How many of you are actually saving for retirement?

[LAM]

Seems to be some major speculation up in this bitch.

in regards to housing it's not speculation at all economists have written dozens of papers on the subject, it was forecast decades ago. the problem is too many get their economic information from tv and politicians the 2 worst places for accurate information.

there is going to be a major housing surplus between boomers selling off to finance retirement and generation Y not having the funds (college loan debt, low paying jobs, etc.) or the desire to jump right into home ownership (starting families later in life) and being very mobile. the cities/states with the majority of boomers are in:
rochester NY
york/hanover PA
canton OH
kingsport TN/ Bristol VA
charleston w. va
pittsburgh pa
palm bay/melbourne-titusville FLa
youngstown oh
santa rosa ca
portland maine

* with wages stagnant and falling far short of the rate of inflation the past 25 years there is no reason to think that home values will create the same wealth for the next generation that it did for the boomers before the housing crisis.

 

[Big Pimpin]

in regards to housing it's not speculation at all economists have written dozens of papers on the subject, it was forecast decades ago. the problem is too many get their economic information from tv and politicians the 2 worst places for accurate information.

there is going to be a major housing surplus between boomers selling off to finance retirement and generation Y not having the funds (college loan debt, low paying jobs, etc.) or the desire to jump right into home ownership (starting families later in life) and being very mobile. the cities/states with the majority of boomers are in:
rochester NY
york/hanover PA
canton OH
kingsport TN/ Bristol VA
charleston w. va
pittsburgh pa
palm bay/melbourne-titusville FLa
youngstown oh
santa rosa ca
portland maine

* with wages stagnant and falling far short of the rate of inflation the past 25 years there is no reason to think that home values will create the same wealth for the next generation that it did for the boomers before the housing crisis.

I'm not saying you're wrong but your argument is missing one key component and that is these stupid reverse mortgages. I'm curious why grandmas and grandpas would sell en mass to walk away with some money when they can reverse mortgage (assuming they have enough equity) the dump and stay put since they will need a roof over their head?

 

[LAM]

I'm not saying you're wrong but your argument is missing one key component and that is these stupid reverse mortgages. I'm curious why grandmas and grandpas would sell en mass to walk away with some money when they can reverse mortgage (assuming they have enough equity) the dump and stay put since they will need a roof over their head?

I don't think they are as big as people think I still have a number of friends in the mortgage biz across the states and not many write many loans for them. there are also a lot of people that are about to retire that simply have way to much house just for 2 people so they want to downgrade to less sq. footage. but who really is going to want to buy some 20 year old cheap ass Mc Mansion, etc.? people don't realize how much it cost to heat/cool of a large home power bills can easily range fro $1-2K a month.

 

[heavyiron]

In Denver Colorado we are seeing potential for a housing shortage because of falling inventory. Rents have been steadily rising this year because of it. If you are selling a home that is valued under 500K it is flying off the shelf.

 

[Big Pimpin]

In Denver Colorado we are seeing potential for a housing shortage because of falling inventory. Rents have been steadily rising this year because of it. If you are selling a home that is valued under 500K it is flying off the shelf.

But why is inventory short?

If it's anything like metro ATL it's because the only houses for sale are either foreclosed, distressed or the people just want/have to move. There has to be at least 100K people like me around ATL who would like to sell but refuse to try because it's not worth taking such a huge bath.

The wife and I are putting somewhere around $20K in our kitchen this summer not because we'll get that out of it at resale, but because its the kitchen we want and chances are we'll be enjoying it for the next 10 years.

 

[heavyiron]

But why is inventory short?

If it's anything like metro ATL it's because the only houses for sale are either foreclosed, distressed or the people just want/have to move. There has to be at least 100K people like me around ATL who would like to sell but refuse to try because it's not worth taking such a huge bath.

The wife and I are putting somewhere around $20K in our kitchen this summer not because we'll get that out of it at resale, but because its the kitchen we want and chances are we'll be enjoying it for the next 10 years.

No, they haven't built enough units the last few years in Denver and people keep moving into the state. First time home buyers are getting good prices and good interest rates. If this trend continues home values will increase in Denver at least once the forclosures are sold off.

Staying in your house makes sense. Only fools sell low. =)

 

[Big Pimpin]

No, they haven't built enough units the last few years in Denver and people keep moving into the state. First time home buyers are getting good prices and good interest rates. If this trend continues home values will increase in Denver at least once the forclosures are sold off.

Staying in your house makes sense. Only fools sell low. =)

Congrats on the population growth and home demand...it's rare.

 

[Big Smoothy]

Parrot ^^^ =)

I've been following this for many years.

Back at Uni in 1991.

David Walker's piece on 60 minutes - you can do a search and find it in Open Chat - motivated me to start a thread about it.

 

[LAM]

Staying in your house makes sense. Only fools sell low. =)

all depends on where you live and how much land there is to develop for home growth. one way to tell if rates are rising due to housing shortages vs investors and speculators buying up properties is if rents are increasing.

that is one of the tells that the housing boom/bubble was due to legislation and not supply & demand and especially in the big bubble states like AZ and NV. if the overall housing supply is low then rents should also increase along with rising home values but they did not.

 

[jay_steel]

I am 28 and have been investing into my retirement 200$ since I was 18 and ensured that I am debt free. Only debt to my name is a new car loan and mortgage.

 

[XYZ]

No, they haven't built enough units the last few years in Denver and people keep moving into the state. First time home buyers are getting good prices and good interest rates. If this trend continues home values will increase in Denver at least once the forclosures are sold off.

Staying in your house makes sense. Only fools sell low. =)

What is going to happen when all of the new people join the current population in the Denver area that can't drive worth a damn? I've been to the Denver area at least 10-12 times over a 4-5 year period and it's always the same thing, SLOW and clueless drivers everywhere, especially on the freeways.

Here if you're not doing 75-80mph you get blown off the road.

 

[heavyiron]

What is going to happen when all of the new people join the current population in the Denver area that can't drive worth a damn? I've been to the Denver area at least 10-12 times over a 4-5 year period and it's always the same thing, SLOW and clueless drivers everywhere, especially on the freeways.

Here if you're not doing 75-80mph you get blown off the road.

Most of our bad drivers are from out of state and moved here recently....=)

 

[heavyiron]

all depends on where you live and how much land there is to develop for home growth. one way to tell if rates are rising due to housing shortages vs investors and speculators buying up properties is if rents are increasing.

that is one of the tells that the housing boom/bubble was due to legislation and not supply & demand and especially in the big bubble states like AZ and NV. if the overall housing supply is low then rents should also increase along with rising home values but they did not.

Rents are definately increasing here. Steady increases since the 4th quarter of 2011 and most apartment complexes are occupied in the 90%'s or even higher.

 

[Braveheart82]

Savers are losers with taxes and inflation. Buy rental property and get cash flow now instead of hoping and praying Obama bin Biden doesn't nationalize your 401k to pay for his half billion dollar vote buying to ACORN

Buying rental property sounds tempting but I always hear horror stories of bad tenants, no tenants, repairs, insurance, regulations, etc.

 

[Braveheart82]

I got lucky. As soon as I graduated from highschool I got a good job with a great company. I've been going to school and working full time ever since. I will graduate soon with my BA. I also have a technical degree for CAD. I will have no debt coming out of school. My cars are paid for and I took out no student loans. I feel ahead of the game.

I started investing in my 401k at 17yrs old. I defer the max amount that my company will match to. I don't like to pass up free money. My 401k took a hit with the recession but it bounced back and then some. I feel like I will be in good shape when it comes to retirement age. I'm 5-10yrs ahead of most people in terms of investing in a 401k. And with that much of a jump on people, my last 5-10yrs of my career should yeild some nice gains in my retirement fund.

That is one of the best things I've ever done.

Damn! Respect. Have to admit, a little jealous too lol but kudos for starting so young. I wish I had known then...

 

[Braveheart82]

I encourage all of you who don't already to invest on weekly/monthly basis even if its a minimal amount. The other day I used a retirement calculator to show my youngest employee (21) on what putting away just $25/week @ 5% looked like at age 65 and it blew his mind. He's the typical 21yo who wastes serious money on his car and sushi dinners on Friday nights with the local sluts he's trying to impress, but like I told him he has no excuse not to put money away considering what he's paid (about $40K this year). Luckily he agreed and I showed him how to set up a Scottrade account with auto funding. Hopefully he sticks with it.

The best thing my dad ever did was give me a $2k IRA when I was 19yo all while telling me once again there will be no Social Security when you retire so invest accordingly.

GJ! You probably saved that kid's life in the long run. He's going to owe you big time. I wish somebody told me that when I was that age.

 

[LAM]

I am 28 and have been investing into my retirement 200$ since I was 18 and ensured that I am debt free. Only debt to my name is a new car loan and mortgage.

staying relative debt free going into the middle age is going to be paramount since wages for males peek at about 45 and women in the late 30's. saving teaches one to delay gratification which is a huge skill that many lack. the last thing people want to get themselves into is working to pay off debt for some bullshit they bought 20 years ago on a credit card. the updated personal bankruptcy laws allow most revolving debt to follow people to their grave.

 

[Big Smoothy]

Oh, also there are no hidden fees anymore. New regs about 2 yeears ago made employer disclosure of fees a law and this year employee fees MUST be disclosed by law.

I said it before and I'll save it again. These hidden fees are there and these new regulations are not effective. After all....we're talking about Wall St. here.

Your family is probably losing $155K from 401(k) plan, and why new rules won't help
By Bob Sullivan

A two-income American family with an average income that dutifully invests in a 401(k) plan using typical strategies will lose $155,000 ? or about 30 percent of what they should have saved for retirement -- to Wall Street fees, according to a study by an economic justice advocacy organization.

The Demos study, released last month, is just the latest in a long string of research showing 401(k) plans are a better deal for Wall Street than for you. Many show that people lose about one-third of their retirement money to fees that they don't even know they're paying.

http://redtape.msnbc.msn.com/_news/...om-401k-plan-and-why-new-rules-wont-help?lite

 

[Gissurjon]

When I was bartending in college a regular who used to come in gave me retirement advice. He was a millionaire (He came in each day and drank expensive wine/champagne)

He said not to try and get rich quick but save 10% of your income each year and invest it when good deals come by.

Last thing rich people want are more rich people, think about it.

 

[Gissurjon]

I am 28 and have been investing into my retirement 200$ since I was 18 and ensured that I am debt free. Only debt to my name is a new car loan and mortgage.

so you are not debt free?

 

[Nightowl]

Have two 401k equivalents courtesy of the school district, but my longterm plan is to ride my motorcycle off a cliff when I reach the end of my rope, say age 120 or so.

Oh my!

here in the streets of CA, we've gotten an array of those without morals and values for themselves. Twice the expenditures, because many of them are prone to be addicts. The gruesome part, many of those that are trying to save and have their children make amends for their families are having cuts, but oh no, not the "dopeheads" Okay, I am closing...boiling over and expletives are hitting my head again. Peace out!

 

[heavyiron]

Congrats on the population growth and home demand...it's rare.

2nd quarter sales in Denver went very well.

I'm steadily gaining equity back and locked into a 3.125% fixed rate refi today and cut 8 years off my mortgage.

 

[heavyiron]

I said it before and I'll save it again. These hidden fees are there and these new regulations are not effective. After all....we're talking about Wall St. here.
Your family is probably losing $155K from 401(k) plan, and why new rules won't help - Red Tape

Well, the fees are not hidden on 401K plans according to law and even a person with basic high school math should be able to figure out the fee disclosure impact. Maybe someone with low IQ can't figure it out but that does not mean its hidden.

 

[LAM]

2nd quarter sales in Denver went very well.

I'm steadily gaining equity back and locked into a 3.125% fixed rate refi today and cut 8 years off my mortgage.

your state was not effected much from the housing bubble, fast recovery there. whatever you do don't pull out any equity that way you will have a cushion during the next economic downturn.

 

[heavyiron]

your state was not effected much from the housing bubble, fast recovery there. whatever you do don't pull out any equity that way you will have a cushion during the next economic downturn.

No way I would pull equity. We are trying to build it by going to a 15 year fixed loan. Between the local housing market recovery and more money towards principal we will most certainly have a cushion.

Btw, new home buyers in Colorado are in an awesome position. Low housing prices and unbeatable interest rates. Time to buy.

 

[Bowden]

2nd quarter sales in Denver went very well.

I'm steadily gaining equity back and locked into a 3.125% fixed rate refi today and cut 8 years off my mortgage.

Smart move.
I refinanced my mortgage to a 15 year lower interest rate and the reduction of interest I pay total over the mortgage life is incredible.

 

[squigader]

I read in a CNN article a couple weeks back that 49% aren't saving ANYTHING for retirement. That's freaking scary. Will old people be living in the streets 40 years from now? I just have a Roth and I max it out. When I pay off my student loans and cc debt, then I'll open up a taxable and invest some more. Need to start when you're young. How many of you are actually saving for retirement?

You'd be crazy not to save for retirement. Just a suggestion though - if you're student loans/CC debt are at a higher interest rate than the returns you're making from your IRA, I'd suggest paying off the loans/debt ahead of funding your retirement.

 

[squigader]

I encourage all of you who don't already to invest on weekly/monthly basis even if its a minimal amount. The other day I used a retirement calculator to show my youngest employee (21) on what putting away just $25/week @ 5% looked like at age 65 and it blew his mind. He's the typical 21yo who wastes serious money on his car and sushi dinners on Friday nights with the local sluts he's trying to impress, but like I told him he has no excuse not to put money away considering what he's paid (about $40K this year). Luckily he agreed and I showed him how to set up a Scottrade account with auto funding. Hopefully he sticks with it.

The best thing my dad ever did was give me a $2k IRA when I was 19yo all while telling me once again there will be no Social Security when you retire so invest accordingly.

You're a good man for doing that for your employee. Even better that he realized you were right
Measly reps for you, buddy.

 

[theCaptn']

I had the foresight to start investing in gold bullion 8 years ago. I bet even that Jew Big Smoothy isn't as savvy as me!

 

[Gregzs]

NBA Players Forced to Save Toward Retirement for First Time - Bloomberg

[h=1]NBA Players Forced to Save Toward Retirement for First Time[/h] By Scott Soshnick - Jul 12, 2012
National Basketball Association players, who were paid an average of about $5 million last season, will be forced for the first time to save money for retirement.

Players in the league this past season will receive $34 million, or 1 percent of what the league and union call basketball-related income, to be invested in an annuity, union attorney Ron Klempner said.
Details of the plan, such as which annuity will be chosen or how the money will be distributed, need to be worked out, Klempner said.

?We know that it?ll deliver good, fair returns,? he said in a telephone interview.
The program is part of the 10-year collective bargaining agreement between the NBA and the players union that ended a lockout in November.

Former NBA players Scottie Pippen, Latrell Sprewell and Antoine Walker are among retired professional athletes who have experienced financial difficulty after careers in which they earned tens of millions of dollars. Walker filed for bankruptcy after being paid more than $100 million over 12 years in the NBA.

?It?s a start,? player agent Keith Glass said in a telephone interview. ?It does force you to save something, and that?s a good idea.?

Retired players can access the money before their pensions begin at age 50. Players can take an early pension at 45, Klempner said.
Basketball-related income in the NBA will top $4 billion next season, meaning the amount of forced savings also will rise.

Beginning next season, players also will surrender 5 percent to 10 percent of their salary for retirement. They automatically will be enrolled in the program and would have to opt-out to keep from participating in the plan, Klempner said.
Investment details for that plan aren?t complete, Klempner said.