Didn't save enough for retirement, what would you do over?

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thebogledude
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Didn't save enough for retirement, what would you do over?

Post by thebogledude »

If you could travel in a Delorean time machine, what would you tell yourself to do over?
Why this question? I tend not to live my life with regret but I'm probably going to make some mistakes, (I already made one that's going to haunt me).
I'm looking to learn what others would have done differently or that they wish they could un-do now that they are retired and have determined it was not
the right course to have taken. So as to avoid having someone else fall into the same trap. I realize it is a personal and private question to ask. Also, realistic responses please (not the 'I wish I had bought Apple stock 10 years ago'). Many thanks.
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cheese_breath
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Re: Didn't save enough for retirement, what would you do ove

Post by cheese_breath »

These immediately come to my mind.

1. Get educated about investing and pay more attention to my investments earlier than I did.
2. Don't rely on company pension and social security to provide for my retirement.
3. Don't hold too much company stock.
4. Don't be greedy.
5. Choose a wife based on her mind and values rather than her face and body.

I made all these mistakes, but through the good fortune of some cancelling others out I came out OK. (I would have come out better had I done number 1 first though.) Not everyone will be so lucky.
The surest way to know the future is when it becomes the past.
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thebogledude
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Re: Didn't save enough for retirement, what would you do ove

Post by thebogledude »

cheese_breath wrote:
4. Don't be greedy.
This is a good one.
cheese_breath wrote:
5. Choose a wife based on her mind and values rather than her face and body.
This may be hard to do.
Rodc
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Re: Didn't save enough for retirement, what would you do ove

Post by Rodc »

I think most would have fallen out of first getting better educated. But things are coming along (less than 10 years to retirement) so no major mistakes.

But the number one thing I would do differently is set up an automatic system of increasing savings rate from the beginning. Say, take 1/3 of every pay raise to increase savings. Or, increase savings rate by 1% a year automatically, or if you do not have an automatic option, do it before you get your first paycheck after a raise.

This is a completely painless way to get your savings rate up to a good solid level (if you get regular raises). It does presume you get pay raises on a regular basis which of course does not always happen.

I eventually did this and it is completely in the background, out of sight, out of mind, no pain, don't even notice a thing.
We live a world with knowledge of the future markets has less than one significant figure. And people will still and always demand answers to three significant digits.
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HardKnocker
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Re: Didn't save enough for retirement, what would you do ove

Post by HardKnocker »

"Didn't save enough for retirement, what would you do over?"

If the above applies to you it is too late but for the younger readers...

Save more, start young (20's), invest in low cost index funds (2-3 fund mix).

Saving and compounding over time are most important. Without either of these factors you are out of luck. Don't save = no money to invest. No time = no compounding.

As alternative consider playing the powerball lottery. The reality is that if you are in your 50's and just starting you are in a hole from which it is almost impossible to climb out, unless you have some windfall.
Last edited by HardKnocker on Fri May 24, 2013 12:21 pm, edited 1 time in total.
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SPG8
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Re: Didn't save enough for retirement, what would you do ove

Post by SPG8 »

(disclaimers: not retired, and excluding career choices, and not regularly mistaken for John Galt like the real bogleheads)

1. Avoid debt (did pretty good, here, but early on carried some CC debt and had lower car down payments)
2. Invest only in low-cost index funds (got caught up a bit in the tech nonsense)
3. Aggressively increase savings rate (had work match, had Roth, but could've increased work contributions faster, especially after raises - you really don't miss it if you never have it)

Not too bad off right now, but this is pretty easy stuff that would've put us in better shape (short of recycling dental floss).
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ruralavalon
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Re: Didn't save enough for retirement, what would you do ove

Post by ruralavalon »

Start sooner, read a good book on indexing, and use index funds.

Also, stay out of the grasp of the financial services industry.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
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Re: Didn't save enough for retirement, what would you do ove

Post by bertilak »

In order of importance:
  1. Save (more). This includes maximizing tax-advantaged accounts and taking full advantage of any employer match.
  2. Diversify using both stock and bond funds. No individual stocks.
  3. Avoid high-cost advisors, agents and investment vehicles. This will help with the next one ...
  4. Keep it simple. Slow and steady wins the race. Don't "swing for the fences" trying to make a killing.
  5. In the mid-to-later years, evaluate your situation. Do you (will you) have enough? Understand the differences between a portfolio used to accumulate wealth and a portfolio used to provide income.
Getting those wrong are all mistakes I made. Maybe not so much number two. By pure random chance I got that "close enough" even if not well thought out and not ideal.
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The Wizard
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Re: Didn't save enough for retirement, what would you do ove

Post by The Wizard »

Probably shouldn't reply since I DID have enough for retirement.
Started investing regularly at age 23 and continued for 40 years.
Had the divorce not happened, may have quit five years sooner, but oh well...
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Grt2bOutdoors
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Re: Didn't save enough for retirement, what would you do ove

Post by Grt2bOutdoors »

It's okay to take a gamble with a little bit of your money. Had I done so, I'd have a few million in the bank. :oops:
It is far easier to recoup from minor mistakes earlier in life than to recover from a major mistake later in life.
Work for the government - every single person I went to high school with that worked for government has either retired in their early 40's or is well on their way to a 6 figure retirement with a heck of alot less stress than working for private sector. :oops:

I started at age 19 with a small IRA, my parents borrowed from their IRA's to buy their income producing property resulting in penalties and taxes(believe it or not, that turned out to be a spectacular investment for them :o ) - they convinced me to close it within a 7 day lookback no penalty period because they didn't want me to incur the same issue. I listened the first time, but when I turned 21, I opened an IRA and didn't tell them. Smart move, thus far on my part. :D

Right now, I don't qualify for your statement above (believe I am on track), but who knows? I have a long way to go before that time comes.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
rixer
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Re: Didn't save enough for retirement, what would you do ove

Post by rixer »

I just retired.
Yes, it took me a few years of getting clipped with financial managers also. Like others, I learned and eventually went into low cost no load index funds. As I look back on it though, I think the single most important thing is to start early. The earlier a person starts, the better retirement fund you'll likely end up with.
I got a late start and was in my early 40's before I began an IRA. Sad but true. I'm not complaining as I think I made up for some lost time and am able to enjoy retirement nicely. I just wish I had started earlier, it would have been much different.
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Re: Didn't save enough for retirement, what would you do ove

Post by HongKonger »

[quote="cheese_breath"]These immediately come to my mind.

1. Get educated about investing and pay more attention to my investments earlier than I did.
[quote]

I saved plenty. Sadly I didnt educate myself earlier and handed what I saved every month over to an 'independant financial advisor' for more than a decade before I woke up.
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bcboy57
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Re: Didn't save enough for retirement, what would you do ove

Post by bcboy57 »

Don't invest with a friend who is a financial planner/broker !

Understand thoroughly what you're investing in.....Doug
DouglasDoug
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Re: Didn't save enough for retirement, what would you do ove

Post by DouglasDoug »

Seduced and married an old moneyed heir.
gerrym51
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Re: Didn't save enough for retirement, what would you do ove

Post by gerrym51 »

Get a book of winning lottery ticket numbers before i time traveled back :mrgreen:
staythecourse
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Re: Didn't save enough for retirement, what would you do ove

Post by staythecourse »

All the advice will be the same advice that has been espoused since personal financing began: Start early and save often. Funny thing about many aspects of life is no matter how much things change the message is still the same. You could live 10 lives from different starting and finishing points and the answer will be the same: start early and save often. Not more complicated then that.

Good luck.
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Artsdoctor
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Re: Didn't save enough for retirement, what would you do ove

Post by Artsdoctor »

I'd have to say nothing. I made some mistakes that were dreadful but I own them. I was in my 20s and 30s, and got caught up in things I didn't understand but I survived. I am thankful for every one of those errors because I recovered and learned to check my emotions at the door when it comes to investing. Making errors early in life has definitely prepared me to enter my pre-retirement and retirement years with calm. It is far easier to recover from misguided investing mistakes early in life than later in life. And it makes you a better teacher as well.

Artsdoctor
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soaring
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Re: Didn't save enough for retirement, what would you do ove

Post by soaring »

Understood in the 70-80's:

1.individual stocks or active mgmt isn't worth it
2.low cost index investing
3. rebalancing.
Desiderata
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Ged
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Re: Didn't save enough for retirement, what would you do ove

Post by Ged »

cheese_breath wrote: 1. Get educated about investing and pay more attention to my investments earlier than I did.
My main failing. Early on I was way too conservative, putting most of my money into SV funds in my 401K. I didn't glom on to passive investing soon enough. Still I did save and in the long run it gave me a good place to start from. I experimented with Merrill Lynch once but caught on pretty quickly that it wasn't helping me.
cheese_breath wrote: 5. Choose a wife based on her mind and values rather than her face and body.
I don't think men choose their wives. They choose us. I got very lucky.
Fallible
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Re: Didn't save enough for retirement, what would you do ove

Post by Fallible »

thebogledude wrote:If you could travel in a Delorean time machine, what would you tell yourself to do over?
...
Financially speaking, my biggest mistake was to not save enough early enough. As for what I would do over: save enough early enough.
"Yes, investing is simple. But it is not easy, for it requires discipline, patience, steadfastness, and that most uncommon of all gifts, common sense." ~Jack Bogle
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cheese_breath
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Re: Didn't save enough for retirement, what would you do ove

Post by cheese_breath »

Ged wrote:
cheese_breath wrote: 5. Choose a wife based on her mind and values rather than her face and body.
I don't think men choose their wives. They choose us. I got very lucky.
Then maybe I should ask my wife why she chose me. There were a lot better options available to her.
The surest way to know the future is when it becomes the past.
aquifer
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Re: Didn't save enough for retirement, what would you do ove

Post by aquifer »

Start early and invest regularly. The power of compounding is immense over a long time period. I wish I'd given more thought to saving for retirement earlier in my life. I'm fortunate to now have a job where I can make up for lost time, but not everyone gets a second chance. I coached high school football for a number of years and am still in contact with many of the kids I coached. I do my best to advise them to set up a retirement account and chip in every month, even if it's only $25-$50. Several have done so. I tell them when they get my age they'll thank me!
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Re: Didn't save enough for retirement, what would you do ove

Post by ddunca1944 »

thebogledude wrote:If you could travel in a Delorean time machine, what would you tell yourself to do over?
.
I'd have acquired a better understanding of asset allocation and re-balancing. And the importance of not trying to chase returns. I did not really learn those things until after retirement. Better late than never, I suppose, but I can't help thinking how much better off I'd be had I learned those things during my working years.
Choose a wife based on her mind and values rather than her face and body.
DH says that marrying me was the smartest thing he's ever done.... :)

(But he does tend to say the right things.....)
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Bogle101
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Re: Didn't save enough for retirement, what would you do ove

Post by Bogle101 »

OP, what is the mistkae that you regret so much?
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Re: Didn't save enough for retirement, what would you do ove

Post by XtremeSki2001 »

I'd travel more.
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EternalOptimist
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Re: Didn't save enough for retirement, what would you do ove

Post by EternalOptimist »

I would not worry about money as much, I'd indulge myself more, and would have gotten into a profession that would have been more personally satisfying/rewarding.
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Re: Didn't save enough for retirement, what would you do ove

Post by reggiesimpson »

"Ten minutes spent on a good marriage can save you a lifetime of work"........okay so maybe 30 minutes?
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backofbeyond
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Re: Didn't save enough for retirement, what would you do ove

Post by backofbeyond »

I started out saving enough. I was sitting pretty until early 30's. Then I had a bad case of mid life crisis after a bad divorce, lasted many years. Spent :dollar on typical midlife "stuff". Also, health plummeted. Saw the light a couple years ago and am getting back on track both financially and health wise.

On paper, I should still have a delightful retirement, as I pulled up from my dive, bottomed out and am again on an up hill trajectory. If I do, I will most likely look back at that phase of my life and think...wow, you had a wild ride. :twisted:

I would not relive those days for all the tea in China, but I also have to admit, it was a blast. Costly, but a heck of a good time.

if you end up having one, have the good sense to put a lid on it in time to not regret it in your twilight years.
The question isn't at what age I want to retire, it is at what income. - George Foreman
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racy
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Re: Didn't save enough for retirement, what would you do ove

Post by racy »

Should have kept my 1 share of Berkshire Hathaway, which I bought in 1987, instead of converting it to B shares then taking half and buying a half dozen of individual (loser) stocks.
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aja8888
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Re: Didn't save enough for retirement, what would you do ove

Post by aja8888 »

Rather than work my butt of in industry fighting for higher paying, thankless jobs like I did, I should have aimed my sights on trying to get into government either in a cushy, high paying position with lots of authority and little responsibility, or one of which ends up as an elected official, such as a Congressman. Then I would have been set for life.

On marrying, finding the right spouse would have been a crapshoot, like it always is, no matter how many times you try.

While I have done OK financially, even after a very expensive, and emotionally disastrous California divorce at 50 years old, I expect to have a manageable retirement, but no bronze statue is being built in front of the walls of Congress for all to remember me.
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Wricha
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Re: Didn't save enough for retirement, what would you do ove

Post by Wricha »

No complaints ended fine. It wasn't until I was in my early forties I got out of the W-2 world and started on my own. It's tough to be well off working for others. Never ask a w-2 peoson about advice on going on your own. Start earlier and hang out with folks that started their own business . Their prospective on cash flow vs net worth was invaluable to me.
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NightOwl
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Re: Didn't save enough for retirement, what would you do ove

Post by NightOwl »

I have made my share of mistakes, but I think I am now recovering nicely. Mistakes:

1. Starting late. Didn't save a thin dime until I was in my early 30s.
2. Not listening to a close friend who tried to tell me about Roth IRAs in about 2000. The limit then was $2,000, and I could have carved out $2,000 if I had made it a priority -- he led me to water but couldn't make me drink.
3. Starting out with a financial advisor who charged a bunch of money and put me into front-loaded funds. I didn't lose much money -- didn't have much to invest -- but a mistake nonetheless.

My best move was finding this forum when I researched the choices my "financial advisor" made on my behalf. I am now trying to catch up. Good for you trying to avoid early mistakes.

NightOwl
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bluelight
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Re: Didn't save enough for retirement, what would you do ove

Post by bluelight »

Mid 50's and I think I'm on track planning for retirement, always living frugally and putting money away. My biggest mistakes were

1. Always being too cautious. For many years I had a 401K invested only in the fixed income fund. When stocks took off, my money was still making next to nothing.

2. Not paying attention to my allocation. I had no clue about asset allocation until I happened on this site. I was good at saving, not so good at investing.

3 Bad loans to my only child. As a single parent I paid for her college, I paid for her wedding, I paid for her credit card bills when she couldn't, I helped pay for her car during another rough patch, I gave a sizable loan for a downpayment on their house. She knows that her mother always has her back. I know I will never see any of it back.
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StormShadow
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Re: Didn't save enough for retirement, what would you do ove

Post by StormShadow »

1. Get a part-time job while still in college and contribute earlier to a Roth IRA
2. Invest in low-cost index funds from the beginning instead of expensive high turnover mutual funds du jour (e.g. Janus Worldwide, Legg Mason Value Trust, Fidelity Magellan... etc, etc)
3. Take that web-design class
4. Major in economics and/or accounting... while still pursuing a career in medicine
5. Learn to cook
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aja8888
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Re: Didn't save enough for retirement, what would you do ove

Post by aja8888 »

bluelight wrote: 3 Bad loans to my only child. As a single parent I paid for her college, I paid for her wedding, I paid for her credit card bills when she couldn't, I helped pay for her car during another rough patch, I gave a sizable loan for a downpayment on their house. She knows that her mother always has her back. I know I will never see any of it back.
Well, you are not the first single father to help out a daughter, so don't feel alone. And those "loans" are probably really not loans. The question is: is everybody happy and healthy?
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thebogledude
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Re: Didn't save enough for retirement, what would you do ove

Post by thebogledude »

Bogle101 wrote:OP, what is the mistkae that you regret so much?
This is what I did so far (not retired yet):
1. didn't move 401k out of company when I left/got laid off. Try to time the market with stock fund and got zapped.
2. took some risk in my career that I really didn't have to.
3. I didn't start an IRA until my early 30s.
I still have some time on my side and I was lucky enough to stumble upon the Motley Fools when I started out, they were big advocates of the Vanguard S&P 500 Index Fund. Hopefully this will right itself out. Have a safe and happy Memorial Day.
Last edited by thebogledude on Mon May 27, 2013 12:25 am, edited 3 times in total.
bluelight
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Re: Didn't save enough for retirement, what would you do ove

Post by bluelight »

aja8888 wrote:
bluelight wrote: 3 Bad loans to my only child. As a single parent I paid for her college, I paid for her wedding, I paid for her credit card bills when she couldn't, I helped pay for her car during another rough patch, I gave a sizable loan for a downpayment on their house. She knows that her mother always has her back. I know I will never see any of it back.
Well, you are not the first single father to help out a daughter, so don't feel alone. And those "loans" are probably really not loans. The question is: is everybody happy and healthy?
Yes, everyone is happy and healthy and that's what matters in the end. She and my SIL may look out for me if I don't end up with enough in retirement. BTW, I'm a single mother, not father.
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aja8888
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Re: Didn't save enough for retirement, what would you do ove

Post by aja8888 »

bluelight wrote:
aja8888 wrote:
bluelight wrote: 3 Bad loans to my only child. As a single parent I paid for her college, I paid for her wedding, I paid for her credit card bills when she couldn't, I helped pay for her car during another rough patch, I gave a sizable loan for a downpayment on their house. She knows that her mother always has her back. I know I will never see any of it back.
Well, you are not the first single father to help out a daughter, so don't feel alone. And those "loans" are probably really not loans. The question is: is everybody happy and healthy?
Yes, everyone is happy and healthy and that's what matters in the end. She and my SIL may look out for me if I don't end up with enough in retirement. BTW, I'm a single mother, not father.
Saying her "mother" always has her back made me think you were her mother's ex. My mistake and thanks for clarifying.
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Re: Didn't save enough for retirement, what would you do ove

Post by montanagirl »

I wish I had gotten into the idea of retirement savings earlier, even though there were no IRA's or 401k's when I started out. I was good at saving, but it was only emergency funds to get me from one situation to the next. When IRA's came along, I told myself it was no use because I was back in school and not making much money. Once I got into it, I was good at treating the retirement fund as something totally separate and off-limits. Even a small amount each month became sort of sacred. It would have been good to have that separate fund growing all these years.

In fact, I highly recommend even to debtors to put a little money in investments regularly, and treat it as sacred and untouchable. It makes you feel more secure, even when you don't want to access the money. It's a psychological thing.
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