Home Forums Hunting & Shooting Hunter's Campfire How does your 401K compare to your age-group's average?

If some of you missed this one I copied it off Yahoo.
Fits in good here.



Robert Shiller, the Nobel Prize-winning economist, offered some simple advice for people trying to get ahead when he visited Yahoo Finance recently: Live like a student.

“My students are living alright,” Shiller said. “I’ve suggested to them, why don’t you just continue to live at that level after you get a job? It would pile up into a lot of money.”

Struggling workers might take offense at a comfortable, accomplished Yale professor suggesting middle-class Americans should subsist on ramen noodles and hand-me-down furniture.

But Shiller, like other economists, is addressing a stark reality: Many Americans live beyond their means, with 20% of adults spending more than they earn, according to the Federal Reserve. Less that half of all adult Americans have enough money saved to cover a $400 financial emergency. Millions more are far short of the funds they’ll need to retire comfortably.

Shiller’s basic point is that the longer working folks can hold onto the frugal habits they're forced to adopt when money is tight, the better off they’ll be when they have to come up with money for their kids’ college, cover the cost of a medical emergency or ride out an unexpected bout of unemployment -- and then, if there’s anything left, fund retirement.

The concept is easy to understand — and damn hard to execute. I tried it out on myself — theoretically -- and discovered that if I were to live like a student, here’s what I’d have to change:

Stop fixing up my house. Owning the home isn’t really the problem, since it’s a pretty good deal for me, compared with renting. But the amount I spend on upgrades, maintenance, landscaping and basic repairs takes hundreds of dollars out of my wallet every month (and sometimes, every week).

Estimated savings from caring less about my house: $300 per month.

Make do with my old car. It runs well and has most basic features -- and it’s paid for. But I want heated seats! I’ve already identified a couple new models I’d love to check out, but I guess I can live with my eight-year-old Mazda for a few more years.

Savings if I don't take on new monthly car payments: $300 to $400 per month.

Tolerate dumb TV. I just bought my first smart TV. Not because my old TV broke, but because who wants a dumb TV when you can have a smart one connected directly to the Internet? Of course, now that I think about it, I got by with a puny TV — artfully outfitted with rabbit ears — back when I was first starting out. And I have to admit, I’ve also upgraded my smartphone, tablet and several other gizmos simply because a newer model seemed better.

Money wasted on unnecessary upgrades: $100 per month.

Downsize to one entertainment choice. I have cable, Netflix, Amazon Prime and a few other subscription services, and I’m probably not maximizing the value of any of them.

Money wasted just to make sure I’m never bored: $50 per month.

Get my hands dirtier. Last month I bought a snowblower, even though I’m capable of shoveling by hand. Before that, it was an electric garage-door opener, even though my arms are capable of raising and lowering the door. And as any DIY-er knows, tackling projects yourself always requires some new power tool or labor-saving device. Machines that handle once-tedious household chores are a modern marvel, but I guess it's still okay to break a sweat every now and then.

Money spent on appliances so I can do less work: $50 per month.

Ban amusements and little life enhancers. This might be TMI, but for Halloween last fall I bought a rubber chicken mask I wore while greeting trick-or-treeters, which I found amusing even if it alarmed a few little kids. I’ve also purchased sports equipment, pet gear and assorted knick-knacks I could probably forego without compromising my living standards.

Money wasted on small impulse buys: $50 per month.

I could go on, but scrutinizing just a few lines of my monthly budget shows how spending, rather than saving, dominates my financial life. That, for better or worse, has become the American way. The national savings rate is about 5%, and anybody able to bank double that is a highly disciplined outlier. Still, there's nothing wrong with saving 30% or 50% of your income, especially in an uncertain economy.

Marketers, needless to say, are terrific at helping us justify all that spending: It will make us feel better! We need to keep up with technology! There’s nothing wrong with a little splurging! You deserve it! What they never remind us of is the future cost of spending our money today, and going without it tomorrow.

If I were able to fend off lifestyle creep and feel happy with less — to return, in modest ways, to the more frugal habits of earlier days — it would make a big difference. If I could save an additional $500 a month, it would add up to $200,000 after 20 years, assuming a reasonable 5% annualized return. That nugget might end up bigger or smaller depending on when you start and how much you sock away, but any amount of untouched principal will expand itself thanks to compounding over time.

Is it worth it? On paper, it sure seems to be. But back in the real world, the urge to spend can be remarkably powerful. Besides, what’s wrong with spending a bit of my hard-earned pay on heated seats? I deserve to be comfortable, don’t I?

By the chart I am in the game
But I always remember
"Life is what happens while you are busy planning it"

Hank

Don't complain, it's no ones fault but your own, Miles. You jumped before you looked.

The things I see some of my employees do with money on a day to day basis just makes me shake my head. There are twelve of them ranging in age from 26-57. Out of the twelve only one contributes the maximum amount to our 401k and only six of twelve take advantage of our 8% match. They are all paid 2 1/2 - 4 times the current minimum wage.

My best foreman (34 years old) makes over 3x minimum wage, is single, has no kids, drives a company truck and is still flat ass broke come every pay day. I mean "Mike can I borrow money for lunch?" broke.

Last Monday morning he came in and showed me a winning casino ticket for $1000.00. He told me his girlfriend got some government grant money for her education so she loaned him some and they went to the casino. I asked him what he was going to do with the winnings and he said there was only $200.00 left after he paid her back the $300.00 he borrowed and then had a nice $500.00 dinner at 101 Chophouse. Unfortunately, I could go on and on.

Mike

The question then arises, what responsibility is it of the government to bail out the sick, lame and lazy dolts of life. Just look at all those pimps and thugs in Ferguson. Do you think they have any regard for self reliance? Why should the tax payers provide a government check for loser like that. The apostle Paul wrote that "if a man won't work neither should he eat." That is God's law of self responsibility. I doubt the genie can ever be put back in the bottle, but nobody should be afraid to publicly and forcefully speak the truth about the sad state of affairs with the American people who are lying sideways in the public trough. They should be shamed and made to feel ashamed.

Interesting that I just saw this thread, as it's something we've been discussing the last few weeks in my family. My in laws retired about a year apart starting to years ago. My father in law is a very frugal man, he's lived well below his means for many years and put lots of money away both in savings and investments and one would likely not know his actual worth by initial appearance if you bumped into him at a gas station. The sad part is that within the first year of retirement both him and my mother in law have had non stop medical issue, some quite scary as they both battle the Big C. It just sucks to me for them to have worked so hard for so many years and save so much in anticipation of living a dream retirement and to watch their health deteriorate so rapidly. Life sure as hell ain't fair sometimes that's for sure. All the money in the world in the bank doesn't mean you'll get to enjoy life! Just something to think about.

I'll never forget "Jerry the Car Pro" telling people that the biggest mistake most make is not treating a vehicle like a refrigerator or lawn mower. You don't replace them until they don't work any more.

Most people are really stupid when it comes to finances. Around the Superbowl there was a young man who paid the big bucks for a ticket. He said something like, "I already have a car, so I figure why not, you only live once." Idiot! Watch it on TV and put that $ in a retirement account. The way to save for retirement is real easy; live below your means and put as much money away as you can. Only make purchases that you need and keep your "wants" in check. My wife and I bought a small modest home, we furnished it with hand-me down or very inexpensive furniture. We bought economy cars and then kept them for about 10 years. When our son no longer needed daycare, we took that money and put it into our retirement account. When we got raises, we put most of that into our retirement accounts. I'm 58 and have been retired 4 years this May. We are carrying no debt and are quite comfortable and can now easily afford all those nice things we've always wanted and do some traveling. We have no debt.

Delayed gratification and saving, saving, saving. What a concept! All you young folk, you can do it too. Those of you who had to have the big McMansions, fancy new cars, maxed out credit cards etc and have lived above your means are screwed. If we were to suddenly get a serious health issue, I would not regret a thing and would go to my grave knowing that I made things easier for my son who we have taught to be frugal as well.

Great advice coop. I wish I had followed it when I was up and coming.

Well I guess my situation is a blessing, I'm above all age groups. I get a company pension as well and I work as much overtime as I can which keeps adding to both accounts.

With my luck I'll drop dead just as I retire, but at least my wife and her new boyfriend will have it easy....grin


I ain't a Hater!

First off, an 8% match, wow, you treat 'em good. 8% is un-heard of these days. Here I thought I had it good with a 6% match, and yes I have a co-worker who doesn't contribute enough to take advantage of it.
And it sounds like to me like you've got someone with a gambling problem on your hands. Good luck with that.

I am 56 and well above the average. Started my 401K in 1977 putting in a then max 10%. I have increased my percentage every time the regulations changed to allow it and up to 26% now including the company match.

The 1st thing I always talk to our new hires about is our 401K plan and how they need to participate. Most are not interested or say they will check on it later.

TRnCO you're right, buy the way my post reads you would think that, but I really don't think that's the case at all. I was trying to convey what bad decisions he makes when it comes to money and women. He lives in a modest apartment just blocks from our shop and has lawn chairs for furniture, but he has a 60" flat screen and every electronic device known to man. I mean the newest play stations, x boxes cell phones, whatever. The guy pisses away money like noone I've ever seen!

He eats out all three meals every day of the week even though he tells me he knows how to cook. He'll buy guns, crossbows, whatever he can get his hands on when he has money in his pocket, then three days before pay day will survive on Raman Noodles. Damndest thing I've ever seen.

Mike

One question , Wage, what time frame was this like year 2000 or ???

late 80's into 90's.

Old vehicles, small house, no vacations of any distance, home cooked meals, no cable, no cell phones then and work OT as much as you can.

Obama's Retirement Proposals "Punish" Investors says ICI

BY APARNA NARAYANAN
INVESTOR'S BUSINESS DAILY
02/05/2015 08:02 AM ET


Millions of Americans depend on the money stashed away in IRAs and 401(k)s to retire securely.

But President Barack Obama's 2016 budget would punish the nation's hard-working savers and investors, a trade association for the mutual fund industry argues.

The retirement planning proposals contained in the Fiscal Year 2016 Budget would limit the amount that Americans can save for retirement, according to the Investment Company Institute (ICI).

"Policy changes of this kind are simply wrong-headed," ICI President and CEO Paul Schott Stevens said in a press statement.

Among its more contentious proposals, the budget calls for a $3.4 million cap on the total amount of savings inside a 401(k), defined benefit plan or IRA. That amount is roughly equal to $210,000 of income for life starting at age 65, according to Forbes. As such, the initiative would particularly affect wealthier individuals and their hoped-for quality of life in retirement.

The ICI criticized the proposal requiring employers with existing retirement plans to expand eligibility to part-time employees who have worked at least 500 hours for at least three years. The requirement could mean additional costs and coverage issues for businesses.

The measure "would discourage employers from offering retirement plans and add unnecessary complexity to retirement savings," Stevens wrote on Feb. 2.

Supporters of Obama's retirement proposals argue that they would make it easy and automatic for workers to save for retirement through their employer. They point out that the proposals would give 30 million more workers access to a workplace savings plan, as well as tax incentives to offset administrative expenses for small businesses that adopt retirement plans.

But Stevens pointed out, "A voluntary retirement system has allowed Americans to accumulate more than $24 trillion in retirement savings."

He added that the ICI strongly opposes mandates on employers, "including any in the administration's 'auto-IRA' proposal." He was referring to the budget proposal that would set aside nearly $6.5 million for state-based automatic enrollment IRAs or 401(k)-type programs.



Read More At Investor's Business Daily: http://news.investors.com/investing...caps-employer-mandates.htm#ixzz3SiD2zDDQ
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Nt trying to dish you doings in any way , but ain't that when the min. wage was like $5 hour ? so you made 2x the min. wage ? even at 2x min. now not easy if the spouse dosen't work too. What is minum now $ like $9 hr ??

No problem, Brosef.


$7.25 in Idaho.

Our lowest paid floor sweeper is $10.

Just trying to get an idea on then to now proportions , maybe it could show some younger folks what can be done if you don't buy that mega house , new truck ever couple years , party every weekend , ect...

I have been investing/saving for about 30 of my 52 years. And am doing what i think is "on course" for my goal to have my target amount in my account when I retire.

But, another side of my investment portfolio has always been liquid assets such as guns, property, antiques. It's amazing what you can amass in 30 yrs of buying/selling/trading.

Upon my retirement time, I will be liquidating most of my possessions that many folks have scoffed at me for saving and collecting. I am confident it will account for about 20% of my retirement, pending markets at the time.

My .02, make that .01.. I need all the $$ I can get for retirement!

dave