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livinincali.
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February 18, 2014 at 4:53 PM #771076February 18, 2014 at 5:25 PM #771077
The-Shoveler
ParticipantThis is really odd maybe but I don’t know a single boomer who will not be able to retire.
They will not be spending or living like they are today, but most have their primary paid off and the few who don’t are planning to retire in a lower cost area or even country. (all have worked full time and earned above somewhat above average wages, only a few are in what I would call the rich Category 1-5Million range).
Contrary to what a lot have said, you don’t need to be a millionaire to retire (it helps, but it is not a requirement).
One thing, Having good health is far more important than being a millionaire, being healthy gives you a lot more options.
February 18, 2014 at 6:23 PM #771078flyer
ParticipantThat’s great, TS. Most BB’s I know will as well. Perhaps the stats are off.
I wouldn’t be comfortable in retirement without seven figures stashed, in addition to other retirement resources, but I know others who don’t consider this necessary,and who can still retire to their chosen lifestyle. Guess I’m always concerned about the “unexpected” and plan accordingly.
Agree health is as important as having the funds. I think we all know people who had their finances in order, but never made it to retirement for health reasons. That’s another reason we decided to “live along the way,” since no one really knows what the future will bring.
February 18, 2014 at 6:31 PM #771079joec
Participant[quote=flyer]I agree that debt can kill dreams. Had we not been in a financial position to afford our dreams, we would not have pursued them. Managed debt can bring great rewards (within one’s individual realm of reality) but unmanaged debt can destroy a person and/or a family.
It seems that many live in denial about what they can actually AFFORD for whatever reasons, and, as CAR mentioned, they are way over their heads (living beyond their means) in debt with housing, cars, education, etc., etc. and have few, if any, backup resources. IMO, that’s a real recipe for disaster, if something unexpected should happen.
It’s no wonder the stats reveal that most people in this country–in all age groups–will never be able to afford to retire–even if their health or other issues force them to.[/quote]
I’m not sure the age of some of the posters here, but for some/many people, they didn’t have many options in terms of some of the debt. Especially Education. I honestly think the boomers had a much easier time with the cost of living back then than the folks trying to get ahead now (and I mean the folks in the 21-28 bracket).
If you’re from a lower economic class now, the only way out is higher education. The problem is that you probably live in an area with very poor schools, no college in the family, etc…taking on college debt is probably the only way to break out, but even then, the odds aren’t good you’ll get anywhere close to making it. If you see a lot of the non-partisan documentaries on education, it’s pretty bleak IMO for people graduating now even…or trying to get ahead with what’s available. One reason schools are the main driver in a lot of housing areas.
At the end of day, I think we have a global oversupply of labor now and basic college isn’t going to help most people find decent work…but you’re screwed if you go to college and screwed if you don’t since it’s so much more expensive now than 30-40 years ago.
30-40 years ago, it was FAR EASIER than now to reach success since basic necessities were a lot more affordable…This includes a house, education, health care, gas, you name it…
Boomers should be doing well if they saved and didn’t ATM their house, but we know most don’t think that long term and will be tax payer supported…
We’re going to end up like Europe IMO, do nothing and you’ll have violence from the hopeless that I’m sure no one really wants neither.
No easy solutions to the overall lack of decent work and oversupply of labor.
Anyone think WW3 is coming or need some zombies/plague to wipe out 40% of the labor? (wasn’t WW2 the only reason we even got out of the great depression to begin with?)…and with Europe manufacturing bombed to hell, it was easy for America to succeed.
Note that I’m not the 21 year old bitter guy pushing past 40+ now and had a full parent paid college education in engineering so just voicing that when you study and see the “other” folks, it’s not just about wasting money sometimes.
Another point is that the majority of folks aren’t the typical piggy here to begin with and will be a problem I think.
(note the piggy salary/income poll from before)
February 18, 2014 at 6:55 PM #771081spdrun
ParticipantI’m not so sure that education is so unaffordable if you do it right. Tuition at Rutgers (NJ state university) = about $13-14k/yr. You graduate with about $52-$56k of debt if you keep your nose to the grinder and live at home.
Starting salary for an enginerd of the appropriate persuasion is $60-$65k/yr, say $40k/yr or $3,300/mo after taxes. If you’re renting an apartment for a grand a month, spend $1,500/mo on expenses, you have $800/mo left over. Paid off in 5-6 years, by the time you’re 27.
February 18, 2014 at 6:58 PM #771082ParticipantI’m not so sure that education is so unaffordable if you do it right. Tuition at Rutgers (NJ state university) = about $13-14k/yr. You graduate with about $52-$56k of debt if you keep your nose to the grinder and live at home.
Starting salary for an enginerd of the appropriate persuasion is $60-$65k/yr, say $40k/yr or $3,300/mo after taxes. If you’re renting an apartment for a grand a month, spend $1,500/mo on expenses (cook for yourself, drive a clunker), you have $800/mo left over. Paid off in 5-6 years, by the time you’re 27. That is, if you didn’t have a part-time job in college, which would probably reduce the loan amount by 50%, payable in under three years.
February 18, 2014 at 9:27 PM #771084Gunslinger
GuestThat is so true. Is that where you went? Did you keep your nose to the grinder and live at home? Did you pay for your own college too? Did you pay it off in 5 to 6 years or did you have a part time job in school and pay it off in 3 years? You sound like a shining example of reality. Please share your personal experience.
February 18, 2014 at 9:52 PM #771085scaredyclassic
ParticipantMy compadre recently retired on not much money.
Moved to cambodia. His health plan is sketchy but his expenses are low.
I refinanced my law school debt and with time and inflation it really is dinky. Granted I’ve been paying about 17 years and still have 8 to go on some of it. But when I started my total student debt was about 3 times my annual gross income. Thiscyear my total student debt is about 15 percent of my annual gross
Even if you do things kind of dumb they can still kind of work out. Debt did not kill my dreams but then again my dreams did not include homeownership vacations new cars or anything except pasta meat sauce cheap wine and kids. And then when the kids were older we finally were able to save some money for a few years and bought a house, my wife’s dream. So it all can work out but it might take a few decades.
Maybe.
February 18, 2014 at 10:40 PM #771086CA renter
Participant[quote=flyer]I agree that debt can kill dreams. Had we not been in a financial position to afford our dreams, we would not have pursued them. Managed debt can bring great rewards (within one’s individual realm of reality) but unmanaged debt can destroy a person and/or a family.
It seems that many live in denial about what they can actually AFFORD for whatever reasons, and, as CAR mentioned, they are way over their heads (living beyond their means) in debt with housing, cars, education, etc., etc. and have few, if any, backup resources. IMO, that’s a real recipe for disaster, if something unexpected should happen.
It’s no wonder the stats reveal that most people in this country–in all age groups–will never be able to afford to retire–even if their health or other issues force them to.[/quote]
In a way it’s denial, but I also think that this is the message that’s intentionally being shoved in our faces from all angles, every single day. The government/corporate message is that people can’t make it because they “don’t have enough education” (which I think is complete BS), so they are told to get student loans to pursue ever-higher degrees that will lead them nowhere. I also don’t think it’s all about majors or “useful degrees,” either; some of the hard science majors won’t lead to decent jobs, even with a PhD.
And then there is the housing market which is termed “broken” when prices normalize to affordable, pre-bubble levels. God forbid anyone should ever actually *own* a house debt-free; no, we should remain in perpetual debt so that housing prices can remain elevated forever.
The whole thought process behind the Federal Reserve’s actions is based on keeping everyone in debt, perpetually. They just keep making borrowing cheaper so that people can borrow more — and pay more — forever and ever.
Needless to say, it’s difficult to remain debt-free when people have to pay prices that are based on the greatest idiots with access to the greatest amounts of credit/debt paying the highest possible prices. But that’s how our system works.
February 18, 2014 at 10:42 PM #771087ParticipantFirst, I agree with the comments about the challenges of the world being a different place for those pursuing wealth today, vs. when we BB’s set out on that path. All anyone can do is the very best they can with what they have to work with.
Also, here’s a link to what I thought was an interesting article a friend forwarded to me regarding the value of a degree in today’s marketplace. Not necessarily my opinion, just passing the info along. . .
February 18, 2014 at 10:49 PM #771089Participant[quote=spdrun]I’m not so sure that education is so unaffordable if you do it right. Tuition at Rutgers (NJ state university) = about $13-14k/yr. You graduate with about $52-$56k of debt if you keep your nose to the grinder and live at home.
Starting salary for an enginerd of the appropriate persuasion is $60-$65k/yr, say $40k/yr or $3,300/mo after taxes. If you’re renting an apartment for a grand a month, spend $1,500/mo on expenses (cook for yourself, drive a clunker), you have $800/mo left over. Paid off in 5-6 years, by the time you’re 27. That is, if you didn’t have a part-time job in college, which would probably reduce the loan amount by 50%, payable in under three years.[/quote]
That would only be possible if your parents are paying for *everything,* including all food, healthcare costs, insurance, clothing, transportation, toiletries/personal items, entertainment (even poor people need some form of entertainment), phone/utilities, etc.
It also assumes that the student will be able to finish in four years and that there will be no impacted classes, limited course offerings, etc. In most public colleges/universities around here, it will take at least five years to graduate with an undergrad degree. If the student is working and paying his/her own way (trying to keep debt down), it can easily take longer than that.
February 19, 2014 at 10:28 AM #771099ParticipantRutgers has a 4-year undergrad graduation rate of about 50%. A lot of students do live at home and commute, then have summer and part-time jobs — it’s not hard to pull down $3000 over half the summer and another $4-5000 over the rest of the year with a part-time job or internship. 10 hr/wk, nothing huge.
February 20, 2014 at 9:37 AM #771105livinincali
Participant[quote=spdrun]Rutgers has a 4-year undergrad graduation rate of about 50%. A lot of students do live at home and commute, then have summer and part-time jobs — it’s not hard to pull down $3000 over half the summer and another $4-5000 over the rest of the year with a part-time job or internship. 10 hr/wk, nothing huge.[/quote]
$5000 / (36 weeks * 10 hours per week) = $13.89/hr. If you can find that job at 18-19 might be better to just stick with the job and not go to school. Especially if you’re not doing the STEM thing.
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