Is this 401K or cash in the bank?
Retirement
- Thread starter CSM
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Dave
Well-known member
At 69 yo we are well below that number in a savings account but hugely above in assets including some very liquid assets. Along with a good retirement that actually brings in more money monthly than when I was working.
Son of Butch
Well-known member
Think about it.
If typical household has an average of $5300 in the bank.
How could UNDER 35 average over $11,000 cash in the bank in savings?
The other 5 age groups average $50,000 in savings.
And no, home equity and other assets aren't savings.
But iras are.
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Caustic Burno
Well-known member
I couldn't sleep with that amount in my checking account.
Son of Butch
Well-known member
Then you are not typical.
But which amount, $11,200, $50,000 or $5,300 in household checking?
Both of my business and personal checking accounts pay near zilch in interest.
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Caustic Burno
Well-known member
The largest. I haven't had less than 25K since I was 22. My parents were born in 1914, I was raised by depression era parents.
If you didn't have cash you didn't need it. Everything pretty well stuck except the total distrust of banks up to the insured amounts.
I am tighter than a crabs ass and that's waterproof.
Lol !!! Now that's pretty tight CB Lol !!!
Son of Butch
Well-known member
From a Business Insider article.
Millennials 25-40 are projected to have 18% lower standard of living than their parents.
Typical 40 yr old has $21,000 less in net assets and $16,000 more in debt than the average baby boomer had at age 40. In addition on average,
in adjusted dollars, they earn 1.4% less than what boomers earned at same age.
Perhaps the parents of baby boomers did a better job of instilling the value of a dollar in their children than what boomers have done as parents for their children.
Millennials 25-40 are projected to have 18% lower standard of living than their parents.
Typical 40 yr old has $21,000 less in net assets and $16,000 more in debt than the average baby boomer had at age 40. In addition on average,
in adjusted dollars, they earn 1.4% less than what boomers earned at same age.
Perhaps the parents of baby boomers did a better job of instilling the value of a dollar in their children than what boomers have done as parents for their children.
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Caustic Burno
Well-known member
TV propaganda campaign has done a wonderful job, good credit, bad credit, none come on down we'll tote the note.
Most young people today the only thing they own is a note.
Keeping up with the Jones is even more important today with social media. Not near as much critical thinking as group think IMO.
Son of Butch
Well-known member
Young'ens spend too much on avocado toast and Starbucks coffee 
Starbucks is so overrated, I can make a better cup of black coffee at home.
Black coffee is the true test and I'd take a cup of McDonald's over Starbucks any day.
Starbucks is so overrated, I can make a better cup of black coffee at home.
Black coffee is the true test and I'd take a cup of McDonald's over Starbucks any day.
Dave
Well-known member
Back when I was working it amazed me how all the younger people walked in to the office in the morning with a cup of designer coffee. I am not a coffee drinker but I am a tight wad. Five dollars every morning on a cup of coffee. There was a coffee maker in the office. There was a fresh pot every morning. It was free.Young'ens spend too much on avocado toast and Starbucks coffee
Starbucks is so overrated, I can make a better cup of black coffee at home.
Black coffee is the true test and I'd take a cup of McDonald's over Starbucks any day.
I'm glad I'm not the only tight wad around. Of course, I just consider my spending habits normal, but most would call it being a tight wad.
Caustic Burno
Well-known member
It goes farther than that.
They drive a 80k Ford fwd super duty to work down the freeway to a cubicle.
At quitting time they drive to a fenced cubicle in the suburbs.
Friday evening they hook up a 70k boat, 20K UTV or golf cart to go play out side for a fee charged on a credit card.
If their debit or credit cards quit working they would be as confused as a hungry baby in a topless bar.
chaded
Well-known member
My wife and I are both 34 and the only debt we have is our mortgage which we are on pace to pay off in 3 years which has us paying off a 30 year loan off in 6-7 years. We have paid off student loans and vehicles and pay cash for everything else. We also max out our retirement every year and we are looking at investing in some other things.
Most (not all) of the older people we know are coming up to retirement age and are finding out they can't retire and are scrambling to save but it wont be much. Some are living paycheck to paycheck and counting on social security in a few years but its not much either. I have one family member who has taken out of their retirement twice (and of course never put it back) and there wasn't much in there to begin with. I told them both times they did it that they just stole from themselves.
To me, it seems just by observation that people of all age groups make crappy financial decisions.
Most (not all) of the older people we know are coming up to retirement age and are finding out they can't retire and are scrambling to save but it wont be much. Some are living paycheck to paycheck and counting on social security in a few years but its not much either. I have one family member who has taken out of their retirement twice (and of course never put it back) and there wasn't much in there to begin with. I told them both times they did it that they just stole from themselves.
To me, it seems just by observation that people of all age groups make crappy financial decisions.
Caustic Burno
Well-known member
I went and listened to a leading economist one time, his lecture was very enlightening.
He said you could collect every dollar and give everyone 1K to start over. The guy living under the overpass would still end up there just like Steve Jobs would be wealthy.
It's about how you manage
what you make.
Son of Butch
Well-known member
May 2021 average monthly check from Social Security
Retired worker $1,555
Widow(er) $1,460
Survivor benefits $1,245
Disabled $1,180
*waiting until age 70 to file for retirement increases monthly payment approximately 24% verses filing for full benefit at age 66 for those born in 1957
Delaying to file after age 70 doesn't increase benefits and you actually lose the monthly benefit for each month delayed.
*don't take my word for it, check the regulations yourself, they're too complicated for me to explain
Retired worker $1,555
Widow(er) $1,460
Survivor benefits $1,245
Disabled $1,180
*waiting until age 70 to file for retirement increases monthly payment approximately 24% verses filing for full benefit at age 66 for those born in 1957
Delaying to file after age 70 doesn't increase benefits and you actually lose the monthly benefit for each month delayed.
*don't take my word for it, check the regulations yourself, they're too complicated for me to explain
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There is a debate about when you should draw your SS. Your monthly check is more if you wait, but if you sock that money in the bank and don't touch it, you will have to live quite a while to reach break-even. There is also spousal benefits to consider (I am not advocting either way, but it is not as cut and dry as it seems).
https://www.cnbc.com/2018/08/13/those-social-security-break-even-calculations-can-be-misleading.html
https://www.investopedia.com/4-reasons-not-to-delay-social-security-payments-4687576
Caustic Burno
Well-known member
Every financial "advisor" I ever talked with said take it as soon as possible.
If you delay from 62 to 66 you will have to live to 82 to break even. That's longer than the life expectancy.
Was talking to a financial advisor worth while?
Caustic Burno
Well-known member
Most definitely you learn what you don't know.
There are a lot of pitfalls with huge tax implications out there for not knowing.
I have been retired 14 years and I still check with mine before making large investments.
Don't just talk with one, I interviewed several before I homesteaded.
