Age 18 and I'm still investing and contributing even though I'm in retirement.

Both of you can be proud of the determination it takes to begin saving at a young age and keep it up.

There is a book which all young people should read and take to heart: The Richest Man in Babylon. Remember Jodi who used to post here? She recommended the book too. The original version is just a little booklet, but one of the tenets is, "10 percent of what you earn is yours to keep."

When I was 26 (I am talking about saving via my employer's 403b -- I started contributing to that the day I was eligible). I started by working overtime each week, and lived on that while banking (investing) the regular pay. That meant that I pinched pennies so that I could get a good start on investing -- and it has paid off.

We started saving for retirement in our early 20's even though we had very little to set aside. I maxed out my company's 401K and we put away every cent we could. That was back in the days of double digit interest rates and we took advantage of that by putting money in CDs. It wasn't a lot, but with the interest we were earning, we learned really quick to appreciate how our money could work for us.

Even though it meant living within our means and sometimes doing without, our strategy meant that we were able to retire in our mid 50's. We are now living our dream of traveling and seeing as much of the world as possible.

Not soon enough!!!

When I worked I took advantage of a program into which a certain amount from your paycheck went into a fund, forget what it was called. However I could only contribute $10 a pay. I didn't make much as a clerical worker. Plus I never would or could start up a bank savings account. When I retired I cashed in that fund I had been contributing to instead of being smart and putting that into a savings account or better yet leave it and keep having the paycheck deduction.

It wasn't until AFTER I retired that I felt comfortable putting so much of my retirement check into a savings account. Now every time I get a cost of living raise, I put that much more into my savings. Took me a long time to learn to save.

When, at age 17, I cashed my first pay check for my first month of teaching in a country school (a handsome $65) the banker suggested I save 10%. I did, and thus began a habit I followed for the rest of my life, saving at least that much. A very good habit to form.

I had a career change in my early 40's, working for a non-profit that offered benefits, including a small contribution to a 403b most years. I started saving then because before that, I didn't earn enough to really save anything. My husband was working a gov't job, which also offered benefits, including retirement benefits, so we contributed to his retirement fund, but not a lot. His parents assured us they had $$ set aside that would make our retirement comfortable (and they were proud to be able to provide that). Well, my husband died when he was 47 and his parents changed their will to exclude me practically before he was buried.

I had some tough financial times for a few years, but eventually my salary increased enough that I could save more. In an ironic twist, I inherited a large sum of money from some relatives I helped at the ends of their lives (an elderly cousin and son, who was also elderly and disabled) when there was no one else who could. I had no clue they even HAD any $ until I took over their finances. So, I was not a great saver, but my relatives were and I am benefitting.

My dad instilled the saving germ in me when a youngster. We all had a savings account at our local bank and our parents and the bank clerks made it a big deal when we showed up at the counter with our fist full of dollars and coins.

It was a big learning curve, lol, turning in hard cash but receiving naught but a notation in my bankbook!

I became 'the bank' (loan shark, actually) for my brothers when they needed a little cash for something. I did charge interest and my Dad insisted that my loan was returned in full.

In the end, we all learned the importance of putting a little aside from an allowance, birthday windfall, paycheck, etc., very early on. And that included the lean times.

My husband has worked for over 30 years in a place that has matched his savings. He put the maximum amount in that account even when the times were very lean for him but he learned (as I did) to live below his means quite happily.

He will retire in a few months, at 60.

Olychick, I'm glad things worked out for you! Rhizo, you reminded me of my bankbook when I was a kid. I remember you hand wrote the amounts you deposited. I guess that's where my savings bug started. Interestingly, 4 out of the 5 of us kids are secure financially. I have one sister who was NEVER good with money, as a kid or an adult, and she and her husband continue to struggle. Every time she gets a windfall, like an inheritance she received, they spend it faster than lightning. I have "loaned" her almost 10,000.00 and my other sister has paid her mortgage.

We started saving with the first paycheck that DH got as an employee of General Motors in 1966. Till then, there was no money left to save after all the needs of food, shelter and all those other necessities of a family of 4.

I started saving as soon as I was hired after college. Prior to that, my jobs supported my college expenses. I've always utilized whatever vehicles were available at a particular time. IRA, later a 401(k) my employer offered and HSA. My DH started much later, as he worked in a industry that traditionally does not offer benefits. After he started is own business, he immediately opened a solo 401(k) and we max it each year.

I'm 57. I started six weeks ago......... Seriously. Six weeks ago. :) My house will be paid off in a year. The $ that went into my mortgage will then go into my savings. I'm doomed. My house is my retirement fund.

We were able to save right from the beginning of our marriage 52 years ago. We could live comfortably beneath our income. It was no great hardship, so I can't claim any great virtue in doing it.

By the time DH retired, our parents had died, our DS was established, and we made the decision to live less 'beneath' our income, and more 'within' it. Now, in our mid-seventies, the 'Savings' line in my budget is decreasing steadily, and one day we will stop adding to our savings and start drawing from them.

Friends recently visited a financial planner at the urging of their adult children. The planner questioned why this 80+ couple was still adding to their considerable savings. He couldn't believe how little they spent. The children had hoped an 'outsider' could convince their parents to start using some money to enjoy their lives while they can. You've probably guessed how well that worked!

There's Financial Security, and there's never-to-be-enough security. There's more than one way to be a 'spendthrift'. You don't have to choose between only "Ant" and "Grasshopper". Can we come up with a 'middle' insect?

I never did save anything for retirement. Luckily, I worked for the state with a great salary, so my retirement pension is healthy. Hubs, too.

chisue, my dad was like that. Until the day he died, he was more interested in saving money than spending it. I honestly thing that there are people who just enjoy socking money away rather than spend it. Maybe they want to see how much they end up with at the end. Also, many people who grew up during the depression were left with a lasting habit of saving, scrimping and making do. Maybe that's the case with the couple you described. I know it had an affect on my father.

Chisue, I like what you said about not claiming any particular virtue for your savings lifestyle. I too was lucky. My parents were thrifty and instilled in us kids the idea that of a dollar's allowance, 10 cents was for church, 10 cents we could spend at the five and dime, and 80 cents went into the bank. One sister claims she graduated college before she realized you could take money OUT of the bank!

Times are different today. I see it's harder to get ahead and stay ahead.

Dad had a larger farm than most in the neighbourhood and when World War II started in 1939,(1) the hired man went to war, as did several of the extras that Dad had used in the busy season ... so what he and this ten-year-old and a couple of younger brothers got done, got done, for the next few years ... and the rest didn't.

I told someone recently that I thought that I'd learned to prioritize during those years, putting off until tomorrow what wasn't essential ... and doing tomorrow what had been put off ... and not to worry too much about such things.

Dad paid us boys for our summer work, and we were expected to buy our clothes and books for school in the fall, plus we learned not to spend it all at that time, as sometimes our weekly allowance wasn't enough to cover current needs, so it was good to have a reserve fund on hand.

While Dad covered my six year university training, I knew that he was saving up to buy a farm, so had some money-making/saving projects on the go - living more to a room, operating the phone room, which buzzed one of the 80 or so guys when a phone call came in for them, operating a laundry pick-up, etc.

During my early career I lived in employer-provided housing ... but using my long-term learning of the value of a dollar, for tomorrow as well as for today, knew that on the day that I became fired ... or retired ... I'd have to be responsible for my own, so began saving early in the career.

From about half way through one's regular career span, I changed to doing other things, some at low pay, but mostly I was able to arrange low expense situations, as well, so pretty well managed to keep my head above water and avoid damaging the bankroll too much. Well, more investments than bankroll, as the only growth the bank or bond provide is the interest, which is taxed at top rate, and that interest has to make up for the loss of capital value due to inflation, as well ... which leaves little or nothing for me, the owner.

After a few years Dad died and his legacy added much more than my asset at the time.

Canada has a contributory pension plan, beginning at 65, with about a 30% reduction if taken about 4 years early, and similar benefit if one delays: I began mine at 65. There's another national benefit, depending on years of residency, beginning at 65, which I took then, of course (if one's annual income is over about $120,000.00 it all gets clawed back, so applying for it and getting it just adds uselessly to one's income, thus tax bracket).

I had about half of a career's credit in my former employers' pension plan so it provides a monthly income. Plus had done some supply teaching, so their one-time pension payout added a few thousand to the kitty.

Being, as some of you know, somewhat frugal, I have lived within my pension incomes since I retired at 70 ... so the assets and the income that they have provided for the past 18 years are pretty well gravy.

Until ... I need them to provide for rather expensive residential or nursing home care, and as our aged population grows, lacking parallel increases in support, it's likely that such expenses will increase.

My two offspring, neither having children, aren't in great need of money, but I hope to leave some for them, and to some of the churches and charities which I've supported ... to a level that in recent years has required a minimal income tax load.

I can't even think of buying a house (necessarily for cash, as then I'd be limited to pension income) in either Toronto or Vancouver, where the average price is something like a million or better ... but I have no inclination to do so.

So ... I'm comfortable and happy in retirement ... for which I started planning and saving, early in life.

ole joyfuelled ... with some help with the joy from pensions, savings and investments

1. Some figure that World War II started about two and a quarter years later ...

... mainly when Hitler's buddy kicked 'em in the rear end.

.

Olychick, from an outsider's point of view, that was a crappy thing for your in-laws to do! And their timing was simply awful - right when you lost your DH. Talk about kicking a person when they are down.

I'm glad you received funds from elsewhere and you are secure.

I, too, worked for the state and have a good retirement system. I retired just shy of my 60th birthday. I continue to work 8-10 hours a week, though, just to keep my brain perking. Most of my pay for that part-time job I add to my 403b plan that I have had for 20 years. (I'm not sure when I have to start withdrawing funds from that.)

DH has worked for a firm for 40+ years, but his company's retirement plan is not nearly as good as mine. He has contributed steadily to his 401K though and will have a good sum to draw from when he retires, probably in 3 years or so. With that added to his pension, hopefully his monthly take-home $$ will not change much after retirement.

"Amen!" to littlebug's comment, Olychick.

ole joyful

So I see many people saying their job has a "pension". What exactly are the terms of that? Must be pretty good if people don't feel they need to save in addition to the pension. I have never held a job with a pension. I started out my savings by buying a zero coupon bond for 2000.00 in 1985 at 10% interest. It had a 30 year maturity and when it matured I rolled it over. But it's nice to see the fruits of your young labor flower, so to speak. Some of my positions have had a percentage "match" to your retirement, like the job I have now. But I put the max allowable plus the catch up amount (after age 50) that I can into it.

I didn't, there was never enough. Wish I had though.

JoAnn_Fla, I am with you. Always wished we had a nest egg but there was nothing we could do about that. We owned our own small landscaping business & every time we started to save I either got sick or we needed a new piece of equipment. No insurance co. would insure me because I was a bad risk so all the medical bills had to be paid for by us. Maybe in our next life. Thank goodness for Medicare.

Yes, the ever-saving couple absorbed some of their parents' woes during hard financial times. He was also a hungry child during his country's occupation by the Germans during WWII. I know the background, but this is their only Now.

We always put money away, but not in a 401k. We had CD's, a stock broker, paid cash for necessities, did our own automotive repairs, you know...mended jeans instead of buying new ones. We spent "carefully".

I started a 401k in my early 20's but it hasn't grown much other than what I've contributed to it. I still have about 30 years till retirement, but I assume I'll need to save the money myself. I'm not counting on social security, though I've been paying into it for a long time.

As an 'entitlement', I think it would be very difficult for any administration to end Soc. Sec. end it. (Think of the recent reaction to trying to change health care benefits only in effect for the last few years!)

Soc. Sec. benefits may have to be reduced though, and age of eligibility has already been increased. Nobody should plan to live on Soc. Sec. alone. It was intended to *help*, not as a substitute for savings. It was not envisioned to help so many over such long lifespans, either.

"So I see many people saying their job has a 'pension'. What exactly are the terms of that? Must be pretty good if people don't feel they need to save in addition to the pension."

In California State Service, the terms of the retirement pension can vary according to which bargaining unit covers your position, when you were hired, and what "Tier" you are in. My classification was Staff Information Systems Analyst (Specialist), which is in Bargaining Unit 1 - Professional, Administrative, Financial, and Staff Services. A PDF copy of the MOU between the State and the Union that "governed" my position at the time I retired can be found here. The info on retirement begins on page 83. When I was first hired, there were two Tiers -- First Tier and Second Tier (commonly referred to as Tier 1 and Tier 2). A simple way of explaining the main difference between the two is to say that if you are in Tier 1, eight percent (8%) of your monthly pre-tax salary over $513 is deducted and contributed to your retirement. The amount the State contributes has varied over the years, but it's currently at 26.728%. If you are in Tier 2, one and one-half percent (1.5%) of your pre-tax monthly salary is deducted and contributed to your retirement account, and the State now contributes 26.984%. And, of course, your contributions earn interest.

What you will get each month after retirement also depends upon how old you are and how many years you've worked for the State. You have to have 5 years of service to be vested, and you have to be at least 50 (unless it's a disability retirement). I was a "2% at 55" Tier 1 employee. That meant if I were age 55 when I retired, I would get 2% of my salary for every year I had worked for the State. But the percentage goes up with age until it maxes out at 2.5% at age 63. (It starts at 1.1% for folks who retire at age 50.) I had reached age 63 before I retired, so I get the 2.5% for each year of my state service. (Another factor is that your salary upon which the 2% or 2.5%, etc., is calculated is your highest monthly salary over a 12-month period. I was, and had been, at the maximum salary for my classification, as was my husband in his classification. He was in Bargaining Unit 2 - Attorneys and Hearing Officers - and was also a "2% at 55" employee who had attained age 63 when he retired, so he gets 2.5% of his salary, and he had 5 more years of state service than I did.)

Further complicating matters, there are 13 Options from which to choose at the time of your retirement. These Options dictate how much you will receive each month, as well as how much you will receive if your survivor predeceases you and how much your survivor & beneficiary will receive, if anything, after you die. You can read about those Options on page 13 of this booklet.

In addition to the Tier 1 retirement pension that Hubs and I both receive, we are both collecting Social Security. The bottom line is that although our gross income after retirement was reduced by over $27,000 per year, our net income increased by over $29,000. No longer are Social Security or Medicare taxes withheld; no longer are union dues withheld; no longer are health care premiums withheld (the State's contribution for health care is more than enough to reimburse our monthly Medicare premiums including the additional IRMAA premium, as well as covering the monthly Medicare Supplement Plan that we have); no longer are monthly parking fees withheld; and no longer is money withheld to be contributed into the retirement account! California does not tax Social Security benefits, and only 85% of our Social Security benefits are taxed by the Feds (the percentage varies based upon total income, but it maxes out at 85%), so we're money ahead.

People can denigrate being a state employee and it doesn't bother me one bit. Hubs is an attorney (well, he is retired and changed his Bar membership to Inactive), and I was a network administrator with Domain Admin rights (meaning I could access everything if I needed to), and we both loved our jobs and our duties. Working for the state meant we had great benefits while we were working, and we have a very comfortable lifestyle in retirement. I highly recommend state service!

Retirement? Scratching head. What's that?

In case you haven't guessed I can't afford to retire as I never have been able to save except for the last 2 years or so. We have a savings account for the first time in our lives, which I can barely believe exists.

DH and I were impoverished and ill for most of our lives. I found a method to help both of us and we've been gainfully self employed since. We make more money working for ourselves and don't lose our jobs unless we want to.

I only wish I could unlock the secret to helping our son, so he doesn't wake up at 65 alone, still ill and broke. DD says she will take care of him, but what a burden to place on her. What a more complete life he could have as well if he could make money on his own and have a social group, etc. That's what I want for him. I'm so happy it's finally what DH, DD, and I have. We all deserve to stand on our own two feet even if we all can't retire in style.

Not soon enough. So much so, I taught my young son how to budget at eight, and he's stuck with setting aside some for retirement every time I give him his spending money. He has a CD that matures this autumn, and will roll it into a mutual fund. He's not worked a job yet.

Not soon enough. Went to a retirement seminar at work and then had one of the guys there do a personal assessment and made me feel so much better. I still can't retire anytime soon. The earliest is in a year...will have enough time and years in but no where near financially stable enough to do that. I have been thinking of retiring from my current job in about 5 years and then doing something part time, totally unrelated to nursing.

Savings should be the result of having lower expenses than net (after tax) income. That's two different things - preparing for and then pursuing an occupation and employment that a person is good at, can enjoy, and that provides the best income opportunity (within the context of the first parts) and then - sending less money out the door with spending than comes in.

Anyone can save - that's what happens from active and attentive personal management. 401k and 403b plans, and similar, are tax efficient ways to handle money earned and not spent but focusing on these as the goal misses the bigger picture.

Most private sector jobs no longer provide actual pensions and so managing income and spending is the task most people face during their working years to accumulate wealth for retirement years. I'm not sure what the situation is in other parts of the country but in California, public sector pension obligations at the state and local levels are at unaffordable levels and most certainly will be curtailed in the near future. Unions are partly to blame for demanding public employee pension benefits well beyond what's available in the private sector and well beyond what's affordable. As with so many closed manufacturing plants in the Rust Belt, the result will be lost government jobs and significantly reduced retirement benefits. (I've never understood why government workers are allowed to join unions). As those changes come into force, private and public sector employees will be on a more equal footing when it comes to the need for personal retirement accumulations.

"I've never understood why government workers are allowed to join unions."

In California, state employees who do not join the union still have to pay "Fair Share" fees, because they benefit from the collective bargaining done by the unions. Union dues are tax deductible, and it's my understanding (Elmer will correct me if I'm wrong) that Fair Share fees are not tax deductible. At any rate, the Fair Share fees are only $2 or $3 less than the union dues. I was paying approximately $100 per month in union dues.

The "2% at 55" Tier 1 is for employees who had a hire date on or before January 1, 2011. Depending upon when after that date the employee was hired, they might be in the "2% at 60" or "2% at 62" group.

And, there's a date (although I cannot recall what it is because it didn't affect me) after which folks who are hired have no choice but to start out in Tier 2 and must remain in that Tier for a specific length of time before they can opt into Tier 1.

Lindsey, thanks for the detailed answer to my question. I am happy for you and DH that you are enjoying your retirement. I have been reading those stories about how many people have not been able to save for retirement, and some of those stories are evident here, bot not as many as I had assumed. Thanks, everyone, for sharing.

I don't remember exactly when I started 'saving' for retirement, but it was a long time ago. I worked for the Federal Government for many years before I retired over 10 years ago. There was a built-in 'retirement' in that I get a retirement check that amounts to about 80-85% of my final salary. Plus I invested additional money that I eventually rolled over into a 401k after retirement.

After my government retirement I went to work as a government contractor-consultant. I've managed to save a good portion of that salary plus we've purchased some real-estate as additional investment. Our house is paid off and I will retire in 2 months. DH is already retired. Same with him - he has his fed government retirement, and also has military retirement from his military reserve retirement plus 401k investment from contract work.

NOT a good state to work for now: Illinois. Without a union, public schools in Chicago would have no experienced teachers.

It should be noted that Lindsay's experience with CA state pensions is only relevant between her employer and her specific union. Different unions/employer agencies negotiate contracts that are usually similar, but NOT identical.

It always impresses me that CalPERS personnel are able to keep up with the hundreds, if not thousands, of different union contracts negotiated every few years.

Also, unlike many states, membership in CalPERS is not mandatory except for state agencies. Many cities and counties are self-insured. CalPERS premiums are high, and going higher (they were recently raised and will soon be raised again).

Union workers should be aware that at least in CA, CalPERS does not fund any health benefits. All retiree healthcare is funded directly by the agency involved. If your employer has not bothered to set up a separate funding for retiree healthcare, you should contact your union rep and make this an issue - a BIG issue.

>>The planner questioned why this 80+ couple was still adding to their considerable savings. He couldn't believe how little they spent. >>

When I worked at an independent CFP's office, he remarked, "I spend half my time restraining my retired clients from spending too much money, and the rest of my time urging the other half of my retired clients to SPEND some money on themselves!"

There was a lovely elderly couple who had been clients for decades. They were very frugal. He was a big, tall man; she was above average height but very slim and fragile. No children, lived alone in a beautiful large house. Their portfolio was close to double-digit seven figures.

He had been using a cane for some years, slipped and had to have an operation. It took Mr. G. over 30 mins to talk his wife into hiring 24/7 home nursing assistance for two weeks.

Their first instinct was always, "Oh, we'll manage by ourselves."

Trouble is, they were at the age when they couldn't/shouldn't, but didn't realize it.

Afterwards, they both thanked him profusely. It was their first experience with a serious care issue in their old age, and they were unprepared. If you've never been a caretaker, it's easy to underestimate how much effort and time is involved.

My ex handled all our finances and frankly did not like to keep me in the loop. He started out by saving, but at some point he stopped, never saying a word to me. So, when I was on my own at age 40 and had a full time job with benefits, I put every cent allowed into my employers retirement fund. I continued to do so for 25 years. I am retired and have not had to touch that money yet, but must next year. I also get a pension. I only wish I had had control over my finances from the start and my retirement savings would be much more. I am very fortunate to have other income, or I would be scraping by.

I've been working in the benefits administration (focus on retirement plans) since 1984. I watched people work for years at a company with zero savings and I said I would not be one of those people. I remember retiring someone with 50 years of service who never contributed to the 401(k) plan; they were utterly shocked at how small their monthly pension would be and they were concerned they would not be able to "live" in retirement. I made it my long term goal to not be dependent on any other type of retirement payment (pension, social security etc) because there's no guarantee any of those will be around when you need them....and so I save for retirement in my employer sponsored plans.

No matter how much (or little, mostly) I earned, I contributed a minimum of the amount necessary to max out on company match. As a young single mother, I twice made the mistake of taking a distribution of my account and not rolling it over. Fortunately, that stopped in the early 90s and everything stays put. My husband had very little savings opportunities with his employers and when he was making more $$$, I kicked my savings up to a much higher level to make up for his lost time.

We are on track for retirement in 5-10 years but am focused on trying to get financially positioned to retire on the shorter end of that time frame.

Jakkam said, "It should be noted that Lindsay's experience with CA state pensions is only relevant between her employer and her specific union. Different unions/employer agencies negotiate contracts that are usually similar, but NOT identical."

Gee, my very first comment was, "In California State Service, the terms of the retirement pension can vary according to which bargaining unit covers your position, when you were hired, and what "Tier" you are in." (emphasis added) Did you somehow miss that?

Jak went on to say,

"Union workers should be aware that at least in CA, CalPERS does not fund any health benefits. All retiree healthcare is funded directly by the agency involved. If your employer has not bothered to set up a separate funding for retiree healthcare, you should contact your union rep and make this an issue - a BIG issue."

Incorrect, or at the very least, incomplete. The funds for State employee and CSU employee retiree health care benefits come from the State's General Fund, as allocated by the Governor's Budget each year. Perhaps you are thinking of other public agencies such as city and county government agencies and School employees. In fact, the CalPERS site for Health Plans & Rates for retirees says on the link for Public Agency and School Retirees, "Contributions vary by employer. Contact your employer's personnel office to find out how much they contribute toward your health premium." Click on the link for State & CSU Retirees and you will see the following:

"The state employer contribution amounts for 2017 are:

"One-Party: $707
"Two-Party: $1,349
"Family: $1,727 "

The only difference in the amount that State retirees receive towards their health insurance costs is governed by the length of time of their service. Different "hired by" dates have different vesting requirements to receive the full amount of the State's contribution:

(1) If you were hired before January 1, 1985, you are entitled to 100% of the State's contribution; (2) If you were hired between January 1, 1985, and January 1, 1989, there is a 10-year vesting requirement. If you have 10 years of service when you retire, you will receive 100% of the State's health care contribution. For less than 10 years of service, the State's contribution is reduced by approximately 10% for each year of service less than the required 10; and (3) If you were hired after January 1, 1989, the length of time of your service determines what percentage you will receive of the State's contribution. Less than 10 years, you get 0%; at 10 years, you will receive 50%; with 11-19 years of service you will receive 50% of the State's contribution plus an additional 5% for each year over 10 years. If you have at least 20 years of service when you retire, you will receive 100% of the State's contribution.

Four (4) bargaining units (6, 9. 10, and 12) now have a 25-year vesting requirement, with different hire dates.

My husband and I both had well over the required number of years of service when we retired, so we do receive the full benefit. The amount is more than enough to cover our Medicare Plan B premiums, Medicare Plan B IRMAA premiums, and our PERSCare Blue Cross PPO Medicare Supplement Plan premiums. There is more than enough left over to also cover the cost of our Medicare Plan D IRMAA premiums (our Medicare Plan D is included in the PERSCare Medicare Supplement Plan), but California law does not provide for the reimbursement of Medicare Plan D IRMAA premiums. But the $26.60 per month is the only health care cost we have.

First pay check 40 yrs ago.

Hi arcy gw,

Wow - quite a few of us have been *way* more long-winded than you - and yours is an important contribution to the total issue at hand.

ole joyful

We both contributed to 401K when we worked in corporate America. Those accounts have been rolled and re-rolled several times. Now we are self employed, but the nest egg is there. We also were mentored by some close friends into buying some rental properties about 15 years ago. They don't make much over break-even now, but within 10 years they'll be paid off and provide a nice monthly income.

I am one of those who can't think about NOT saving. For so long, we've focused on that. In a few years, we'll be able to retire in our late 50s. If our financial planner is anywhere close to accurate, we'll be fine. But I can't wrap my head around the time when we start spending what we worked so long to save.

Ole Joyful, it's really funny (not) that you should call me long winded, when you have been known to put up some really long posts yourself (including earlier in this thread). My long posts were in response to the OP's question about pensions, and in response to Jakkman's penchant for turning what I say about state retirees into adverse comments and criticisms about CalPERS and local and school retirees.

I said "us", Lindsey ... as I'm (frequently rather long-winded, myself.

It was a comment, rather than a complaint.

ole joyful

I started a few years ago by putting money monthly into a TFSA Tax Free Savings Account when my brother would pay me his rent. Most went to the rental house mortgage and the rest went to me to pay bills and some would get transferred to the TFSA. The house I live in does not have a mortgage, I just sold the rental house and paid that mortgage off and that money has been put into the TFSA, there wasn't much. I don't have any debt. I took my Canada Pension early and in 4 years I will begin collecting my Old Age Pension haha. $1500 or so a month will be more than enough with plenty left over for me to live comfortably and buy the things or make repairs to my house as needed.

Not nearly soon enough and we are paying for it now, trying to catch up. We plan to teach our children to save for retirement as soon as they get their first paycheck.

I'm currently thinking I might offer an incentive, say I will match their contribution if they start saving with their first high school job.

My parents did a decent job of teaching me to budget, balance a checkbook, pay my bills, etc but they didn't really teach me about saving. They apparently do and they always have but they never really taught me to do it.

Hubby's parents never knew how to manage money so they didn't teach him squat.

I'm at an age now that I know things I wish I had known 15 years ago. I plan to make certain my kids are armed with the knowledge they need.