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We have been through this discussion before. I wonder what percentage of the non-savers has a secure pension adequate to live on in retirement. That would make a HUGE difference, although I am not advocating that people with pensions do not (ideally) need savings as well.
I fall into this category. I have 35 years in a relatively secure pension system but no savings. Through my own bad choice I ended up a divorced mother, in debt--but with a pretty decent public sector job I never wanted. I am not educated beyond secretarial school and some college courses except for self-education in certain areas and professional training courses. I am fortunate in that I lived during a time when non-degreed workers could be promoted into management for being willing to take on more responsibility and work hard.
I could have saved money if I raised my kid in a poorer neighborhood with lesser schools or didn't see that she had her music lessons or horseback riding lessons or if I bought all her clothes at consignment shops. Lots of parents can't give their kids lessons and have no choice about where to live. I made those choices, and I don't regret them. But I don't have more than a minimal savings account.
I agree with Mathjak that "folks need to reinvent themselves to do well and go where the food is. they can't wait for something to float their way." and with Tallysmom "This isn't magic. It's taking the bull by the horns and taking control".
I dropped out of school in 10th grade and joined the Coast Guard for 4 years when I turned 18. Got my GED while serving. I then worked in the tire and auto service business and my wife worked in a bank. Neither of us made a lot but we were doing OK. Then the business I worked for went under. There we were at the age of 43 with less than $5 thousand in retirement/regular savings and me with no job. Got one job for $5.00 an hour for 40 hours a week and added another for 20 hours at $6.50. Not fun, but it kept us going while we figured out what to do.
After a few months, I saw an ad that a stock brokerage firm was opening a call center in Orlando (about 100 miles away). As I had always had the interest (if not the money), I applied and was lucky enough to be hired. Not too long after, a new department was being started and my wife was lucky enough to be hired by the same company. We both wound up getting our securities licenses and were there for 21 years. Never made big money in the operations departments, but enough to be comfortable and the benefits were good.
We decided early on that we had a lot of ground to make up, so we started fiercely saving/investing for retirement. I left work in April and my wife in June. We are at a point where we should be comfortable (not rich by any means).
It's been tough at times, and we did not have any children which helped us financially, though care for my elderly mother has hit us quite hard over the last 10 years.
I guess this is my long-winded way of saying that I have some sympathy for people who are going through hard times. But I also feel that if you really want to, you can find a way to make your life better, even though the path may not be easy. Because in most cases, no one else is going to do it for you.
We earned money and worked hard, lived below our means, and did crazy things to save even more money -- things that make people laugh, like wash ziplock bags. I don't know why that's funny, but it makes people laugh. We still wash zip lock bags.
We have a gallon size Ziplock drying in the kitchen at this time after having been washed. Old habits die hard.
We have been through this discussion before. I wonder what percentage of the non-savers has a secure pension adequate to live on in retirement. That would make a HUGE difference, although I am not advocating that people with pensions do not (ideally) need savings as well.
I wonder this, as well.
Also, just because folks don't have savings AT THE MOMENT, it doesn't mean they didn't have savings. There are all kinds of life events that can wipe out one's money within a few years, from investments that don't work out to illnesses.
I know people who are living decent lives, homes and cars paid off, and no *big* savings accounts, but they have enough money coming in monthly to handle their expenses and keep enough in savings to take care of unexpected expenses. I have a feeling that most of the folks I know fall into that category.
I have a friend from high school who feels he is in great shape and he told me he has less than $100K in savings, but everything is paid for and he and his wife are quite content about the future. They retired "early" as they both get pensions, plus their social security. He feels quite "secure" with his little nest egg.
I am going to guess that most folks who have some kind of revenue coming into their homes feel the same way without a big savings account, especially when we all know that the rules for Medicaid include a spend-down. I have heard people even cite that fact as one of the reasons they were not very concerned about having a big savings account going into retirement.
Last edited by brokensky; 08-09-2014 at 12:13 PM..
I understand where you are coming from but I find it perplexing that the majority of people in this country seem to think that no matter what they contribute (including nothing) "someone" is supposed to make sure they have a middle class lifestyle.
I understand where you are coming from but I find it perplexing that the majority of people in this country seem to think that no matter what they contribute (including nothing) "someone" is supposed to make sure they have a middle class lifestyle.
Because we do provide a middle class lifestyle with the social programs.
Those are called "the struggling middle class" now.
Why do you think so many poor immigrants come here ?
Because we do provide a middle class lifestyle with the social programs.
Those are called "the struggling middle class" now.
Why do you think so many poor immigrants come here ?
Yep, I agree with you.
Thank you, LBJ.
Let's face it: even Social Security was created as a solution for only a PORTION of Americans. And LBJ's Great Society . . . welfare was supposed to be a stop-gap measure (and for some Americans, it still is, but the working poor - who are TRYING to make their way on their own - don't even qualify for many of the benefits!)
We have created a social "safety net" that has transmogrified into a "lifestyle" -- and one which too often rewards poor (irresponsible) life decisions and bad behaviors.
Nearly a third, or 31% of U.S. adults said they had no savings or pension to help them afford retirement, according to the Federal Reserve Board.
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