How Closely Do You Monitor Your 401k / Retirement

[DLgal]

When I was reading sites on credit card debt and in forums for CC and such, that is NOT exaggerated based on everything I read on the forums.

People posted saying they can't figure out how to unbury themselves from debt and people responded with they can help if they lay everything out for them. Well, the people needing help do just that and they list their $50k in credit cards they can't get out from under, then list their dual $90-120k incomes, the BMW, Mercedes, and new truck, the $800/month private violin lessons, the $1000/month for private school, along with all the frivolous spending like exactly that, the several hundreds a month for new clothing. It is definitely out there coming from the real people on discussion forums just like this and not coming from Hollywood television programs.

People at the poverty level are not spending money like that, though. They don't even have credit cards. They mostly don't even have bank accounts.

 

[QueenIsabella]

When I was reading sites on credit card debt and in forums for CC and such, that is NOT exaggerated based on everything I read on the forums.

People posted saying they can't figure out how to unbury themselves from debt and people responded with they can help if they lay everything out for them. Well, the people needing help do just that and they list their $50k in credit cards they can't get out from under, then list their dual $90-120k incomes, the BMW, Mercedes, and new truck, the $800/month private violin lessons, the $1000/month for private school, along with all the frivolous spending like exactly that, the several hundreds a month for new clothing. It is definitely out there coming from the real people on discussion forums just like this and not coming from Hollywood television programs.

That may be true, but I've never met someone who couldn't cut spending, even a little, somewhere. Even when my BIL/SIL filed for bankruptcy and lost their house in foreclosure, they managed to have enough money to smoke 3 packs of cigarettes between them. Note: I'm guilty of this as well (spending on stuff I want versus need, not smoking). Similarly, there are painless ways to make more money (second job, sell on Craig's List, etc.) There are people on these boards who would sell a kidney for a WDW trip, but wouldn't sell plasma ($50 a pop, you can do it twice a month) to fund a retirement account.

 

[RamblingMad]

People at the poverty level are not spending money like that, though. They don't even have credit cards. They mostly don't even have bank accounts.

The unbanked population is being screwed with excessive fees for financial transactions. It's heart breaking.

 

[RamblingMad]

When I was reading sites on credit card debt and in forums for CC and such, that is NOT exaggerated based on everything I read on the forums.

People posted saying they can't figure out how to unbury themselves from debt and people responded with they can help if they lay everything out for them. Well, the people needing help do just that and they list their $50k in credit cards they can't get out from under, then list their dual $90-120k incomes, the BMW, Mercedes, and new truck, the $800/month private violin lessons, the $1000/month for private school, along with all the frivolous spending like exactly that, the several hundreds a month for new clothing. It is definitely out there coming from the real people on discussion forums just like this and not coming from Hollywood television programs.

In my limited experience, these tend to be poor people that get out. Since they've never had money before, they have no idea how to manage it. A lot of people have this problem. I've run into it myself. If your parents don't help you understand money matters, and school don't teach you about managing money, you're going to make some mistakes.

 

[Searc]

In my limited experience, these tend to be poor people that get out. Since they've never had money before, they have no idea how to manage it. A lot of people have this problem. I've run into it myself. If your parents don't help you understand money matters, and school don't teach you about managing money, you're going to make some mistakes.

As a parent, you can teach, preach, impart knowledge however you wish, about money and any other practical matter. That does not mean your children will listen to you or take your advice, even though what you are doing financially is obviously working.

 

[kaytieeldr]

There are people on these boards who would sell a kidney for a WDW trip, but wouldn't sell plasma ($50 a pop, you can do it twice a month) to fund a retirement account.

,
I would sell my plasma in a split second. The closest place that pays for it is two states away.

 

[mnrose]

Encouragement doesn't pay rent, heat the house, buy food...

Great. Even when dinner out (want vs. need) means fast food, it also means disposable income. Many/most posters will never comprehend having basic expenses exceed income. When you can't make a mortgage payment, you definitely can't save. Or invest.

Most frequently, that's due to zoning. Okay, and lack of a market.

This is actually a priority of mine on my local city council (where I am an elected). I want to make sure we have an accessory dwelling ordinance in place.

 

[QueenIsabella]

,
I would sell my plasma in a split second. The closest place that pays for it is two states away.

That's a shame--around here, they advertise! We get the odd postcard and I saw an ad on TV the other day.

 

[allison443]

I get what you are saying, I do. We were certainly not wealthy when we first married and started having our children. But the bolded comment made me pause... I wouldn't consider TJ Maxx a place where 'poor people' shop. I don't consider it cheap at all. My kids grew up in 25 cent yard sale clothes and hand-me-downs from their cousins. I bought my own clothes from goodwill (my sister worked there and new when all the good deals were coming up): $5 jeans and 50 cent or $1 shirts. Walmart clearance racks (yeah, new clothes) were a bonus. I still think Target prices are a bit steep. But TJ Maxx is even higher.

Totally agree! Thinking “TJ Maxx is for poor people” or as was later stated “low income people” is the wrong attitude to have, in my opinion. I know plenty of financially astute, successful, high income people who shop there! I think people are very influenced by advertising, branding etc. also as you mentioned, it’s not that cheap!

 

[RamblingMad]

Totally agree! Thinking “TJ Maxx is for poor people” or as was later stated “low income people” is the wrong attitude to have, in my opinion. I know plenty of financially astute, successful, high income people who shop there! I think people are very influenced by advertising, branding etc. also as you mentioned, it’s not that cheap!

Another example. The average salary for someone shopping at Costco is over $100k.

 

[NYCgrrl]

Another example. The average salary for someone shopping at Costco is over $100k.

Not sure were you are getting that 100K+ figure from but Costco has reported their average shopper's income as being in the low 70K as of the 3Q of 2019.

 

[RamblingMad]

Not sure were you are getting that 100K+ figure from but Costco has reported their average shopper's income as being in the low 70K as of the 3Q of 2019.

Probably not the best source.

https://www.google.com/amp/s/www.fo...stcoholics-costcos-113-7-billion-addicts/amp/

 

[NYCgrrl]

Probably not the best source.

https://www.google.com/amp/s/www.fo...stcoholics-costcos-113-7-billion-addicts/amp/

The article you linked is over two years old and mostly pertains to a person who is apparently "hooked" on Costco much like someone addicted to "Precious Moments", LOL. On the other hand (and in defense of your figures) the markup on items sold at Costco averages 14% thus with the membership fees IS probably geared more towards those with a higher income.

 

[StacyStrong]

Totally agree! Thinking “TJ Maxx is for poor people” or as was later stated “low income people” is the wrong attitude to have, in my opinion. I know plenty of financially astute, successful, high income people who shop there! I think people are very influenced by advertising, branding etc. also as you mentioned, it’s not that cheap!

I also shop there. I wasn’t indicating it’s “for” any class of people.

It was one point in a larger discussion about how many truly low income individuals don’t take extravagant vacations or live outside their means in lieu of savings. Not sure why this got picked apart.

 

[Pea-n-Me]

I'm in the "not too often" camp. When I do, I'm pleased. I started having money taken out of each paycheck when I was young and I'm so glad I did. I never noticed it missing. No company match, so it's all on me.

 

[ThistleMae]

I starting taking out deferred comp late in the game, after my kids were grown and on their own, the only way I could afford to. I invested in the stable fund, because I don't trust the ups and downs of the economy and I lack the education to really choose wisely. And, even if I had investment advice, I see this as a gamble. For me, even though the interest I get on my investment is lower than the higher risk investments produce, they are always still a risk. When weighing risk, it really is what you feel comfortable doing. For me, lower returns with peace of mind is worth far more than the gamble of higher paying yields. And you never know how much money you may gain or lose. I've been able to get a steady 2 to 4 % return, with no risk of loss. Peace of Mind....Priceless. Just my point of view.

 

[disneychrista]

I starting taking out deferred comp late in the game, after my kids were grown and on their own, the only way I could afford to. I invested in the stable fund, because I don't trust the ups and downs of the economy and I lack the education to really choose wisely. And, even if I had investment advice, I see this as a gamble. For me, even though the interest I get on my investment is lower than the higher risk investments produce, they are always still a risk. When weighing risk, it really is what you feel comfortable doing. For me, lower returns with peace of mind is worth far more than the gamble of higher paying yields. And you never know how much money you may gain or lose. I've been able to get a steady 2 to 4 % return, with no risk of loss. Peace of Mind....Priceless. Just my point of view.

I have most mine in low/no risk also. I do have some in higher yield/higher risk. The risk is what stopped me from getting a IRA earlier. I’m only a couple months in and only a couple hundred invested. We’ll see how it goes.

 

[ThistleMae]

I have most mine in low/no risk also. I do have some in higher yield/higher risk. The risk is what stopped me from getting a IRA earlier. I’m only a couple months in and only a couple hundred invested. We’ll see how it goes.

I've been in no risk for about 8 years. I'm up to $ 200,000. Probably doesn't seem like much. But, I'm already retired and this will help supplement my social security and pension; also knowing how much tax will be taken out, which takes a big chunk.

 

[DLgal]

We have most of our money invested in moderate/high risk vehicles. Our TSP returned us 26% last year Our kids 529s both returned 25%.

I'm a gambler. I might change my tune in like 20 years when I turn 60.

 

[QueenIsabella]

I have most mine in low/no risk also. I do have some in higher yield/higher risk. The risk is what stopped me from getting a IRA earlier. I’m only a couple months in and only a couple hundred invested. We’ll see how it goes.

Everyone has a different risk tolerance. Personally, I found that I could tolerate more risk as I educated myself more on investing, but that might not be what works for you. The important thing is, you've gotten started--good for you!

Also, know that 2019 was an amazing year for the stock market--yay for all those invested in it! There's no guarantee that 2020 will do the same...or, it could do better, ask me in a year! Just know that it's not typical to have the kind of fabulous returns the past year has had.