No Retirement Savings in Your 50s - What to Do?
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- Опубліковано 15 жов 2024
- This is a listener question from an episode of 'Ask Paula,' where Paula Pant, host of the Afford Anything podcast, answers questions from listeners like you!
Mark, a 55-year-old listener, has no savings.
He’s been listening to personal finance podcasts. He recently read Tony Robbins’ Money: Master the Game. He called this podcast to tell us that he’s feeling overwhelmed by the scope of what’s ahead of him. He doesn’t know how to apply this information - and he’s afraid of needing to work in fast food when he’s 80 years old. What can he do?
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I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
@RyanGabriel9 Wow that was easy, i found her website and left a message for her . i hope she reply me. thanks.
Retirees facing financial challenges often couldn't save enough during their working years. Retirement decisions play a pivotal role. Despite my parents having similar years in civil service, my mom invested with a wealth manager, while my dad relied on his 401(k). As a result, my mom retired with approximately 3.7 million, whereas my dad retired with around 1.4 million
I believe it's something I should pursue, but I've been procrastinating for a while. I'm uncertain about which firm to choose; they all seem similar to me.
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000
Mind if I ask you to recommend this particular coach you using their service?
'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Good personal finance advice from Paula. (Paying cash for a car is very smart as Paula did early on.) 💰
Building wealth involves developing good habits like regularly putting money away in intervals for solid investments..
@@susannicky Very true, I started investing before the pandemic and that same year I pulled a profit of about $750k with no prior investing experience, basically all I was doing was seeking guidance from ROCHELLE DUNGCA-SCHREIBER who's a guru in the game, you can be passively involved with the aid of a professional..
I have been buying some stocks since the beginning of the year, but nothing substantial. Why am I treating this poorly? However, people in the same profession are earning six figures on articles, which inspires me to aim toward becoming the first woman in my polygamous family to hit the million dollar mark. I am perfectly aware that working harder to gain more money is expensive...
I experienced the same thing; within the year, my growing tech portfolio was completely destroyed.
True, Many people minimize the importance of financial gurus up until they suffer emotional harm. I can clearly recall requiring encouragement to keep my company afloat after a protracted divorce. I looked at license advisors-or portfolio coaches, as some individuals might refer to them-a few summers ago. Fortunately, I came across a diligent individual who helped me significantly expand my reserve, which has since grown from $300k to a stunning $900k despite inflation.
you may search her online with this name ROCHELLE DUNGCA-SCHREIBERine, of course. But I'm not sure if I have authorization to talk about this. She received a lot of media attention in 2020. She manages my portfolio and serves as my mentor.
The habit of saving your money is more important than the amount
Char L. I have a Roth IRA that lost half it’s value in early 2000s and 18 years later it has not recovered so I just stopped putting money into it
How do you save when you can’t get steady employment unless it is part-time retail job?
what can I do? I have been disabled since 2009 and I am 58 years old at the verge of retirement. My portfoliio of $750k is down to $492k, How can I profit from the present market" , I mean I've heard of people making upto $250k in couple weeks during this crash and I'd like to know how.
The market is volatile at this time, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
@@devereauxjnr Very true , I diversified my $400K portfolio across multiple market with the aid of an investment advisor, I have been able to generate over $900k in net profit across high dividend yield stocks, ETF and bonds in few months.
@@MrGravity304 wow ,that’s stirring! Do you mind connecting me to your advisor please. I desperately need one to diversified my portfolio.
@@freedomisEexpensive-08 I really don't like making such recommendations, because everybody's situation is unique. But there are many freelance wealth managers you could check out. I have been working with "NICOLE DESIREE SIMON" for about four years now, and she's really, really good. If she meets your discretion, then you could go ahead with her. I endorse her.
@@MrGravity304 I just looked up "Stacie Kristal Weber" online and researched her accreditation. She seem very proficient, I wrote her detailing my Fin-market goals and scheduled a call.
To have a comfortable, secure-and fun-retirement, you need to build the financial cushion that will fund it all.
Retirement planning should include determining time horizons, estimating expenses, calculating required after-tax returns, assessing risk tolerance, and doing estate planning.
Tamara Diane Hagan does a perfect job for me. I endorse her. look her on the web.
Found her website. Thanks
I’m 47 and I have about ($190k) liquid in savings which I plan to put towards becoming a homeowner, but based on the current high prices on real estate, do you suggest I hold from buying and look at stocks instead?
In all serious very few people can put away $2500 a month in savings in their 50s...
$2500 a month is $30000 a year with most of that sum before taxes. You will need a decent income...at least $70,000 plus and you will need to get your debt down to just your mortgage but just know that millions of people and families live on the $40,000 a year you're left with. The crazy thing about $40,000 a year is that globally that annual salary puts you in the top 1%. Yes things may be more expensive in the US than some countries but we also spend money more frivolously than other countries. Latest smart phones, clothes, newest cars, name brand everything. Get that crap out your life and go back to the basics.
@1Man Army You've probably never been unemployed, divorced, had a car loan, student loan or medical emergency.
@@crod6431
Paula and her husband became financially Independent by house hacking and living frugally while creating an online business.
Being married isn't an excuse, if you marry a similarly minded person.
I am going to try and save $30,000 next year. This will be after tax dollars. It will be difficult and will require a lot of sacrifice.
They don’t have to!!! Savings is too slow a process at 50+ years of age! Leveraging what savings you already have is the answer! I leverage $2000 to $18000, then boosted that to over 100k in 5 years by day trading my trademark and copyrighted method, part of which I give away FREE on my site...Robert from daytradingwiththelight
Live simple is key to retirement
Having multiple income sources is very crucial to financial growth.
Good words. Investments has always been the ultimate option, it benefits even more when you have several investment which gives you greater advantage and more source of income.
Having multiple income sources is very crucial for mental health.
These videos inspired me to panic save at 28. It’s a scary thought imagining living out your final years living in a poor neighborhood unable to do anything but stay in that crappy neighborhood drinking water eating spam until the end of your days.
saving won't save you from the poor spam eating lifestyle unfortunately
I recently moved to another country where it is better to live - sunshine, the sea, healthier, stress free lifestyle. Now I work 3 months of the year. I have more time to myself.
I have lived like this throughout my 30s, 40s and 50s. It's a lovely work/life balance - the emphasis being on "life".
I have done many different kinds of work and have many skills.
Sometimes in the west we can be sold a lie and think we have to follow a particular way, which can be stressful.
In my 20s I witnessed a lady from my work retire at 65. We had a small party for her.
One week later she passed away.
Matthew 6:25-34 John 3:16-8
We have a retirement fund and STILL can't afford to retire. We're selling everything, including the big mortgage, and going tiny. We had to think outside the box on top of saving for retirement. Great advice though. Thanks.
My Tiny Retirement At least your being realistic and doing what needs to be done.
Yeah people are too materialistic. Everyone wants a million dollar house and a bunch of Mercedes in their driveway
leadnsteel ::: That’s the instant downfall of over half of the working American population; they’re overly consumed by consumerism! 🇺🇸
Live like you’re poor when you’re working, then you’ll be comfortable when you’re not working
That's what I've been doing.
God forbid, one dies before that and never get to enjoy that money.
@@therenaissanceman441 Don't wait till retirement to enjoy ur money. Live ur life now by being smart and do what you enjoy. That's the real way.
I have a feeling that if this guy were able to sock away $2500 a month, he would not need to talk to someone like you. Yikes, I don't make nearly that much money a month.
I'm really disappointed in this advice. A lot of the population do not have a huge chunk to set aside for their retirement and after a certain age time is not on your side. The time the money is in the market is where the compounding interest will work for you. In your 50s, i think more creativity is needed. Yes put some money in a retirement account and don't take on kids college expenses, but i think better advice would be: Start a side business, buy a rental property, plan on retiring in a cheaper area or country, make sure you have no bad debt, practice living on what your estimated social security check would be.... Living a social security is doable, but having some cash coming in from your side business or rental would make it better than doable!
Thank you for point #2. I am always telling other parents, "you do NOT have to pay for your kids' college, etc." Unheard of counsel today!
Stop spreading the concept please.
EXACTLY! And “kids” don’t have to go to college! Trade schools are 1/3 the cost and will reap a great living without the college parties etc. Cut those grown ass kids OFF.
Great advice in this video. Also, five kids and no savings in mid-50s? Nightmare.
i love this advice put money over here , put money over there , and save ,save , save , the only question i have is where does one get all this money from?
I guess they expect you to have a sugar momma/sugar daddy lol
From saving money where ever you can. Clipping coupons, sales, not buying a cup of coffee on the way to work, not buying $1 apps for your phone, etc. By boosting your income through a second job. The thing is it all adds up, those little things that waste your money. I get it, it is hard to save when you don't make a lot of money. Be creative and think about everything you spend money on. Or not....that is up to you, but old age is coming whether you prepare or not. Try just saving one dollar a day. Then figure out how to save two. You'll be surprised how much you waste.
Fungwai, I am the same way. I've been up and got crushed in my divorce. I'm back up...way up, but I will never feel secure again. People who know me ask that same question (why do you work so much?), and I just say "if they let me write my own paycheck, then I'm going write a big one." Good luck to you!
Fungwai- except many love to gamble! I guess that's the ones who already made it, but maybe not.
Fungwai Poon it
No problem. Move to Thailand, Philippines, South America, etc. and live very well on Social Security. Alternatively, take up the van or RV life and explore America on the cheap (i.e. "Snowbirds").
Jon Warner you can’t collect ssi outside the USA
@@joanbaczek2575 Yes he can collect Social security benefits in most countries outside the USA. The exception is just a few countries(Cuba,North Korea).
joan baczek yes you can
Thank you for telling people not to spend money on their grown ass kids. Parents are ridiculous when it cones time to give their kids money
CaraMarie13 Nothing wrong with helping them if they were DESPERATE and HUNGARY, but just don't go stupid.
Hungary
Kids can unknowingly become consumed by a blind greed. More so because it isn’t anything that they had to sweat for.
Yeah I heard that point loud and clear. need to stick to it.
Great advice. I am 52 years old recent widower and feel a little better. I've been contributing 5% to my employer's IRA for almost 20 years - my employer only matches 2%. I'm going to increase my contributions to 15%. I figure to keep contributing to only my IRA to grow my amount to get a larger amount in compounded interest.
I've been contributing for many years as well, fortunately my company matches up to 6%, but I've only been doing the similar percentage myself. I'm really scared because I have no pension currently.
Im 55 recieve disability and no savings. Yes....this is real sadness with bad credit. Husband for 25 years had cancer for 10 years. Two years after he died my youngest son got cancer...i could not save anything i was fighting cancer for 20 years of my life. I just sad but its no one fault. Just living off of pennys now.
I’ll pray for you! Maybe you could start a UA-cam channel? People would like to hear your story
And, then there are those like me. I too, waited until I was in my mid-late thirties when I bought into my employer's 401 retirement plan. Two catastrophic events changed my life that no one thinks will happen to them. First, the market crash of 2008 took a significant amount of my money. Months later, I was diagnosed with advanced glaucoma, by the time I went to the opthomologist the disease destroyed parts of my optic nerves. I was forced to retire and go on to SSDI, which pays 1/3 of what was earning. Thank G-d my children were grown and their grandparents had started college funds when they were born.
2008 lowered my 401k by about 30%. Since 2008, my 401k has gone nuts...through the roof, up over 300%. This little dip the last month has cost me plenty, but I'm still up huge. If you are close to retirement, then you need to switch to a self directed account, allowing you to invest in anything you wish, and if you are still a few years away from 59.5, then move into less risky choices with in your 401k. If you have a medical event like you described, then yes, it's going to really hurt, but just imagine how bad it would have been without it.
So sorry to hear of your vision situation, I will be 49 in March of 2019, my current situation, divorce with a mortgage and 7 year old. I too has lost my earning power and most of eyesight, along with a back injury, mine started in 2010 by this fellow driver who was texting and diving, who wrecked into my vehicle and died.
That accident left me with little hope or non returning to work or regaining my vision. So I most say that life goes on regardless with what anyone may say or think, with or without money.
Ask me about going out on a Blind date lol or on a outing ☝🏽😎.
Life is just one day at a time
Who the hell wakes up in the morning and says "Oh damn. I have no retirement savings!"
My older sister did. She had lived a VERY nice lifestyle and had good health. One morning at the age of 55 she woke up and realized she had no retirement savings. She started putting away money at that point and continued working at her high paying job until the age of 70. Then she started collecting Social Security and cut back to consulting work. And she still was able to make it work. She vacations ( overseas and domestically) several times a year. Lives in a nice house in an entertainment town and goes to shows regularly. I think right now she is visiting children in upstate New York. She’s doing great!
1. Stop trying to pay for your kids tuition.
2. When you get your tax return money each year save it don’t spend it.
3. Cutdown on spending like going out to eat and buying luxury items etc.
I'm 52 & I put in 17% of my paycheck to my 401k, & my employer will do a 3% match! My work also has a Pension. I ALSO have a Roth IRA going on the side as well!.
I also have a full pension and put in about 35% into 401K ...I am still nervous about retirement.
This guy has no money. None to spare. You’re talking like he’s 20 and just got his first professional job.
The only good advice was to get another job and cut off his kids. A little honesty and reality would have been more helpful
I remember I had a job where I was criticized by coworkers for supposedly been a cheapskate. Just because I lived with family did not mean I did not pay rent, phone, bus pass, etc. Had I actually been a cheapskate, I would brag about having sooooo much money.
I am in my 50s I house hack, just make sure the rent is equal to Piti at least. Mine covers Piti and my utilities and cap X. Which is 6 yrs into owning with rent increases.
Working pt in retirement not so bad then, gives you something to do.
5:32 I can beat my head against the wall trying to tell my ex-wife that! She is trying to shoulder the burden for our older kid's schooling, cars, etc. And, she expects me to do the same!
I’m 58 and I have been looking for an answer to this question! But I do have debt - a lot of debt
What about those individuals that don’t own property everyone talks about oh, you own a home you just have the mortgage to pay off. What if you never invested in real estate because you couldn’t afford it what do you do then how do you invest an older age without that?
I think the issue is that many people heard the adage that you should only contribute up to your employer match. They miss the part where you should still contribute a remainder to the total of 15% in an IRA or Roth when your young.
If you wait until your older that percentage creeps up pretty high %40-%50. But with 300k invested you could still eek out an extra 1000k a month which can make SS sustainable depending on your lifestyle.
But if you can't lower your lifestyle to %50 prior to retirement you may have serious issues relying only on SS.
Well, hell. If I were able to put 30 grand a year away, I wouldnt be 50 with no retirement. She might as well have said, "If you can just make $100,000 a year for the next 20 years, it will help you fix your retirement problems". Gee, really???
shes just saying what he would have to do to get where he wants to get having waited this long to get started. He put himself in this position, not her. She doesnt have a magic wand, sorry
What plans do you recommend for a self employed 55yo? a Solo Roth 401K and and a SEP ROTH IRA?
One hundred percent agree with the don't support your kids financially when they were grown. I brought a $1500 car in high school and paid my own car insurance though my mom added me to her insurance and I just paid the difference. Besides if you are able to obtain a decent retirement account balance you will have something leftover to pass on to your kids when pass.
Fantastic advice about letting kids make their own way financially, at least in the beginning...
Expected advice, but nobody mentioned eating out. Just add up the ingredient’s cost on your plate of restaurant food. The bulk of the cost is labor. And to boot, the food is a lot less healthy than something you would make for yourself. Going vegetarian is also much cheaper than buying meat or (especially) seafood. Cut out movie-going and cable. There is too much out there for free.
As someone who is about to turn 50 I have my jobs retirement fund. A Roth IRA that I just started but I don't know whether to put more towards retirement or pay off my mortgage. My mortgage is currently 50% of my bills each month.
Julian P always rid debt first always the return on ira is not equal to the interest the bank is bleeding from you
I am in the same boat. I decided to fund a Roth. But if I keep making my bare minimum mortgage payments I will be finished by 59. If my mortgage ended in my mid-to-late 60’s I would focus on the mortgage.
A lot of people are saying buy a rental property. I am not saying buying a rental property is a bad thing but in his situation could make his situatiom worse. 1. He has no money saved (is what I heard) sonhe cannot afford to buy a rental property
2. If he manages to save some money to get a rental what happens when the tennant doesn't pay. There is no guarantee tennants pay even with your best vetting them. Does anyone remember that govermeny mandate where folks couldn't be evicted for paying rent for a while.
3. He will own 2 properties possibly 2 mortgages with no money everything will have to work out perfectly. Tennant paying rent, nothing breaks down, property taxes don't go up.
It would be alot of risk for him.
Most employers don't match these days,mine doesn't.
Time to get a new job. Either they offer above average salary to justify not matching or they match.
My employer doesn't match either. Matches are vanishing, sadly.
I retired in Mar '13 at 62 with a 7 year old Harley (bought new with cash), new inexpensive high mpg car (bought 2 months earlier for cash), a small ($400/mo) pension, nearly free healthcare and about $35K in cash. Only I moved to and retired in Europe.
Here I sit 7 years later after an expensive move 2 years ago to eastern Europe with Social Security, a small pension, 13 year old Harley (128,000 miles), a 7 year old inexpensive car, inexpensive comprehensive health insurance, and about $20K in cash.
I don't budget, travel extensively (rode the scooter 4200 miles on a solo trip through 7 countries last Oct and from 2-11 this past Jan drove the same trip) and eat mostly in restaurants.
I do invest in 2 things every month. One bottle of Jack Daniels/mo and Harley parts.
You guys worry about saving more, more, more and I'll keep enjoying retirement riding around European secondary roads searching out forgotten castles, ruins, art, museums, history and cultures.
Plan your retirement and it doesn't take a lot of money.
What should my vanguard target Portfolio consist of and at what allocations?
Target date portfolios automatically set their allocations and automatically rebalance.
Only the top 10%, {not} 90% of Americans could save $30.000 a year, The average yearly salary is around $45,000. Paula should have told him that my advice is for someone making over $100,000 a year.
Paula had a low paying job, and saved 25k in a side hustle and quit to travel prior to becoming FI.
While increasing income is important, complaining about your salary and using that alone to dictate your future earning potential is the difference between failure and success.
And you can max out your 401k and Roth IRA making under 80k if you can live frugally enough.
I saved over 30K in 2018 and I am most definitely not in the top 10%.
My parents did not educate me and I had to do it myself. Had a nervous breakdown working full time and going to school at night to get my degree. They did put their money into my sister and she is a teacher and is making $85,000 a year and will have a pension of $2,500+ monthly. They also invested in a gambling cousin of mine so they could get a cush interest rate from him. I hope my nervous breakdown was worth it for my parents. You reap what you so in life.
sow
your parents dont owe you a college education...you are an adult
If you take social security at 62 and collect on a 403b, is that considered income? I want to work as long as possible as well.
My understanding is that if you have an IRA and a Roth IRA, you still can't pay more than $5500 into them collectively within a year. Is that incorrect?
Also having a financial advisor give me advice - "you don't want to be eating baked beans and spaghetti in retirement". There is fear used to keep people trapped and worried.
Don't worry
Matthew 6:25-34 John 3:16-18
My base salary is around 5,800 grosses monthly, yet I’m only able to reserve $1,200 to $1,800 each month. Payroll taxes are eating me alive!
You need to start planning retirement the minute you start working. The small seeds you sow today will reap you huge oak trees later in life. Time is the one currency we all have the same amount of, but each of us spend differently. Dont waste it.
I am sixty and no savings and being sued for non payment of credit card debt in small claims court. Any suggestions on what I can do?
Enjoy your hellish credit score.
Admiral Preparedness Pay your credit card debt...
borrow more and pay them. Seriously try to pay little by little and move to mexico.
Are yoy doing a monthly budget on paper, on purpose before the month begins? Pick up a copy of Dave Ramsey's The Total Money Makeover and start following his financial advice. Cut out cable. Cut out internet. Cut out any wants you have. Ask yourself is this a want or a need? Live on rice and beans til you get credit card and other consumer debt paid off. Cut up any credit cards. Never take out a car loan. Pay cash only for vehicle. Take Dave Ramseys class at a local church. Its a 9 week class. Ask for a schlarship for his class.
Depends on if they have served papers yet, some states have a limited time debt chasers can collect charged off debt on you. These are debt Chasers that have purchased your old debt for pennies on the dollar and try to force you to pay them. they can't really do anything once it's past the statue of limitations on a debt it can't be collected on. Google how long one can be liable for debt and some states you only liable for 2yrs.
You are great I like all your advices.
But the last one is a bit strange. Earning 5 hours worth of salary per week....If anyone would pay for extra hours for us, we had no financial problems. It's not that people don't want to work more but no-one will pay just because you decide to stay longer at work.
Or you get a second job that's at least 15 - 20 hours a week.
Wow. Paula I have to say I'm surprised to hear you say "put away $30,000 a year" as one of your pieces of advice. This assumes that the caller - or most people who might listen to your podcast - the vast majority of whom I'm guessing are what used to be called "the middle class" - are in fact wealthy enough to put away more than 50% of their income into savings. Middle class folks are by definition middle income people who make, like me, in the low 50s if we are lucky, and who have mortgages and bills. It's remarkably tone deaf for you to start your listing of advice with such a frankly crazily unrealistic suggestion. No, I can't afford to put aside more than 50% of the money I make because, like most middle class people, a very large percentage of my income goes to the high cost of living, taxes (as little as I make and as much as I am already taxed versus my income, this year I actually OWED the goverment - state and federal - $607 dollars this year when I did my taxes!), food, car repairs, etc.
curtandoscar rent out the spare rooms in your house or apartment. I make half of what you do and work a second part time job and bank it. I keep my expenses to around 1,100 and live like I am dirt poor and given my low 20s income I am. If you want to increases your saving you will have to suffer. I rather suffer now in my 40s than on the street in my 60s or 70s.
You don’t pay much tax at 50k income, not if you are smart about it.
I kept waiting for Paula to say maybe your wife could get a job.
Especially with a large family, it really does take more than one income. That’s how my house hold makes it in good or bad times !!
Waiting for her to say let the kids get a job! I started working at age 15 while still in school, worked 3 jobs over each summer including weekends. I paid to put myself through University for 4 years. Kids these days are very lazy and NOT motivated to do anything and the parents keep throwing money at them....bizarre
AB CD, She did say that... Not to support the father, but to support themselves.
Absolutely Nice video
1st ever program with some sensible (and actual) advice.
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My first experience with her gave me the assurance that has made me invest without the fear of loosing
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everything changed in 2020 !
This is EXCELLENT advice! Even if the caller can't max out his retirement contributions, he should do the best he can. A 15% contribution to his 401(k) will barely be missed, since it is pre-tax.
People with lots of debt should also save for retirement, because what if it's forced on you by losing your job and not being able to get another one?
If I open a 401k acct at work where do I open a 2nd Roth IRA acct?
Fidelity, Vanguard, TDameritrade.
Wow. Another no chance in Hades video. At the time right to work was voted in I had my highest income ever of $1000 per month, was laid off immediately after it passed because I was making too much. And 20 years later haven't been able to go any higher than $800 per month before the employer starts new policies to starve or drive employees out. I am 56 and I still don't know what to do.
Ann Ramsey Try to vote for progressive candidates like Bernie Sanders who want a living minimum wage. Hope things improve. Also if you wait for age 70 your social security check would be 32% higher than it would be at age 66 if that is your full age. Also you may be eligible for ssi later on. If you can buy a small one bedroom condo you can help fix your costs in retirement. Also hoa fees go up but hopefully less than renting. Perhaps you can get a part time job and apply it all to your condo to pay down your mortgage.
Ann Ramsey Tax time if you for example receive 4 to 5K take $1000 and invest in Roth IRA. You can also invest 💰 into cellphone apps like Ally or Acorn which will take the cents to every dollar spent and they will invest it in stocks. If you have extra money left over look into bitcoins. I would look up videos to learn more about bitcoins once your knowledge is up buy into it.
Don't vote for a socialist.
Move, you wasted your time there. I dont mean to depress you, but maybe staying in the south wasnt what you should have done. You are still young, but I guess you feel stuck. Gotta get moving to better earning. My favorite prophet said there are no vision there is no provision. I am 50, I just moved from NY and may be moving back, however I am not a place where I can just sit around I have to find greener pastures.
Gary Miller- ridiculous advice,you must be a troll-
Set up a Roth 401k. A Roth 401k is much better than a traditional 401k,
because Roths lack RMDs and feature tax-free withdrawals.
Contribute the maximum possible to that account, starting in your 50th year. This
should be possible if your longest child has graduated from college and
your spouse works full time.
Invest that 401k in a stock market index fund. It should return an average of at least 8%/year.
Expected outcome: you will accumulate about $1M by your 66th birthday.
Some of her advice is good being fiscally responsible, that said you will never get that much ROI compared to investing in blue chip trademarked companies, and buy rental property make others pay your bills while you take your pay and use it to seek out more and more investments that's how you become wealthy
Wow this lady is good
Watch the fees that all investments charge.
acajudi100 exactly everytime my Roth IRA makes 25 bucks I get charged a a 25 dollars service fee-Roth is bogus and my Roth never recovered from the crash of the early 2000s
Am 50 and saving for retirement
How to do this if you do not work, have no income of any sort, no savings, and do not trust banks ever since learning about other gov't employees losing all their $ in shadily run retirement programs set up by their employer but contracted out?
If your employer doesn't match don't bother signing up Your giving someone a loan with zero guarantee of a gain but guarantee inflation will decrease any gains you might get in the long run just something to think about.
One simple rule: understand the difference between wants and needs!
Income Breakdown:
85% (Needs) + 10% (Wants) + 5% (Desires) = 100% peace of mind over the day to day👊😊👍
As of 2017, age 50 and over and contribute a maxiumum of $24,000 (not $23,000 as stated in the video). This is $18,000 + the $6,000 catch-up.
Note that the $18,000 increased to $18,500 in 2018.
I'm 47 use the 25,000 dollar approach. Find things that will cost 25,000 over the next 50 years. And
Make them sustainable. Case in point tomatoes. I grow them. At 2 dollars a pound it will cost you 25,000 over the next 600 months. Another one is cooking. Get a solar oven. Another one is beans. Very easy to grow. These things by themselves are comical. But added together they can wear down a retirement. Just these things I mentioned cost 15 dollars a month.
How about when you take a shower. 20 min of hot water adds up. Get a solar water heater. How about? Finding a job net your house. I'm talking a few miles. Take a cycle there. Saves 1000s. Might laugh? But what about fishing, fish is another retirement threat. Like 10 dollars a week to eat fish. Why not go fishing.
Only point I'm trying to make. To preserve our retirements we have to think way out side the box. And see there's more than one way to skin the retirement cat.
ray bon great ideas about growing a few staple items.
lightly lumay yes cuase the reason is these items in retirement errode a mutual fund. for a mutual fund to pay 50 bucks monthly at 7 percent you need to have about 8000 dollars in it forever. that's not a small amount.
Fortunately for me.i have been frugally living. I am fully vested with 2 pensions. I am optimistic about my future. Great advice..i have spoiled my children to my chagrin. Thank you
thanks for not bragging and making everyone else feel like failures and losers.
He should buy a second house and rent it out. Also move to a place with low cost of living. Do his best to improve his health.
Also he shouldn’t mind asking his five children to collectively help him as he ages.
Awesome Video, i have to be part of this. I subbed
Just trying to keep a roof over my head. I won't get to retire, I'll die first.
another crisis like 2008, and they will take our savings anyway... buy yourself a trunk camper.
"they" didn't take it, you sold it!
I'm 47. I've decided to use science. Growing my own food. Fishing for fish. Electric bike for transportation. Solar for electric.staying extremely healthy for health care. If I'm right.I'll get to the same distination without the dollars and the work.
ray bon Awesome response
Thanks I like to concentrate on things I can control. And dismiss markets. Cause for what. Anyway. Let's take miles. At 50 miles per day, 25 days a month. Is 1200 miles. 1200 x 12 months x 30 years. Comes out too easily 30,000 gallons. For the people who have 8 cylinders. So? Between age 45 and 80. Your? Looking at
150,000 dollars in gasoline if you throw inflation. Unsustainable. So my theory is? Fir get markets and control what you can control. Make everything 5 miles from your house. And eventually your job 5 Mike's from your house. That's just gasoline. There's all kinds of legacy stuff if you look. Toilet paper over 30 years. Is 3000 dollars. Etc, my advice is look for legacy expenses. Control what you can control.
I have 1000 shares of SHO which pays .58 cents a share every 3 months. My goal is to have 3000 shares so that my dividends will be paying me (on average) 580.00 dollars a month.
I dare you to buy a car for $400 in today's day and age. Not gonna happen.
when you create an "emergency fund" guess what you manifest? you got it, emergencies!
Im not 50, but can you explain Tip number 4 ?🤔?.. Because I'm guessing the money will ran out if the market or shares drop out all together.. keep in mind I don't know how vanguard works just like many other people watching this.. you explain it like your explaining it to someone like yourself.. you need to explain it to a baby adult.
Most of the comments here are off base. Yeah he’s living on 100000 a year now, he will be working a long time. If he’s living on 50000 a year, at 50 starts savings as much as he can, can work til 65 and gets social security and maybe cuts expenses he still can do just fine. Key is he has to start, plan and save now. Yeah it’s hard but still doable.
This was great advice
Hey Paula, I'm not a Marxist however it seems to me that something is extensively squed against the everyday worker. I have worked since I was fifteen paid of my house and cars but the cost of living is grotesque today.
I have four kids, no money for holidays and savings in reverse to pay bills. Meanwhile the high end of town sets the price, pilages my pay and expects this to continue.
News flash: Epic change envevitable.
Not pretty.
You said you paid your house and your cars. How big? What is your property tax? Insurance? Utilities? How many cars in your lifetime? Are they gas hogs?
Point: Life isn't skewed against the worker, it's skewed against the consumer. Maybe you're frugal, I don't know from your list of successes. Maybe you own used cars that are just good enough to get you from point a to b. But people reward themselves with things. They think they deserve it and then they throw them away. They teach there kids they same values. The cycle continues for generations. That's expected. I avoid the high end of town. My time and life energy isn't worth the price.
What a huge assumption as if we all make a six figure income that allows us to invest up to 18 and $23,000 a year in an IRA or 401k!
Most people make only enough to pay their bills so will be hard to save.
The hard part is many people live to their paycheck. They don’t take money out and forget about it. A girl I knew had to have her daily Starbucks she made great money, more than me over $80k, I made $50k she had child support coming in, and her ex paid for their daughters school. She was broke every freaking week. I thought she was saving, until her car was repossessed. She squandered her money at happy hours and going to nice restaurants trying to meet guys. She always had to buy new clothes. Went on expensive vacations... I recently saw her looking like a train wreck, driving a beat up used car and she was unemployed. I paid off my house and retired a couple years ago. I always saved $100 a paycheck and 1/2 of every bonus I made. I didn’t take fancy vacations but now I’m traveling 1st class to Italy. I just turned 51. Compounding interest is the key, if you haven’t saved you need to teach your kids. School doesn’t teach the basics any more. The rule of 72 is the greatest tool I learned.
Great video! Thank you for sharing.
He didn’t give her much to go on. Income and debt level would had been helpful don’t you think?
Awesome info!! Just Subbed!
So this is kinda of an ad for Vanguard financial services...but decent advice, as long as one has income to contribute.
Too many people had too little money to pay for basics, so never had enough to save.
in today's world of no security in work ,high. rents cost of living it's hard to save if your a lone earner many can barely pay the rent , in the real world
Solid advice from Paula, SOLID!
Always do Roth 401k/ira
They aren't so good for higher earners over 50.
That voice😍😍😍😍😍😍
How to be a Millionaire first off do a Google on salaries. This will show you your options for example dentist can make over a million a year, just sit down and do the math it's more than making it as knowing WHAT to do with it after you got it.
I recently moved to another country where it is better to live - sunshine, the sea, healthier, stress free lifestyle. Now I work 3 months of the year.
I have more time to myself.
I have lived like this throughout my 30s, 40s and 50s. It's a lovely work/life balance - the emphasis being on "life".
I have done many different kinds of work and have many skills.
Sometimes in the west we can be sold a lie and think we have to follow a particular way, which can be stressful.
In my 20s I witnessed a lady from my work retire at 65. We had a small party for her.
One week later she passed away.
Matthew 6:25-34
What will people do when the Market and/or Economy crashes? Wouldn't people who have put their life's savings into electronic digits not lose all of it?
Buy a bunch of life insurances for the very very elderly. You’ll become a millionaire before you retire!
Yes!!!
The key to retirement is science not in growing money. growing your own food saves 250 k from here too 2060. Same for electric bike. Solar panels fir electric. Fishing for fish. This is the key. If you can reduce your need for dollars your in good shape. Paying off your house. Eating healthy so you don't get sick. Etc. But making more money will be much harder than just manipulating the science around you. Sun, sea, soil, wind and yourself.
There is a cost to all that labor you are putting into all those things. I can spend about 16hrs painting a few rooms of my house on the weekend, or I can pay someone to do it....16 hrs of OT = $900 - taxes of 250 for about 650. I can hire a guy to paint for about 400 (he is a pro and will take less time than I will, and do a better job) so I gain around $250 by working. I know that is a little different than what you are talking about, but there are cost for gear, equipment, time, etc. that you are completely leaving out.
If you take toilet paper it costs about 5 dollars the crappy one. Multiply it by 12 months multiply it by 10 years multiply it by 4 decades it will come out to 8000 dollars with inflation. If you take 15 dollars an hour divide it into 8000 it comes out to 6 months of your life time work. Fir toilet paper. But if you buy the blue towels. You do a number 2 wash it. Clean it with soap. Leave it on a hanger it cane be used fir months with out having to buy a new roll. 10 towels. Can cover the whole year.
Man, you sure do shit a lot. I buy the 20pck Charmin Mega Roll for $18.95. A roll lasts me about a week. So $1 x 52 = $52 x 40 = $2080 for 4 decades. Not a small amount of money, but a 4x less than your figure. I can go to a cheaper brand an cut that almost in half, but my ass has value to me, and I want a nice texture and clean sheet when I wipe it. I figure $1 dollar a week is a small price to pay for the comfort and hygiene of my waste disposal outlet. But leafs are free, so maybe you should use those, and save that blue towel money for some tire patches or something. Lots of ways to save money, and not have to have shit rags hanging around. But to each his own. Thanks for giving me another reason to love my job, and at $36hr, I figure the time I get paid to shit at work on a given day, will pay for 20 weeks worth of toilet paper....great deal for me! Peace!
jamie t
Just have your bowel movements at work where they provide toilet paper. Think of all the money you'll save
I haven't purchases tomatoes now in months. Cause I grow them. That's another 25,000 dollar item over 50 years. There's many 25,000 dollar items in your household which if you find solutions for you will help your retirement. Another 25,000 item is, beans. Beans will cost 25,000 over 50 years. Why not grow them.
I bought Bitcoins end of 2016 and now I can retire even sooner :)