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Started By
Message
re: What is/was your plan to gain financial security?
Posted on 10/20/14 at 1:23 am to LSUAfro
Posted on 10/20/14 at 1:23 am to LSUAfro
quote:
Don't take extravagant vacations every year.
Yeah, why take great vacations when you're younger, more energetic, and more "lively". Wait till you're 65, if you make it there, so that you can really live!
It is always fun to see the people that lived for the moment when they were young working in their 60s and 70s when that are no longer lively and energetic, Anyway he said every year not never.
1
Posted on 10/20/14 at 5:30 am to LSUAfro
quote:
Yeah, why take great vacations when you're younger, more energetic, and more "lively". Wait till you're 65, if you make it there, so that you can really live!
I take a good vacation every year along with a few hunting & fishing expeditions here and there. And I have good jolly time with my family while keeping it all within budget.
The point I was making is that I don't put my self in debt for the next 14 months paying for an elaborate trip to Europe.
Take your big vacation if you can afford it but my contention is that if you cannot afford a huge vacation, its not wise to max out your credit cards and drain your bank accounts to do so.
BTW, you missed a very key word. I stated 'EVERY YEAR'. Take your dream vacation, have fund and enjoy it. But don't sell your future doing it every year.
Posted on 10/20/14 at 5:57 am to EA6B
quote:
It is always fun to see the people that lived for the moment when they were young working in their 60s and 70s when that are no longer lively and energetic
Yep, when I see grandma or grandpa working down at Wal-marks or somewhere else, I can't help but to think along those lines. Maybe they are working just to have something to do but dollars to donuts say they are barely scrapping by.
Its like a guy told me years ago, plant you some trees now so when you get older, you will have some shade.
quote:
Anyway he said every year not never.
Yep, that point was missed.
Posted on 10/20/14 at 6:57 am to raw dog
quote:Likely written by someone who was not wealthy.
I once read that the difference between wealthy people and non-wealthy people is that the wealthy ones are way more concerned with how to make more money rather than how to save more money.
Insofar as "saving" equates to frugality, not to burying money in the backyard, few ventures are successful without it. There is another saying -- "it takes money to make money." Corollary -- "it takes savings to make money."
Posted on 10/20/14 at 7:14 am to LSUAfro
quote:LSUAfro took some hit for this, but as with anything, extremes are rarely the best route. Time with family, and especially kids, cannot be recaptured. As the thread relates in a broader way to life planning, personal/family investment is relevant.
Yeah, why take great vacations when you're younger, more energetic, and more "lively". Wait till you're 65, if you make it there, so that you can really live!
Posted on 10/20/14 at 9:52 am to regularshow
1) Get wife out of student loan debt
2) Contribute ~$15,000 a year towards retirement funds for the next 7 years. Assuming the funds grow at 8% until I am 60, I will have have nearly $3 million staring at me in retirement. This $15,000 a year goes on top of where I currently am at. (The big numbers are according to my time playing with numbers in Excel. I could be entirely wrong and 8% returns isn't by any means guaranteed for the next 35 years)
3) Minimize consumption for the next 2 to 3 years. Avoid big purchases outside of a home or tract of land.
2) Contribute ~$15,000 a year towards retirement funds for the next 7 years. Assuming the funds grow at 8% until I am 60, I will have have nearly $3 million staring at me in retirement. This $15,000 a year goes on top of where I currently am at. (The big numbers are according to my time playing with numbers in Excel. I could be entirely wrong and 8% returns isn't by any means guaranteed for the next 35 years)
3) Minimize consumption for the next 2 to 3 years. Avoid big purchases outside of a home or tract of land.
Posted on 10/20/14 at 10:27 am to regularshow
Posted on 10/20/14 at 2:33 pm to kingbob
quote:
I once read that the difference between wealthy people and non-wealthy people is that the wealthy ones are way more concerned with how to make more money rather than how to save more money.
Likely written by someone who was not wealthy.
Insofar as "saving" equates to frugality, not to burying money in the backyard, few ventures are successful without it. There is another saying -- "it takes money to make money." Corollary -- "it takes savings to make money."
The way I interpret it: Wealthy and successful people are the individuals that are more concerned with progressing in their careers and taking every opportunity to put themselves in positions to command higher earnings. In its simplest form, the easiest way to gain financial security is to earn more money (with the caveat that you are a reasonable money manager).
Posted on 10/20/14 at 2:42 pm to raw dog
quote:
could be entirely wrong and 8% returns isn't by any means guaranteed for the next 35 years)
Buddy I sure hope its 8%.
Posted on 10/20/14 at 2:52 pm to Coach Guidry
I know right 
Posted on 10/20/14 at 2:58 pm to jimbeam
Plan was to retire:
1) debt free (own home)
2) six figure income
3) seven figures in savings
It's called critical mass.
1) debt free (own home)
2) six figure income
3) seven figures in savings
It's called critical mass.
This post was edited on 10/20/14 at 3:01 pm
Posted on 10/20/14 at 3:08 pm to Coach Guidry
Financial security to me (at this point in my life) is where I have invested enough money towards retirement so that if there ever comes a point where if I have to cutoff payments, I won't be stressing about having enough money when I am out of work.
I am pretty sheepish when I start playing with numbers in Excel. I have to qualify why contributing $15k to retirement a year is important. If I projected no gain or a loss in value 35 years from now, I would not be able to motivate myself to contribute even a $100 towards retirement. Nor do I actually have to contribute $15k a year for the next 7 years for my goal to be realized. In the end, it does set for an interesting goal.
The numerical value stems from the people who are quick to say 'contribute 15% of your yearly income' or some arbitrary number towards retirement. I think those who do contribute each year are doing a good thing for their future, but rarely does the conversation extend beyond that, such as specifying a target number to retire on.
I am pretty sheepish when I start playing with numbers in Excel. I have to qualify why contributing $15k to retirement a year is important. If I projected no gain or a loss in value 35 years from now, I would not be able to motivate myself to contribute even a $100 towards retirement. Nor do I actually have to contribute $15k a year for the next 7 years for my goal to be realized. In the end, it does set for an interesting goal.
The numerical value stems from the people who are quick to say 'contribute 15% of your yearly income' or some arbitrary number towards retirement. I think those who do contribute each year are doing a good thing for their future, but rarely does the conversation extend beyond that, such as specifying a target number to retire on.
Posted on 10/20/14 at 3:15 pm to regularshow
1) Good grades in HS (check)
2) Good college + desirable major (check)
3) Good job w/ good benefits - good health ins/401k match (check)
4) Marry frugal wife (check)
5) Pay off student loans (check)
6) Buy small starter home @ low rate (check)
- pay minumum (ongoing)
7) Buy only used, late model vehicles (check)
8) Put 12% in 401k (ongoing)
9) Max out Roth IRAs yearly (ongoing)
10) 529 plan for kid (ongoing)
11) Pay off CCs monthly (ongoing)
I'm 27, married + 1 and 2 dogs. Only debt is house and 1 car. We vacation well because we love to travel. Disney is a favorite. We budget for it just like everything else. Besides that, we save. We eat out once or twice a month, usually special occasions. Much of our furniture is second hand. So are our kid's clothes. I often look for "returned" items on big electronics. Little things like this add up. It's just a matter of understanding what's necessary to get what you ultimately want.
2) Good college + desirable major (check)
3) Good job w/ good benefits - good health ins/401k match (check)
4) Marry frugal wife (check)
5) Pay off student loans (check)
6) Buy small starter home @ low rate (check)
- pay minumum (ongoing)
7) Buy only used, late model vehicles (check)
8) Put 12% in 401k (ongoing)
9) Max out Roth IRAs yearly (ongoing)
10) 529 plan for kid (ongoing)
11) Pay off CCs monthly (ongoing)
I'm 27, married + 1 and 2 dogs. Only debt is house and 1 car. We vacation well because we love to travel. Disney is a favorite. We budget for it just like everything else. Besides that, we save. We eat out once or twice a month, usually special occasions. Much of our furniture is second hand. So are our kid's clothes. I often look for "returned" items on big electronics. Little things like this add up. It's just a matter of understanding what's necessary to get what you ultimately want.
Posted on 10/20/14 at 3:16 pm to Nawlens Gator
quote:Depending on your age, $1m won't cut it anymore. I'm looking at $4 mill minimum to retire. $5 if I want to do it early.
3) seven figures in savings
Posted on 10/20/14 at 3:33 pm to ell_13
Um, 4 Mil is seven figures. And if you don't need to touch it when retired, it grows.
Also the net present value of a six figure income (pension & SS) is nothing to sneeze at.
Also the net present value of a six figure income (pension & SS) is nothing to sneeze at.
This post was edited on 10/20/14 at 3:35 pm
Posted on 10/20/14 at 3:35 pm to Nawlens Gator
quote:My point was the just $1 mill won't be enough for most. "seven figures" is too general
Um, 4 Mil is seven figures
quote:Why wouldn't you touch it when you're not working?
And if you don't need to touch it when retired, it grows.
quote:household income?
Also the net present value of a six figure income is nothing to sneeze at.
Posted on 10/20/14 at 4:03 pm to ell_13
You make good points. If you're mid sixties, make six figures in SS + pension, can live on 60k, how much savings do you think is needed? The excess income can be saved for a rainy day and the seven figure savings may not need to be touched, ever. Maybe, maybe not.
I believe if you can get there, you have reached critical mass. That to me is the best plan. With critical mass you can focus on many things outside of accumulating more wealth. Can't take it with you (I don't think).
Posted on 10/20/14 at 4:11 pm to Nawlens Gator
$1 mill today is not $1 mill in 30 years. Same for $60k. If you're talking about someone already in their 60s, then okay. You could possible make $1 mill stretch another 25. But there will be medical bills. Who knows what SS or pensions do? Who knows what government programs (medicare) are still around? We're talking "financial security" here, which means to me that you are financial self sufficient and reliant with most (obviously not all) situations covered.
Posted on 10/20/14 at 5:13 pm to ell_13
I cringe when people mention 6, 7, whatever figures. There is such a broad range in an order of magnitude.
90,000 and 12,000 a year are still both 5 figures, but worlds apart.
90,000 and 12,000 a year are still both 5 figures, but worlds apart.
Posted on 10/20/14 at 6:48 pm to TheIndulger
Plow a ton into retirement accounts and take an extravagant vacation every year. C'mon every body let's do it!
Oh, and buy middle of the road furniture. I hate buying furniture. Sucks.
Oh, and buy middle of the road furniture. I hate buying furniture. Sucks.
This post was edited on 10/20/14 at 6:59 pm
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