Reply Hey Mom! Learn more about the Gerber Life Insurance Grow-Up Plan!
 
Thread Tools Display Modes
Old 03-03-2016, 07:41 AM   #1
greencrunchymama's Avatar
greencrunchymama
Registered Users
seller
seller
 
Join Date: Jul 2011
Posts: 4,800
Freaking out about retirement

Every day I freak out about retirement- like we'll never have enough saved. At this point I am a SAHM and am expecting another baby any day now. I really like being a SAHM and can't see myself returning to the workforce for at least a few years because of daycare costs, etc.

I know Dave Ramsey's suggestion is 15% for retirement, but that seems so high! Plus I feel like our IRAs have lost so much money lately that it scares me to put more money into them. I feel like we'd do better paying extra on the house but I know that's not "the plan".

Any thoughts?

Advertisement

__________________
Jen, married to DH mama to DD 01.22.12
greencrunchymama is offline   Reply With Quote
Old 03-03-2016, 09:25 AM   #2
lleena
Registered Users
seller
 
Join Date: Jun 2009
Location: Portland, Oregon
Posts: 42
Re: Freaking out about retirement

I know its not the Dave Ramsey way, but I think that when kids are in childcare that it may not be possible to contribute 15% to retirement. Full time childcare in my area for 2 kids is about 3K a month, which is just about my take home pay. I can't contribute to retirement with these figures. I stay in the working game though for health insurance and I work in a tough to get into field that pays well. So, I stay. But no retirement yet.
lleena is offline   Reply With Quote
Old 03-03-2016, 09:37 AM   #3
ambieone's Avatar
ambieone
Registered Users
seller
seller
 
Join Date: Oct 2008
Location: Maryland
Posts: 10,635
My Mood:
Re: Freaking out about retirement

I totally understand what you are feeling! I feel the same way.

I'm a sahm too and have been for the last 10 years. Our ira's have lost a good chunk of money in the last couple years but we won't be pulling from them for 25-30 years, so they have time to grow.

My husband will be retiring from the military in 4 years but he will get another job after that and my plan is to go back to school and get my degree so I can get a decent job too. By then my kids will be old enough to stay home alone after school so we won't have to pay for child care.

If we both work for at least 20 more years, I think we'd be able to save quite a bit.

As of now we don't have our ira's maxed out BUT we put a good chunk in savings every month. I am nervous to max them out and lose even more money. When we are both working, we'll max them out.

We have college funds for each child. And we will not take out loans for their college, if they want to go to an expensive school they will have to find a way to pay for it.

I don't know how old you are but whenever I start worrying about it, I try to remind my self that we have plenty of time to save. We have a good start.
__________________
I've earned over $2000 in agc's and paypal w/ swagbucks and you can too!!!
Ebates get cash back for shopping online!!!
Get a $10gc when you make your first purchase of $25 or more through ebates.
ambieone is offline   Reply With Quote
Old 03-03-2016, 10:01 AM   #4
GEM Cloth's Avatar
GEM Cloth
Registered Users
Formerly: michellemomx3
seller
 
Join Date: Sep 2008
Location: Arkansas
Posts: 11,956
My Mood:
Re: Freaking out about retirement

Just to make yall feel a little bit better, we have a little something for retirement but I don't think it's much and we can't even say child care costs are taking it because we've never paid any child care.

But so you won't think we're total losers, we do own our house outright.
__________________
Michelle, mom to DD (7/9/99), DD (11/12/01), and DS (4/17/07); wife to DH (8/31/96)
GEM (Green and Economical by Michelle) Cloth
~*~ REUSABLE CLOTH PAD SETS ~ BUDGET-FRIENDLY PRICES ~ WORLDWIDE SHIPPING ~*~
GEM Cloth is offline   Reply With Quote
Old 03-03-2016, 11:33 AM   #5
ambieone's Avatar
ambieone
Registered Users
seller
seller
 
Join Date: Oct 2008
Location: Maryland
Posts: 10,635
My Mood:
Re: Freaking out about retirement

Quote:
Originally Posted by GEM Cloth View Post
Just to make yall feel a little bit better, we have a little something for retirement but I don't think it's much and we can't even say child care costs are taking it because we've never paid any child care.

But so you won't think we're total losers, we do own our house outright.
That's a HUGE accomplishment! Since we are military we have only rented. We are throwing around the idea of buying a house with this next move but houses are SO expensive where we are moving. I don't feel comfortable having such a high mortgage. I'd rather rent knowing it's only a temporary situation.
__________________
I've earned over $2000 in agc's and paypal w/ swagbucks and you can too!!!
Ebates get cash back for shopping online!!!
Get a $10gc when you make your first purchase of $25 or more through ebates.
ambieone is offline   Reply With Quote
Old 03-03-2016, 04:29 PM   #6
Melinda29
Registered Users
seller
 
Join Date: Aug 2008
Posts: 4,164
Re: Freaking out about retirement

I really don't like the 15% rule because it is based on income instead of actual spending. My income has nothing to do with my spending (well, not much). I wouldn't spend more if it were $100,000 higher, so why should my retirement contribution be higher?

Remember, you don't need millions in retirement savings before you retire--you need enough so that you can live off of 4% of the total every year. That will give you enough to assume 7% annual growth minus 3% inflation. So if you can live on $40,000 a year, you need to have $1M saved. I know that's a lot, but it's a lot less than the $3-20M most financial advisors will tell you.

We max out DH's 401k and then I put an equal amount into my own Roth IRA every year, which means we each have around $2500 a year going into retirement funds. That's not 15% of his income and I don't care

Also, the economy is tanked right now, which means it is the IDEAL time to invest. Think of stocks as being on clearance right now. They have no where to go but up, which means they'll cost you more to buy the same amount if you wait for things to "improve." We are having the Black Friday of the economy--take advantage of it!

Last edited by Melinda29; 03-03-2016 at 04:38 PM.
Melinda29 is offline   Reply With Quote
Old 03-03-2016, 05:09 PM   #7
kushie tushie's Avatar
kushie tushie
Registered Users
seller
seller
 
Join Date: May 2010
Posts: 8,648
My Mood:
Re: Freaking out about retirement

Quote:
Originally Posted by ambieone View Post
I totally understand what you are feeling! I feel the same way.

I'm a sahm too and have been for the last 10 years. Our ira's have lost a good chunk of money in the last couple years but we won't be pulling from them for 25-30 years, so they have time to grow.

My husband will be retiring from the military in 4 years but he will get another job after that and my plan is to go back to school and get my degree so I can get a decent job too. By then my kids will be old enough to stay home alone after school so we won't have to pay for child care.

If we both work for at least 20 more years, I think we'd be able to save quite a bit.

As of now we don't have our ira's maxed out BUT we put a good chunk in savings every month. I am nervous to max them out and lose even more money. When we are both working, we'll max them out.

We have college funds for each child. And we will not take out loans for their college, if they want to go to an expensive school they will have to find a way to pay for it.

I don't know how old you are but whenever I start worrying about it, I try to remind my self that we have plenty of time to save. We have a good start.
Will he retire with 20?
Does he contribute to tsp?
We bought where we are now..... so cal. Our house was so expensive but bah is covering it. We ate looking to makeep about 75-100k off it depending on how fast the market keeps going up. Something to consider

I think so many people forget to factor those 2 in. You will get that civilian paycheck, retirement and have tsp.... that pretty good when you think about it.

DH maxes out tsp. We don't need the money now and we don't notice its gone. Plus we have other investment accounts.

I think everyone worries about retirement. It's scary wondering if you have enough to survive.
I worry about it all the time.
__________________
Amanda- wife to DH. Mama to W (2010), L (2011), H (2013)
Forever missing Jeremiah Asher (our angel lost to Anencephaly at 31 weeks)- November 6th, 2015
kushie tushie is offline   Reply With Quote
Old 03-03-2016, 07:30 PM   #8
ambieone's Avatar
ambieone
Registered Users
seller
seller
 
Join Date: Oct 2008
Location: Maryland
Posts: 10,635
My Mood:
Re: Freaking out about retirement

Quote:
Originally Posted by kushie tushie View Post
Will he retire with 20?
Does he contribute to tsp?
We bought where we are now..... so cal. Our house was so expensive but bah is covering it. We ate looking to makeep about 75-100k off it depending on how fast the market keeps going up. Something to consider

I think so many people forget to factor those 2 in. You will get that civilian paycheck, retirement and have tsp.... that pretty good when you think about it.

DH maxes out tsp. We don't need the money now and we don't notice its gone. Plus we have other investment accounts.

I think everyone worries about retirement. It's scary wondering if you have enough to survive.
I worry about it all the time.
Yes, he'll retire with 20. And he does have a tsp but he didn't start it when he first joined, so there won't be much there.

Our bah would barely cover the mortgage if we bought and the house prices are pretty high already....I don't see them going up much more in the next four years. We'd be lucky if we broke even.
__________________
I've earned over $2000 in agc's and paypal w/ swagbucks and you can too!!!
Ebates get cash back for shopping online!!!
Get a $10gc when you make your first purchase of $25 or more through ebates.
ambieone is offline   Reply With Quote
Old 03-03-2016, 07:37 PM   #9
kushie tushie's Avatar
kushie tushie
Registered Users
seller
seller
 
Join Date: May 2010
Posts: 8,648
My Mood:
Re: Freaking out about retirement

Quote:
Originally Posted by ambieone View Post
Yes, he'll retire with 20. And he does have a tsp but he didn't start it when he first joined, so there won't be much there.

Our bah would barely cover the mortgage if we bought and the house prices are pretty high already....I don't see them going up much more in the next four years. We'd be lucky if we broke even.
Where are you going next?
__________________
Amanda- wife to DH. Mama to W (2010), L (2011), H (2013)
Forever missing Jeremiah Asher (our angel lost to Anencephaly at 31 weeks)- November 6th, 2015
kushie tushie is offline   Reply With Quote
Old 03-04-2016, 05:22 AM   #10
ambieone's Avatar
ambieone
Registered Users
seller
seller
 
Join Date: Oct 2008
Location: Maryland
Posts: 10,635
My Mood:
Re: Freaking out about retirement

Quote:
Originally Posted by kushie tushie View Post
Where are you going next?
Dc area
__________________
I've earned over $2000 in agc's and paypal w/ swagbucks and you can too!!!
Ebates get cash back for shopping online!!!
Get a $10gc when you make your first purchase of $25 or more through ebates.
ambieone is offline   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump

Copyright 2005 - 2014 Escalate Media. All Rights Reserved.