Quote:
Originally Posted by Cornstock
Unfortunately, far too many in their 20s and 30s don't recognize the need to start saving early. They put themselves in a position that makes it difficult to save by blowing their "disposable" (read "indispensable ") income on going out, tv's, cars they can't afford etc. Even those in their 40s and 50s are saving inadequately. It just seems so far away for them. But at least those who are older will have the luxury of relying on social security to burden the cost of retirement.
News flash for you 20 and 30 somethings. Social security won't be around when you retire. At least not in it's current form.
Millenials are so concerned with the concept of sustainability when it comes to the environment. I wish they would apply the same logic to government spending in the form of entitlement programs. The math just doesn't work. There will be nothing left.
Saving is conscious choice. It is a choice between having toys in the present vs living in poverty in retirement. And in the famous words of Geddy Lee of Rush, "If you choose not to decide, you still have made a choice."
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I didn't really have much of a retirement when I was in my 20's, but I was fortunate to start doing it on my early 30's. I am putting in 17% of my pay into my retirement as one way to make up for some of those lost years in my 20's. Plus the company matches up to 5%, and there is also an option when I turn 50, I will be allowed to participate in a "catch-up contribution", which I plan on doing, assuming if everything checks out okay financially-wise.
Also whenever I get raises, I calculate how much more I can put into it, while still staying on the same take-home pay after taxes. At the moment, I am a little aggressive on my retirement stocks than I should be at my age group, but my reasoning is to kind of make up for the years that I didn't have an retirement. Once I am comfortable enough that I am where I should be, then I'll back off to the normal structure of aggressiveness, but I may
slightly be aggressive than I should be.
Basically put, I am trying to operate on making sure that me and my wife can live off in a very good shape with no help from Social Security, because I cannot assume that Social Security will be around whenever I retire.