being broke. <sigh>

 

[Montecresto]

So we need parents to be teaching children the importance of this, but that requires our parents to teach us. I didn't get that and had to learn it the hard way. Too late to raise mine that way and now they know more than dad. But if our union survives, and there's many things that threaten that, we need governments help in this to, by stepping aside, creating incentives in many different ways for young people to want to save rather than putting hazards in the way as is the case now.

 

[Montecresto]

Yes, many employers have a period of "vesting". Mine is immediate.

You asked about the boys listening. Well, partly. One will tell me exactly what he needs to be doing. But he doesn't do it.
One is in college and not employed but says he will save.

One has taken my advice to an entire new level. I have told them all...
Remain Drug free, Debt free, and Child free and the world is yours. He is drug free, debt free, child free, and job free. He has no debt and no wants. He isn't at all concerned about being broke. <sigh>

That's funny Gator! I hear ya and I feel your pain lol.

 

[Gator]

"So we need parents to be teaching..."

I've been thinking about this. Here is what my parents believed.
Get an education. Get a good job with a good company and a good retirement plan. Work hard all your life and retire with some level of comfort.

I'm not so sure that's applicable today. I've seen many companies suspend their retirement plans. I've seen good strong companies sold and closed. Retirement plans are rarely offered today.

So what was good advice by wise parents 40 years ago might not be the best advice today.

I'm not sure how to advise my kids today.

 

[Montecresto]

"So we need parents to be teaching..."

I've been thinking about this. Here is what my parents believed.
Get an education. Get a good job with a good company and a good retirement plan. Work hard all your life and retire with some level of comfort.

I'm not so sure that's applicable today. I've seen many companies suspend their retirement plans. I've seen good strong companies sold and closed. Retirement plans are rarely offered today.

So what was good advice by wise parents 40 years ago might not be the best advice today.

I'm not sure how to advise my kids today.

Good point. And one of the reasons companies are suspending retirement plans, not offering them at all, selling out and closing up shop etc., is again, government being in the way. Though he has no specifics, Trump has talked about this. Johnson has talked about it and has specifics.

 

[LandPioneer]

"So we need parents to be teaching..."

I've been thinking about this. Here is what my parents believed.
Get an education. Get a good job with a good company and a good retirement plan. Work hard all your life and retire with some level of comfort.

I'm not so sure that's applicable today. I've seen many companies suspend their retirement plans. I've seen good strong companies sold and closed. Retirement plans are rarely offered today.

So what was good advice by wise parents 40 years ago might not be the best advice today.

I'm not sure how to advise my kids today.

My stance is don't depend on a company. I save for myself. My Dad opened a ROTH IRA in my name when I was 18. He taught me to contribute first before spending on anything else. You don't save by saving whatever is left over. You learn to make do without that 15% you save.
I now have a company 401k which I contribute to however, I have been maxing out my ROTH for almost 10yrs. Now that those are in place, I'm trying to diversify with rental properties.

 

[Montecresto]

My stance is don't depend on a company. I save for myself. My Dad opened a ROTH IRA in my name when I was 18. He taught me to contribute first before spending on anything else. You don't save by saving whatever is left over. You learn to make do without that 15% you save.
I now have a company 401k which I contribute to however, I have been maxing out my ROTH for almost 10yrs. Now that those are in place, I'm trying to diversify with rental properties.

That's outstanding dude! First that your dad hooked you up that way and taught you the value, and secondly that you had the temperament to heed his advice and build on it. Not everybody gets that leg up. Good job.

 

[Montecresto]

Incentivizing Saving and Investment

The government can incentivize savings and investment by changing the relative cost of taking each action.