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/biz/ - Business & Finance

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488490 No.488490 [Reply] [Original]

Save for retirement or live it up while you still can?
(And I don't mean splurge your money, I mean don't let "I have to save for retirement" get in the way of going out and having fun)

>> No.488495

get a job that allows you to do both

>> No.488497

if you need 4chan to answer this for you then you are fucking retarded.

>> No.488513

>>488497
I want to know your opinion

>> No.488518

Do both. You can go out and have fun without spending a lot of money.

>> No.488522

>>488513

Spending money on memories in your 20's is much better than spending money on possessions in your 60's.

I'd rather blow $500 at a music festival with all my mates now than save it away so I can buy a slightly more expensive hotel room on some holiday in my 60's. You already said 'don't splurge' so it's pretty obvious it's not being carefree with your money.

I'm sure there plenty of people on /biz/ who disagree with me though. You can find them in the /biz/ frugal living threads if you're into that.

>> No.488539

>>488522

As long as your saving something. Security allows for more fun imho.

>> No.488545

Only do the latter if you're brave enough to kill yourself after being 45 and working unskilled labor while drunkenly recanting exploits from your past to your siblings' children at holiday get-togethers.

>> No.488565

>>488490
Your mindsets fucked. Read early retirement extreme you consumer whore.

How old are you? Bars / clubs / raves kind of lose their novelty fast. Get some interests that promote your health and well being and allow you to meet people.who arent scumfucks.

>> No.488570

>>488522
I agree that buying experiences trumps possesions but considering that for the price of edc las vegas tickets and the hotels you could fly to thailand (where 5 bucks a day is more than enough) and backpack around you have to weigh it out

Youll remember a weekend festival, but backpacking se asia will change who you are as a person. Dont settle for the mediocre consumerist western ideal of what constitutes a good time

>> No.488579
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488579

My biggest fears in life are:

1. Outliving my retirement savings, resulting in a miserable old age (pic related).

2. Losing years or decades of my life because I cannot afford the absolute best healthcare possible.

Respecting these fears, together with my career, allowed me to retire worry-free in my 40's.

With 40-50 years of absolute comfort, security, and leisure ahead of me, do you honestly think I regret skipping a few pub crawls?

>> No.488594

You have already decided the answer you want to hear by deciding on the forum to ask

>> No.488599

>>488490
>don't let "I have to save for retirement" get in the way of going out and having fun

>> No.488606

>>488579
>a decade going from hospital to hospital, hooked up to a machine.
yep, sounds like a dream come true. you're a real winner iHaz.

>> No.488624

>>488606
Then shut and die, faggot. No one will miss you anyway.

>> No.488634

>>488490
Save enough so that when you do have fun, it wont really affect your finances.

There's 3 festivals I go to every year, plus at least one holiday. Overall ill spend about 2k in total, but i save that every 10 weeks. I don't mind saving 8 and enjoying 2 rather than saving 10 and having to miss out on those memories.

Its about balance, dude. Sure, extreme retirement might be nice, but it requires a certain mindset that, honestly, most people don't have, wheras saving a fair bit but enjoying yourself is the best of both worlds, Imo.

>> No.488649

So, the way I view it, your question is really age-dependent. Consider a person in the various age ranges and the consequences.

If your in your 20s, that should be mostly about building up your career. IMHO, saving is not as good as investing in yourself with courses, finding better jobs, and other shit like that. Consequences of drifting through this age range: You must start doing this in your 30s. It will be harder, but you're not screwed.

If you're 30's, then you should be getting your life set up, settled and get investments going. Consequences of drifting: You'll turn 40 with no good skills. It's possible you won't get higher-paid work in your 40s and this could permanently stunt you financially.

If you're 40's, you should be solidly contributing to your investments and retirement should be a foremost priority. Consequences of drifting: If you haven't started anything in this decade, then when you turn 50, you have a sad choice to make. Do you go balls-to-the-wall hardcore and work twice as hard as people half your age trying to make up for that time? Or, do you go the government-subsidy-and-poverty route, where you throw in the towel and just take what you can get when you turn 65? Of course, there's gradations of this, but man, it'll be hard. This is also the age where you may get an inheritance - if you're not savvy, this potentially course-changing windfall could simply be pissed away.

If you're in your 50s, this should be the time when you're ready to pack it in. You've got a healthy passive income stream, your home is paid off and you can retire if you want. If you drift in your 50s, then you're nearly out of time. It's all about the government bennies at that point. This is also called the cat-food scenario.

Delaying any stage will put you one step behind your peers, makes the next stage harder and makes it more likely that you won't advance.

Just my take.

>> No.488660

>>488649
Pretty good advice here, especially the part about the costs of delaying your investments (or "drifting" as anon calls it).

However, a related point is also worth mentioning: the earlier you start saving, the farther ahead you will be at every other following stage. This means more wealth at retirement, more room for errors, and more room for consumption.

All wealth is relative. No one is "rich." You can only be richer or poorer than the other guy. If he's saving while you're drinking, he's richer.

>> No.488673

>>488660
Thanks, I'm glad that it was helpful. I think about this a lot.

I find that considering the stages/decades really puts things into perspective. All of us really only have 3 really good decades of productivity. Squander one and you've basically thrown away 1/3 of your prime assets. Granted, people in their 50s can be still productive, but in that case, one eye is always on the clock. I've always thought of that as just the "bonus decade", where you can work if you want but really, don't count on it. People get sick, disabled, etc.

I'm a bit older and I've really seen the consequences in both directions of this. I know people who are millionaires, who are nearly penniless, and because of bad use of credit, are worth less than nothing. All of these stages good and bad are represented.

But, my term "drifting" is more than just delaying investments. It's delaying taking charge of the direction of your life in general. Like if you're on a boat and not starting the engine, not steering it, you'll just bob around and you won't get anywhere. You may be able to get away with in in your 20s, but if you do it in your 30s or, God help you, beyond that, it's devastating.

As for saving, yes, you're right, saving is always good. But, to me, that's part of a bigger picture of finding your way, including finding out your attitudes are toward money and what investments are good for you.

>> No.488676

>>488673
That last post was excellent anon. That boat analogy reminds me of a quote that's stuck with me quite a bit:

"Without goals you are living reactively, letting life push you around. With goals you can live a proactive life, steering toward a destination. You know where your path is supposed to lead"

>> No.488687

>>488676
I'm glad you found it helpful too. I've always found that goals helped me focus. They're motivating and I think people, in general, need something positive to look forward to.

Even corporations have what are called "BHAGs" : big hairy audacious goals. It's something that is a huge goal that may not even be possible, but it keeps everyone interested and keeps things moving forward.

>> No.488697
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488697

>>488490
Flip a coin!

>> No.488697,1 [INTERNAL] 

>>488660
Not the real I has.....give me £1000 to prove it harvz1234@googlemail.com

>> No.489732

>>488570
Are you just back from your gap year?

>> No.489748

>>489732
You might be taking the piss and yes, most people who JUST started travelling tend to be mouth breathers thinking they'll "change the world, man". But it really does open up your eyes and changes how you think.

>> No.490573

>>488579
>1. Outliving my retirement savings, resulting in a miserable old age (pic related).
You have 10m+ in investments, why the FUCK would you worry about that? Short of World War 3, it's not going to happen.

>> No.490577

>>488649
>Of course, there's gradations of this, but man, it'll be hard.
Flipping some coke/heroin in big amounts isn't THAT hard (assuming you want to take a risk).

>> No.490582

>>488624
aw, iHaz. right when I thought you were turning into a nice guy ;-;

>> No.490591

I earn 9K net / per month. Spend 4,5K and save 4,5K. Howewer if everything goes the way it is now, in 4-5 years I will be earning 11K / month but will not spend more (maybe 500 more)

I am 31 btw. I have 50K in savings only as I did not earn much 2-3 years ago.

Can I make it /biz/ ?

>> No.490619

>>490573
I don't worry about it now, of course. But I did when I was younger and developing my strategies for accumulating retirement wealth.

Which, not coincidentally, is the topic of this thread.

The fact that my strategy was successful is another data point for consideration.

>> No.490664

>>490591
wtf do you do man? You're making 6 figures in you're early 30's, you are making it. Most people don't see that kind of cash their entire lives.

>> No.490681

>>490619
>tfw ihaz is old as fuck and i've just turned 21

lel, how does it feel old kunt?

>> No.490695
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490695

>>490681
Feels great, junior. I'm living the dream that you'll aspire to, but never achieve.

>> No.490698

>>490591
>keyboard millionaire strikes again!

>>490664
so new to 4chan it hurts.

>>488624
did I strike a nerve? you're looking forward to shitting yourself in bed, wearing nappies and having an old muscular nurse wash you with a sponge.
but it's ok - your dementia will take care of it. I just hope that during those rare moments of clarity you will be man enough and unplug yourself from life support.

>>490582
he's a fraud.

>>490619
so you were looking forward to numerous doctor visits in a wheelchair while you were in your 20's...
and this is how you know iHaz is a fraud. to make big money you need to take risks. and all this faggot cared and still cares about is having enough pills by his deathbed.

>> No.490710

>>490695
also you seem bitter and jaded. side effects of viagra?

>> No.490723

>>490710
You're a faggot, fuck off back to b.

>> No.490727

>>488579
I would respectfully disagree. My biggest fear is living old enough to become an invalid because I have access to healthcare that keeps me artificially alive.

I would rather go out at 70-75 fully lucid and capable of still doing daily functions like bathing myself than going out at 85-90 and being sponge-bathed by a hospice nurse or my children.

>> No.490733

>>490727

great advances in medicine are on the way my friend! people will likely live way into their 100s at this rate!
good luck!

>> No.490742

>>490727
I think you under-estimate the significance of quality healthcare and gold-plated insurance. No amount of money can stave off catastrophic illness. But, what I'm talking about is:

* The complex surgical procedure that my insurance will cover, and your's will not. Now my hip is repaired, and you're in a wheelchair.

* The extended hospital stay that I can afford, and you cannot. My post-surgical fever gets detected and treated, and yours does not. Now I'm 100% healthy, and you have liver failure and you lost your eyesight.

* The experimental dementia drug that I can afford, and you cannot. Now I indefinitely delay the onset of Alzheimers, and your mind turns to mush.

I'm not trying to be cruel, but you have an incredibly naive understanding of why wealth matters when it comes to healthcare. The whole "live fast, die young, leave a beautiful corpse" sounds way cool in your 20's (#yolo), but I don't know many adults with meaningful lives who hold on to those illusions as they mature.

>> No.490954

>>490742
> Repairing a hip

Welcome to the 1980s.

> Extended hospital stay so I can detect a fever

You wut? You think that at 70+ years old that I wouldn't know if I broke a fever?

Also, you really think that hospitals let patients stay because they want to? If the doc tells you that you are going home, you are going home.

> Experimental drugs always work

Ok

> You have a naive understanding of why wealth matters in healthcare

No. You just have a Disney fairytale land of what American healthcare can and will do.

>> No.490967

>>490954

A better example is heart bypass surgery, when you need it, without having to wait for a heart attack so that it becomes and emergency. That sort of thing can extend your life by 20 years of good health.

>> No.490973

>>490967

That said, the absolute best thing you can do for your future cardiac health is to have about 10% body fat. In practice this means looking ottermode, and it's not hard to do. You can even save money doing it, simply by not eating very much.

Fat around the middle, particularly internal fat, is a constant source of inflammation in the arterial walls, due to the hormones it releases into the bloodstream. Such inflammation is literally what heart disease is.

>> No.490979

>>488490

I have asked myself this question many times, I have no fucking clue.

>Be 19
>Have a reasonable sum of money in the bank, enough to buy a fun car to turn into a project because it's one of my biggest hobbies
>If I were to buy, I'd get something like an R32 GT-R or an FD RX-7
>Everyone else is telling me "Yeah man, spend your money and get something awesome, have fun while you're still young, etc"
>Meanwhile, I'm still indecisive as fuck and while I do want to enjoy the money that I have, I feel like I should be putting everything into investments or towards paying off a university degree (which may not even get me a job because Australia and lolnojobs)

I just wish I had enough money to both secure a future and enjoy my hobbies now. It'll most likely never happen... enjoy life now and work hard later... work hard now and enjoy life later. The latter is the more responsible option.

>> No.491009

>>490973
Actually, the people that live longest are found to be slightly overweight.

>> No.491017

>>490954
Yeah, you really don't get it at all. Bottom line, I prefer to be in a position to make my own healthcare decisions. If you want to leave those decisions to an insurance company accountant, keep doing what you're doing.

>> No.491024

>>488490
Live it up while you can moderately of course.

Don't just eat junkfood and do copious amounts of hard drugs but don't try to be a huge pussy also.

I would never want to swallow pills every day for 20 years just to stay alive and (reasonably) healthy. Must suck ass to have your family tell you to fuck off because you're senile and shove you in a retirement home, that's assuming of course that you're not severely handicapped or have mental problems like dementia, Alzheimer's and shit.

Would rather live 35 good years than live to be 75 but in crippling pain everyday with no good memories to think of.

>> No.491037

>>491024

Well generally most people are pretty healthy at 75 so you don't have to worry about that too much. The real trouble will set in around 90, or more likely over 100 by the time you get to that stage, due to advancement in general health.

>> No.491038

>>490967
If the doc says you jeed bypass surgery, medicare will cover it. You don't need to have a heart attack first. Besides, detecting the need for bypass surgery pre heart attack can be very difficult.

>> No.491041

>>491017
No, I do get it. You have completely unrealistic expectations of what the American healthcare system will do. Whether you like it or not, doctors make the final call no matter how much money you have. Similarly, having money doesn't increase your odds that a doc finds and prevents a catastrophic event like stroke or heart attack from happening.

The only advantage to having your capital is to fight debilitating, chronic illnesses like cancer with experimental treatments, which will generally make life insufferable for an elderly patient. Acute conditions, even surgery, are covered under Medicare.

>> No.491045

>>488490
Find some way to do both.

You don't want to still be having to work exceptionally hard when you're older, but at the same time if you're not living it up to some degree then you're just wasting your youth away. There's a limit to how much fun you can have once you past a certain age

>> No.491047

>>491037
>most people are pretty healthy at 75

I would argue otherwise.

>> No.491056

>>491047

They're usually not in "crippling pain", at any rate.

>> No.491061

I work on the medicare database, fuck that im not getting ESRD

>> No.491110

>>490723
keyboard millionaires have fanboys now.
no wonder americans elected obama twice.

>>490742
your kids/hooker will pull the plug on you the first chance they get

>>491041
>doctors make the final call
bullshit mate - money talks. it's the great equalizer of all creeds, religions, races and gender.
especially in the US where UCLA for 1mill can get you a liver transplant in 6 weeks (despite 80 people above you on the list)... even if you're the boss of yakuza and live in Japan.

>>491045
pretty much this right here. don't forget to have fun while you can, or risk having a life full of regrets like iHaz (that is if he's not a frauding keyboard billionaire... which he is).

>> No.491158

>>490742
>The whole "live fast, die young, leave a beautiful corpse" sounds way cool in your 20's (#yolo), but I don't know many adults with meaningful lives who hold on to those illusions as they mature.
Well, then the adults you know are idiots. A long life does not mean you've lived a good life, and no matter how many alzheimers pills you pop and how many surgeries you get, your body will crumble and you'll wish you were dead.

>> No.491168

>>488565
+1