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Regular Contributor
Pants
Posts: 155
Registered: ‎06-12-2007

Financial Expert talk

Don't you love these finacial experts? They tell you to make double payments on your home to gain equity. Save at least 3 months worth of Salary for emergency.. Pay off all your balances on your cards every month.. At least put 10% of your earnings in your 401K and slowly increase it to 20%.
 
I figured out how much of a salary I will need to be able to afford all this. It comes out to household income of over 200,000 per year.
 
 
Talk is cheap if you are a financial consultant who makes a quarter of a million per year.. LOL
 
I GUESS you could probably get by inching your way up to this goal in 10 to 20 years with a 100,000 a year income or 20 to 25 years with a 75,000 income.. .. but still... :smileyhappy:
 
 
Senior Contributor
ilovepizza
Posts: 3,071
Registered: ‎05-17-2007

Re: Financial Expert talk

This is the sad part. We will need more money than we are making today to live tomorrow. That makes it really hard to save and live on what is left over. Less and less are able to retire at 60, 70, and even 80 yrs old. It takes a lot of money to retire. People will need to make more than they do now. It is already a problem. I am trying to figure out what I will do in 30 years. My plan is to some how start making more money. So far I do fine now, but I'm not saving. I fall in to this problem area. We need to invest or save serious money to have financial freedom later. It's not going to happen for more than many people.
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
Frequent Contributor
Tmleverage
Posts: 452
Registered: ‎07-14-2007

Re: Financial Expert talk

You are right, I figured out I did not need a new car so for half of what I was gonna
buy a car with I bought 2 used ones for me and my wife and payed cash..
This is my 3 year plan so every 3 years I will upgrade the used cars and bank whatever was gonna be spent on a new one, starting to get older now and thinking of the future so the wisdom of
IF I ONLY NEW KNOW WHAT I DIDN'T KNOW THEN is sinking in, I know now what
I didn't know then and at 42 it is not too late...
Super Contributor
MidnightVoice
Posts: 8,154
Registered: ‎03-25-2007

Re: Financial Expert talk



ilovepizza wrote:
This is the sad part. We will need more money than we are making today to live tomorrow. That makes it really hard to save and live on what is left over. Less and less are able to retire at 60, 70, and even 80 yrs old. It takes a lot of money to retire. People will need to make more than they do now. It is already a problem. I am trying to figure out what I will do in 30 years. My plan is to some how start making more money. So far I do fine now, but I'm not saving. I fall in to this problem area. We need to invest or save serious money to have financial freedom later. It's not going to happen for more than many people.

Shovel money into an IRA straight from you paycheck.
 
Then when your kids graduate from college, shovel all the cash you no longer spend on education into an IRA.
 
:smileyhappy:
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Regular Contributor
Pants
Posts: 155
Registered: ‎06-12-2007

Re: Financial Expert talk

Last year when we were 32 to 33K in revolving debt.. I had to zero out our 401K contributions in order to come up with a 3 to 5 year plan to be free from revolving debt.. My wife and I have now knocked it down to 23K since.. Its getting hard to make this plan work with the price of gas.. and grocery items going up as a result..

The problem is.. If I decide to retire in 25 to 30 years.. I will need at least 3 to 5 million in a retirement account to afford the lifestyle I do now.. I will be lucky to have 250K..

I don't mean to discourage people or sound like there is no hope. EVERY little bit helps.. but in reality I probably won't have enough..

Also when a young person graduates college.. Chances are there will be very high student loan debt.. That still only leaves a person with 30 to 35 years to pay off current debt and build wealth,.

Frequent Contributor
Tmleverage
Posts: 452
Registered: ‎07-14-2007

Re: Financial Expert talk



Pants wrote:

The problem is.. If I decide to retire in 25 to 30 years.. I will need at least 3 to 5 million in a retirement account to afford the lifestyle I do now.. I will be lucky to have 250K..



The lifestyle has to change or the career in my case....
Super Contributor
MidnightVoice
Posts: 8,154
Registered: ‎03-25-2007

Re: Financial Expert talk



Pants wrote:

Last year when we were 32 to 33K in revolving debt.. I had to zero out our 401K contributions in order to come up with a 3 to 5 year plan to be free from revolving debt.. My wife and I have now knocked it down to 23K since.. Its getting hard to make this plan work with the price of gas.. and grocery items going up as a result..

The problem is.. If I decide to retire in 25 to 30 years.. I will need at least 3 to 5 million in a retirement account to afford the lifestyle I do now.. I will be lucky to have 250K..



Hmm - if you need 5 million to keep up your current lifestyle, then you should be earning about 300,000 per year now, 23k in debt ought to go away pretty quick.  :smileyvery-happy:
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Regular Contributor
Pants
Posts: 155
Registered: ‎06-12-2007

Re: Financial Expert talk

That's what the financial counselor told me that I talked to.. Based on inflation, cost of living increases.. You need a couple million in the bank to afford to live on bare bones..
 
Its hard to forecast that stuff too.. We have no idea what the economy is going to be like 30 years from now..
 
You can look at news articles from 10 to 20 years ago predicting our economy would collapse by the year 2000, global warming would kill us all by 2010, last year the entire atlantic coast was going to be wiped out by hurricanes. (not one hurricane formed)
 
3 to 5 million may be an inflated number based on doomsday scenerios.. I guess you never know..
Regular Contributor
Pants
Posts: 155
Registered: ‎06-12-2007

Re: Financial Expert talk

And.. What would happen if you saved 20 to 30% of your income, worked two or three jobs in the hopes you can retire early... then end up dead by the age of 40..
 
I know that's not the way to look at things.. But it does happen.. LOL
 
 

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