It's sad how difficult things have become in the present generation. I was wondering how to utilise some money I had. I used some of it for e-commerce business, but that sank. I'm thinking of how to protect my $300K stock portfolio from decline is my main concern, but I don't really know which way to go.
Yes, times may be tough right now, but I’ve come to realize that both bear and bull markets, as well as recessions and economic booms, offer opportunities to make significant gains. I used to be skeptical of people claiming they made fortunes in down-markets, until I experienced it myself.
I agree. I’ve been working with a financial advlsor since 2020, and I earn up to $15k every month without lifting a finger. However, I believe a big reason for these returns is that I started with a substantial amount of capital.
That makes a lot of sense. To be on the safer side and not second guess your market decisions, I’d suggest you reach out to a proper investment adviser for guidance, they’re better equipped at understanding market patterns/movements and adjusting portfolio to match up with these market trends
I'm cautious about giving specific recommendations since everyone's situation varies, but I've worked with "Melissa Elise Robinson" for years and highly recommend her. Look her up to see if she meets your criteria.
I'm Gen X and my first real job at 20 I had a boss who cared enough to sit us all down and say "contribute to your 401k and pretend that money doesn't exist". I took his advice although challenged at some times to contribute. I will retire at 62 with a nice 401k and a pension
I lucked out - it wasn't my boss (we had neither a pension nor 401k), but a co-worked who had just discovered Vanguard mutual funds and couldn't stop talking about how great a concept they were/are. I was sending them what had to be the smallest contribution checks they received, at only $25/month. This was the early 90s. Also GenX.
My employer has a mandatory pension in which they contribute 6% of my weekly and I match it 33 years and counting into a target date fund managed by Blackrock which will mature in 2035 and it will possibly reach almost 2 million dollars with a paid off house no debt and investment in a tax sheltered investment account and non sheltered hard work and sacrifice paid off 😂
@@paulh6096 when I started the company had a mandatory 401(k) seminar for new hires. Those that declined had to sign a packet of forms, some did, and I thought they were crazy... 6% match and regular profit sharing (went into the 401(k) but was invested per companies wishes. Didn’t realize there are now laws covering it.
In my case it was my Dad. My Dad had a conversation with me when I first started my career in 1997. I still work for that same company and have contributed since day 1. I thank my Dad every chance I get ❤
As a younger boomer (1962), I think your assessment is correct. I lived through the same challenges. Older people, who i looked to for guidance didn't understand 401ks or retirement saving in general. I knew a lot of people who checked out of their 401k when the market crashed. I was VERY fortunate that I worked with an older guy in the 80's when i was an apprentice. He talked to me about 401ks and "forced" me to have one setup within a week. He checked with me every day until i proved to him that i did. I need to find that guy and thank him!!!
Yes, it's not just Gen X but us late Boomers too. I started working in 1978 and the last place I worked that had a pension program was in the late 80s. That company cashed out the pension plan when it was bought. My husband is younger than me, but still a Boomer and he has never worked anywhere that had a pension plan. (And few places big enough to have a 401k plan for that matter.) We also, being young when pensions went away and 401ks came in, didn't really understand what was going on and many of us didn't max out our 401k like we should have.
Wow. Those numbers blow my mind. I'm GenX and it's sad to see. I also think another issue impacting us is that a lot of us are subsidizing our adult kids. I think that in the future, we will see a wholesale return to multiple generations living together.
A return to? Check out Hawaii. Most people living there can't survive without living in a multi-generational home. It's been like that since the late 80s early 90s.
We have had a conversation with our adult kids that we expect them to be financially independent. We understand emergencies happen and we are there to help them but for daily living expenses they know that the gravy train is over when we are retired.
As a Gen X I was lucky to start watching financial news during college (for some reason) and the advice was max the 401k as soon as possible and something about compound interest. First day during orientation Summer 2000 I contributed 15% the max of my $42,000 salary. Eventually the company allowed us to do 20%, then 30%. Years later with a higher salary I realized the company was taking "after tax" for my 401k and had no idea why. I didn't even know what a "Mega Backdoor Roth" was until many years later. Today I have to say "Thank You" to my 23 year old self. As a nfunny side note, I also recall asking the HR person during orientation what this "pension benefit" was and the HR person told me "don't worry about it, it's mainly a concern for old people... you're too young"...... 24 for years went by fairly fast.....
Yeah, they definitely need a finance course in high school curriculums. Compound interest is something that should be known as early in your life as possible. They used to cover it briefly when math hits the statistics chapter. PeRT or something. The longer you wait to invest, the more you have to pay to get a fraction of the benefits of starting early.
Same path here man. Reached FI in my 40's and did not know it until I was outsourced by cheap oversea inferior labor (that entire outfit got sacked a year later). Freedom is awesome. Didn't know about the pension until about 8-10 years in. What a blessing
@@jcm9356I had at least 3 teachers teach about compound interest during different math classes. My problem is no one told me where to invest money to get those returns.
Born in 65. Walked away from Corporate America at 54. Thankful I was fortunate to have a great mentor in early work life that encouraged me to invest. I passed it on to those who worked for me.
As an lnvesting enthusiast, I often wonder how top level investors are able to become millionaires off investing. . I’ve been sitting on over $545K equity from a home sale and I’m not sure where to go from here, is it a good time to buy into stocks or do I wait for another opportunity?.
Due to my demanding job, I lack the time to thoroughly assess my investments and analyze individual stocks. Consequently, for the past seven years, I have enlisted the services of a fiduciary who actively manages my portfolio to adapt to the current market conditions. This strategy has allowed me to navigate the financial landscape successfully, my portfolio has yielded over 330% since covid-outbreak to date, summing up nearly $1m. So yes i think every investor should consider a similar approach.
How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?
*TRUDY ELIZABETH STOUFFER* . .. has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you want excellent collaboration.
Thanks for sharing. I curiously searched for her full name and her website popped up after scrolling a bit. I looked through her credentials and did my due diligence before contacting her. Once again many thanks
Older Gen Xer here, math was not my most fave subject in high school, but I did understand the idea of compound interest and savings and as I went to my afterschool job in 1983 where I asked customers “Would u like fries with that?” I longed for the day when I wouldn’t have to do that anymore. Never counted on a pension and or 401K but was a child of immigrants and military who had skills to offer this country. Worked hard like most to build freaking assets! Entering retirement with husband who has a great pension and showed him the value of real estate. All homes are debt free and building income, no student debt, both cars all paid off. I have high school friends who went to Ivy League colleges and are professionals but with a ton of debt and absolutely abysmal retirement. Some are still paying student loans, some live off credit cards. A 401K doesn’t matter if expenses are going to increase over time, cut down the debt and liabilties.
I’m gen x, 51. Retired at 48 after selling my business during COVID. Many classmates of mine are floored that I was able to do it. These same classmates take lavish vacations, own two new cars and live in big houses. We are still in the same modest ranch home we bought when my kids were small, our vacations usually involve hiking or fishing within 10hr drive, and our vehicles are paid for. I got lucky on business valuation during covid but we also don’t spend like crazy like many gen x I know
I also retired 49 but no business. I have virtually no savings I can’t worry about the future. I hate to say this but a man has to be my savings account. Women weren’t set up well and before you ask yes I did everything right in life. I stayed out of crime, joined the military, got two worthless degrees, made excellent grades, worked the corporate grind, got married and had a child. Life is still hard but it’s much less stressful and yeah I have no retirement plan but I honestly don’t care because I could worry about this my entire life and never see that needle move. So many people like myself are doom spending. I’m not doing that but I’m enjoying my life and not letting the worries of saving bog me down because I don’t want to end up like that Wells Fargo employee dead at her desk. What good is money if you can’t enjoy it? I used to save and save and then I would just have leeches or family look at ways to steal my money. After getting ripped off 11K from a family member I thought I trusted I learned that it was best not to let anyone know my financial worth and to always play broke. It’s honestly the best way to hold onto your investment. Never loan money to anyone and never full disclose your😢 financial worth. Some people will steal or try to put plans into kill you for nothing.
Easy way I got rich and I'm gen X, started with -$22k out of college: buy stocks in Apple, Microsoft, Google, Wells Fargo. You only live once, you can't take money with you. You can die tomorrow. I love my bought new 2017 Corvette with stickshift. Just bought a 2024 Cadillac XT4. Travel with family Restaurants with family Highend hifi and home theater system.
I’m 20 years old, lost my dad about half a year ago and I am going to receive 350k inheritance soon. Would it be smart to grow my money in stocks while in college and then pay down mortgage afterwards, or should I go for real estate investing first since I'm still young?
I would advise the counsel of a seasoned financial pro. It may seem expensive, but as the old saying goes - "you get what you pay for" "Expert solutions require Expert providers" - my mantra
Straight up, investing with the aid of an advisor did the trick for me in barely 5 years. Retired with couple millions at 50. I worked hard everyday for 32 years and my annual salary was over 100k, enough to help me by far beat the retirement age of 65.
@@arlenehill4ril bravo! I've worked in real estate for over 25 years and have neglected a major stock portfolio, however I need a different plan now.. mind if I look up this professional guiding you please?
I've stuck with ‘Karen Lynne Chess' since the covid pandemic, and her performance has been consistently impressive. She’s quite known in her field with over two decades of experience, simply look her up.
insightful comments, curiously searched Karen Lynne Chess on the internet, found her consulting page ranked top and was able to schedule a call session with her, no sweat
The other thing many may not know....401ks were optional when GenX started. There was no automatic enrollment. And companies felt zero obligation to tell you if you didnt know about it. Today there are laws against this.
Executives (high earns of a company as defined by the IRS) always encouraged employees to contribute to their 401K's. The executives 401K contributions have always been limited based on the amount the 'non-high earners' of the company contribute to the 401K plan, they want the employees to contribute, it financially benefits them personally. If you're not a high earner you would not be aware of this. Financial Ignorance is the issue, not "big bad companies holding folks down."
I think the biggest problem with Gen X is 401ks were new and a lot of companies didn’t really talk about them. I thought investing was for rich people at the beginning of my career. Luckily the guys that had been there longer told me to start my 401k right away. I was 24. Will retire next year at 60. Can wait as long as I want to collect Social Security. Will probably take it at FRA.
@@deanrotering879 my company had a mandatory 401(k) orientation for all new hires. After the presentation, those that declined had to sign several docs formally declining, some did decline. We had matching (I forget what it was when I started, but I think 6%), and profit sharing that went into your account totals, but the PS was invested as the company specified. To this day, I often wonder where those that declined, wound up in life. But hey, YOLO!
While I don't know how much you contributed, but would you agree that if you saved more while younger and through your working years, you might have retired (or have the opportunity to retire) in your 50s? 401k savings can work, but one prob has to save 20% or max contributions... which prob allows for early retirement in their 50s.
@@fialee8ca132 It also helps if your employer contributes something. My emplyoyer contributes ZERO to our 401k. The last 28 years that would have really added up.
Wow, this video really opened my eyes! My parents are Gen X, and I've seen them struggle with saving for retirement. It’s tough for them to make ends meet. I hope more people watch this and understand the challenges!
Gen Xer here, retired USAF and current DAF Civil Servant. Wife will get decent retirement from local school system. Early on I had to convince her investing wasn't complete voodoo. Our house is paid for, no vehicle payments or revolving debt at all. Between TSP (401k), IRAs and imvestments we have $1.3M saved. Our after tax pensions will be ~$8,600 before social security. She gets hit by GPO and gets very little SSI, so I will work another 5 years to get full Gov't retirement benefit. We are looking for our forever home since my health has ruled out RVing. Early on saving money was what set us up for retirement. Teach your kids to save early, often and always.
@@buzzbuzz5724 Do you think that this amount of government funded pensions are a problem? As someone working in the private sector it seems a bit, like greedy on the government employee's behalf. Every company that tried to do the same went bankrupt, but the government can just tax more. Like at what point is it a problem to have a $10 minimum wage but have people getting $100k per year pensions in addition to social security? Retirees make more money than working people in so many situations, seems wrong on some level. I guess it's just huge wealth inequality, which I think is a problem for the country.
I know a lot of prior service that triple dip (Military retirement, Civil Service retirement (usually Federal) and SS). Y''all are smart and worked the system well. Good on you.
I feel incredibly fortunate to have my Big 3 automaker pension(wife retiring after this school year with a state teacher pension) AND we saved like we wouldn't have either pension. We are 56 and 57 respectively. The key for us was we had our kids by our mid 20's and they are grown and living independently. We have certainly lived a good life up to now but just wait till our Roths and 401Ks can be tapped into. I feel like we've won the lottery.
My wife and I have a similar situation but are both in our 70s and have been retired about 15 years. When I first started working, an older employee warned me that our organization's defined benefit pension plan might not be around when I retired so I needed to plan on funding my own retirement, which we did by contributing the maximum to our individual retirement accounts and living a lot more frugally than others we knew. Today the defined benefit plan still exists and pays us more than enough to live on and to fund the many luxury trips we take each year. All the money we saved is not even needed and we use it to make very nice donations to charities we support. Based on our experience I can tell you that you'll be doing even better than if you had won the lottery because you've already learned how to manage money and invest it wisely.
@@nynphose I can't worry about something that's completely out of my control. If FoMoCo goes belly up, our state pension system goes bankrupt, the stock and bond markets totally crash and Social Security goes away, I suppose we'll be in the bread lines like everyone else. Because if all those things occur, no one is unaffected.
I'm a 'late boomer' 1962. There was no talk of saving for retirement when I started working. My father took the eraly retirement from Kodak after 33 years in 1989. Years later I had to tell him that there is no such thing as a pension anymore. I had to explain 401k to him. He's in his 90's and still getting a pension from Kodak. I didn't start a 401k until in my mid 30's! It's not a fraction of what he still gets.
My father (83) also worked for Kodak. Got laid off in 87 after the lawsuit. They offered to transferr a bunch of workers to Rochester. Those who went were eventually laid off and stuck in that God forsaken area. Don't think he got a pension from there. We moved to Florida, and he looked busy at the Ritz Carlton for 20 more years. Home paid for, has annuities, etc. But has no clue the struggle his own children go through. My brother makes @$100K, and he was forced to sell his condo, and now he pays $1300/mo for a room. My wife and I take care of my father who has no sense of reality of the market. We pay all bills here, yet now drowning in credit card debt. Social Security? Def the biggest ponzi scheme ever. I just hope I go quickly when I do. But for now, I need to stay alive for my 13yr old daughter, and provide for her. The struggle is real though. Many won't ever understand in unless they lose it all, just like Trump did. As successfull as he is, even he knows the struggle..
I am a 1966 Gen-X'r. I attribute my financial success to Clark Howard when he used to have a show on CNN. Just a working stiff retiring with several million schmackers, I am. God Bless that man. Geoff Schmidt is of the same ilk - a genuinely good guy worth listening to..
54. Could retire at 55 but I have kids starting college so will work a few more years until I have a better picture of how much financial help they need. I suspect the Gen Xers on this channel are those who planned for their retirement years ago.
I retired at 57 and was able to start withdrawing funds from my 401k without penalty. Never looked back and just started collecting social security at 62. Make sure that you have cash also so you can get Obamacare subsidies until you're eligible for Medicare.
@travisadams4470 I had my then high school girl come up with an affordability plan for each of the colleges she wanted to attend. If it was affordable, apply ; if not, drop it (or apply and see what scholarships they offered). We saved some 529 for her, and we pay a little here and there (eg car insurance, gas, flights home for Christmas, etc). But, the rest is on her and she has done an amazing job 🎉
Born in 1968 and just quit my job today. I gave notice seven months ago, but I waited around for a trainee to take over. Never happened. My house is 86% paid off. I’ve got a reasonable nest egg, but I don’t think it’ll be enough of social security is turned over to billionaire cronies. I don’t have expensive hobbies and enjoy staying home. The lot is a fifth of an acre, which is enough to grow some foods, mostly fruit that we’ve been selling, including kaffir limes that sell for quite a bit. I’m still scared, but I just couldn’t take another day.
Medical is what scares me. The plan my job offers to retirees costs $2k/month for one person. Crazy. I can't afford it. I must wait until I can get Medicare
I'm 4 years older than you but still working. Can't imagine quitting a job at or before age 56 with outstanding debt and 6 more years to reach min. retirement age. My debts have been paid off for at least past 5 years and my nest egg is sufficient to sustain my wife and I. The things that scare us most are healthcare costs and sequence of risk associated with currently over-priced market. At least if one retires at 62 they have options like collecting SS. The other elephant in the room is grossly underfunded social security program. This program was set-up like pyramid scheme under false pretenses that the number of people paying in would significantly exceed those collecting. The truth is that ratio is declining, people are living longer in retirement, and thus the bottom 60% of beneficiaries are collecting much more than they ever contributed. Then there are people who decide to retire early and thus contributing many fewer years than they should but still expecting fully funded payouts. It's not the billionaire cronies but entitlement society and early retirement that is problem. The money train is not free and there will likely be cuts. Hope you are prepared financially or you'll be returning to workforce at an advanced age.
SS isn't being turned over to billionaires. If your health and dependents health is good, use an ACA health account with a high deductible and eligible for an HSA contribution. Then start putting away $6K per year into an HSA and invest most of it. This will insulate you from future health cost troubles.
1959 boomer here. No college when I started my first real 40 hour a week job the job market for high school grads was horrible. But I did get a job as a janitor and did that for 2 years until I started learning a trade boiler operator/ industrial plumbing. But still in a factory environment. There was no such thing as a 401k . Only a horrible pension after like 35 years of service, if you stayed that long. I moved on and later when 401k became available joined right away . Moral of the story even someone with average intelligence and a trade and willing to work steady and not buy cars in a foolish way and paying off mortgages asap. Can become a multimillionaire in his 50’s. God bless
@@TFBITRCY thank you for the compliment but really average in intelligence but had a big drive to learn and wasn’t afraid to work hard and I knew the stock market made many millionaires and just knew every wall streeter wasn’t a financial genius . And I knew if I read a few good books about investing I’d get the gist of what to do and I jumped right in because it was all my earned money and if I lost it I could make more. But I invested always and most often just kept my hands off of it no matter what it returned yearly and then compounding did the rest.
Just chatting with my wife as I was repairing the dishwasher and she was wiping down the new bbq. We noted that we used the old one that came with the house for 17 years before buying this one and that 60 years ago, with no credit cards, people would have bought it as a layaway, taking $20 to the store every week until it was paid off. Now you just click your mouse button and in a day or two a truck shows up with your new bbq and you get a nice visa bill to match. This is another reason why Gen-X is in trouble: Buying on credit is too easy and “good enough” isn’t enough for most people’ egos. I pity the next Gen even more, their lives are saturated with consumerism.
I’m Gen X, almost a millennial. I remember layaway. I also remember credit cards being relatively new. I’ve paid for things all these ways with no guidance on what the consequences would be because honestly no one had lived with these “tools” before. I learned the hard way with a credit card. Dug out for 6 years! It was hard, but I learned. The next generation can learn from our mistakes if we caution them. Nothing feels better than debt free, responsible financial decisions. We can pay this knowledge forward. A seasoned BBQ is tastier. New isn’t always better. Best steak I ever had was cooked on a rock
@@Rachel-ul8et Rock Steak! I like it. Nothing wrong with an old bbq until the bottom falls out and flames shoot everywhere. 🤣 Yup, trying so hard to give my kids some guidance. It’s tougher for them than it was for me. I think Gen-X may be the last generation that did better than the one before, in N.A. at least. We’ve saddled the next gen with debt they’ll never get out from under. 😢
Housing and health care....what did you pay forty years ago? I bet it probably had a few zeros less than now. Don't 'blame' gen X, they've been shafted from day one with no pensions, skyrocketing housing, lower wages, health care co$$ts...I could go on but you get the picture.
@@Rachel-ul8et I understand about the credit cards. My parents always said, if you can't pay cash you can't afford it. Also, Delaware is corupt! Guess who, and guess how Delaware allowed credit card companies and banks to charge outrageous rates?
I looked at the APY % for one of my credit cards. I always pay my credit cards off each month, and wasn't paying attention to the numbers. It was 39%! I cancelled the card just because that is usury. I also grew up with saving for what you wanted to buy, and my parents never had a credit card. I now have only two cards that I seldom use.
I real value your videos. Unlike other financial advisors, you don't blame or belittle people. You give good solid advice backed by math and statistics. Five more months until I can retire at 60. The happiness of knowing that I should be ok and can retire early is fantastic. Keep up the good work.
As a later baby boomer, I lived through the Reagan years. Two recessions and a multi year period of stag-flation when my 401k did not grow by very much. That shock caused me to prepare. Gen Z had enough time after the 9-11 crash to prepare. Gen X did not have the wake-up call early enough in their careers to wake them up to the need to prepare. I really can only talk for me, but it was the economic downturns that caused me to take retirement seriously.
I am a 60 year old expat. I still find this information incredibly helpful. My current country of residency (where I worked on and off for more than 10 years), has a mandatory pension law. Everyone has a pension plan. This includes people who clean your house, your server at the local cafe, and the person who takes care of your grandma. Genius.
Fortunately my wife and I discovered and followed Dave Ramsey in 2009! This was before YT and Holly Schmidt ❤. We did the hard work and today are in a much better place. I plan to retire in the next 12-16 months, age 60…God willing. 😊
I’m a baby boomer, retired with no pension and 401k wasn’t available until I had been working 13 years. BUT I knew enough to save for retirement and stay out of debt.
Elder Gen X: bought first rental property at age 22 and have been buying and selling since then. Sold a rental in Seattle in 2022 and used the $1.8m profit to pay off the mortgages on all the other properties: rentals and two homes we live in - main and vacation home. Worked 25 years for a MAJOR tech company and also served 22 in the military reserve. The combo of real estate income, stock from tech job, and military pension means I make more now as a retiree than employed (and my tech salary was over $350k a year). I made some mistakes early on with respect to not maxing out 401k to get matching because I was stretched too thin, but the 401k is still over $3m thanks to great stock investments. Now I have portfolio 60% aggressive and 40% bonds. I have colleagues who made same or more who will be working till 70 because they didn’t save enough and instead bought fancy cars, fancy houses and took fancy vacations. I have all those things now and I don’t owe anyone a penny.
After college, I entered the workforce in 1981. Served in the military for the next eight years (no 401k). After leaving the military I immediately began contributing to a 401k. Although I do remember when times got tough, having to reduce that percentage for a few years. The two companies I ended up having careers with also had defined benefit plans (pensions) but the prevailing opinion was that they wouldn't last until retirement. Guess what? They didn't.
I’m 32 and I am just starting to invest for the first time in my life. I have started contributing to my 401K and opened a Roth IRA with automatic contributions. My question is, does asset allocation even matter at first, or am I just overthinking this?
There’s a lot to decide on… most times it is better to delegate your day-to-day investing to a license professional, someone with a comprehensive strategy that can cover many investment sectors
Couldn't agree more, investing with the help of a financial advisor set me up for life. Retired as a millionaire at 55. I worked hard everyday as a teacher for 32 years, and my salary was over 100k annually, although if it wasn't for the covid-19 lockdown, I wouldn't have supplemented my income with stocks and alternative investments.
@@vancoker-t6z good gains! who is this professional that guides you please? enthused about investing for my eventual retirement but dont know how to go about it, for now I only invest in my 401k through my employer and gains are quite slow
I've shuffled through a few advisors in the past, but settled with ''Karen Lynne Chess'' You'd most likely find her basic info on the internet, she's well established with over two decades of experience.
I'm a 1969 model.. they said I was stupid for becoming a mailman.. now I can retire next year and I will get social security at 57, a pension, and an employer matched thrift savings Plan (401k) who's laughing now high School career counselor huh?!
How does one qualify for social security at 57 when early SS eligibility is 62, which needs to be upped to 65. Note. I'm 67+, waited to take SS at my FRA at 66 and 6 months, and am still working. People just need to get used to the idea ofworking longer.
It’s called the OPM Supplement. Roughly 80% of your age 62 SS number. Paid until you turn 62. Then it cuts off and you have a decision to make. Politicians are gunning for this program however so it may not last into the future. They are also going after federal pensions too. There’s a certain political party that won’t be satisfied until 95% of us are serfs. Voting matters.
It's called the fers supplement you receive as a government employee if you retire before 62. I receive because I just retired from usps at 56. You receive it until you are 62.
@@jamesestrada7972 well..I'm out.. we just got our new contract today at USPS, it's basically a pay cut! After management got a 19% pay raise.. workers get a slap in the face..game over!
Gen X born in 65. I started working fulltime @ 18 in 1983. Got introduced to 401K plan in 1988. I was hooked and started contributing. As for the other employees who didn't, they were content blowing and living paycheck to paycheck. Not my problem.
I am the same year. I would disagree with you that it was drilled into us. Matches were very low to non-existent for many. They were not pushed like they are now. Now I started to fund mine early, and did not take any out, but most of my friends did not. Another thing I wish we would of had early was the Roth. That being said, yeah most should of seen this coming. The thing about Gen X is most are not going to be complaining about how unfair life is. It is what it is.
Just a bit after you and I put money into a 401k in my first true job in my early 20's. We had financial ups and downs over the years, job losses with various financial crises, but never had to sacrifice retirement. Still have the rollover IRA from that first 401k.
GenXer here, when you support your parents and now your own grown ass children and thier children (grand children) what do you expect? We are freaking tapped!
Gen X / Gen Jones (early 60s) - Few companies offered pensions when I started working. Sometimes the company had a pension, but when you started working there, they had already removed the option for new hires. When 401ks came out, I had to ask the companies if they offered it. I invested little initially because I wasn't earning much and I was still paying off student loans. When I hit my 30s and began earning more, I increased my 401k contributions every time I received a raise. I tired to max out my contributions in my 40s and 50s, while also trying to balance paying off a mortgage. Approaching retirement soon, I think that I'll do fine. It's unfortunate though that 401ks only allowed contributions to IRAs at the time. Today more companies are allowing direct contributions to Roths; hopefully, the upcoming generation will be able to take advantage of this.
gen xer here from 1971. i watched my parents live off of a teachers retirement that i knew largely no longer existed. i graduated college debt free by working. i never had a car payment, bought a house early and started investing at age 28 with a planned saving plan to retire by age 50 if i wanted to. I also read the book the millionaire next door for inspiration. its very possible to retire young with a lot of hard work and sacrifice.
I never really looked at it that way but you’re absolutely right. Gen X here and 401ks were just becoming a thing when I graduated from law school in the late 90s. Very luckily my husband and I started contributing right away, have experienced very little job upheaval (haven’t been laid off, no big emergencies) and we’ll be fine for retirement. But I do consider that luck.
I am currently 57. I will retire at 68 with a 30-year State of Florida teacher defined benefit pension plan. Combined with a few hundred thousand in annuity savings add social security, I stand to retire in better condition than I did working. Without the pension I would be financially screwed. I'm a 3rd generation teacher. I strategically planned to retire with a pension. Fortunately teaching is also my dream job so it really helps 😊😊❤❤
Gen-X here, my parents always said follow the 10/10/20 rule. 10% to church, 10% to emergency fund, 20% to savings (didn't have easily accessible 401k/investing then for "low income" people). Joined military and used GI Bill for college. Always did the "match" on 401k and took advantage of mutual funds once that was easily accessible then to dividend ETF's with drip reinvesting. House paid off, vehicles paid off, no debt, and retired.
In my opinion, this is just evidence that the education system (both public and private), especially high school, needs an overhaul. We need to be emphasizing education in personal finance. How many of us were formally and professionally taught things like how credit cards work? Or how to use them properly? Or what is compounded interest and how can it benefit us? Or what is an indexed mutual fund? Or what are annuities and can they be used effectively? Etc., etc. In my opinion, this information is more important than English composition, much less many of the other subjects that are taught. Personal finance is complicated, yet most of us apply for and receive credit cards when we're 18 with only minimal guidance on how they work. And then we're surprised when consumer debt skyrockets, for example. I don't think we can really tell the extent to which we have a discipline problem in the US until we fix the education problem. I suspect we might be surprised.
To me credit cards are a no brainer its simple math am sure kids are taught simple math in school. Same goes for compouded interest again simple math I think I learned percentages by grade 8. No I mostly think that they want every thing now. And well they also need a dose of common sence.
We learned about the evils of credit card debt in school in the 80s and 90s. We didn't learn so much about investment, though. Public education could have been better in that area.
@@dog_guy-c8xby 8th grade you were taught that credit card companies charge a transaction fee for every purchase? That the transaction fee was incorporated into the price of every item for sale by the major retailers? That if you pay cash for those items you lose the entire fee, but you can recover at least half by using your credit card? Etc. etc. Also, by 8th grade you were taught the formula for calculating future value? There is a lot more to personal financial management than mere percentages, my friend. And these things are not being taught in our schools.
Hate to break it to you, but kids don't want to learn a darn thing about investing and retiring and responsible money habits. Generally, at least. It would be absorbed by the typical teenager about as well as home-economics, I suspect.
@@TomcatSTLvery few teenagers want to be in school, period. But that is not the point. Nor is it an excuse to avoid teaching the stuff. I am not a defeatist
As a late boomer, early gen X, I retired at 55 with a defined benefit plan and also a 457 plan and health insurance till 65. I currently have a part time job and will take social security at 62. But what worries me most is health care. The US healthcare system is broken. It is made up of wealthy people with multiple homes, fancy toys, extravagant trips with little care for the plight the patients. Health care should not be a get rich quick scheme. Because getting rich means putting someone on the streets. Totally unfair to people who worked their whole life to get what they have only to lose it all on a bad luck health issue to the greedy rich.
I partied hardy until I was in my 40's, and I made up for it by really getting down to business. My retirement date is the day that my youngest daughter graduates the 8th grade. Somewhere around June, 2029. I had ABSOLUTELY no models for success except the fact that I seen far too many people, regardless of age, whining about their situation and blaming everyone else. Stay away from those toxic slobs. Cut out unnecessary expenses, save, invest, increase your income. I'm retiring to the beach a little after I turn 59. Don't listen to these poverty peddlers. Git 'er done.
As a Gen-x, retired at 55 this past Jan. Started planning on retirement at the age 23. 403b, IRA, Money Market savings of 4 years salary. And my medical coverage through the VA. I will take SS at 62 because of health and lessen the draw down of my resources. Almost debt free...only a mortgage to low too pay off.
As you mention, some GenX parents had no clue to be able educate us about 401k plans. Had to figure it out ourselves. However, part way through my career I was able to model it in Excel and took action to ensure I’d be able to retire.
I'm member about in the middle of the Forgotten Generation. My father passed 2 years after he retired. Many folks I've worked with and celebrated their retirement with experienced similar outcomes. This begs me to wonder how much money I will leave on the table when I pass.
GenXer, I am currently rolling over my future pension to my 401K ONLY because my previous employer has discontinued, liquidated the pension fund. 3 options were given, full payout (which i am rolling over) an annuity to collect immediately or an annuity to collect in the future. I too had a mentor back in the day and continue to also contribute to a well funded 401k
I also had a pension in the very early days of my career. I'm still with that same company and the discontinued pension just sits in an account collecting simple interest. I wish I had the option to roll it into my 401K like you. That should be a required option. I want to invest that money.
I'm GenX and have enough to retire IF it was not for healthcare costs. If you or your spouse needs assisted living or a nursing home, it can be extremely expensive. I spent 4 years paying for assisted living for my father after all his financial resources were depleted.
My Grandfather had assisted living insurance,it payed for everything for my grandparents for a decade...his IRA kept growing... My Mom inherited millions... That kinda insurance doesn't exist anymore..
News flash, you're better off retiring when you would, living well, and not worrying about paying for that nursing home. You won't get very good care and if you are in better health from living well, you will be able to avoid them as long as possible. You're better off not being around in those places.
i agree with you that healthcare is expensive. so lets de regulate healthcare and let it opperate like lasik eye surgery. oh-- and vote republican. democrats are insane.
You’re 💯 correct. My parents didn’t teach me anything about saving for retirement. My dad died at 62 and my mom worked until age 82 when she finally was forced out of American Express Travel services. She has no money in the bank and lots of debt. I’m 60 and just started investing last year.
That ignores so many social, economic, and corporate factors. Not everyone has access to the same retirement opportunities either (e.g., an employer who contributes v. one that doesn’t). It’s stupid to assume people who didn’t have the chance to earn and save the same as you are irresponsible. That’s just not true.
@@CJBroonie everyone can have access to whatever they want if they want it bad enough. I can assure you I’m not from a privileged background. However I wanted to make a better life for myself - so went and did it. Poor Broonie.😢
I have never stop contributing but if I can go back in time to talk to myself. I would tell my young self. When market goes way down, up the 401k contribution. When market hit all time high, contribute just enough to get all company match and save the difference to build emergency found.
Let's keep in mind that pensions at their peak only covered some 45% of all private workers. Most government workers were also covered by pensions for another 10% of the total workforce. However, there is a difference between being covered and sticking around long enough to get said pensions. Normal moving on after a few years or getting laid off reduces this potential number to a reported 30ish% actually getting one today. GM's pension plan was a farce and required a huge infusion of taxpayer money by Obama to keep it a float, so there were problems with funding and managing these pension funds. California's CALPERS is reportedly having huge problems today as well. So, it's not just the private sector making mistakes. With this in mind, I believe the 401Ks are a much wiser way to go as it allows folks more control over their funds and they can move them from the company setup to one of many companies, like Schwab, and manage them there. Sadly, we (parents, schools, bosses, companies) have done a poor job of teaching these 'new' workers that investing needs to start early and often. Thus we are where we are today with so many people needing to catch up.
I'm Gen X, doing quite well, retired at 53 in fact. Primarily due to an ESOP and 401K, no pension involved. My only regret is I didn't take full advantage of the 401K option as soon as it was available.
I’m Gen x er. I’ve contributed max amount each year to 401 K for almost 30 years. I’ll retire at 59 1/2 with almost $2 million. I’ll have 2 pensions, 401 k, TSP and hopefully SS. I’ve done well coming from humble beginnings!
Important content, Geoff. One thing, though-you left out the most equitable solution to the Social Security problem-lifting or eliminating the contribution cap.
Being boomers, born in 1948 and 1949, my wife and I never had a pension plan. We had no savings around 1990 when our 2 kids entered college. But we did have IRAs shortly thereafter. We retired around 2011. We live a very good retirement life. The S&P 500 and NASDAQ turned out to be good investment vehicles. Our kids are in their 50s and are Gen X. They have very good retirement savings. Why? They were told by their boomer parents the importance in saving for retirement. But many people of every generation either lack the income to save, or make a choice to not save.
I'm a boomer, born in 54. No pension. Didn't start start until a 401 k was offered in the late 80's. Retired at 66 with plenty but it was touchy over the years. Was not encouraged to do anything about retirement when I was young but I always speak with young people about saving for retirement.
56, will work until 65. Excellent 401k plan, small pension from a previous career, savings… My financial planner says I’m in good shape, but I still don’t think I’ll have enough to retire with.
Oh no, I listened to Geoff and I overshot the mark. What to do with all this extra money!!?? LOL Great advice as always!! These numbers scare me.....on the low end. Been successfully pushing some people I know to make the changes so they will be covered by something when they get there. It does seem to be working for them...and me. And remember, if your company offers a 401k match...put in at least that amount!! It's free money for you, that can make a difference later when it all adds up.
Something that isn't talked about much, if at all... The impact on dating. I was fortunate enough to have a mentor who guided me in 401ks and investing. I'm a retired widower with no financial worries. Almost all the women i meet are still working and have little or nothing saved. I don't really care about their finances, except that they can not be a part of the travel and experiences lifestyle i want at this point of my life. I also sense a low level of jealousy, based on comments they make. I've finally met someone i like to be with who is financially independent and retired. There are not many of them, so i am fortunate we met.
Late boomers especially had no pensions. If they started with one it got cancelled or cut off at the current seniority. Add to that all the job turnover and no significant pension ever built up.
I agree many of the boomers did not have a pension only 25% of baby boomers are covered by a pension 50% of the silent generation were covered by a pension or nothing at all. The silent generation was the oldest generation that was first offered a 401(k) that had some time to put money into it.
This is exactly me; my dad was "Silent Generation" and he actually got a defined pension from working 1960's-1990's, PLUS the 401k that came along later. He reitred early and comfortable. My Gen-X ass never saw a company that offered defined pension. Fortunately, in my third job our company gave a detailed presentation about 401k tax advantages, how mutual funds work, etc. That one presentation saved me; most of my peers didn't seem to understand how it all worked.
My wife and I were AF Officers stationed in Europe when we started investing through an ex-par American referred to me by an AF colleague. We knew we'd not be staying 20 years and getting retirement benefits. It's a great motivational story to advise my daughters (25 - 30 yo) to contribute to their 401k plans.
Early 70s GenX. Learned from watching parents struggle thru 80s inflation and saved my whole life. Paid off house at 42 after learning the hard way about debt in the dot bomb. Lots of peers in serious trouble for retirement. Didn’t save. Lived a lifestyle above their means on massive debt. Shrug. Dad taught me the rule of 72 and retired early himself. “Pay for a banker’s beach vacation or yours. Your choice.” lol 😂
Great video and I believe these numbers to be true. What's more interesting is that most people in the comments are doing well, which goes to show you that the people who care about their finances are the ones that tend to watch videos like this. The ones that need to hear this will never have this content show in their feed. If you worked in corporate, got no 401K match and no pension you really got screwed. The people I know who are doing best are actually those that worked for government, unions, military, etc. where they will get a pension in addition to whatever else they saved.
Born in 1959, never worked anywhere that offered a pension plan. I have exactly $130,000 in my 401k. Seems to me one of your videos a year ago showed very similar numbers for people 63-64 last year. Something like 60% had a net worth of $5000. Sounds like the last 8 years of boomers got hosed also by this “transition”
Gen X (1968) and when I started working FT in the early 90's I found a book titled, "The Wealthy Barber" by David Chilton. It was the start of building my personal finance library reading a couple of books each year. I will be retiring in approximately 3 years with a "three-legged stool" of retirement security (1. defined-benefit pension 2. savings & long-term investments and 3. Social Security benefits). My mortgage will be retired soon, and I have never been divorced. My wife and I have worked on our retirement plans & other personal finance goals as a team, and she has a three-legged stool also. It all started with "The Wealthy Barber" for me.
I’m Gen X. Frankly, I don’t feel sorry for my peers who are screwed. What did they think was going to happen? They spent every penny they had like drunken sailors, not realizing that actual drunken sailors get a pension after 20 years.
I'm in the earlier gen x group and those big crashes of 2001 and 2008 impacted me mentally - I got much more conservative which had an impact...I've still saved quite a bit, but the growth was much less than it could have been due to the concerns of losing so much.....I've really ramped up my savings in my early 50s which helped....but I'm sure I'm not where I could be had the damage not been done at those massive market crashes.
I'm a boomer. I grew up in poverty and worked hard to build my net worth. My adult kids despise me because I put more emphasis on investment rather than keeping up with the Jones's while they were growing up. They were well cared for but we drove cheap cars and lived in a small home. I tried to teach them how to plan for the future but instead both of my kids started spending like drunken sailors as soon as they left home.
You did your duty. If they make bad choices as adults, there is nothing you can do about that. I did the same as you. Always food on the table but not excessive expensive ... ate out rarely because cheaper to cook at home. Vacations were never yearly like our friends. We always had nice cars, but OLD compared to others. We live in a house that is decent sized, but OLD and well abused by former owners, so I have always spent time on making it look nice on a budget. I am doing okay in retirement, but don't take constant expensive trips, buy expensive clothes, etc. My point is that my children are doing well, living well but not excessively, saving for their retirement and children's education. They are proud that the are in a good place and encourage me to do things that make me happy. Living that way didn't make your kids who they are today....if so my children would be the same. If that's what your children are saying, they are just shifting the blame to you for the things the do and the lessons they did not learn...IMHO
So how exactly can we guard against the coming financial reset for 2025? Like what are really the best strategies to make our portfolio recession proof against the incoming financial reset? I'm very worried about my $110k stock portfolio.
Knowledgeable Investors know where and how to put money during a crisis in order to reduce risk and maximize returns. See a market strategist with experience if you are unable to manage these market conditions.
I agree, having the right plan is priceless. My portfolio is well-suited for any market and recently doubled since early last year. My CFP and I are aiming for a seven-figure goal, which might take another year to achieve.
I'm very cautious about giving specific recommendations as everyone's situation varies. Consider independent financial advisors like "Stacy Lynn Staples" I've worked with her for some years and highly recommend her. Check if she meets your criteria.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
gen x 1970 here. towards the end you mentioned "overshoot the mark and have too much in retirement". obvious my next question, how much is too much? net worth 2.1m, 1m home, 1m 401l/personal investments. 0 debt current. i dont see myself as over or too much. i feel like im slightly short of break even. plan is work 6 more till kids out for college. some time but not a lot. 6 years to overshoot?? not sure about that. great content, hats off to your work, thanks for info, stay well stay safe, bless. tyia
It sounds like you're in pretty good shape but should run some numbers. Hop on a retirement calculator (your 401k may have a calculator / goals webpage). It'll estimate how much you'll have in retirement and how long it'll last - having something like $100k in the end would be a good buffer, but I'd say $500k+ is too much unless you're actively trying to leave some wealth behind.
When I started working after college my step dad came to my office (we worked at same business) and sat down. He said I’m only going to do this one time but you will listen to my unasked for advice. Do NOT wait until 42 to plan for retirement like I did. He got up and walked out. The other day I called him. I am 58. I did listen. I said guess what? I listened to you and we now have 5 million in our 401ks. He didn’t remember that day but I certainly did
GenX (1968) and I've $2M and fell like I'm still behind. I've been working since I had a paper route and a bike. I don't know what life is like without work.
I'm a young gen x born in 1980, I think that is the last year for Gen X. I've been saving for retirement since my mid-20s. I have over 3x my salary in the TSP and will have a federal pension.
The problem is wages haven’t kept up and not all of us are in the trades or IT professionals. It’s hard to save money if you don’t have a thing to put back. The 401K is a huge rip off but definitely good for the organization distributing the 401K that interest of 2-3 percent that’s a lot and not a good deal for people in general. Saving is harder than what they say.
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The first step to successful investing is figuring out your goals and risk tolerance either on your own or with the help of a financial professional but is very advisable you make use of a professional...
Profitable trading requires experience, a solid strategy, and preparation, which we lack. Understanding buy/sell ratios, identifying market leaders, and diversifying are key to reducing risk...
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I’m a early retired Gen X. I’m very fortunate to have a defined benefit plan. I saved as well ad the DB, but there is no chance I could have retired early without the DB.
I'm a Gen X, I retired in May 2022 @ 56. Tip: Have HR direct any bonuses you receive 100% to your 401k. This alone will reduce the taxes from 34% to 10%. My emplyer had had a 6% match which effectly reduced your loss to 4%.
Late GenX here., I'm fortunate enough to have both a pension (annuity or lump sum) and the 401K.. Even with that I'm still nervous about retiring. I'm eligible now but with possible hyper inflation around the corner I'm still working.
I'm Gen-X. Saved since my first job out of university. On track for retirement in 2036. It wasn't hard, just took some discipline to save consistently.
I was fortunate enough to work for a company for 35 years that had a 401K and a traditional pension. The pension is not a lot, but it's about $1140 more a month than I would normally have.
As a gen x, I went against my better judgement and chased equities vs. a career. Now I have zero skills to re-enter the work force and sitting on a portfolio I can draw as needed so the IRS gets very little.
Forty years ago TIAA/CREF published a book that said to fully fund your retirement with a 401k type plan you needed to contribute 14 1/2% of your gross income. That figure is never said but still true today! Another problem with 401k’s is that the participants are required to make investments choices with no investment education.
Gen X here retired this year at 46. Most important skill i think people need to have is deferred gratification. Consider the future value of all discretionary purchase..
This video made my wife and I very thankful for the decisions we made in our late 20s. Living below our means, saving and investing for the long term. Nearing retirement and traveling/living more. We have far too many friends that did the opposite and are panick mode because they lived beyond their means, traveled multiple times a year on credit and made bankers rich off the interest they paid for trips, new cars, houses, etc. Hard to feel bad for them. Choices have consequences.
Gen X who is retired but was blessed two ways by having a father who showed me how to invest and a government job with a pension. Im passing my success to my children now so they will be prepared for their retirement in 30 years. 👍. Oh yeah and a bonus called social security which I never thought I would collect…now I’m at its doorstep 😂
Do not concern yourself with National Debt, except don't buy government bonds. All you can do now is dollar cost average into SP500 index ETfs. 25% of earnings every month if possible. Too late to get creative or take higher risks or take a flyer on real estate. Investigate if there is a path to 1M+ net worth you can complete. No new cars unless net worth is 7 figs - this applies to everyone.
Geoffrey says at 10:02 that there are a couple things that could be done in 2035: (a) raise SS tax by 1% or (b) raise full retirement age from 67 to 68. I better alternative, imho, would be to increase the limit on the amount of earnings that can be taxed for SS. The limit increases each year, and will be $176,100 in 2025. I would be in favor of a substantial increase, or even eliminating the limit altogether. It's not fair that an individual who "earns" $2 million only pays SS tax on a small part of the earnings. Who's with me?
The guy who makes $2 million gets no more ss benefits than a person who makes the $176k! Why should he be taxed beyond $176k if he receives no added benefit?
@@shaunwood2365 Thanks for the response. I would argue that the "added benefit" would be ensuring the viability of the SS program. The purpose of the SS program is to prevent poverty among older adults and people with disabilities, not to serve as an investment program for individuals. And in the event that things completely fall apart for a person "earning" $176k/year (it happens!), that person would be happy that the SS system is solvent.
Was born in 65. My first job had a defined benefit plan and experienced the conversion. It was really very disturbing to see it happen. It was a huge windfall to a lot of companies. Instead of putting the same funding into the 401k they simply told the employee they were on their own. Some would provide a match. Many didn’t. In my younger years I audited a lot of pension plans - as you know, this was how a lot of junior CPAs filled their billables between engagements. I audited one of the largest Actuarial firms in the world - even their plan carried an unfounded pension liability. ERISA never should have allowed this. Additionally, a lot of the assumptions included in the pension liability calculations were laughable. I was fortunate enough to see it and plan accordingly starting in the late 80s. Unfortunately, many in my age group were not as fortunate as me to see it coming.
Younger GenX here (46), I retired a year ago thanks to a military pension and some VA disability and zero debt. I take home more now in retirement than when I was working. I have a Roth but it’s just collecting interest and I don’t intend to touch it and I’m still 17yrs away from social security.
My uncle did really well out in the country. He was big on investing in stock market on his income as a dairy farmer, and died a multi millionaire. Spent a month every summer from 1973-2018 in Alaska and 3 months every winter at his place in Florida. I grew up in a nearby small midwest rural town in dairy contry. Got a job at GM with pension. Later quit went to school and now I retire early a multi millionaire too. My cousins got rich on their own too, with only a few lazy ones being hard up now. Being from the country is a bad excuse for not having ambition.
I'm lucky to be right smack in the middle of the Gen X generation and I'll get out of my working years at 57 years old with a 30 year pension and be doing well with it. I'm making my kids create Roth IRAs now in their mid-20's because I don't think they'll get by in their old age without it
We stuck with my husband’s lower paying municipal job due to the pension. They have trouble finding qualified workers now, which is a shame because the pension and benefits are better than similarly compensated private sector jobs
