Retirement is Overrated!

So I’m reading Business Insider and come across the following article:

Half Of All Americans Aren’t Doing A Thing For Retirement

 

The first thing I think is “Hell yea, hell yea, fucking right, fucking right?” (HYFR)

 

Then, I immediately think of the seniors doing low pay, no insurance jobs like being Walmart greeters and cringe…

 

There is no way in hell, that people are not saving for retirement, nope I don’t believe it.

 

Then I read the following:

 

In April, LIMRA, a think-tank for the financial industry, completed a survey intended to focus on the savings and investment preferences of those living and working in the United States. After receiving responses from 2,697 Americans, a representative sample of the country, LIMRA was able to determine that 49 percent of the country is not saving for retirement. Additionally, more than half of Americans between the ages of 18 and 34, at 56 percent, are not saving for retirement.

 

Are you kidding me!  49 percent of Americans are not saving for retirement.  Not even a little bit?  So, you mean to tell me 49% of people are leaving free money on the table by not taking employer matches to 401k, TSP, 357, 457, 227’s.

 

OK, 227 isn’t a retirement plan but you get my drift.  You mean to tell me Jeff Rose and the rest of the personal finance community spent an entire month talking about the power of ROTH IRA’s and these people didn’t invest a damn dime?

 

I don’t care if you don’t like the stock market, or aren’t proficient in investing.  When someone (your employer) tells you… 

If you put in 5% of your gross pay, I will match it 100%.  You jump on that shit!

 

You have all these people walking around here talking about how they save money by making their own coffee, saved 2 cents by not opening the oven to check on food, sell crap on Etsy and Craigslist, but they don’t save a dime for retirement!

 

Inflation is about 3% per year, I guarantee you, your savings account doesn’t yield 3%.  This means, your latte, Etsy, and Craigslist money is getting eroded by the inflation cookie monster, year after year.

 

Remember people, you cannot finance retirement, there will be a time when you can no longer work and you will only have your savings/investments to pay the bills.

 

Ignorance is no excuse for not saving for retirement or taking advantage of free money!

 

If you know nothing about investing, use index funds (or a target date fund) and match the market, set it and forget, as your retirement draws near start to move into more and more fixed income/money market products so you can preserve capital

 

Do you really want to win or simply look good losing?

Call to action!
Are you maxing out your pre-tax retirement?  If not why not?
Are you maxing out ROTH and Traditional IRAs?  If not why not?

 

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17 comments

  • "If you put in 5% of your gross pay, I will match it 100%. "
    That assumes you can spare 5% of your income. I know a lot of people with an average bank balance of just two digits. They live paycheck to paycheck and being able to eat today sounds a lot more appealing than watching soap operas in their 70's.
    It also assumes that you work for a company that matches. My current employer doesn't match, and they are the first place I've worked for that actually HAVE a 401(k).
    My recent post Taco Seasoning Giveaway

  • URFinanceSimple /

    Since, this is your first employer to offer a 401k what did you do for retirement before that? Did you invest in a Roth IRA or traditional IRA? Why or why not? You said you know people who have an average 2 digits in their bank account, well what about you?

  • I will tell you why people aren't putting away for retirement as much as they should. They aren't giving it a good enough title to constantly remind people to do so. For example. The skip paying your tax fund. The free money for live fund.

    Hey George. Did you put money in your 401K?
    What's a 401K?

    Hey George. Did you put money in your free money for live fund.
    Hell Fucking Yeah I did. I contribute Jan 1st of every year.

  • URFinanceSimple /

    Jai, that's a great way to look at it! Hmm, I'm going to start naming my invest accounts something more appealing. how's "F it Fund" ?

  • AverageJoe /

    Sadly, the people writing about saving money aren't the ones we have to worry about. It's the people who missed Jeff Rose's Roth Movement, your Work Hard and Shut Up! post, and all of the save a dollar by not going to Starbucks posts because they were too busy watching Pawn Stars and Jersey Shore.

  • Emilia /

    I just can't believe it than the half of the american people doesn't save for their retirements. What do they think? Or want they work until they die? People should be more responsible for their own lives…
    My recent post Meine Heimatstadt in Ungarn

  • JT. /

    "You should save for retirement," said financial advisers.

    "YOLO," said the American people.
    My recent post Facebook IPO Wasn’t a Flop…It Was Perfect

  • URFinanceSimple /

    Best… Comment… Ever!Legend… Wait for it…. I hope you're lactose tolerant! … Dary

  • It is just a sad truth that half of the Americans are not suppose to have a retirement well, then we cannot force them because they have their beliefs. By the way I love your idea in sharing about retirement I am sure many people will realize out there.
    My recent post click here for website

  • […] Finances Simplified – Retirement is Overrated. Uh oh. Dom just found out that 49 percent of Americans are not saving a dime for their retirement […]

  • L.S /

    When it comes to where you want to start your roth ira or traditional ira, after all the fancy wording is done, do all companies basicaly do the same thing… such as T. Rowe Price, Fidelity, and others like them…. or does one greatly surpass the others? Where would it be better to start if the company you work for does not match anything… Your bank, the company you work for, or something like T. Rowe and Fidelity?

  • URFinanceSimple /

    The broker you use for your Roth itS or traditional IRA will depend on what you need. Do you need full service or just someone to place your trades?

  • L.S /

    I am not completely sure yet, still doing research. I would just like somewhere to put money where it will grow into more than enough for retirement. I don’t want to take any early withdraws, just put it there and forget about it.

    Also, what are the chances that taxes would drop and not increase….I only ask this because if taxes are where they are now and then get higher, would it not be better to go with a tradition ira where you are taxed the amount it is now and then more as it goes up or have all of your money taxed at the higher amount when it comes time to retire?

    But then again, the money that you would be saving with a roth would work for you and bring in more money so that by the time you were taxed it would kinda be worth it because you got a little more…..Idk….

  • URFinanceSimple /

    Do a google search on full serviceBrokers vs discount brokers. There areVarying levels of service. I'm sure one model will suit your needs.Nobody knows what will happen with taxes. There is a chance they can go up or down, if I knew which way taxes would go or anyway the market would go I would be a rich man. I say focus on what you know now. But to answer your question, If you expect your taxes to be hirer in retirement the Roth is better, if you expect your taxes to be lower the traditional is better, but its more than just a tax issue. I wrote an article going into the details, check out the investment section of my blog.More importantly, keep reading and reading finance information. I'm gals you're taking control of your future instead of letting the future control you.

  • L.S /

    Thanks 🙂 I will most definitely do that. I would like to reach millionaire status by 50, possibly sooner when I get my real estate plan going (in the process now). Having some kind of roth under my belt would be great 🙂

  • URFinanceSimple /

    I say be a bit more specific. If the goal is a millionaire by 50, then how much per year do you need in your investments. What real estate returns do you need? Break this down into annual milestones.

  • L.S /

    I will do so and then get back to you to see what you think. Thanks again 🙂

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