Help somebody financially grow.

[fenders53]

This might sound a little too personal for an anonymous financial site but here goes.  I spent the last couple decades of my Army career supervising some financially reckless young men and women.  I hounded them to not live just for today and feed their 401K, make sure you have enough insurance for the family you might leave behind because we never know how long we will be on this earth.  Well that was ten years ago and to my horror the third Soldier just passed away suddenly, none from combat.  I never dreamed that might happen.  One cancer and two heart attacks.  The oldest was 40yrs old.  We just never know.  They all had a wife and children. My heart is very heavy yet again today but Cory left his wife and children with $600K more than he was going to without some encouragement to grow up financially.  I will try to find some solace in that. 
 
Try to help somebody do the right thing if you can convince them.  I feel a little better about my friends sudden passing today.  I'd be sick if his family had to struggle from day one.  In retrospect one of my more important accomplishments in this life.  I was just trying to help them have a better retirement and not have to work until they die but things change.  I thought they would all outlive me.

[crimsonghost747]

First of all, I'm deeply sorry for your loss.

I, for one, think this is a great idea for a thread.
I've tried to do this with friends, family, strangers. Sometimes it works, sometimes it doesn't... obviously we can't force anyone to change their habits, but we can always throw a bone and hope they get the message.

The truth is, we KNOW that living somewhat frugally and investing the rest has been the road to a (financially) worry free future. And all signs point to this being the trend going forward too. If we can convince some of those who are close to us, that is a big win already.

[fenders53]

Thanks. Everybody is definitely not going to listen. I had a captive audience and figured out our human resources folks did a poor job of explaining compounding. A thirty year chart with their personal numbers turned out to be effective. About 8 of 10 of them listened and five of them listened well. This should be covered in high school but I doubt it is. Most are presented a 401K breiefing at work and it may or not be a quality presentation.

[ken-do-nim]

Wow I'm really glad you were able to make a difference in these people's lives.

I'm amazed at the people I know who have high end jobs, but just keep the money in savings accounts or CDs. They don't even realize they are slowly losing out to inflation.

[fenders53]

Mostly just good habits and people don't understand what they are missing out on. It just happened to be 2009 when I got them to step up contributions and invest aggressive enough for their age and risk tolerance. They think I am Warren Buffett now. I will just let them believe that lol.

A hard crash shakes too many people out if they aren't equipped to understand so far it's always recovered. Bad press on shady markets and politicians feed the rhetoric. That isn't helping.

[ChadR]

So sorry for your loss. That is a good thing that you were able to make a difference in his life and able to benefit his widow and children in this hard time for them.

Like you, I am always trying to get people to plan for the future. I have nowhere near the success rate you were having, but everyone that I'm able to get on a better road for the future is a bonus to me.

[fenders53]

(03-30-2021, 09:37 AM)ChadR Wrote: So sorry for your loss.  That is a good thing that you were able to make a difference in his life and able to benefit his widow and children in this hard time for them.

Like you, I am always trying to get people to plan for the future.  I have nowhere near the success rate you were having, but everyone that I'm able to get on a better road for the future is a bonus to me.

It was a unique situation.  Just a bunch of hard working army mechanics with no financial skills.  They were driving brand new trucks and trading up every couple years and saving no money at all.  They watched me live leaner in wonderment because they knew I had 135% their salary.  But I invested when I made half their salary and that was the point.  I told them I was going to semi retire at 55 and they would be looking for a part-time job at age 75 if they didn't change their ways.  Five years later they watched me leave as promised.  I didn't work at all for a few years and checked some dreams off my bucket list.  Now working part-time a few years as I try to stay out of my real investments without tax penalties.  

I am especially pained by the death of my friend this time.  We were close and he was only 36yrs old.  His wife is far from in the clear because she is so young but she will now have $600K instead of the $60K or so she and their children would have had if he didn't make some adjustments ten years ago. 

We have a skill.  If we can save a few along the way IMO we should keep trying.

[vbin]

Sorry for your loss fenders.


Do any of you pay for your own health insurance? I wonder how we will afford, health insurance+ property taxes+ incomes taxes in retirement.

In bay, single fam, good school homes cost you $2M+ resulting in ~$30k property tax.

Imagine $40k health insurance+$30k property tax, that's $70k right there, just to be able to live and have health insurance every year.

[fenders53]

(03-30-2021, 12:21 PM)vbin Wrote: Sorry for your loss fenders.


Do any of you pay for your own health insurance? I wonder how we will afford, health insurance+ property taxes+ incomes taxes in retirement.

In bay, single fam, good school homes cost you $2M+ resulting in ~$30k property tax.

Imagine $40k health insurance+$30k property tax, that's $70k right there, just to be able to live and have health insurance every year.

It's scary for many.  You have to survive until you are eligible for Medicare if you retire early and lose your employer health benefits.  I have a military retirement and a civilian government employee retirement  locked.  I had health care for life the day I returned from my first year long war tour. (not my wife though).  My wife and I have almost free health insurance end of next year when I turn 60.  We'd have medicare otherwise which is similar.  FED GOV employee benefits are not even fair compared to what others face.

My property tax is not much more than 10% of yours for my 20 year old home and my public services are about the same I'd bet.  You gotta live where your job is now but I don't think I'm losing out living where wages are only 50-70% of Cali.  People retire and move away from here and save another 25% on basic home costs.  The disparity across the nation is pretty drastic.  I'm not suggesting you have to live in poverty stricken rural Mississippi but you have MUCH more affordable choices when the kids are out of school and you are retired.  Not a chance I would retire in the high rent district. 

To your original numbers, a couple can live fairly comfortable on $50K here provided you enter retirement with a paid off house and don't need a new car year one.  I don't have to do that but I could live OK and take a vacation or two a year.  Little different than my working years when I was accumulating.  $100K here and you are walking in high cotton for sure.

[vbin]

It's easy to say you move but not really what you want when you have to leave your friends, family and circle behind and start fresh. And the weather ah the weather is so nice in cali.

How much does medicare costs? People get eligible at 65 I thought.

[ken-do-nim]

My plan is to marry someone who can put me on their medical plan

[fenders53]

(03-31-2021, 02:56 PM)vbin Wrote: It's easy to say you move but not really what you want when you have to leave your friends, family and circle behind and start fresh. And the weather ah the weather is so nice in cali.

How much does medicare costs? People get eligible at 65 I thought.

I am pretty sure you get medicare whenever you are eligible for SS, which is 62 for me.  My SS will be a reduced benefit at 62 but have other pensions so I am going to do it.  Younger friends dying at a too rapid pace encourages me to YOLO and get my money.  I sure paid plenty of SS taxes for decades.

As far as moving.  Not suggesting you have to make a decision now.  My wife says we can't move too far.  I'm good with that.