super personal clicky poll about money

NDwife07 · February 2011

Obviously you don't have to answer this, even though it's anonymous. I'm not trying to be nosy, I'm really trying to get a sense of what's typical at this age (I assume most of us are in our 20s or 30s).
[Poll]

blondbomber23 · February 2011

I read somewhere recently that a good goal is to have 1 years salary saved for retirement by the time you turn 30.

DH is 30 and I'll be 30 next year. We definitely don't have that much saved for each of us (assuming I was working FT). I'd be curious to know how many people actually reach that goal.

lemen99 · February 2011

blondbomber23:
I read somewhere recently that a good goal is to have 1 years salary saved for retirement by the time you turn 30.

DH is 30 and I'll be 30 next year. We definitely don't have that much saved for each of us (assuming I was working FT). I'd be curious to know how many people actually reach that goal.

Interesting! I've not heard that. I always wondering how much is enough and what is overkill.

Mrs.Ashley · February 2011

lemen99:
blondbomber23:

I read somewhere recently that a good goal is to have 1 years salary saved for retirement by the time you turn 30.

DH is 30 and I'll be 30 next year. We definitely don't have that much saved for each of us (assuming I was working FT). I'd be curious to know how many people actually reach that goal.

Interesting! I've not heard that. I always wondering how much is enough and what is overkill.

ditto on both comments. sometimes I think Michael is overkill, but better safe than sorry, I guess.

SusieDMB · February 2011

Todd works in the financial industry, and says that people should put in at minimum 10%, even more if you don't get a match.

NDwife07 · February 2011

blondbomber23:
I read somewhere recently that a good goal is to have 1 years salary saved for retirement by the time you turn 30.

DH is 30 and I'll be 30 next year. We definitely don't have that much saved for each of us (assuming I was working FT). I'd be curious to know how many people actually reach that goal.

I hadn't heard that. It doesn't seem all that lofty of a goal, but maybe I'm living in some dream world

The only thing I'd say about that is if you plan to work until 70ish, let's say, then you'd need about 15-20 years' salary saved for retirement. If it took you 30 years to save ONE year, how are you going to get to 15-20 at that rate? Does that make sense?

Mrs.Ashley · February 2011

NDwife07:
blondbomber23:

I read somewhere recently that a good goal is to have 1 years salary saved for retirement by the time you turn 30.

DH is 30 and I'll be 30 next year. We definitely don't have that much saved for each of us (assuming I was working FT). I'd be curious to know how many people actually reach that goal.

I hadn't heard that. It doesn't seem all that lofty of a goal, but maybe I'm living in some dream world

The only thing I'd say about that is if you plan to work until 70ish, let's say, then you'd need about 15-20 years' salary saved for retirement. If it took you 30 years to save ONE year, how are you going to get to 15-20 at that rate? Does that make sense?

True, but think about (a) compound interest and (b) possibly increasing salaries over time.

Really, compound interest is astounding.

I think it takes a lot of dedication to get to 1 year's worth of salary saved by 30. I don't think I would call it a lofty goal, but I would say it's challenging.

Assuming you don't start saving until after college (22) and assuming you are serious and aggressive in your saving at that time (huge assumption) and that you have an OK paying job ... then you have possibly a car loan, bachelors student loans, possibly masters student loans, lower salary, pay for a wedding, house downpayment, etc etc.... there are a lot of costs in your first few years out in real life.

NDwife07 · February 2011

Haha, I guess I'm not very optimistic about interest rates, even when we consider compound interest.

But you're right on everything, Ashley. Eight years to save one year's salary is pretty short time.

I will say this: I'm beyond grateful to my parents who made me open a roth IRA when I was 18. I'm fortunate that I've been able to contribute to it - even in tiny, tiny amounts (like when I was in college and put $10/month in), because after twelve years it has really grown.

I'm totally making Ella do the same thing, even if the first contributions are itty itty bitty.

Mrs.Ashley · February 2011

NDwife07:

Haha, I guess I'm not very optimistic about interest rates, even when we consider compound interest.

But you're right on everything, Ashley. Eight years to save one year's salary is pretty short time.

I will say this: I'm beyond grateful to my parents who made me open a roth IRA when I was 18. I'm fortunate that I've been able to contribute to it - even in tiny, tiny amounts (like when I was in college and put $10/month in), because after twelve years it has really grown.

I'm totally making Ella do the same thing, even if the first contributions are itty itty bitty.

That is awesome about starting your Roth at 18! Michael did that as well. He pushes us to max our contributions every year and it's so much fun to pick out the mutual funds / ETFs every year and see it grow.

Re: interest rates... even w/ the stock market dip a few years ago, there are still drastic increases happening in the market. Since we're young, maybe we're more aggressive than most, but the large majority of our retirement $ is in stocks/mutual funds.

IndyGirl02 · February 2011

NDwife07:

I will say this: I'm beyond grateful to my parents who made me open a roth IRA when I was 18.

I credit one of my first grad school professors for this same reason. During our first week of the PhD program, in an orientation-type meeting, he went off on this big tangent about how we should all open a Roth IRA *right now* even if we only put $20/month into it... and he showed us these graphs about how little amounts grow into huge amounts by the time you're 65, and how far behind we'd be if we waited until we were 30 to open an account and start contributing.

I did it within a week. I sure didn't have much to contribute to it at the time, but thanks to compound interest, those first few dollars will turn into a heck of a lot more by the time I'm dipping into the account.

critterchik · February 2011

There was no button that said WTF is Retirement Savings?

As a single college student working part time (mind you I'm in my mid 20s, not a kid) I don't have squat saved... so I'm going to be a little behind the game. And I'm definitely not going to have a years salary saved up by the time I'm 30. Oh Well!!!!!!!!!!!

NDwife07 · February 2011

critterchik:
There was no button that said WTF is Retirement Savings? As a single college student working part time (mind you I'm in my mid 20s, not a kid) I don't have squat saved... so I'm going to be a little behind the game. And I'm definitely not going to have a years salary saved up by the time I'm 30. Oh Well!!!!!!!!!!!

I think it's really, really hard when you're putting yourself through school and don't have a partner whose income you benefit from. We all do the best we can! I hope this poll didn't make you feel behind

fruitcakes · February 2011

Jake had a personal finance class in college that similar to Amy's story really hit home with him. We've been really aggressive with retirement savings. During his 2 deployments, we doubled our contributions. It also helps that from day 1 of employment with IU, they have contributed an amount equal to 10% of my salary into my 403b. I can (and do) contribute on top of that, but 10% is a pretty substantial amount to start with.

NDwife07 · February 2011

fruitcakes:
Jake had a personal finance class in college that similar to Amy's story really hit home with him. We've been really aggressive with retirement savings. During his 2 deployments, we doubled our contributions. It also helps that from day 1 of employment with IU, they have contributed an amount equal to 10% of my salary into my 403b. I can (and do) contribute on top of that, but 10% is a pretty substantial amount to start with.

We have a similar deal here (12%, and we don't have to do anything to get it, but of course can contribute on top of it). It's amazing. Unheard of. I'm waiting for the day it all ends, but in the meantime we are incredibly lucky especially since both Brian and I work here.

eclaires · February 2011

Roths are great - we're planning on having the kids start them as soon as they're able (is it 18 or once they are earning income?). Anyway, we plan to match what they put in (assuming we can afford it), to encourage them to save from jobs they have in the summers in college/high school as well as gift money.

My parents are really, really bad with money - like it horrifies me - and I hate the way they taught me to be about money. It was a huge adjustment for me when we got married and it took awhile for Jeff and me to get on the same page. My biggest goal with our kids is to teach them to be financially responsible. Personally, I think that is one of the biggest problems in our country - too many people live in major debt and I want my kids to have the benefit of good financial knowledge because I didn't.

fruitcakes · February 2011

NDwife07:
fruitcakes:
Jake had a personal finance class in college that similar to Amy's story really hit home with him. We've been really aggressive with retirement savings. During his 2 deployments, we doubled our contributions. It also helps that from day 1 of employment with IU, they have contributed an amount equal to 10% of my salary into my 403b. I can (and do) contribute on top of that, but 10% is a pretty substantial amount to start with.
We have a similar deal here (12%, and we don't have to do anything to get it, but of course can contribute on top of it). It's amazing. Unheard of. I'm waiting for the day it all ends, but in the meantime we are incredibly lucky especially since both Brian and I work here.

Oooh, that's so nice that you both get to benefit from it! I think IU recently changed the plan that new hires have a 3 year vesting period and I want to say that they dropped the amount to 8%, but I was grandfathered in under the old plan. I know several people that have been here since before 1989 that get a 15% contribution. !!!

The benefits package here is actually one strong reason why we're considering staying in Bloomington. The health insurance is great (and cheap), the 403b, plus almost 6 weeks of vacation. Um....remind me again why I would want to leave?

blondbomber23 · February 2011

Mrs.Ashley:
NDwife07:
blondbomber23:

I read somewhere recently that a good goal is to have 1 years salary saved for retirement by the time you turn 30.

DH is 30 and I'll be 30 next year. We definitely don't have that much saved for each of us (assuming I was working FT). I'd be curious to know how many people actually reach that goal.

I hadn't heard that. It doesn't seem all that lofty of a goal, but maybe I'm living in some dream world

The only thing I'd say about that is if you plan to work until 70ish, let's say, then you'd need about 15-20 years' salary saved for retirement. If it took you 30 years to save ONE year, how are you going to get to 15-20 at that rate? Does that make sense?

True, but think about (a) compound interest and (b) possibly increasing salaries over time.

Really, compound interest is astounding.

I think it takes a lot of dedication to get to 1 year's worth of salary saved by 30. I don't think I would call it a lofty goal, but I would say it's challenging.

Assuming you don't start saving until after college (22) and assuming you are serious and aggressive in your saving at that time (huge assumption) and that you have an OK paying job ... then you have possibly a car loan, bachelors student loans, possibly masters student loans, lower salary, pay for a wedding, house downpayment, etc etc.... there are a lot of costs in your first few years out in real life.

This is a good point. I went to professional school, so I didn't start my 1st post-college job until I was 24. Then I became a mostly SAHM at 28. I suppose I have a fair amount saved when I look at those numbers, lol. I wonder what being a SAHM does to those "goal" suggestions.

Also, we're putting far less into retirement savings right now because we're paying off our student loans and are hoping to be debt free (except the mortgage) within the next few months. I'm sure that we'll contribute more in our 30's once those are paid off.

I love the idea of having your kids start a roth at age 18. I didn't open or start contributing to my retirement until I had been working >1 year.

aloveindy · February 2011

eclaires:

Roths are great - we're planning on having the kids start them as soon as they're able (is it 18 or once they are earning income?). Anyway, we plan to match what they put in (assuming we can afford it), to encourage them to save from jobs they have in the summers in college/high school as well as gift money.

My parents are really, really bad with money - like it horrifies me - and I hate the way they taught me to be about money. It was a huge adjustment for me when we got married and it took awhile for Jeff and me to get on the same page. My biggest goal with our kids is to teach them to be financially responsible. Personally, I think that is one of the biggest problems in our country - too many people live in major debt and I want my kids to have the benefit of good financial knowledge because I didn't.

It is once they have earned income, you can have a custodial Roth IRA. A lot of our clients' children have them, although their earned income is probably coming from Mom & Dad's business paying them to file or something

critterchik · February 2011

NDwife07:

critterchik:
There was no button that said WTF is Retirement Savings? As a single college student working part time (mind you I'm in my mid 20s, not a kid) I don't have squat saved... so I'm going to be a little behind the game. And I'm definitely not going to have a years salary saved up by the time I'm 30. Oh Well!!!!!!!!!!!

I think it's really, really hard when you're putting yourself through school and don't have a partner whose income you benefit from. We all do the best we can! I hope this poll didn't make you feel behind

Oh no! Don't worry. I'm starting over - and there's nothing I can do about that. Once I get out of school hopefully I'll be able to start putting some away. I'll get there... school first though!!!

lemen99 · February 2011

I didn't get my IRA until I was probably 21!! That's awesome to those who got it sooner! DH got his even later but he had no money (poor college student!)

I also am a dork and realized I answered the poll incorrectly, I dont' look at our statements very often. Embarrassed

NDwife07 · February 2011

I want to give kudos to everyone who answered the poll! I thought for sure we'd have a few in the "$0" column, but it looks like everyone is saving! I think that's so great!

shauna060708 · February 2011

fruitcakes:
The benefits package here is actually one strong reason why we're considering staying in Bloomington. The health insurance is great (and cheap), the 403b, plus almost 6 weeks of vacation. Um....remind me again why I would want to leave?

This exactly. Ex-freaking-actly. I don't think I'll find anything like it anywhere else.

crabapple · February 2011

critterchik:
NDwife07:

critterchik:
There was no button that said WTF is Retirement Savings? As a single college student working part time (mind you I'm in my mid 20s, not a kid) I don't have squat saved... so I'm going to be a little behind the game. And I'm definitely not going to have a years salary saved up by the time I'm 30. Oh Well!!!!!!!!!!!

I think it's really, really hard when you're putting yourself through school and don't have a partner whose income you benefit from. We all do the best we can! I hope this poll didn't make you feel behind

Oh no! Don't worry. I'm starting over - and there's nothing I can do about that. Once I get out of school hopefully I'll be able to start putting some away. I'll get there... school first though!!!

i was in this boat until i was 30! in my 20s i had a kid, and a dead beat partner who only worked when the spirit moved him (and then didnt' contribute much). i was finally able to start saving when i left him and cut a lot of expenses by moving in with my dad.

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