Post # 62
@LadyBlackheart: Uhm, me. I have about $250 in savings, and that’s it. I’m also 26, and I’m a full-time master’s student. I work part-time, but it all goes towards bills and the few fun things I allow myself on my pathetic income.
I worry about this sometimes also, particularly since I’m getting married in a year and a half and I would like to start having kids soon after. I feel behind!!!
Once I’m 30, I MUST start a retirement account, if not before then. I’m going to start building up my savings once I’m done with classes and can up my hours at my job, in a month. I need the money to buy my Fiance his wedding ring, and help with home improvements!
Post # 63
@LadyBlackheart: im 28 and i just started a 401K! literally just started last week. I am 4 months into my new job and i was able to sign up for my 401K
Don’t feel bad. LoL
Post # 64
@LadyBlackheart: I’m 29, DH is 34, and neither of us has anything saved for retirement. We barely have anything saved for emergencies! That being said, even my friends who make a lot of money don’t have retirement savings either. Don’t feel bad about it.
Post # 65
i started saving for retirement when i was 22 (25 now). interest is a wonderful thing to take advantage of. i have a roth IRA that has about $18,000 in it as well as a TSP (25% of my pay) account that has about $15,000 in it. i just don’t look at either but know in the back of my mind that they are there earning me money for when i get old. lol.
Post # 66
For those of you living paycheck to paycheck and unable to save right now, I just wanted to offer a note of encouragement. I am 40 now but that was me 10 years ago. When I got out of school I had a substantial amount of school debt, and was married to a former rich kid with even more debt than I did and had not yet figured out that he was no longer rich and couldn’t rack up a huge amount of credit card debt. I spent ages 25-30 seriously struggling to pay our loans. At 30 we divorced, I got a better paying job and really buckled down and paid off all my debt. I started saving for retirement around 32. And despite the economy tanking and the fact that I didn’t save in my twenties, aggressive saving has enabled me to have a decent retirement savings now. I think it is great when people can save in thwir twenties. And think you should look at your finances and determine whether you are buyimg things that you really don’t need before you say you can’t save. But if you truly can’t start saving until your 30s, know that it does not necessarily mean that you are going to have to work until you are 90.
Post # 67
@LadyBlackheart: i don’t mean this to be discouraging at all – so please take it in the spirit it’s intended!
i started saving for retirement at 16 – i made a deal with my parents that if i invested my tax rebates instead of spending them like my friends they would match the amount. that was a huge help for a while, they don’t match them anymore, but i still do that – i spend zero of my rebate – that money immediately gets invested.
that may be a way of saving since you’re living paycheck to paycheck – you can have save the ‘found’ rebate money.
Post # 68
In Australia we have superannuation, which is a 9.5% contribution your employer pays towards your retirement fund, and anyome can make voluntary payments too. They money is then invested for (hopefully) a better return. Our Government has recently commited or raising it to 12% over 5(?) years.
Post # 69
I have no money saved for retirement. I’m 25 and I just got my first salaried job a year ago. I have enough student loan debt to make me want to cry, everytime I look at the number, and I earn a decent, but very modest salary. On top of that I have quite a bit a credit card debt from college. Right now my main focus is getting my debt under control, and building a healthy emergency fun. I hope to be able to start putting something aside for retirement within the next 6-8 months, but I just can’t afford to right now.
My SO on the other hand, is also 25, and he’s been contributing to his retirement accounts for about a year now.
Post # 70
I’m older than a lot of the posters here, but I did start saving for retirement early – with my first job at age 22. Even though I made very little money. I was making $6.50 an hour at my first “real” job, living in a really old (cheap) apartment, and I made myself put savings first.
I did the 401K even though it hurt and my wage was quite small. I upped it over time and as my income grew it hurt less to raise the amount. I eventually built up my amount up to the max dollar limit (currently this is $17,500/year). I have also done the max Roth IRA every year since I was about 25 or 26.
I had told myself I would get to and put in the max dollar amount for several years and then I would back off. Time in the market is far more important than anything else. You’ve probably all seen the charts about someone who put in a little bit for a few early years and then put in nothing ending up with a lot more than the person who put in large sums but puts them in late.
Now I make a lot better salary, so the bite of maxing the 401K does not hurt like it used to. I found I don’t even miss the money, since I am used to living on the reduced amount. It is a nice tax savings since the 401K is funded with pre-tax dollars. So I haven’t backed off yet, even though I had expected to.
I find it is so amazing to look at that account and feel that I can someday retire with security and freedom (maybe even early).
I highly recommend saving something as soon as possible, even though it may hurt and you think you can’t do it or that you don’t have enough. Even a little bit compounds over time. Time is more important than money in this equation.
Post # 71
@LadyBlackheart: My mother passed away a few years ago and left me some money. A majority of it I have used to pay for grad school.
I still have a 401(k) of hers that I need to do something with:
- Take the full distribution (about $30k after taxes). I would do this now because I am still in the lowest tax bracket. When (if) I get a job next year, I will be in a higher bracket.
- Take required minimum distributions until all of the money is depleted- comes out to $500 per year.
- Or, roll it over into an Inherited IRA and not touch it ever again until I retire. This is obviously the best option as far as saving it for retirement.
I had some things come up and I think I’m going to cash the thing out. I really don’t want to, but I don’t have a whole lot of options as far as money goes right now. I hope to not have to use all of the money so I can put some into a high yielding account. Definitely in a pickle here.
Also, as an education employee, a good chunk of my check is automatically taken out and put into a state funded retirement program. So I guess regardless of what I do on my own, I will always be saving for retirement.
Does your employer offer any kind of retirement planning?
Post # 72
@LadyBlackheart: FH has a payroll deduction of 5% that his company matches, thankfully he has a bit put away (not a lot yet). I did have a bit of money but then I went back to school and had to take it back out again.
Right now, my retirement fund has a whopping $185 in it, my emergency fund $350. I built an emergency fund in to our budget. It’s really only in the last year that we haven’t been living paycheque to paycheque (we’re 30 & 31). It takes time, the trick is when you get money, don’t go nuts spending it. When my income more than doubled I made sure we made a budget and had a plan for what we’re spending and what we’re saving and what we’re paying off.
Post # 73
@LadyBlackheart: I’m not but it isn’t too late! I would recommend trying to set aside SOMETHING now even if it isn’t much… 50 or 100/mo would still add up. But even if you aren’t able to there is still time. My parents didn’t start saving for retirement at all until their 30s because they were just too broke with 2 kids to pull it off earlier. Once my dad got a promotion they really prioritized saving and saved a LOT and my parents are both able to retire before 60 if they want to. They do plan to both get part time jobs just to make things a little more comfortable, and also because 60 is sort of young to just putz around with nothing to do all day— but I’m pretty sure they COULD if they wanted to and were careful.
Post # 74
Neither of us have/do. I have a small amount in my savings, and I really should contribute some of my paycheck towards it. I just started a new job, so once I get more settled and see what my finances look like each month, I do plan to put part of them away either in a savings account I can’t access for x-number of years (I don’t remember what they’re called right at this moment), or towards a retirement plan. My husband plans to do the same once he gets his car paid off.
Post # 75
We are in our 30’s and between Fi and me, we have about $300k in various retirement accounts, and I’m pretty terrified that even if we keep contributing at these rates AND see a similar rate of retune, that we won’t have enough to retire on 🙁
Post # 76
@LadyBlackheart: Honestly I don’t know how people save for retirement in such an unyielding economy. I am fortunate to live in an area where we have not been hit so hard by the recession. But, the flip side to that is, everything is stupid expensive.
I am 43, I have nothing saved. I have literally spent the last 20 years raising children on my own, with nothing left over for anything else. Until very recently (the last 3 months) we have lived paycheck to paycheck. The only way I am able to save now is to meat cleaver cut things out that are absolutely not a necessity. I gave up my 3 bedroom rental, moved into a small travel trailer. And I am banking more than 6k a month. We figure in 3 years, we will have enough to buy a home, outright, with no payments. We make about 150k a year between the two of us, and still….. having all of the comforts of life, just never seemed to be enough.
Retirement?? I guess someday I will get around to saving for retirement. But right now, I just want to be a home owner. I think it is great for those of you who are young to think so far ahead. It is wise, as our future is not guaranteed. Once I pay for my home, I will start saving for our future. But in all liklihood, I will work far beyond the retirement age of 65 (or whatever it is).