panicked about retirement
Find a Conversation
| Sat, 05-30-2009 - 7:27am |
I'm only 36, but last night I nearly had a panic attack about retirement. As a result of a bad business...we have maybe $1000 in an IRA. We've been so concerned with keeping our head above water that we haven't been able to focus on it.
My husband starts a new job this week and will actually be taking a small pay cut in the beginning. The up side is that he will be getting much better hours and will be going back to school to complete his degree. We will need to take out a loan for whatever financial aid doesn't cover, but we think this will be necessary for our future. It will only take him about 1 year to finish. We are also looking into him re-enlisting in the Air National Guard and that may help with education significantly. When he is finished, he would like to become an Air Force Chaplain. We will end up with more debt in the process...but some financial security from the Air Force.
Is 40 too old to really start putting it away for retirement? That's about where we will be when we get our feet back on the ground. I've tried to find a calculator to crunch the numbers and see what we need to put away each month...but they are all so complicated.
Thanks for any advice...samey

Pages
Hi there,
I just wanted to let you know that Carmen Wong Ulrich from CNBC's On the Money has answered your question on her show. You can find the video right here at iVillage.
I hope she helps answer your question.
http://video.ivillage.com/player/?id=1126270
Supersamey.
First you are not alone in not having started saving for retirement as early as you'd like. I am about to turn 38 and while I have some money in my retirement account - about $38K - and I am contributing monthly I still feel the panicky at times too.
I mean especially with our lovely US economy having taken such a hit which I have seen directly in the decrease in my retirement fund! Blech.
I don't have much concrete advice - I think many others have covered all the main things
Hey Smoochdog
For the fun of it. I just ran 38,000.00 in retirement at the age of 40. I know you are not that old yet Well anyway that is what I put in Quicken.
If you put in a 100.00 a month until you are 70 earning 6% a year which is pretty standard in
If you want I will run your numbers for you. Just send them to me and I will put them in Quicken for you if you want. Email address is kimbler@bellsouth.net.
Main
God bless you! Thank you for doing this. Can I ask you to do it again with $300 a month. Between what I contribute and my employer it is closer to $400 but let's say $300.
But really $25,000 a year is not a lot. The nursing home my grandmother was in was a fortune. I guess that by the time I retire I will (hopefully) have my home paid off and could sell that for additional money.
I have been wondering if Long Term Care insurance is worth it, but my dad says that there is also a thing as spending so much on insurance now - that the money I would spend on long term care insurance would be better spent by putting it in my IRA account.
I just have been pretty freaked out about the cost of later in retirement care (assisted living/nursing home). Given that I do not have any kids I won't be getting help either.
I think the economy has everyone a little more thoughtful/nervous about this than normal.
Thanks MaryAnn
Sorry, I have not read all the responses so far, but I have a FAR different thought about retirement.
I NEVER want to retire.
I agree with you, I don't consider retirement as sitting around and not doing anything. However, I want the OPTION of doing something I enjoy, such as teaching disadvantage kids or what not, and not getting paid. I want the option not having to do something I dislike because I need the money. Therefore I save like crazy. If I were ever so lucky to find something that is both mentally and financially rewarding, then whatever is left after I am gone can go to charity.
I also agree with the previous poster. $25,000 is not very much. One medical incident not covered by insurance can wipe that out in no time. I am not sure if social security would still be around when I am eligible to collect, and I am not counting on it.
I think this is a great topic. Its so interesting to see different takes on the subject.
For myself, I have a defined benefit pension with my job that is
Bex -
here goes.
And of course not everything is taken into consideration. If you can work part time or don't have a mortgage. Then there is always homestead deduction on your taxes which comes out to be a around 40,000 a year on your house you no longer have to pay taxes on.
Two huge things all the younger folks out there need to consider - taxes will be MUCH higher when we retire than they are today, as we will be paying for all the money going out right now to support those stimulus packages and current programs on the books.
Life expectancy will probably be higher - more like 90 or so.
Pages