How Closely Do You Monitor Your 401k / Retirement

[tvguy]

Guess we will have to. Though I do have to say it is pretty difficult to save money that you honestly don't have.

Maybe you can find a financial counselor who is far more qualified than any of us here to give your finances the once over. There maybe some things you hadn't thought about.

 

[disneychrista]

Maybe you can find a financial counselor who is far more qualified than any of us here to give your finances the once over. There maybe some things you hadn't thought about.

Thanks for your concern. I am not worried about my personal finances. I was curious how actively people manage their 401k's. That's it.

 

[DLgal]

That's what my friends say.

The reality is a family needs to be in the asset accumulation mindset. What this really means is that we need more multi-generational homes. These are rarely built. Instead, you get a single kitchen and more square feet than you know what to do with. And since our peers overspend, the price for goods go up, not because their salary has gone up, but because they took on additional debt.

When was the last time you heard a poor family say: instead of going to Disney, we're going to have a staycation and invest.

Poor people (truly poor people, not "DIS poor") aren't taking ANY kinds of vacations. Disney is a pipe dream for those folks and the very concept of a "staycation" is laughable.

My husband grew up poor. Like, food stamp poor. He didn't go on a vacation until I took him to WDW when we were 19.

 

[StacyStrong]

Poor people (truly poor people, not "DIS poor") aren't taking ANY kinds of vacations. Disney is a pipe dream for those folks and the very concept of a "staycation" is laughable.

My husband grew up poor. Like, food stamp poor. He didn't go on a vacation until I took him to WDW when we were 19.

Same. My bf went to DL with me when he was in his mid 20s - first vacation, first flight. He only went because we stayed with friends that moved there.

To this day, he won't go to WDW with me because it's "too expensive" even though I can afford to take him without taking on debt. He also works 6 days a week and helps support his low income family (part of why we are living with them - here's that multigenerational house). Investing is a laughable idea to his family. They NEVER vacation. They don't eat out. They shop at places like TJ Maxx. They don't even have staycations. The idea of taking time off work is crazy to them. They STILL struggle, but are much better off than many people they know because they were able to (at least) pay off their small modest house. Still, they don't consider themselves poor. They don't struggle to put food on the table anymore. I think a lot of people on the disboards view "poor" much differently than me.

(For the record, I personally live very comfortably and do not pretend to be struggling. I save for retirement, vacations, have a health emergency fund, etc. I have just made the decision to live with individuals who ARE very low income and can see how their lives are affected by it).

 

[disneychrista]

I think a lot of people on the disboards view "poor" much differently than me.

Unless one has lived it or seen it first hand, they don't truly understand what it means to be truly poor. It seems based on responses on this thread that many just assume not having money to save means one needs to not spend money on other things. Not that the individual has to make hard choices on what to buy/pay for and what can be put off.

 

[indimom]

Same. My bf went to DL with me when he was in his mid 20s - first vacation, first flight. He only went because we stayed with friends that moved there.

To this day, he won't go to WDW with me because it's "too expensive" even though I can afford to take him without taking on debt. He also works 6 days a week and helps support his low income family (part of why we are living with them - here's that multigenerational house). Investing is a laughable idea to his family. They NEVER vacation. They don't eat out. They shop at places like TJ Maxx. They don't even have staycations. The idea of taking time off work is crazy to them. They STILL struggle, but are much better off than many people they know because they were able to (at least) pay off their small modest house. Still, they don't consider themselves poor. They don't struggle to put food on the table anymore. I think a lot of people on the disboards view "poor" much differently than me.

(For the record, I personally live very comfortably and do not pretend to be struggling. I save for retirement, vacations, have a health emergency fund, etc. I have just made the decision to live with individuals who ARE very low income and can see how their lives are affected by it).

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.

 

[Christine]

Same. My bf went to DL with me when he was in his mid 20s - first vacation, first flight. He only went because we stayed with friends that moved there.

To this day, he won't go to WDW with me because it's "too expensive" even though I can afford to take him without taking on debt. He also works 6 days a week and helps support his low income family (part of why we are living with them - here's that multigenerational house). Investing is a laughable idea to his family. They NEVER vacation. They don't eat out. They shop at places like TJ Maxx. They don't even have staycations. The idea of taking time off work is crazy to them. They STILL struggle, but are much better off than many people they know because they were able to (at least) pay off their small modest house. Still, they don't consider themselves poor. They don't struggle to put food on the table anymore. I think a lot of people on the disboards view "poor" much differently than me.

(For the record, I personally live very comfortably and do not pretend to be struggling. I save for retirement, vacations, have a health emergency fund, etc. I have just made the decision to live with individuals who ARE very low income and can see how their lives are affected by it).

Just curious about the housing they are in. I totally get your depiction of "poor" and I do think many here on the DIS don't quite know that level of poverty. I guess I'm just wondering how they were able to own a home. That's definitely not typical at all. Was their some special circumstance for that. I know that some states/cities provide incentives to low income folks so they can get into a very modest home. Anyway, just curious how they managed that.

 

[mrodgers]

1 in 100,000 kids playing basketball in high school make it to the NBA....maybe less. And, of those, only a handful are in the Shaq category. That's not a meaningful way to be successful for the vast majority of human beings. I've always been a saver....it's in my DNA...but I was blessed with a career that paid me an excellent salary. If you are working in the service industry at a $20 an hour job (far above minimum wage, BTW), it's going to be pretty darn hard to save much of anything. That's 41,000 per year, BEFORE taxes. After paying rent, utilities, car payment, insurance, medical care...you are going to be darn lucky to have $10 a week to put away. Now, of course you SHOULD put that away and you SHOULD save, but it's just not very much $$$. If you make double that, yes, for sure you can save (theoretically, about 1/2 of your take home). But, it's shows a serious lack of understanding to say that the working poor can save more than they do (and note that the $20 an hour guy isn't even the working poor...the minimum wage guy can't even afford rent).

$20/hour, that's exactly what I lived when I was married with 2 kids.

For those that don't understand $20/hr to a typical family, at least in semi rural PA where I lived, here's how it goes.

That's approximately $2200 for the month (taxes, health insurance, and 3% going to 401k for 2:1 match deductions.) My mortgage was $700 (including ins. and tax.) Heating oil and car insurance both ran $100/month. Electric $150. Gas to keep both cars running as you don't screw around in the country with just 1 car leaving your family stuck, around $300 for the month until she went back to work which doubled the number.

We're down to $850. I don't even have a car yet nor have we eaten anything yet nor done anything to enjoy life.

Groceries are really expensive here. Reasonable would be $200/week. It's a 40 minute drive to go get groceries.

$50 left for medical expenses, dental expenses, school expenses, buying future vehicles, family entertainment, clothing, internet connection, phone, TV, car repair, home repair, debt, savings, and whatever else I am forgetting.

 

[HerRoyalHighness]

The planner did that on his own. Why would I be wary of someone who honestly has our best interest in mind? THAT is the kind of person I WANT.

While you do want to know that the person you're working with knows their stuff, I look at it as there was absolutely nothing to gain to aside from him showing you that you were wrong before you came to him, especially since nothing can be done about it now. Which is different from showing you what you'll have in 5, 10 or 20 years if you leave it where it is versus making a change to another type of investment. It's something to keep in mind with your future interactions with him. Nothing worse than an investment advisor who won't respect you.

 

[tvguy]

While you do want to know that the person you're working with knows their stuff, I look at it as there was absolutely nothing to gain to aside from him showing you that you were wrong before you came to him, especially since nothing can be done about it now. Which is different from showing you what you'll have in 5, 10 or 20 years if you leave it where it is versus making a change to another type of investment. It's something to keep in mind with your future interactions with him. Nothing worse than an investment advisor who won't respect you.

A good financial adviser looks back at how you got where you are today, and helps you plan for the future. If you made mistakes, they help you make up for that, and help you avoid that in the future.

 

[StacyStrong]

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.

I agree. They aren’t poor anymore. They are low income. I was just commenting on the mentality that people who have been poor (in the past) have.

 

[StacyStrong]

Just curious about the housing they are in. I totally get your depiction of "poor" and I do think many here on the DIS don't quite know that level of poverty. I guess I'm just wondering how they were able to own a home. That's definitely not typical at all. Was their some special circumstance for that. I know that some states/cities provide incentives to low income folks so they can get into a very modest home. Anyway, just curious how they managed that.

The point was that they aren’t poor. They don’t consider themselves poor.

But, to answer your question, from my understanding (I didn’t know them at the time) an injury on the job (while unfortunate) resulted in a small settlement.

 

[kaytieeldr]

I respectfully, and completely disagree. I literally just got off Facebook where there is a video of Shaq playing basketball with some low income kids. He encourages them to set goals, respect their family and friends, and never give up.

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

I never wanted for anything I needed. But sometimes eating dinner out meant McDonalds not a steakhouse.

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.

What this really means is that we need more multi-generational homes. These are rarely built.

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

 

[Captainkidd76]

I monitor it in terms of how much I'm contributing. As for where I'm contributing the money to, I have absolutely no idea. I let the rep for my company deal with that. I don't follow stocks at all and would have no clue where to begin.

 

[tvguy]

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.

Encouragement can drive you to find ways to "find money". And while I know that those financial expert shows may be exaggerated......you know, the folks that think buying several hundred dollars a month of new clothing is a necessity..........but I have worked with a few folks who aren't far off from that, and think it would be believable.

 

[bobbiwoz]

We are retired and 401K is looked at every business day. That’s by my husband. I only look at my investments when I have to withdraw, once every year.

 

[RamblingMad]

Encouragement can drive you to find ways to "find money". And while I know that those financial expert shows may be exaggerated......you know, the folks that think buying several hundred dollars a month of new clothing is a necessity..........but I have worked with a few folks who aren't far off from that, and think it would be believable.

There has to be money to find. The folks that I know that can't save aren't buying several hundred dollars a month of new clothes.

 

[Searc]

Encouragement can drive you to find ways to "find money". And while I know that those financial expert shows may be exaggerated......you know, the folks that think buying several hundred dollars a month of new clothing is a necessity..........but I have worked with a few folks who aren't far off from that, and think it would be believable.

I don't buy several hundred dollars of new clothing a year, let alone a month. How wasteful.

 

[mrodgers]

Encouragement can drive you to find ways to "find money". And while I know that those financial expert shows may be exaggerated......you know, the folks that think buying several hundred dollars a month of new clothing is a necessity..........but I have worked with a few folks who aren't far off from that, and think it would be believable.

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.

 

[BLAZEY]

Once a year, when I get my contribution statement for tax purposes. We have no private investments, only the fund I contribute to through work. There’s no point watching it any closer - it’s all locked into our corporate RRSP scheme and there’s no way to withdraw any of it for self-management. I did not fully understand that when I enrolled years ago and the high level of company matching is too enticing to give up at this point.

My company has a pretty high level match in a RRPP. I get to choose what I invest in from the investment company's portfolio, It's done very well for me. My company matches up to 6.5%, for a total of 13%. I contribute the max to that and the remaining 5% into my RRSP. The RRPP has done very well about 8% annually on top of contributions. I see it as my investment automatically makes 6.5% with the company match so I just make sure I invested in solid stuff with a good history. As I get older and approach retirement age I will adjust my risk tolerance. I also have a fully funded TFSA.