Generation X Not Prepared For Retirement

[bjl584]

http://www.cnbc.com/id/100744664

[Blessed]

We are not prepared enough in my opinion but are working hard on it. I do think there is something to the article. I have so many friends that do not invest for retirement. it is frightening. We lost 1/2 in 2008.

[NetSkyBlue]

I don't feel prepared at all, either (Gen-Y). I don't think the recession did much damage to my 401k, though - in fact, it probably did more good than bad. I didn't have much to lose, and during all that time, I was buying "cheap" shares - more than what my dollars would have purchased otherwise. With any luck, that will make some difference in 35 years.

[LivingAlmostLarge]

Most people I know are not saving for retirement. I'm not sure why. But just gotta stay the course.

[Blessed]

Most people I know are not saving for retirement. I'm not sure why. But just gotta stay the course.

I think it is crazy most are not saving. I hate hearing I can't afford to do my 401k. Dont get new cars every 2 years then! We recently heard we were so dumb to put 20% of dh's income in 401k and $5000 in each IRA yearly from one of his coworkers because they have a pension. Pensions can go belly up !!

[bjl584]

I think it is crazy most are not saving. I hate hearing I can't afford to do my 401k. Dont get new cars every 2 years then! We recently heard we were so dumb to put 20% of dh's income in 401k and $5000 in each IRA yearly from one of his coworkers because they have a pension. Pensions can go belly up !!

I constantly have certain friends and family members telling me that I am foolish for saving so much, and for keeping my cars for so long. You just have to block it out and do what's right for you.

[Manthony]

401ks can go belly up too more-so than a pension. As a Gen-Xer, Ive lost half my 401k money this way too since 2008. One day you feel like you're on the right track with a 401k, because you believed what the establishment told you, and then another time, you are almost wiped out. Think another 2008 and worse is not going to happen? Think again! I think that creating an income outside of a job is just as good, and even better, than "saving".

For my "saved" money, I prefer a DRIP from a dividend paying company, or companies, that historically increase their dividends every year on average for at least the last 25 years. If I had to do it all over again, which I actually am, this is the route Id take from the get-go.

Those benefits people at your job and all those political supporters of '401ks', who don't have them themselves, and the like can go "F" themselves. (No disrespect to workers out there who are diligently adding to your 401k's. They just don't know or haven't been told that there are better alternatives out there, without all the fees.)

[bigdaddybus]

no surprises in this article. Like others, I know so many people that just do not place a priority on retirement...... but they all seem to have all the latest "gotta have it stuff".

I am currently taking a Dave Ramsey course called "The Legacy Journey" it is a new course that was written as a follow up to "Financial Peace University" that my wife and I have already taken.
In one one the videos, Dave uses an example of equally sized families with one making 40K a year and one making 2X that. The family making 40K had a budget, plan, etc and was in great shape financially and living contently with their life. The family making 80K had a negative net worth, no plan, etc. He says he sees that all the time.
I believe alot of people think they dont make enough to save. With that mindset, it will likely never be enough.

[bigdaddybus]

For my "saved" money, I prefer a DRIP from a dividend paying company, or companies, that historically increase their dividends every year on average for at least the last 25 years. If I had to do it all over again, which I actually am, this is the route Id take from the get-go.

My father has been retired for 5 yrs and he uses the same strategy for a portion of his nest egg. He told me in 2011 that he was getting approx $8500 a quarter in dividend income. When combined with monthly SS for both of them, and my moms pension they dont pull much from their nest egg (between 1-2%) for monthly expenses.

I will be using a similar strategy in retirement. The largest part of my retirement income will come from my parents trust that isnt even part of my retirement plan.

[disneysteve]

401ks can go belly up too more-so than a pension. As a Gen-Xer, Ive lost half my 401k money this way too since 2008. One day you feel like you're on the right track with a 401k, because you believed what the establishment told you, and then another time, you are almost wiped out. Think another 2008 and worse is not going to happen? Think again! I think that creating an income outside of a job is just as good, and even better, than "saving".

For my "saved" money, I prefer a DRIP from a dividend paying company, or companies, that historically increase their dividends every year on average for at least the last 25 years.

Do you think your individual stocks won't be affected by a market downturn like in 2008? It wasn't only mutual funds that dropped.

A 401k is just a basket, a type of account. It is up to you to choose what to put in that basket. You are limited by the choices offered by your employer but there are typically a wide variety of choices from very conservative to very aggressive.

[twest]

I definitely don't feel like we are prepared for retirement either. We have began maxing our Roths and we will continue to do that. I just wish I would have known more about the investing side when I was in my 20s. My parents always taught me to live with no debt and pay off any debt that I did have as quickly as possible. However, I never even knew about Roth IRAs and Traditional IRAs until probably my 30s. I am 37 now and my dh is 41. Maybe we can get at a decent level one day. It is very sad though to hear that most people aren't even concerned about their retirement "That is just too far down the road for me to be concerned with" is what I have heard many times from people.

[JoeP]

Our planning also includes lowering costs related to housing. A much smaller house means lower utility usage, lower taxes, less insurance, fewer items inside it, etc. Sure, other expenses may go up (most notably medical and food), but being part of the plan puts us in control. Last thing we want is a house that drags us down.

[LivingAlmostLarge]

That's because peopel in their 20s usually say they are paying off student loans and getting started. People in their 30s say we have small kids, daycare, kid expenses. Then suddenly you are in your 40s and haven't saved a penny and aren't used to living on less. People get used to a certain income and lifestyle. It's so easy to get caught up in the excuses of why it's too hard to save.

I can honestly say I understand. I look at our paychecks and cringe at how much is saved. I wonder what it would feel like to have thousands more a month to spend and think, wow, what a lifestyle I could have. But I have to be realistic.

[shaggy]

That's because peopel in their 20s usually say they are paying off student loans and getting started. People in their 30s say we have small kids, daycare, kid expenses. Then suddenly you are in your 40s and haven't saved a penny and aren't used to living on less. People get used to a certain income and lifestyle. It's so easy to get caught up in the excuses of why it's too hard to save.

Yep, it's just life that makes it tough to save no matter what stage you're at. I, too, got to my 40s and realized I was in deep trouble. The current generation didn't invent living on a tight budget during your 20's and not making enough money to buy all they want.

[Blessed]

I constantly have certain friends and family members telling me that I am foolish for saving so much, and for keeping my cars for so long. You just have to block it out and do what's right for you.

Your right.I feel very secure that we are doing the right thing. If catastrophe struck we would not need to worry about our current standard of living for a very long time. We are very happy with our lives.