kimino Asked June 2022
What's your retirement plan?
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I'm looking for reference to start (age 26, husband age 30, no child (don't know if I will be childfree by choice or having a child when I'm ready). I have a financially dependent mother (I posted about story of her in my last thread).
I don't expect a luxurious life when I'm older, but a modest life that is not burdensome for anyone.
Feel free to share your experience or suggestions. Thank you so much!
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My advice is to find a job that maximizes your ability to earn enough to contribute to a pension fund, your are at a good age to begin.
Live below your means. Save AT least 10% of your income and add any raises to that amount. Avoid lifestyle creep and the idea of " deserving" things.
Consider working in a public sector job with a secure pension.
And tell your mom she's going to have to make her own way.
Invest any raise you get or at least a % of it. You are investing in yourself.
Other than "major" purchases like a house and a car if you could not afford to pay it off within a month reconsider the purchase.
Pay off ALL your credit card purchases when the bill comes. The interest rate on carrying a balance is INSANE.
Look into getting Long Term Care Insurance. It will probably be the largest bill you pay each year but a good policy is worth it. But look into them carefully. Getting old is not the problem, getting old and sick is.
And the fact that you are thinking about this now shows you will probably do pretty well for yourself. I started "planning" my retirement when I got my first "real" job.
My suggestion is to live below your means and STOP I repeat STOP supporting your mother.
Number one your own case would be not to spend YOUR funds on your Mother. You are young enough that I assume she is not old. My own daughter is 60 while I am 80. What if she had spent HER money to support ME? If so she would not be retiring in another two years (which is what she will do). Had I spent MY money on my mother, who died in her mid 90s, the I would not have had money to purchase a home, then another, and move up in savings across my life to the point of now being independent, able to care for myself until death, would not have been able to work up from CNA to LVN to RN and a good salary, which I saved like crazy so I could retire at 62. I am now retired for years.
Generationally you save for yourself and to support the children you choose to bring into the world at best, not for your parents, who hopefully saved for themselves, or if not hopefully you can support in some small way while their own savings or the government pick up the rest.
That would be my best advice to someone young. Don't accumulate debt and pay interest to the sum of the cost of a good home throughout your life. Save like crazy; form the habit. Teach your young about money, how to divide it so that they can live, save and give.
Thought politically he is my opposite and is a believer to my non-belief, I would listen to Dave Ramsey, and would recommend his money advice to anyone.
Me, I wished I had worked longer and fulltime jobs that I made good money at. I wish I had gone to school for accting. I worked my last 7 years before retirement at 62 at a p/t job. Wish now it had been f/t and I had worked till at least 66, which for me was 100% SS. I wish I had taken advantage of my employers 401ks. I wish my DH had taken advantage of the savings acct at work but...he was putting money into savings bonds.
We have done OK though. Our parents never needed us financially. We raised 2 girls who are independent. Took care of their own and live on their own. We didn't want to be house poor so we bought a fixer upper. We had it paid off by our mid 50s. We kept some our cars for 10 yrs or more. Usually, DH taking the older one and me with the newer one 😊. You can save without depriving yourself. Just don't be impulse buyers. Think before buying any big purchases. TG the newer generation doesn't seem to be collecting. I have collected baskets, houses and dolls. Now ready to get rid of most of them. Other collectors have told me their collections are in the attic. You will never get what you paid for it. When I think of the money my MIL spent on collections and then complained she had no money.