How are people dumber than us going to make out with their 401(k)s?

[Coronita]

[quote=svelte][quote=flu]
Max limit on 401k is $16.5k per year if you are not self employed (IE w2 at a company)

Married couple can do that twice though.[/quote]

Actually, it is $17K in 2012, with an additional $5.5K if you are over 50, for a potential total of $22.5K

http://www.irs.gov/retirement/participant/article/0,,id=211334,00.html[/quote]

Oops.. Close enough for me… And I’m not near over 50, so I wouldn’t know about the 22.5…Sorry….

[UCGal]

[quote=sdrealtor]How does someone who buys 7 day old bread expect to pay cash for a few rental properties in SD?[/quote]

Perhaps being frugal is how one saves to pay cash for rentals.

There’s a lot of folks who believe that living below one’s means (LBOM) is the best way to accumulate for retirement.

Over on the early-retirement.org forums there are folks who have made living cheap into an artform.

I don’t by 7 day old bread – but I definitely pinch pennies as I try to reach my goal of retiring early.

[UCGal]

[quote=flu][quote=svelte][quote=flu]
Max limit on 401k is $16.5k per year if you are not self employed (IE w2 at a company)

Married couple can do that twice though.[/quote]

Actually, it is $17K in 2012, with an additional $5.5K if you are over 50, for a potential total of $22.5K

http://www.irs.gov/retirement/participant/article/0,,id=211334,00.html[/quote]

Oops.. Close enough for me… And I’m not near over 50, so I wouldn’t know about the 22.5…Sorry….[/quote]

flu – when you get closer to 50 you should be aware that you get the higher limit the year you turn 50… my birthday is later in the year – but I upped my 401k contributions at the beginning of the year I turned 50. I was saving anyway – this allowed me some tax advantage on that saving.

[no_such_reality]

Retiring early is an art form. The prinipal driver of which is figuring out how little you actually need to live the life you want.

The big unknown for most isn’t how much money, it’s how much with health coverage be.

[The-Shoveler]

For me it’s not so much about early retirement, I plan to keep working until they carry me out or drag me out kicking and screaming, but I would like a back-up plan as well.
I would make a lousy fry cook (just ask my wife).
Maybe I could become tvr or fbr(just kidding).

[sdrealtor]

The comment was specifically directed to someone who has admitted being at or close to underwater on her home and limited retirement assets. The same person expects to buy properties with an equity partner providing the cash and to have ownership in them? There are two words for that, Realtor and property manager not owner.

My mother has living frugally down to science. 10 years ago she saw an ad for a course at Mira Costa College on how to live frugally. She called up to ask if she could get a senior discount (as a joke-she has a great sense of humor). They asked her if she wanted to be a guest lecturer.

[bearishgurl]

[quote=sdrealtor]The comment was specifically directed to someone who has admitted being at or close to underwater on her home and limited retirement assets. The same person expects to buy properties with an equity partner providing the cash and to have ownership in them? There are two words for that, Realtor and property manager not owner.[/quote]

Oh, brother! There’s some really bad comprehension going on here. Probably due to way too much regular imbibing of a good thing, lol.

I have NEVER been close to being “underwater” on my home nor have I ever complained here about that. I have instead stated that I would not sell unless I could recover out of the net proceeds all my downpayment ($105K) plus a good portion of the substantial improvements on it that I have already made and will continue to make before I sell (IF) I sell it. That would be after 13+ years of ownership. This seems reasonable and maybe it will be possible at that time.

Yes, my “pensions” are definitely “limited.” However, I am not yet eligible to withdraw from of other retirement accounts. When I become eligible is when I will have access to cash but not a day sooner. If I find good potential SFR rentals in the future whose owners are might be receptive to offers, I am considering generating more income for myself by contributing half the purchase price and buying the materials needed for rehab. The “equity partner” (who also could use a retirement supplement) would contribute half the purchase money, do the majority of the rehab and repairs to ready it for tenants and I will do whatever repairs, cleanup and haul-away that I am able to. (I can’t use heavy power tools due to carpal tunnel issues.) Then I’ll vet the tenants and place them there, execute the leases and collect rents, sending “equity partner” a check every month. And no, I won’t be charging a “mgmt fee” for a property that is half mine. The type of house(s) we would buy would likely generate $1500 – $1800 per month rent (unless rents go thru the roof by then).

As usual, you assume too much when you really have no idea what someone’s resources are.

[quote=sdrealtor]My mother has living frugally down to science. 10 years ago she saw an ad for a course at Mira Costa College on how to live frugally. She called up to ask if she could get a senior discount (as a joke-she has a great sense of humor). They asked her if she wanted to be a guest lecturer.[/quote]

sdr, you’ve told all of us this story at least five times on here. That is HER generation. It’s not unusual. Most all of them are like your mom. They have a vivid recollection of what the great depression did to their families. My Lexus-driving 90+ yr old neighbors (Ellis Island arrivals as very young children) have rabbit ears on their TV set and raised two kids in a <1200 sf house in which they still reside. They also have a gardener and other handymen visit regularly :-]

and btw: I don't buy 7-day old bread and neither does anybody else. The policy of the 3 major grocery chains (Vons, Ralph's and Albertsons) is that on the morning of third day their bread (and other perishables that need to be prepared that day) gets picked up by St. Vincent de Paul and Father Joe's kitchens (to feed the homeless). The "day old" bread sold on the second day as well as yesterday's bakery items are what goes into the store clearance section for less than half price or shipped out to Grocery Outlet (along with other surplus). I can't always find whole wheat in this selection so I can't always buy "day old" bread (in actuality "2 days old").

Just some "food for thought" for you "bargain hunters" out there ...

[Author]

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