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    Do you plan on saving for retirement?

    created by LaNeira 1415 days 21 hours ago

    Category: World

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    Do you plan on saving for retirement?

    According to this article from American Progress, "The median Millennial has saved exactly $0 for retirement". Is that the same for you?

    Most of us, I would wager, have nothing saved for retirement because we are young students/have student loans to pay off before we start saving for retirement. Some of the older members with steady jobs, however, might have been saving for some time already--maybe they're one of the lucky 40% that has a employer-contributed plan as well.

    So do you start planning on saving for retirement? Why or why not? Do you think social security will be enough for a modest lifestyle in your golden years, or no? If you do plan on saving, when will (did) you start? How did you do it--simple savings account, Roth IRA, 401(k), etc.? Do you have a target amount to save? How did you come up with that amount? Or are you just saving a percentage of your earnings? (most Millennials apparently only save 5.5%, while economists recommend saving 10%).

    Or are we just too young to even worry about this...? haha.

    Hope you all had a good weekend--it's been so hot in Portland, supposed to get cooler throughout the week. I need my rain!

    Re: Do you plan on saving for retirement?


    That was Avery sneezing in the background.

    LSU requires all new employees to put into the state retirement plan. They hold a percentage, it is not much, probably around 5% or less. So, I actually don't have a say in how much they withhold from my paycheck.

    At first, I was upset because I could use that extra money to pay for bills and student loans. However, I'm actually glad that made that requirement because I probably wouldn't have anything in retirement currently if I could choose to opt out.

    I do think it is important for people to have retirement accounts because I do not believe social security will be around by the time current college students graduate.

    I don't think current college students should be worried about retirement right now. I think it is something that should be looked at closely when college graduation comes near and one is about to be hired.

    Re: Do you plan on saving for retirement?

    I am still a college student, so I have not started saving for retirement. Education comes first to get me the job that will help me save for retirement. So obviously I do plan on saving.

    A lot of companies do require their employees to put aside something for retirement by taking it directly out of their paychecks. I think it is a good idea just to help the employees that might otherwise not plan ahead and think to save for retirement, because we can be retired for a very long time and that costs a lot of money.

    I hope to start saving when I get my first "real" long-term job. The earlier you start saving, the more money will be in the bank, and the better off you will be. I DON'T think social security will be nearly enough to support a modest lifestyle for the amount of people on it. I think social security has kind of become thought of as a free pass for retirement among a lot of people my age. The thing is, it isn't. Social security is already stretched thin as it is and it will only become harder to live off it as more people enter the program for longer periods of time. That and social security/medicare programs consist of about 50% of our national budget. At some point the amount of money being poured into the program is going to be cut, probably during my lifetime, and I want my financial future more secure than those who only plan on living off of social security.

    Re: Do you plan on saving for retirement?

    Sarah...that's great that your employer pays 3x your contribution into the retirement fund.
    Super awesome.
    I need to find such an employer.

    My employer used to pay 0.5x; then they came down to 0.33x, then they went to 0x, then they came back to 0.5x, and now they're are 0.25x.
    All these changes in the span of 10+ years that I've been with them; through which time the company went from public to private and saw the downturn in economy.
    Bottom-line, my company's match is really not that great at all.

    To address the article, I think the metrics are a bit skewed.
    They should have mentioned the age group of Millennials that were polled.
    Just saying "young people" doesn't suffice when publishing such reports.
    I hope they only looked at 23 yr. olds and above; assuming that average age of completing undergraduate college is around 23.

    Besides, saying "The median Millennial has saved exactly $0 for retirement", implies that there are half as many Millennials that have not saved anything as yet, while the other half HAS saved at-least something (>$0).
    Now that doesn't sound all that bad, does it!?

    I made some not-so-smart moves earlier in my career when to came to saving. I have been correcting that over the past 4-5 years now.
    IRA's and Roth IRA's are good. But they usually have a cap on how much can you put in them yearly, and they vary on the tax implication when you withdraw money from them.
    Besides, they also have stipulation on whether your employer offers 401k, and how much do you make every year.
    As 'poor' as my employers' match is, I do use 401k.
    I have also dabbled a bit with stocks on the side; as much as time permits.
    Stocks can be addictive and are a bit time consuming...for anyone who is thinking of getting into that.
    I would like to start looking into some Mutual Funds and Bonds....but with the huge tuition bill, that's been put on hold for until after I graduate, or if I get a higher paying job while I'm still pursuing my higher education.

    Re: Do you plan on saving for retirement?

    Hey LaNiera!

    I am lucky and I have a great retirement package through my employer. I am able to contribute to my 401k and my employer matches a percentage. If I get a raise this year, I plan on contributing more to my plan.

    I also have a savings account that I contribute money to every month. Eventually I am going to invest it. But into what, I'm not sure.

    I do not want to rely on social security for when I am older. If social security age stays the same, I still have another 34 years before I will be able to collect on any of that. Unless there is a change in the way social security is managed now, I am doubtful there will be much for me, even though I have paid into it.

    I never think a person is too young to start saving. My husband and I also have a savings account for our daughter. We think it's important for her to have money when she graduates from high school for college or whatever she wants to do. And hopefully when she's in high school and has a job, she can contribute to it as well.

    ~Erin

    Re: Do you plan on saving for retirement?

    Actually, I have my own 401k and stock account, both with Scottrade, that I manage myself and I do have some money in there. Not nearly enough of course, if we got right down to it I'm sure I'm like tens of thousands of dollars below where I should be by this time in my life, but hey there is SOME money in there, cut a guy some slack. I have a father who aside from being a lawyer, does plenty of things in stocks and has a broker that I've met and had chats with. I know what it means to put money aside, try to invest, and realize that someday retirement is going to catch up with you, so you'd better be ready. I ain't immortal and money can run out.

    Once I'm graduated, and not every single cent I lay eyes on gets gobbled up by my university, I'll of course be putting a fair amount away for retirement. Playing with stocks, perhaps employing a broker of my own, and hey maybe I'll get lucky and have an employer who actually has retirement stuff as well. I know that when I was working for Disney they put a dollar into my company 401k for every like...two dollars that I put in. Really adds up after awhile! I'm going to voraciously attack my loans, as in the majority of each paycheck goes to them, and once they're destroyed, I may even keep the same percentage of money heading into my savings and retirement accounts. It's only logical right?

    Worst comes to worst, I can take some out if I need to, but end of the day I gotta be set for my retired adventures.

    As far as social security goes, I have a major probability I won't even be living in this country, and there may come a day I gain new citizenship elsewhere or who knows. I can't read the future but I'm open to some things. Add to that the way social security is being treated these days and I'm fairly sure that I won't see a dime from it. I mean it's already bankrupt or something now isn't it? Operating in the red? Like they'll have cash for me in 40 years, yeah right.

    Oh, and it's monsoon season over here, so while it's super hot, it's actually raining right now and is cooling down big time, rock on! So glad I packed my rain jacket!

    Re: Do you plan on saving for retirement?


    LaNeira, this topic weighs heavily on me all the time and is the most recent cause of my stress and anxiety.

    I currently have no savings. Well, $100 dollars and the $2500 in my 401K for the job I had at the elevator company. Now, I did have money saved, then I moved to RI for graduate school. I had nearly $5,000 saved at that point. It was enough for the move, first months rent, security deposit and second months rent and the utilities for 2 months. When I was able to recoup my savings I got up to about $3,000 and I was in the process of moving to my apartment in RI. I also needed a car at that point. So, I bought a car for $3,000. Then it took me a year to save up a little more than $3,000 and well my advisor screwed me out of graduating on time and to pay bills and finish my thesis I again blew through my savings and I ended up maxing out my credit cards. This put me so far in debt that I am still recovering and that was a year and a half ago. Of course being out of work from December to May and owing $1,078 to the IRS did not help at all.

    You would think that since I worked all of July I would be OK. But no, I have had 2 dentist bills totaling $550 (one I still need to pay), gas for work that I had no choice but to put on my credit card (now it has a $300 balance), two doctor bills (totaling $245), and my monthly bills ($145), then my student loans ($600 a month) and I still have not received my paycheck ($3,300 before taxes - $660 at a minimum will be taken out). I figure that I might have $1,100 dollars left after I pay my regular bills for two months plus the doctor and dentist bills. That means that I am still short $100 to pay my student loan payment for 2 months - and I have not been winning all that much on CollegeNET. In short, I am short money for bills every month and am therefore unable to save money and am barely not defaulting on loans. Oh and I am a member of Gen X not Gen Y. So if my generation is having a hard time at at least 25% of my generation has been unable to save money for retirement, does anyone really expect your generation to save money?

    Maybe we all could if greedy baby boomers would retire and let us get a chance at jobs....

    As far as Social Security, I do not expect to see any of that in my lifetime. I think the system has been so misused and mishandled that my generation will not see the payouts from it. And we put money into the system. It would be nice if we were reimbursed what we put in, but.............

    Re: Do you plan on saving for retirement?

    Even small amounts of money can grow quite exponentially over a life time so I would say it probably a good idea to start saving as soon as you can.

    I absolutely am planning on saving for retirement once I start working full-time - like others I too currently just don't have the spare money. I don't want to rely on Social Security because I'm not horribly confident that it will still be around or available when I get around to retirement. I've taken a personal finance course & I took away the following (feel free to correct, clarify, expand):

    - invest aggressively starting out & gradually cut down the risk you take on as you get older
    - get the most out of employer contributions & check their vesting schedules
    - roth ira's/401k's can very useful in that while you pay taxes now, the money + gains become tax free
    - mutual funds are good for investing in general due to the amount time/effort it takes to do the stuff yourself

    Re: Do you plan on saving for retirement?

    Hi LaNeira,

    Great question! Yes, I save for retirement and have an IRA and other stock accounts. My husband is what you would call an extreme "tight-wad". He watches the market daily and moves his stock accounts by 4pm everyday.

    I work for a great company. I put in a large 401K percentage, and they match 4% plus profit sharing. Profit sharing is based on the total amount of my deferral. I put in a lot, probably a lot more than others, but it's sort of a game I play with myself. It's called "How can I survive on this small amount". My 401K has grown a lot, but there are many times I wonder if I should be using the savings towards my school loans or living expenses. But since I only have debt in school loans, I'm hoping the compound interest I make on my 401K will reach far beyond my loan totals.

    I am not going to depend on Social Security. I honestly think it won't be there by the time I retire. I think being responsible and putting something away will be absolutely essential to survive. I don't want to be a burden for my kids. I also want to be able to survive if something happens to the hubs.

    I don't have any spare money, and I try to be as conservative as possible. I have a house and own my car, but I try my best to save and pay off my growing college loan. My goal is to have my mortgage paid off by the time I'm 60 yrs old. My house payment is the biggest payment I have. It would be nice to own my home and never have a house payment!

    My in-laws never had 401k's and I've learned a lot from them. They grew up in the Depression times and never had anything to save. They grew up on the farm lands of North Dakota. When they moved out to North Idaho they worked on a local physician's farm in return for free rent. It worked out well. They saved enough money to buy 100 acres of forest on a mountain. They built their house by hand, and now its worth a lot. However, this is their only asset. They will need to sell the house and the land to make it through retirement. It will be sad to see their house they built by hand go. But all of their money is tied up in this property. This taught me the importance of saving! I want to have assets and other stocks and bonds! I hope I can teach my kids to do the same!

    Michelle