If you can read this, either the style sheet didn't load or you have an older browser that doesn't support style sheets. Try clearing your browser cache and refreshing the page.

(Time)   How much money you should have saved by ages 15, 25, 35, and 50. In this economy, though?   (moneyland.time.com) divider line 256
    More: PSA, Oregon Trail  
•       •       •

26366 clicks; posted to Main » on 01 Oct 2012 at 3:01 AM (2 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



256 Comments   (+0 »)
   
View Voting Results: Smartest and Funniest

Archived thread

First | « | 1 | 2 | 3 | 4 | 5 | 6 | » | Last | Show all
 
2012-09-30 11:53:36 PM  
"Saving 100% of your lifestyle sounds impossible, but it is not. If you earn $100,000 after taxes, you must limit your lifestyle to $50,000 and save the remainder. This strategy will allow you to retire at age 65 with a lifestyle of $50,000."

And if you make $50,000 or less to begin with, as most people do?
 
2012-10-01 12:01:38 AM  
These charts got completely destroyed in the 2008 meltdown. I know people who lost over 100K off their 401(k) in 3 months. Not to mention equity off property bought years before.

In short, steady state investment sounds nice til we let the criminals run the investment firms.
 
2012-10-01 12:06:42 AM  

itsdan: "Saving 100% of your lifestyle sounds impossible, but it is not. If you earn $100,000 after taxes, you must limit your lifestyle to $50,000 and save the remainder. This strategy will allow you to retire at age 65 with a lifestyle of $50,000."

And if you make $50,000 or less to begin with, as most people do?


This demonstrates everything that is wrong with rhetorical economists (especially Randians). less than 10% of the population makes "$100,000 after taxes". And far far more than half do not make enough that they can afford to sock away half for retirement.

It grossly oversimplifies a process that has no basis in reality. It's all pie in the sky bullshiat that doesn't help anyone.
 
2012-10-01 12:20:48 AM  
Well, I'm boned.
 
2012-10-01 12:23:48 AM  
I don't "save" money. I get paid, bike to Amscot to pay off whatever I owe in a payday loan, and come back the next day to get a payday loan to get to the next one.

I consider this a relatively wealthy period in my life.
 
2012-10-01 12:45:47 AM  

itsdan: "Saving 100% of your lifestyle sounds impossible, but it is not. If you earn $100,000 after taxes, you must limit your lifestyle to $50,000 and save the remainder. This strategy will allow you to retire at age 65 with a lifestyle of $50,000."

And if you make $50,000 or less to begin with, as most people do?


Yeah, I clicked on the article forgetting that people have disparate incomes and retirement goals. But 10 percent starting in your 20s is pretty reasonable.

Unpopular opinion: More people should screw around in the stock market. Don't just buy mutual funds. Set aside a little to play around with.
 
2012-10-01 12:51:47 AM  
Don't have kids. Don't go on vacation. Don't eat out. Don't buy nice things. Don't spend on entertainment. Don't have a nice car. No cable. No toys. No birthdays. No tithing.

Can you imagine our economy if everyone actually lived by the advice in the article? I'm pretty sure I won't need my exact salary when I retire and additionally I'd like to enjoy at least a bit of my life.

/YOLO?
 
2012-10-01 12:56:10 AM  
I'm 27 and this is the first time that I earn enough to invest substantially. I'm ridiculously thrifty but every time I manage to save a few thousand dollars, I was laid off for several months. I simply could not get ahead.

Now - I have the option to: start a family, plan for retirement, or invest in my home. I don't have the option to do more than one of those things.

Fark you article.
 
2012-10-01 01:03:27 AM  

Bontesla: I'm 27 and this is the first time that I earn enough to invest substantially. I'm ridiculously thrifty but every time I manage to save a few thousand dollars, I was laid off for several months. I simply could not get ahead.

Now - I have the option to: start a family, plan for retirement, or invest in my home. I don't have the option to do more than one of those things.

Fark you article.


Lawyer, right? Power to you, the economy is rough on new attorneys.
 
2012-10-01 01:26:40 AM  
Tell this to the companies that kept sending my jobs out of the country.
 
2012-10-01 01:57:27 AM  

Ambivalence: This demonstrates everything that is wrong with rhetorical economists (especially Randians). less than 10% of the population makes "$100,000 after taxes". And far far more than half do not make enough that they can afford to sock away half for retirement.

It grossly oversimplifies a process that has no basis in reality. It's all pie in the sky bullshiat that doesn't help anyone.


Well, it helps people making over $100,000 after taxes. I mean, if I had 100k after taxes, I'd be able to put half of it in the bank, burn half the remainder on entertainment, and STILL be able to float my current lifestyle with more than a quarter left over to buy diamonds and shiat.
 
2012-10-01 01:59:57 AM  

Generation_D: In short, steady state investment sounds nice til we let the criminals run the investment firms.


Criminals who have contempt for their own investors, too.
 
2012-10-01 02:06:26 AM  
TFA: Saving 100% of your lifestyle sounds impossible, but it is not. If you earn $100,000

and we're done here.
 
2012-10-01 02:13:52 AM  

azmoviez: Don't have kids. Don't go on vacation. Don't eat out. Don't buy nice things. Don't spend on entertainment. Don't have a nice car. No cable. No toys. No birthdays. No tithing.

Can you imagine our economy if everyone actually lived by the advice in the article? I'm pretty sure I won't need my exact salary when I retire and additionally I'd like to enjoy at least a bit of my life.

/YOLO?


I do all that and I still barely get by (although admittedly with a cheap vodka and expensive weed habit). Then again, I have a wonderful stress-free job and there's still a million PS2 games on ebay for 2 bucks I haven't played, so it's not like I suffer. I see people making $100,000 a year with kids, watching them age and get up every morning and I don't envy their money, at least not now. In 20 years, I bet I will envy it very much.
 
2012-10-01 02:45:43 AM  

Generation_D: These charts got completely destroyed in the 2008 meltdown. I know people who lost over 100K off their 401(k) in 3 months. Not to mention equity off property bought years before.

In short, steady state investment sounds nice til we let the criminals run the investment firms.


heh. Try giving everyone a house, even if they can't afford if, and having them bankrupt the system. But surprise surprise, we clawed our way out of that. It didn't make economic sense, and trade in the derivative securities also made no sense.

Add to that the onset of President Redistribution. People still haven't financially recovered after four years, like you said. They were four lost years.
 
2012-10-01 02:47:11 AM  
And hope they don't wreck Capitalism. Or you'll have to figure out something else, good luck.
 
2012-10-01 03:04:46 AM  
If I already live off of McDonalds, I don't think I have to save to live off of McDonalds when I retire.
 
2012-10-01 03:06:15 AM  

IronTom: And hope they don't wreck Capitalism. Or


things might work.
 
2012-10-01 03:13:32 AM  
Isn't this what pension funds are for, seriously?

Me putting 16,9 % of my income (required by law, btw) into a pension fund, WILL enable me to retire at 67 getting paid pretty much what I do now.
 
2012-10-01 03:13:40 AM  
OK, wise Farkers -

I'm a grad student. I'd like to open a mutual fund, because the $0.25 interest rate just isn't cutting it, frankly. What should I read? How do I start?
 
2012-10-01 03:14:16 AM  
This is from the Forbes article linked to in TFA:

Here are the guideposts:

At age 35, you should have saved an amount equal to your annual salary.
At age 45, you should have saved three times your annual salary.
At 55, you should have five times your salary.
When you retire at age 67, you should have eight times your annual pay.


That's actually a lot more informative, and happily, I'm on track.
 
2012-10-01 03:14:27 AM  

noneyourbase: OK, wise Farkers -

I'm a grad student. I'd like to open a mutual fund, because the $0.25per year interest rate just isn't cutting it, frankly. What should I read? How do I start?


FTFM
 
2012-10-01 03:15:22 AM  
Came to see a bunch of sniveling, whining, and excuses about why all of your financial instability is everyone else's fault but your own.

Leaving satisfied.

/I could have sworn I read an article recently about a schoolteacher who made herself a millionaire on her own
//oh yeah, that was here
///but wait, that's IMPOSSIBLE!
////exactly why people like you will always, always work for people like me
 
2012-10-01 03:20:32 AM  
If I am making $100,000 after taxes every year then I do not have any problems.

doglover: I mean, if I had 100k after taxes, I'd be able to put half of it in the bank, burn half the remainder on entertainment, and STILL be able to float my current lifestyle with more than a quarter left over to buy diamonds and shiat pearls.


i497.photobucket.com
 
2012-10-01 03:20:42 AM  
noneyourbase: I'm a grad student. I'd like to open a mutual fund, because the $0.25 interest rate just isn't cutting it, frankly. What should I read? How do I start?

Do you already know which mutual fund(s) you'd like to invest in, or are you looking for a full-service brokerage that will provide you with financial advice?
 
2012-10-01 03:21:04 AM  

noneyourbase: OK, wise Farkers -

I'm a grad student. I'd like to open a mutual fund, because the $0.25 interest rate just isn't cutting it, frankly. What should I read? How do I start?


Sharebuilder?
 
2012-10-01 03:21:40 AM  

xl5150: Came to see a bunch of sniveling, whining, and excuses about why all of your financial instability is everyone else's fault but your own.

Leaving satisfied.

/I could have sworn I read an article recently about a schoolteacher who made herself a millionaire on her own
//oh yeah, that was here
///but wait, that's IMPOSSIBLE!
////exactly why people like you will always, always work for people like me


Came here to see some douche assert themselves in an inappropriate context.

You sure did shiat on those people who left comments that sort of fit your criteria for your ego boost.

Best of luck in all your endeavors!
 
2012-10-01 03:22:24 AM  

noneyourbase: OK, wise Farkers -

I'm a grad student. I'd like to open a mutual fund, because the $0.25 interest rate just isn't cutting it, frankly. What should I read? How do I start?


I've gotten a decent return off of Betterment. It's designed for people who don't really know anything about mutual funds or investing. You put the money in, tell them how much risk/potential reward you want to expose yourself to, and they take care of the rest for a minimal fee. They periodically readjust your portfolio so it never gets overbalanced. It's not a get-rich-quick scheme, but you will do better than your savings account over time.
 
2012-10-01 03:22:31 AM  

noneyourbase: noneyourbase: OK, wise Farkers -

I'm a grad student. I'd like to open a mutual fund, because the $0.25per year interest rate just isn't cutting it, frankly. What should I read? How do I start?

FTFM


I think you should start with a book that describes the difference between $ and %.

Secondly, don't save. That's for suckers. Spend yoru money as soon as you get it. Then, later in life, all the chumps will keep you afloat. Freeload, baby! It's the american way. That's what social safety nets are all about, transferring wealth from the responsible to the profligate.
 
2012-10-01 03:22:36 AM  
itsdan: And if you make $50,000 or less to begin with, as most people do?

Then you should be working at making yourself more marketable so that you can develop a skillset in which you can charge more for your services.
 
2012-10-01 03:23:06 AM  
I'm just barely able to send 7% of each paycheck to my company 401K. And I just started receiving rumblings about some kind of breakup of the company, which will mean no income and no contributions for a long time.

Investing for retirement sounded easier when I was under 25.
 
2012-10-01 03:24:48 AM  
P.S. From the article:

"If a wagon train averages 10 miles a day for the first half of the Oregon Trail, how fast does it have to travel the second half to average 20 miles a day for the entire journey?"

The knee-jerk response is, naturally, 30 miles a day. But, as you might imagine, that wouldn't be worth writing about and isn't even close to correct. The blog continues:

"If the trail is 2,000 miles long, to average 20 miles a day you would have to travel the entire trail in 100 days. But if you averaged 10 miles a day traveling the first 1,000 miles, you would have already used up 100 days. You would then have to travel the second thousand miles instantly to overcome your slow start."

That might be apparent to a mathematician.


My knee-jerk response was that the problem presented had none of the information necessary to answer it. Something I'd imagine would be as apparent to a mathematician as some random blogger.
 
2012-10-01 03:25:42 AM  

xl5150: noneyourbase: I'm a grad student. I'd like to open a mutual fund, because the $0.25 interest rate just isn't cutting it, frankly. What should I read? How do I start?

Do you already know which mutual fund(s) you'd like to invest in, or are you looking for a full-service brokerage that will provide you with financial advice?


Dad uses Fidelity for his mutual funds, but he won't really sit down and talk to me about it - I think he's concerned that I'll get burned. I figure there's no time like the present to learn.

Crudbucket: noneyourbase: OK, wise Farkers -

I'm a grad student. I'd like to open a mutual fund, because the $0.25 interest rate just isn't cutting it, frankly. What should I read? How do I start?

I've gotten a decent return off of Betterment. It's designed for people who don't really know anything about mutual funds or investing. You put the money in, tell them how much risk/potential reward you want to expose yourself to, and they take care of the rest for a minimal fee. They periodically readjust your portfolio so it never gets overbalanced. It's not a get-rich-quick scheme, but you will do better than your savings account over time.


FizixJunkee: noneyourbase: OK, wise Farkers -

I'm a grad student. I'd like to open a mutual fund, because the $0.25 interest rate just isn't cutting it, frankly. What should I read? How do I start?

Sharebuilder?


Hey, thanks - I'll look into these!
 
2012-10-01 03:29:28 AM  
noneyourbase: Dad uses Fidelity for his mutual funds, but he won't really sit down and talk to me about it - I think he's concerned that I'll get burned. I figure there's no time like the present to learn.

So do you know what mutual funds you'd like to invest in? Or are you looking for guidance on that? There are different brokerages that are better for the two different situations. Someone mentioned Sharebuilder. That would be ok if you already know that you want to dump all your money into the VFINX. If you're looking for a place that will actually advise you on where to put your money, the recommendation would be different.
 
2012-10-01 03:31:48 AM  

noneyourbase: OK, wise Farkers -

I'm a grad student. I'd like to open a mutual fund, because the $0.25 interest rate just isn't cutting it, frankly. What should I read? How do I start?


I'm a grad student, too (though I'm married, in my early 30s, have a kid, and live in a high cost-of-living area).

Does your school have a 403(b)/pension thing available to grad students? Don't laugh if yours doesn't; some universities do. That is to say, some schools where grad students are unionized offer retirement "benefits" for their grad students and post docs.

Up above, I recommended Sharebuilder, which is how I got started saving ($4 trades...I invested a lot in index funds when I was a n00b). If you dig around on the internet, you might be able to find various promotion codes (like, invest $50, get $25 on us for free!).

Also, you can open up an Orange account (with ING, if I recall correctly); they also have promotions that will entice you to invest with them. Whatever you choose, go with something that has minimal fees and lots of investment options.

As an aside, when the other Junkee and I were first married, we were both students living in Arizona. Despite making under $40,000/year between the two of us, we managed to save $14,000 our first year together. Our savings has since steadily (though slowly) climbed past the 6-figure mark, even though we lived on a single mediocre income for three years, had a kid, etc. It can be done, but it's not always easy if you don't make a lot of money.
 
2012-10-01 03:33:18 AM  

noneyourbase: Hey, thanks - I'll look into these!



I use a company called First Command. It's a similar setup to what Betterment was described as. You give them your level of risk and goals, and they put it into an account that stays balanced. Seems like they generally equal or beat the stock market average, but I could be wrong about that. I know I've made back everything I lost during the recession. They started out catering to military families only, but in the past few years they've expanded to include anyone. Money for my college tuition came from a family member's First Command accounts, so I trust them.
 
2012-10-01 03:36:14 AM  

unlikely: TFA: Saving 100% of your lifestyle sounds impossible, but it is not. If you earn $100,000

and we're done here.


^^^^^^^^^^^^^^^^^^^^^^^^
 
2012-10-01 03:36:35 AM  
It should go without saying that if your company offers matching funds to your 401(k) contributions, you should always max that out first before looking for some place else to put your money. My last company matched 50% of my contributions, up to 6% of my salary. Well, you can't beat a guaranteed 50% return on your investment before you even factor in the return you get from the investments themselves.
 
2012-10-01 03:37:39 AM  

Krieghund: This is from the Forbes article linked to in TFA:

Here are the guideposts:

At age 35, you should have saved an amount equal to your annual salary.
At age 45, you should have saved three times your annual salary.
At 55, you should have five times your salary.
When you retire at age 67, you should have eight times your annual pay.

That's actually a lot more informative, and happily, I'm on track.


So if your annual salary is the poverty line.........
 
2012-10-01 03:37:57 AM  
Hmm, investment advice... buy low, sell high. Before that, just do your homework and figure out what not to buy, and for what you do buy, when to sell it.
 
2012-10-01 03:38:21 AM  
My plan is to keep spending that extra 50K a year on really good wine, whisky and foie gras so that I'll die happy about 65.
 
2012-10-01 03:39:06 AM  
1) Pay yourself first, be it only 10% of your take home pay.
2) Invest your money in the "Dogs of the Dow" that's the blue chips that pay good dividends.
3) Take the dividends and plow them back into more stocks
4) Consider this money already spent and gone, DON'T TOUCH OR BORROW FROM!
5) The stocks will feed on themselves and grow (slowly at first) but accelerates as time goes by.
6) Stay the course !
 
2012-10-01 03:39:58 AM  
1. Let me just say that I think this article is bunk.
2. That said, I'm proud to report that we've managed to reach this milestone a few years early:

At age 35, you should have saved an amount equal to your annual salary.

Rather than devote the next few years of my life to theoretical condensed matter physics, perhaps I should do a dissertation on optimal investment strategies that pay no mind to the conventional wisdom that spews from most economists' mouths?
 
2012-10-01 03:41:14 AM  

fusillade762: Well, I'm boned.


Yup, me too. That's why I'm investing heavily in alcohol. 'Cause fark it, that's why.
 
2012-10-01 03:42:10 AM  
ive saved nothing. figure i'll be dead or in jail by retirement.
 
2012-10-01 03:42:59 AM  

xl5150: noneyourbase: Dad uses Fidelity for his mutual funds, but he won't really sit down and talk to me about it - I think he's concerned that I'll get burned. I figure there's no time like the present to learn.

So do you know what mutual funds you'd like to invest in? Or are you looking for guidance on that? There are different brokerages that are better for the two different situations. Someone mentioned Sharebuilder. That would be ok if you already know that you want to dump all your money into the VFINX. If you're looking for a place that will actually advise you on where to put your money, the recommendation would be different.


Oh, geez, I'm just exploring now - no specifics. I suppose I'm willing to take on a bit more risk. I'll be in grad school for a while, so my income is pretty stable.

FizixJunkee: Does your school have a 403(b)/pension thing available to grad students? Don't laugh if yours doesn't; some universities do. That is to say, some schools where grad students are unionized offer retirement "benefits" for their grad students and post docs.


Not sure - I'll have to look into it. A quick google search says it's only for non student employees, but I think I may dig a little deeper.

shower_in_my_socks: noneyourbase: Hey, thanks - I'll look into these!


I use a company called First Command. It's a similar setup to what Betterment was described as. You give them your level of risk and goals, and they put it into an account that stays balanced. Seems like they generally equal or beat the stock market average, but I could be wrong about that. I know I've made back everything I lost during the recession. They started out catering to military families only, but in the past few years they've expanded to include anyone. Money for my college tuition came from a family member's First Command accounts, so I trust them.


Thanks - I'm starting to make a list here.
 
2012-10-01 03:43:53 AM  

xl5150: itsdan: And if you make $50,000 or less to begin with, as most people do?

Then you should be working at making yourself more marketable so that you can develop a skillset in which you can charge more for your services.


That's all well and good. Like advising people to make sure they're born to parents who already have money and can give them a leg up and a head start. Or advising people to make sure they're in the will of a rich relative.

But in the meanwhile, what can people do to save in their current situation?
 
2012-10-01 03:44:45 AM  
Helium tank and a plastic bag is my retirement plan, might have to cash it in before 65 though.
 
2012-10-01 03:46:54 AM  
Wouldn't it be easier to just give people a deadline for offing themselves?
 
2012-10-01 03:47:07 AM  

cyberspacedout: Hmm, investment advice... buy low, sell high. Before that, just do your homework and figure out what not to buy, and for what you do buy, when to sell it.


cig-mkr: 1) Pay yourself first, be it only 10% of your take home pay.
2) Invest your money in the "Dogs of the Dow" that's the blue chips that pay good dividends.
3) Take the dividends and plow them back into more stocks
4) Consider this money already spent and gone, DON'T TOUCH OR BORROW FROM!
5) The stocks will feed on themselves and grow (slowly at first) but accelerates as time goes by.
6) Stay the course !


Sound advise, particularly point 4.
(for those on the poverty line, are they still punished
for attempting to accrue savings,
as they were in the 80s?)

Also: to add - avoid ponzi schemes. if the rate of return looks too good to be true,
you're already getting in on the bottom. run far away.
 
Displayed 50 of 256 comments

First | « | 1 | 2 | 3 | 4 | 5 | 6 | » | Last | Show all

View Voting Results: Smartest and Funniest


This thread is archived, and closed to new comments.

Continue Farking
Submit a Link »
On Twitter





In Other Media


  1. Links are submitted by members of the Fark community.

  2. When community members submit a link, they also write a custom headline for the story.

  3. Other Farkers comment on the links. This is the number of comments. Click here to read them.

  4. Click here to submit a link.

Report