Page 2 of 4 FirstFirst 1234 LastLast
Results 11 to 20 of 33

Thread: Gen X is the 401(k) 'experiment generation.' Here's how that's playing out.

  1. #11
    Join Date
    Jan 2013
    Location
    Black Hills, South Dakota
    Posts
    4,713
    Feedback Score
    0
    Iím a Gen Xíer. I know others in my generation that I work with. Many have never started their 401K, or barely contribute. Iíve never done less than 10% of my gross pre-tax income since I started (as soon as possible) with BNSF. Iím usually doing 10% pre-tax and 3-5% post tax.

    Plus I pay into Railroad Retirement both tier 1 and tier 2 instead of Social Security. Currently guys retiring who are married are seeing an annual income from RRB between $75-$90K depending on their average income for their highest earning 60 months. Full retirement age is 60 with 30 years of service. Iím on track to retire on time and Iím married so my wife will get her 48% additional RRB of what mine is for putting up with my stupid ass, plus her SS. Railroad Retirement favors married couples. I guess I will also have some SS too, but the vast majority of my income has been made paying into RRB. Fortunately RRB is fully solvent as far out as the board can project, unlike SS.

    My wife has a modest 403B but doesnít make as much as me and doesnít contribute as heavily.

    Iím 15 years out from retirement age, knock on wood Iíll be ready to retire when I hit 60.

  2. #12
    Join Date
    Jul 2009
    Posts
    34,297
    Feedback Score
    3 (100%)
    I know lots of people who never even got the kind of job that came with a 401k, they never bought a house, just paid decades of rent. They have no savings to speak of, no investments. The only thing waiting for them is social security. But they work hard and make just enough money to be disqualified from most of the free shit army benefits.
    Last edited by SteyrAUG; 05-30-24 at 13:39.
    It's hard to be a ACLU hating, philosophically Libertarian, socially liberal, fiscally conservative, scientifically grounded, agnostic, porn admiring gun owner who believes in self determination.

    Chuck, we miss ya man.

    كافر

  3. #13
    Join Date
    Dec 2013
    Posts
    2,751
    Feedback Score
    0
    Retirement never was nor will be ďcomfortableĒ for all. Many people simply donít have the education, ambition or IQ to accomplish much nor have any interest in preparing for the future. When they get older things will more difficult and often die early due to health neglect. Nothing new. And the last thing America needs is another government scheme like a SS fund to raid.
    Last edited by ChattanoogaPhil; 05-30-24 at 07:18.

  4. #14
    Join Date
    May 2011
    Posts
    15,652
    Feedback Score
    2 (100%)
    Quote Originally Posted by chuckman View Post
    Ironically 401ks are doing as well as they ever have, thanks to inflation. My return right now is just through the roof. Of course we know what's going to happen when there's a course correction.
    Oh I understand Chuck, it's just that I've seen this before with POTUS Carter.
    My Dad was retiring from the Military and transitioning to Civilian Life, so by watching my Parents I knew I didn't want to on one hand "Owe Debt" while on the other hand still having money On the Table. Rising interest rates will kill you.
    What Folks out there aren't seeing is Home Intrest Rates at 15+ percent, but watch inflation because a giant raise in interest rates will happen as this economy falters. That's how difficult it's going to be to borrow money and it's going to hit like a slap in the face.

  5. #15
    Join Date
    Feb 2016
    Location
    North Alabama
    Posts
    5,316
    Feedback Score
    19 (100%)
    Quote Originally Posted by SteyrAUG View Post
    Add to that there is so much that is out of the average persons control with 401ks. When the housing market crashed almost everyone I knew took something like a 50% hit on their 401k. You might call it investing, but if it can go up and it can go down, it's gambling...no different than Vegas. Some games have a better probability than others, but it's still gambling. And if you aren't somehow on the inside, you are on the outside and the house usually wins.

    My 401k is in my gun safes and I've done better than most people I know. Not sure if it will be worth a million when I need it, but in my zip code I don't think I will need that much.
    From what you have shared with us in the past, I am pretty sure your gun safe investments have drastically out performed my 401K

    I actually started saving for retirement after the 2008 crash, but as long as folks could put off selling, the drop on portfolio value was temporary, just like the drop from Covid. I will need to move my 401K to less risk pretty soon, to avoid the risk of another crash (which is inevitable) when I don't have time to recover.

    I have plenty of relatives who "cash in" their 401Ks when they move to different jobs, which is pretty dumb. Take a 10% penalty hit, which negates any benefit from employer contributions plus take a tax hit. Of course, the same relatives would get a fat child tax credit refund and buy big TVs and the newest phones while driving cars on bald tires.

    People are stupid and some, like SteyrAUG said above, don't have an opportunity to contribute to a 401K. They will just have to work as long as possible, live with relatives when they stop, and pray to win the lottery.

    Andy

  6. #16
    Join Date
    Dec 2013
    Posts
    2,751
    Feedback Score
    0
    Quote Originally Posted by chuckman View Post
    Ironically 401ks are doing as well as they ever have, thanks to inflation. My return right now is just through the roof. Of course we know what's going to happen when there's a course correction.
    401k, IRA and Roth have been great tools for average Joe to accumulate wealth that he might not otherwise. It's not unusual for working class folks to have high six and seven figure accounts. Add home equity into the mix... there's a lot of million+ net worth families living in middle class neighborhoods.

  7. #17
    Join Date
    May 2011
    Posts
    15,652
    Feedback Score
    2 (100%)
    Quote Originally Posted by ChattanoogaPhil View Post
    401k, IRA and Roth have been great tools for average Joe to accumulate wealth that he might not otherwise. It's not unusual for working class folks to have high six and seven figure accounts. Add home equity into the mix... there's a lot of million+ net worth families living in middle class neighborhoods.
    And that's the best place you can be. I highly encourage folks to do it otherwise, it's kind of like throwing cash away. If they are matching you up to X amount of percent, you need to jump on that.
    What really concerns me is our current economy, everytime the pendulm swings one way, it has to swing back the otherway to self correct.
    https://www.msn.com/en-us/money/mark...d=BingNewsSerp
    This does not bode well for those of us who sacrificed to retire in to the middle class. She's creating more inflation at the same time the Fed is trying to fight inflation.

    Lots of folks want to know how to fix this, but Trump showed them how it is done.
    Get the RINO's out of the way and let the Man get the job done.
    Last edited by Averageman; 05-30-24 at 11:00.

  8. #18
    Join Date
    Mar 2007
    Posts
    1,367
    Feedback Score
    14 (100%)
    Social security is one of the biggest scams ever created. It is a gov mandated ponzi scene. It cannot be relied upon for retirement.

    The ridiculously high cost of college degrees put people in debt. I suspect many workers are not saving for retirement because they have student loans to pay. I made it very clear to my son's that math matters. $200,000 in student loans to get a $50,000/ year job= Fu@#ed for life.

    I explained to my son's that the earlier they start saving, the better. Young people need to understand the power of compound interest as well ax dollar cost averaging. Putting a bit of money away every paycheck is important. Regardless of swings in the market

    I switched careers in my mid 20's. Left $6000 in an IRA. 25 years later it is worth $37,000. I started other retirement accounts over the years and did ok. I wish I saved more in my 20s

    The other thing that destroys retirement is divorce. My next talk with my son's will address pre nuptial agreements
    Last edited by signal4l; 05-30-24 at 13:40.

  9. #19
    Join Date
    Mar 2007
    Posts
    1,367
    Feedback Score
    14 (100%)
    Double tap
    Last edited by signal4l; 05-30-24 at 13:42.

  10. #20
    Join Date
    Dec 2006
    Location
    Tennessee
    Posts
    11,988
    Feedback Score
    0
    Quote Originally Posted by signal4l View Post
    The other thing that destroys retirement is divorce. My next talk with my son's will address pre nuptial agreements
    Which will be conveniently ignored by some arrogant POS judge.
    11C2P '83-'87
    Airborne Infantry
    F**k China!

Page 2 of 4 FirstFirst 1234 LastLast

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •