Well, notice I said "if".:smile:
Retire a Millionaire
- Thread starter Cigar Cowboy
- Start date
I wish. Of the 15 yrs I've worked here, they've only matched probably 2 or 3 of those before shutting it down. Recently got a raise, so I doubled my deduction fro 3% to 6%. Still works out to less than $400/mo though.
Thank God for union pensions.
dpmrpa
Indiscriminate Bomber
Thanks for all the info. Amazing to be reading this right now. I am closing shop Friday. Done with the career I had for 22 years. I have to continuing working but have started to down size. I should be ok for the next stage in life. Little scary when u realize that most of your money is not liquid. Working with my $$ planner to start turning some of the savings over.
cvm4
BoM - July '05 & Dec. '10
My employer matches up to 5%. And it was not reduced during the Great Recession either.
It is never too late to start.
Cigary43
Just Another Ashhole
The message here is "saving" and discipline from an early age and to pay yourself first. My wife and I did it and after working since I was 18 I retired at 45...my wife retired at 50 and while everybody else was buying houses, cars, boats, jacuzzis, jewelry, toys and such we were saving so we could retire early. Now we travel everywhere and live fairly well all because we listened to what our parents told us....ALWAYS pay yourself first and max out your 401K or retirement pension plans. Mine matched $ for $ up to 8 % and then after that they would match 50%. I can remember in 1985 making $40K a year and I invested $15K...some years less, some more.
Most of our friends who made a lot more than us still have to work and probably will for the rest of their lives because they spent it all up front...they look at us and say they wish they had done what we did because now we can actually enjoy retirement while they have to work.
Most of our friends who made a lot more than us still have to work and probably will for the rest of their lives because they spent it all up front...they look at us and say they wish they had done what we did because now we can actually enjoy retirement while they have to work.
irratebass
www.blindmanspuff.com
This is exactly the thread I was looking for.
A regular was in the shop on Saturday, and we got to talking about debt, and he explained it in such easy terms that it finally made sense.
I'm 48, will be 49 in March, I have taken over my family's (me & wife) responsibilities.......we have paid off 3 credit cards, and we have 2 more to go.
Wife's sister got involved in Primerica, and my wife wanted to get into it as well, I was reluctant, but agreed........we were with Primerica for about 3 months and we were struggling worse than we were before, we both agreed that Primerica was killing us, they were taking $231 every month, and we weren't seeing anything in return. The only thing I wanted from them was their sheet that showed us how we pay......for instance.
Say a credit card's min payment is $40 and we pay $77 until paid off......after it's paid off you don't have that extra $77 to spend, you move that to the next card & and on top of you monthly payment, so say its $25 add the $77 to that and pay off the card, and so on and so forth.......basic stuff right? Yeah well I couldn't grasp the thought without seeing it on paper, I'm a visual guy......so we canceled Primerica and we will NOT be going back......it's a scam as far as I am concerned.
So, back to the topic, I was talking to the customer and told him I had 3 cards paid off and working on the others. He congratulated me and then asked if I had any $ saved for retirement, I was embarrassed and said not really. I told him that we both contribute to our 401ks which is true, but I had just decreased mine from 3% to 1% he said that was a HUGE disservice to myself, I agreed, but I told him I wanted more take home on my paycheck.......then he hit me with a baseball bat and said
"IT'S NOT HOW MUCH YOU MAKE, BUT HOW MUCH YOU SAVE."
Then he began to explain to me what I needed to do......I work part time at a cigar shop, where I make an hourly pay + tips.......this has been selfishly my cigar/booze/concert/videogame $$ and did not go to the wife or our bills.
So he began to explain that I need to take what I make at the shop and divide that in 3, one for bills, 1 for savings, 1 for emergency funds.
He also said once I start getting the cards paid off to up my 401k again.
The way he explained it to me sounded so easy and doable. He told me that whatever cigars and booze I have right now, that's all I get until my cards are paid off......this is fine with me, and then it would be a reward to me for all the hard work of saving.
So starting this week I am going to open 2 accounts at another bank, I am not going to get an ATM card, because he told me to make it as inconvenient as possible, I have to go in to make the deposit, and withdrawls........again this makes total sense to me, and I'm embarrassed that it's taken me this long to see it.
So, I just wanted to add my story, not sure if I've actually added anything to the thread or not, but I'm excited as hell to start this new adventure.
A regular was in the shop on Saturday, and we got to talking about debt, and he explained it in such easy terms that it finally made sense.
I'm 48, will be 49 in March, I have taken over my family's (me & wife) responsibilities.......we have paid off 3 credit cards, and we have 2 more to go.
Wife's sister got involved in Primerica, and my wife wanted to get into it as well, I was reluctant, but agreed........we were with Primerica for about 3 months and we were struggling worse than we were before, we both agreed that Primerica was killing us, they were taking $231 every month, and we weren't seeing anything in return. The only thing I wanted from them was their sheet that showed us how we pay......for instance.
Say a credit card's min payment is $40 and we pay $77 until paid off......after it's paid off you don't have that extra $77 to spend, you move that to the next card & and on top of you monthly payment, so say its $25 add the $77 to that and pay off the card, and so on and so forth.......basic stuff right? Yeah well I couldn't grasp the thought without seeing it on paper, I'm a visual guy......so we canceled Primerica and we will NOT be going back......it's a scam as far as I am concerned.
So, back to the topic, I was talking to the customer and told him I had 3 cards paid off and working on the others. He congratulated me and then asked if I had any $ saved for retirement, I was embarrassed and said not really. I told him that we both contribute to our 401ks which is true, but I had just decreased mine from 3% to 1% he said that was a HUGE disservice to myself, I agreed, but I told him I wanted more take home on my paycheck.......then he hit me with a baseball bat and said
"IT'S NOT HOW MUCH YOU MAKE, BUT HOW MUCH YOU SAVE."
Then he began to explain to me what I needed to do......I work part time at a cigar shop, where I make an hourly pay + tips.......this has been selfishly my cigar/booze/concert/videogame $$ and did not go to the wife or our bills.
So he began to explain that I need to take what I make at the shop and divide that in 3, one for bills, 1 for savings, 1 for emergency funds.
He also said once I start getting the cards paid off to up my 401k again.
The way he explained it to me sounded so easy and doable. He told me that whatever cigars and booze I have right now, that's all I get until my cards are paid off......this is fine with me, and then it would be a reward to me for all the hard work of saving.
So starting this week I am going to open 2 accounts at another bank, I am not going to get an ATM card, because he told me to make it as inconvenient as possible, I have to go in to make the deposit, and withdrawls........again this makes total sense to me, and I'm embarrassed that it's taken me this long to see it.
So, I just wanted to add my story, not sure if I've actually added anything to the thread or not, but I'm excited as hell to start this new adventure.
Cigary43
Just Another Ashhole
This becomes a habit when you start this plan....it feels like you are denying yourself which is why most people don't stay with this plan. After a year or so you do get excited because you'll see the net effect and you create your own Pie Chart....when you see the sum total of 401K growth...your own private savings account....paying down debt....it's incredible as to the growth you will see. As your salary goes up you invest your raises into your 401K...ALWAYS invest the "cream" as my Dad used to say. When I started at 30 my investments with my Company was literally netting me $10K per year with my 401 and as each year goes buy your ability to add your raises to this plan yields more than you can even understand...add compounded interest and you end up with financial boners along the way....the stock itself would double and triple and I'd reinvest. Add a monthly plan where'd we save $400 a month for the next 20 years.....we didn't buy new cars but rather we bought our last ones in 1999 we still have them....that's almost 20 years with no car payment that we threw into savings instead. Along the way we bought Real Estate....2 houses and they are like Savings accounts where our Renters pay the mortgage for almost 25 years and we pay for our other house. We are not rich people...in fact my wife and I earn less than most people do who only have one income....we pinch ourselves daily because people think we earn a 6 figure income...we don't. We barely earn the average but planning.....that's the key...slow and steady. We don't have to have boats,,,,jewelry and all of the other "sparkly" things in life...we just wanted to enjoy our lives when we hit our 50's and there are no regrets. We have more than we ever imagined....and the last but not least of the blessings.....peace of mind!
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StogieFisher
Trolling troll is trolling.
I just plan on buying a bunch of powerball tickets once I turn 60. When I win I will retire.
StogieFisher
Trolling troll is trolling.
I dont get it, my CC statement says I only have to pay $50 a month. Thats a lot cheaper than paying the whole thing off!
irratebass
www.blindmanspuff.com
So, you started saving at 30 and retired 15yrs later? Wow! That's impressive man. Congrats.......I'm still excited about this, I have hit a small roadbump, but I plan on being over that and back at it after this month.
Best way to retire young and rich is to not have daughters, I have 4 so I'll be retiring at 60. The most important thing is to let interest work for you. Save early, save every year, do the company match if it makes sense. Once worked for a company that matched .15% up to 15% so if I put in 15% of my pay they matched 2.25%, not really worth the effort considering they had fees that were much higher than the plan my wife had, so we used hers. Other than that couple of years we have always put in the maximum match as the base, and added more as we could.
Don't let interest work against you, we use credit cards and get hundreds of dollars back every year. The wife has a spread sheet of which card to use where based on money back. That only works if you don't pay any interest on the card. Take vacations and enjoy time with your children, but never put a vacation or presents on a credit card that won't get paid off as soon as you return home. Don't buy more house than you can afford to impress anyone, get a 15 year mortgage and do what you can to pay it off early. Don't move unless you have to, 6% to the realtors, closing fees, moving costs, is it really worth it? Have a friend that has moved every 3 to 5 years for 40 years, several times in the same general area, if he never moves again he will not have his home paid for till he is 70, and he won't be able to retire till then either, but he did drive some nice cars.
I love a new Truck, that is why I buy one every fifteen years. If some one is impressed by a car that you owe more than a years salary on, then they are easy and you are stupid. My youngest daughter drives a truck that is 3 months younger than she is, but she will graduate debit free just like her sisters. She calls it ugly, but my wife calls it paid off. I do have a car loan, I pay 1.4%, I have some long term cash investments that pay 2.25% those are grandfathered and I can't put any money in once it is taken out so the loan makes sense. Just don't borrow with out thinking about the total cost.
After over 40 years of working and saving for 35 of that I can see retirement in the next couple of years, I've bought some acreage and will build an energy efficient home based on building science not government guidelines, we will be free to travel and enjoy life. Oh, an I was FICA max a couple of years when I was in sales, other than that couple years of 70 hour weeks I've always had a modest income.
Don't let interest work against you, we use credit cards and get hundreds of dollars back every year. The wife has a spread sheet of which card to use where based on money back. That only works if you don't pay any interest on the card. Take vacations and enjoy time with your children, but never put a vacation or presents on a credit card that won't get paid off as soon as you return home. Don't buy more house than you can afford to impress anyone, get a 15 year mortgage and do what you can to pay it off early. Don't move unless you have to, 6% to the realtors, closing fees, moving costs, is it really worth it? Have a friend that has moved every 3 to 5 years for 40 years, several times in the same general area, if he never moves again he will not have his home paid for till he is 70, and he won't be able to retire till then either, but he did drive some nice cars.
I love a new Truck, that is why I buy one every fifteen years. If some one is impressed by a car that you owe more than a years salary on, then they are easy and you are stupid. My youngest daughter drives a truck that is 3 months younger than she is, but she will graduate debit free just like her sisters. She calls it ugly, but my wife calls it paid off. I do have a car loan, I pay 1.4%, I have some long term cash investments that pay 2.25% those are grandfathered and I can't put any money in once it is taken out so the loan makes sense. Just don't borrow with out thinking about the total cost.
After over 40 years of working and saving for 35 of that I can see retirement in the next couple of years, I've bought some acreage and will build an energy efficient home based on building science not government guidelines, we will be free to travel and enjoy life. Oh, an I was FICA max a couple of years when I was in sales, other than that couple years of 70 hour weeks I've always had a modest income.
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Cigary43
Just Another Ashhole
I actually started saving in my mid 20's but it wasn't til I was offered incentives by my Employer......matching 1:1 for 7% of my gross salary and anything over 7% they matched 1/2 so I saved as much as I could. The real value was when I was able to use my wifes condo that she bought in 1989 and rented it out in 2007...that's 10 years of somebody else making payments which is like it's own Savings Account and equity really goes up in San Diego. She bought it for $190K and today it's value is nearly....well....if you know Real Estate in SD it's at least 2 1/2 times that value and we let somebody else make the payments while that equity skyrockets. In a few years the property is paid off and meanwhile we have a write off. Strategy pays...you don't have to be a rocket scientist to know the formula...its about discipline and learning it early enough to rinse/repeat. You don't have to have a 6 figure income as I am testament to that...just a guy who made the median average income but maximised the potential w/o much risk of the markets to rob me if the economy started to tank. Do we really need a new car every 2-4 years...the car depreciates 2 grand just driving off the lot and then you consider registration/taxes/insurance and fees every year and your car becomes your pimp...same with being a "clothes horse"....same with jewelry.....a house bigger than you need...the toys that we buy...etc. In 15 to 20 years you can have enough income and savings to retire at 50 and live a better life than when you were working if you just deny yourself things that don't really matter....now we can actually afford the toys but because we taught ourselves this lesson the toys that others think are important .....just aren't important to us. We travel...I buy my cigars....we rent luxury cars during the year when we want that "taste" of luxury but pay no more than $250 a week to rent MB or BMW's etc....that's a whole lot less 2- 4 times a year @$1000 max per than buying that same car for $60K. Strategies to live a luxury life at a cost that is so much less....doesn't one get tired of paying $60K and letting it sit in the garage and just looking at it and driving it for the average of 2 hours a day?
BradMc
<b>Charity Liaison</b><br>BoM September 07
All very good points, wish I would have learned more when I was younger and before I retired, No I'm far from a Millionaire, Yes I do have a 401K and the Gov Matched what lil I put in, when the Gov started allowing the employees to have a 401K in the early to mid 80's most of us took advantage it , then the change in Retirement program helped lots of Gov Employees So we thought, then the 401K was part of the Retirement package , along with Social Security , so I stayed with Civil Service Retirement No Social Security for me at this time I have about 5 to 6 more quarters to make my 40, So my 401K was a separate account , It is still building, no matching funds now that I'm retired , Due to the fact that I retired under Fire Fighter Retirement it was Mandatory age of 57 (Good and Bad) Most of us Fireman had 2nd Jobs anyway. I was a Wildland Firefighter. Now that I'm retired I wish I would have paid more in to that 401K , Now i'm not eating rice and beans, I'm doing better that most, I still contract Back to the Gov and also work as a On Call emergency hire. Witch means I work almost all summer long but I like it, To young to retire at 57 , Still being semi retired I work when I want and making more than when I was working full time ..........
Long story short, Learn all u can about investing, if ur 401K allows u to play the stocks LEARN all u can or find someone u trust, U will lose some and gain allot depending on the market. Like other have said its ur future...... GOOD LUCK
Long story short, Learn all u can about investing, if ur 401K allows u to play the stocks LEARN all u can or find someone u trust, U will lose some and gain allot depending on the market. Like other have said its ur future...... GOOD LUCK
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Cigary43
Just Another Ashhole
Wish I would have been your neighbor to help as I consider guys like you heroes that have done more for humanity than most. You deserve a good retirement for what you have done and it stinks that you weren't given the proper tools from your Employer as to how to do it "right" and while the tools are there I wasn't able to teach my own kids the value of denying themselves for the term of 20-38 years old. They buy the toys....they make 6 figure incomes and are in debt up to their eyeballs with barely a retirement income and think that Social Security is going to still be around. They are incredulous when they know that we barely make half of what they earn in just one of their incomes....they have even asked to borrow money from us and I tell them....you guys make a 1/4 of a million in wages a year while we make 1/4 of that...r u kidding?
You don't live too far from me and maybe we can meet up one day ....share some cigars and I'll even buy lunch and share some easy strategies...never to late to learn. I'm going on 64 and my last 8 years have been the best in income strategy....there are a lot of things out there to earn extra money. For the last 8 years I've been doing Focus Studies on the side that net me $500 a month....just to go in and talk about a variety of things and get paid...I feel like I'm stealing money some times. This month alone I have made $900 just going in and talking about things I did in my last career....$300 for 2 hours...3 were for Taste Studies for $200....another for $250 about Appliances....it's crazy! We travel basically for free because we use 2 credit cards that we have points.....Marriott and Hilton. I pay energy bills like Gas/Electric and groceries where I transfer the points and end up with about $200K points for things I'd already pay for anyway....I just use the card to add up the points and pay off the card at the end of the month. It takes discipline to pay it off but the accumulation of points is amazing....we fly for free, we have an average of 14 days of free Hotels, we cruise for free on points and I've found Car Rental Places that lets me rent MB ,,,,,
Total:Rental Period: 7 daysUS $213.80......we do this about every 4 months and travel around the SE in style....we can also rent this for the same....
Mercedes-Benz GLA or similar
Mercedes-Benz CLA
or Volvo S60, Volvo V60, Chrysler 300 or similarPremium-Sedan | PCAR
We should have a sub forum for things like this where we can live like Millionaires without having to spend like Kings. Last story I promise....3 months ago my wife and get a call like so many of us do from a Major Hotel Chain selling Time Shares that offered us a 3 night stay at Embassy Suites in Myrtle Beach for $199 for the whole stay. We paid and set up the date and we listened to their schpeel for 90 minutes and we received 75,000 points each on our Hilton Accounts....that's 150K points total. That is a week for free on them anywhere in the world for us to go just for listening to their crap and knowing I'd never buy a TimeShare but when you consider what a week of a 5 Star Hotel would cost .....$200 a night average...I can listen to 90 minutes of a chainsaw for that amount of time. Honestly....there are so many things out there that the average person just doesn't think about that is basically free.