Deleted
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Post by Deleted on Mar 11, 2015 17:27:57 GMT -5
The whole article seemed like an excuse. It is too hard to save now and you have to be lucky, so it is better to just do nothing. Maybe the janitor was an outlier in the amount he was able to amass but getting to the 1 million mark is possible for most people.
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giramomma
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Post by giramomma on Mar 11, 2015 18:01:18 GMT -5
I don't know how true this statement is. For instance, 33 years ago when I gave birth to DS2 my out of pocket payments were a grand total of $2 (yes you read that right two dollar) for the entire pregnancy. One for the first OBGYN visit and one for the hospital admittance. When DS2 and DIL became parent January 2014 it cost them (and I quote DS2) "$2,000 to spring the kid from the hospital". That was just the birth part so it did not include any of the regular prenatal visits, tests, etc. DGS is awfully cute though... I've had three kids. My oldest is 10. I didn't pay anything for the birth or prenatal visits for the first two. My last (3), I did have to pay co-pays on Level II ultrasounds, as I was over 35. But, still under $500. #3 was still expensive for us, because I had to undergo fertility treatments at clinic. I am fortunate that I have very good health insurance. My income has not gone up in a meaningful way. My net income is now $100 more/month than it was 10 years ago. And raises in a "good" year for me amount to $500. So, that insurance has come at a price.
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phil5185
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Post by phil5185 on Mar 11, 2015 18:06:08 GMT -5
It is only "reverse" if you allow yourself to be on the wrong side of the equation. In 40 yrs you need to be selling million dollar houses, not buying them.
lol - compound interest just isn't that complicated.
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movingforward
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Post by movingforward on Mar 11, 2015 18:08:12 GMT -5
Pretty crappy article IMHO. Like pooks said it all sounds like a bunch of excuses and I am really tired of this "all or nothing crap" that keeps getting recycled. Even if someone never makes it to a million, having SOMETHING is better than having NOTHING. I know plenty of people who will never have a million dollars but they do have SOME money.
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Deleted
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Post by Deleted on Mar 11, 2015 18:12:13 GMT -5
I am fortunate that I have very good health insurance. My income has not gone up in a meaningful way. My net income is now $100 more/month than it was 10 years ago. And raises in a "good" year for me amount to $500. So, that insurance has come at a price. You know, I was just thinking how much poorer I feel now then when I was younger. It seems like I always had money to blow back then. I'm sure a lot of it is the kids, but I got curious and pulled up my SS statement today. I AM making a lot less than I used to if you figure in inflation. I need to go back to 2000! In 1992 I bought my first house making 12K and it didn't seem like a stretch. This is really pathetic now that I think about it. I have made zero headway in the income department. 2014 $27,074 2013 $27,572 2012 $26,656 2011 $24,835 2010 $25,889 2009 $30,395 2008 $30,949 2007 $28,395 2006 $38,626 2005 $13,279 2004 $0 2003 $0 2002 $19,316 2001 $24,129 2000 $35,194 1999 $28,324 1998 $28,433 1997 $37,377 1996 $28,705 1995 $25,787 1994 $22,470 1993 $16,805 1992 $12,491 1991 $7,093 1990 $5,828 1989 $7,884 1988 $14,405 1987 $4,725 1986 $174
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Deleted
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Post by Deleted on Mar 11, 2015 18:22:16 GMT -5
Holy crap! How do you live on that? That's the SS number, so it's after all the insurance and FSA money is taken out. It's not quite as bad as it seems. It's the fact that it's been the same for 20 years that is troublesome.
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giramomma
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Post by giramomma on Mar 11, 2015 18:30:45 GMT -5
I am fortunate that I have very good health insurance. My income has not gone up in a meaningful way. My net income is now $100 more/month than it was 10 years ago. And raises in a "good" year for me amount to $500. So, that insurance has come at a price. You know, I was just thinking how much poorer I feel now then when I was younger. It seems like I always had money to blow back then. I'm sure a lot of it is the kids, but I got curious and pulled up my SS statement today. I AM making a lot less than I used to if you figure in inflation. I need to go back to 2000! In 1992 I bought my first house making 12K and it didn't seem like a stretch. This is really pathetic now that I think about it. I have made zero headway in the income department. 2014 $27,074 2013 $27,572 2012 $26,656 2011 $24,835 2010 $25,889 2009 $30,395 2008 $30,949 2007 $28,395 2006 $38,626 2005 $13,279 2004 $0 2003 $0 2002 $19,316 2001 $24,129 2000 $35,194 1999 $28,324 1998 $28,433 1997 $37,377 1996 $28,705 1995 $25,787 1994 $22,470 1993 $16,805 1992 $12,491 1991 $7,093 1990 $5,828 1989 $7,884 1988 $14,405 1987 $4,725 1986 $174 I wasn't even figuring in inflation. Furloughs coupled with no raises don't exactly raise your income level. I think you've had furloughs in there too. But I also work in the public sector. So some of this was to be expected, and again, I do realize I've made a trade-off.
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Deleted
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Post by Deleted on Mar 11, 2015 19:33:34 GMT -5
Are you on food stamps and utility assistance? With three kids and that income you probably qualify for some assistance. I'm nowhere near eligible for food stamps even with three kids (but I only have 2). My gross income is about 37K and with child support I was over 50K in income last year. The income limit for 2 kids is 26K/year. I can't even get WIC or reduced lunch. That must mean I'm doing good!
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Deleted
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Post by Deleted on Mar 11, 2015 20:31:27 GMT -5
Dang, you guys have low limits there. We got reduced lunch here on roughly $65k gross. A friend told us we were probably eligible for food stamps too, but we didn't apply. Not Federal food stamps. I don't know if maybe California has something special on their own, but the income limit for a family of 4 is $2584/month for SNAP. www.fns.usda.gov/snap/eligibility#Income
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TheHaitian
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Post by TheHaitian on Mar 11, 2015 20:47:19 GMT -5
Dang, you guys have low limits there. We got reduced lunch here on roughly $65k gross. A friend told us we were probably eligible for food stamps too, but we didn't apply. Not Federal food stamps. I don't know if maybe California has something special on their own, but the income limit for a family of 4 is $2584/month for SNAP. www.fns.usda.gov/snap/eligibility#IncomeBased on net you would qualify!
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Deleted
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Post by Deleted on Mar 11, 2015 20:55:49 GMT -5
Based on net you would qualify! Limit on net for a family of 3 is $1650/month. I BARELY squeak in, but that's because I have 14K withheld pretax. You have to meet both the gross and the net income limits. So, I wouldn't qualify on my income alone. AND you have to add in child support, so I'm way over.
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haapai
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Post by haapai on Mar 11, 2015 21:38:31 GMT -5
I live in the Midwest, and I'm shocked that MPL would have to explain to you that she is way over the cutoffs for SNAP. I don't even want to talk about utility assistance, which has far lower cutoffs. It's like you're living in a different world.
You could have used the time that MPL used to reply to google SNAP Minnesota or SNAP <your state> but something stopped you. Do you know what it was? Are you going to investigate?
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Deleted
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Post by Deleted on Mar 11, 2015 21:54:22 GMT -5
Y'all are trying to make me feel poor!
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beergut
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Post by beergut on Mar 11, 2015 22:32:23 GMT -5
This is from our original thread on Robert Read: An inheritance to get him started off wasn't needed. I believe gas jockeys used to receive tips at one time, so that probably increased his income. Add in a military pension from his time in the service, and he was probably able to live well off social security and savings when he retired. This would allow him to sock away most or all of his janitor salary after he retired, which would have snowballed his investments.
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Deleted
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Post by Deleted on Mar 11, 2015 23:01:33 GMT -5
TWO kids and 50K. Quit tacking on another kid!
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beergut
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Post by beergut on Mar 12, 2015 0:18:08 GMT -5
TWO kids and 50K. Quit tacking on another kid! No one told you? You're getting another kid. The elves are bringing it tomorrow, it'll be on a pillow in front of the fireplace when you wake up.
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Deleted
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Post by Deleted on Mar 12, 2015 6:23:26 GMT -5
TWO kids and 50K. Quit tacking on another kid! My bad. Who am I thinking of that has three? Or did the oldest head off to college recently? Probably Angel.
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Deleted
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Post by Deleted on Mar 12, 2015 8:44:45 GMT -5
TWO kids and 50K. Quit tacking on another kid! No one told you? You're getting another kid. The elves are bringing it tomorrow, it'll be on a pillow in front of the fireplace when you wake up. Nooooooooooooooooo!!!!!!
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bean29
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Post by bean29 on Mar 12, 2015 9:43:17 GMT -5
I am fortunate that I have very good health insurance. My income has not gone up in a meaningful way. My net income is now $100 more/month than it was 10 years ago. And raises in a "good" year for me amount to $500. So, that insurance has come at a price. You know, I was just thinking how much poorer I feel now then when I was younger. It seems like I always had money to blow back then. I'm sure a lot of it is the kids, but I got curious and pulled up my SS statement today. I AM making a lot less than I used to if you figure in inflation. I need to go back to 2000! In 1992 I bought my first house making 12K and it didn't seem like a stretch. This is really pathetic now that I think about it. I have made zero headway in the income department. 2014 $27,074 2013 $27,572 2012 $26,656 2011 $24,835 2010 $25,889 2009 $30,395 2008 $30,949 2007 $28,395 2006 $38,626 2005 $13,279 2004 $0 2003 $0 2002 $19,316 2001 $24,129 2000 $35,194 1999 $28,324 1998 $28,433 1997 $37,377 1996 $28,705 1995 $25,787 1994 $22,470 1993 $16,805 1992 $12,491 1991 $7,093 1990 $5,828 1989 $7,884 1988 $14,405 1987 $4,725 1986 $174 Keep in mind that your Social Security earnings are net of your 401K contributions, so if you have increased the % of your contribution over time your earnings history is distorted.
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Deleted
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Post by Deleted on Mar 12, 2015 9:51:15 GMT -5
Keep in mind that your Social Security earnings are net of your 401K contributions, so if you have increased the % of your contribution over time your earnings history is distorted. SS earnings include 401K contributions. Only cafeteria plan contributions are deducted (insurance and medical and daycare FSA).
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bean29
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Post by bean29 on Mar 12, 2015 10:12:50 GMT -5
Sorry MPL, I stand corrected,
Mine were distorted for years by Medical Ins co-payments and I maxed out contributions to my HSA last year. HSA you can put in $6,650 in 2015 and as has been pointed out here before HSA is tax free going in and coming out. They say 401K to the extent of your company match, then max out your HSA then put more $$ into your HSA.
My employer finally eliminated the co-pay on the insurance. Non-discrimination testing got them into trouble. Worked out well for me. I probably would have looked for greener pastures otherwise.
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Deleted
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Post by Deleted on Mar 12, 2015 10:16:44 GMT -5
I still have over 10K taken out for insurance and daycare. So really more like 37K gross last year.
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HoneyBBQ
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Post by HoneyBBQ on Mar 12, 2015 10:49:42 GMT -5
Wages have been more or less stagnating for a couple decades, with inflation factored in. You're hardly alone in not seeing big income growth. I guess I'm a giant jerk, but my salary has doubled in the past ten years. Then again, I didn't have kids and a family til later, which allowed me to move around, and in my field you really get the raises when you switch jobs and negotiate high salaries.
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The Captain
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Post by The Captain on Mar 12, 2015 11:12:40 GMT -5
Wages have been more or less stagnating for a couple decades, with inflation factored in. You're hardly alone in not seeing big income growth. I guess I'm a giant jerk, but my salary has doubled in the past ten years. Then again, I didn't have kids and a family til later, which allowed me to move around, and in my field you really get the raises when you switch jobs and negotiate high salaries. The job I'm doing today is very different from the job I did a decade ago. The knowledge base and level of responsibility aren't even comparable. I guess I've always thought if you keep doing the same thing, how can you expect more pay? Several companies I've worked for only give merit increases, not COLA increases. It's not uncommon, at least in my field.
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Angel!
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Post by Angel! on Mar 12, 2015 12:14:28 GMT -5
Wages have been more or less stagnating for a couple decades, with inflation factored in. You're hardly alone in not seeing big income growth. I guess I'm a giant jerk, but my salary has doubled in the past ten years. Then again, I didn't have kids and a family til later, which allowed me to move around, and in my field you really get the raises when you switch jobs and negotiate high salaries. My salary has almost doubled as well in the last 10 years. And that was with kids & family. No moving around, same company. Same job, just higher up so I run bigger projects & a lot more technical expertise. I think in certain fields that is really common. A 0 yr experience engineer is significantly different in knowledge & what value they bring to a employer than a 10 yr engineer, so they are worth a lot more.
Of course the 0 yr engineers coming in now are making 25% more than I made, so that portion of my increase is truly just inflation.
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phil5185
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Post by phil5185 on Mar 12, 2015 12:40:23 GMT -5
You have to be careful with those Govt statisticians. Eg, take two 23 yr-old engineer 'fresh-outs', 10 years apart in time. And correct their starting salaries for inflation. Wouldn't you expect them to be the same? (That's what corrected for inflation means). That's not 'stagnation'. But you would also expect the first one (now age 33) to have advanced and doubled his/her salary.
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thyme4change
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Post by thyme4change on Mar 12, 2015 19:22:42 GMT -5
As long as HGTV tells every single person that they MUST have upscale this and upgraded that, and nothing else is acceptable, people will spend what they should be saving.
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phil5185
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Post by phil5185 on Mar 12, 2015 21:13:42 GMT -5
Saw something on TV an hr or so ago - it was simulated-aging software, they show you your 'old' self about 25 or 30 yrs into the future - and then ask you a series of planning questions. They said that the 'saving' percent of the plan about doubled compared to your baseline test.
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thyme4change
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Post by thyme4change on Mar 12, 2015 21:16:27 GMT -5
Wow phil5185 - I guess that seeing yourself as a real person makes a different on how you treat yourself. Same principle as people who say stuff on the internet - they don't think they are talking to real people.
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cronewitch
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Post by cronewitch on Mar 12, 2015 22:52:54 GMT -5
Many young people now don't seem to be getting careers but saying at minimum wage, they won't make much for retirement because they think they can't and don't even try. They wait all year for a tax refund and spend it on something special or pay down debt never making progress. The thing is you don't need to put away a set percentage or set amount to get to your million. Start a career, buy a house that isn't too high priced and stay out of consumer debt and it almost does it on auto pilot. If your career progresses and you house payment is fixed you start to get ahead slowly. I bought a house in 1985 that cost 422 a month and was saving 2K a year starting in 1984. It took a decade to save 20K. I knuckled down and paid down the mortgage but if I hadn't and hadn't sold it I would only have 8 more mortgage payments. The thing is 422 was a lot of money then for me now it would be less than utilities. But I got a bigger house, bought cars and boats and had a roommate 28 years, I was also very frugal in many ways shopping sales and cutting corners. It took me from 1985 to 2000 to save 100K but things got worse then better with work and between 2003-2014 I saved about 450K just in a 401K. I inherited 170K but hit a million in taxable investments in under 30 years, I never made a large fortune but had decent jobs most of the time. If I can do it as a single women a couple could easily do it.
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