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How do you figure they were just making $900 gross? Where did I say that?How could they put away $1200 a month for 17 years if they were only making $900 gross, for each a month and at the time you could only put in 10% of your income in to 401k's with a Walmart match of only 50% of the 10%?Ravi doesn't like this example, prolly. Regular people being smart, putting money away, taking care of themselves 'n stuff.Magical thinking, prolly.Very hard to believe that these people couldhave that amount of money invested in their 401 k's on Walmart salaries for such a short time period....but TIMING is everything I would suppose?They both have full social security and we've set them up at a 5% annual withdrawal. Totals about $56,000 a year for the rest of their lives plus cost of living increases, with plenty of emergency funds.seems like a lot of money but at todays interest rates how do you live on it?
That's more than they've been making.
Portfolio invested conservatively to replenish withdrawals.
Easy as pie.
.
17 years ago, they were just beginning with their 401k's in the stock market so when 9/11 came around and the stock market fell to new lows that were a shock to everyone with any kind of retirement investment and were nearing retirement, this couple was NOT affected, and they benefited from the rise in the stock market after it.... don't know how they made it through the 2008 CRASH and burn so well, with such a short time to recover from it..
I would love to know what they were invested in and how they could start at ZERO dollars saved and get it to that much money in just 17 years on MEASLY Walmart salaries for their sales clerks and going through 2 major crashes?
Let's fire up my financial software.
If, between two people and 401K matching funds, you put away $1200 a month for 17 years at an 8% compounded growth rate, you end up with $525,885.03.
Nothing magical about that.
.
I think this couple must have rolled a, or several, previous 401ks in to their Walmart 401k from the previous decade(s) they worked or IRA's in to their 401k at Walmart or something like that...and you were just unaware of this....because there is NO WAY POSSIBLE that 2 Walmart Sales clerks could save that kind of money, even with good investments, in their 401k's on Walmart Sales clerk salaries, in just 17 years.
Well, minimum wage was about $6 an hour 17 years ago, or maybe it was around $5 an hour 17 years ago....? I used $6.00 for my estimate. Walmart hires sales clerks at minimum wage and works their full time employees 35 to 38 hours a week, I used 36 hours.... That brings their gross salary of $928 a month for each of them, which federal, state, income taxes and social security and medicare taxes are then taken out, plus whatever they paid as their share for health care and dental.....How do you figure they were just making $900 gross? Where did I say that?How could they put away $1200 a month for 17 years if they were only making $900 gross, for each a month and at the time you could only put in 10% of your income in to 401k's with a Walmart match of only 50% of the 10%?Ravi doesn't like this example, prolly. Regular people being smart, putting money away, taking care of themselves 'n stuff.Magical thinking, prolly.Very hard to believe that these people couldhave that amount of money invested in their 401 k's on Walmart salaries for such a short time period....but TIMING is everything I would suppose?They both have full social security and we've set them up at a 5% annual withdrawal. Totals about $56,000 a year for the rest of their lives plus cost of living increases, with plenty of emergency funds.
That's more than they've been making.
Portfolio invested conservatively to replenish withdrawals.
Easy as pie.
.
17 years ago, they were just beginning with their 401k's in the stock market so when 9/11 came around and the stock market fell to new lows that were a shock to everyone with any kind of retirement investment and were nearing retirement, this couple was NOT affected, and they benefited from the rise in the stock market after it.... don't know how they made it through the 2008 CRASH and burn so well, with such a short time to recover from it..
I would love to know what they were invested in and how they could start at ZERO dollars saved and get it to that much money in just 17 years on MEASLY Walmart salaries for their sales clerks and going through 2 major crashes?
Let's fire up my financial software.
If, between two people and 401K matching funds, you put away $1200 a month for 17 years at an 8% compounded growth rate, you end up with $525,885.03.
Nothing magical about that.
.
I think this couple must have rolled a, or several, previous 401ks in to their Walmart 401k from the previous decade(s) they worked or IRA's in to their 401k at Walmart or something like that...and you were just unaware of this....because there is NO WAY POSSIBLE that 2 Walmart Sales clerks could save that kind of money, even with good investments, in their 401k's on Walmart Sales clerk salaries, in just 17 years.
How do you know they were not investing (at least partially) in Wal Mart stock, which went from about $19 to about $84 during that time frame?
I think you're just looking to discredit the story. Choose not to believe it if you wish. Choose to believe that all Wal Mart employees are victims if you wish.
.
Well, minimum wage was about $6 an hour 17 years ago, or maybe it was around $5 an hour 17 years ago....? I used $6.00 for my estimate. Walmart hires sales clerks at minimum wage and works their full time employees 35 to 38 hours a week, I used 36 hours.... That brings their gross salary of $928 a month for each of them, which federal, state, income taxes and social security and medicare taxes are then taken out, plus whatever they paid as their share for health care and dental.....How do you figure they were just making $900 gross? Where did I say that?How could they put away $1200 a month for 17 years if they were only making $900 gross, for each a month and at the time you could only put in 10% of your income in to 401k's with a Walmart match of only 50% of the 10%?Ravi doesn't like this example, prolly. Regular people being smart, putting money away, taking care of themselves 'n stuff.Magical thinking, prolly.Very hard to believe that these people couldhave that amount of money invested in their 401 k's on Walmart salaries for such a short time period....but TIMING is everything I would suppose?
17 years ago, they were just beginning with their 401k's in the stock market so when 9/11 came around and the stock market fell to new lows that were a shock to everyone with any kind of retirement investment and were nearing retirement, this couple was NOT affected, and they benefited from the rise in the stock market after it.... don't know how they made it through the 2008 CRASH and burn so well, with such a short time to recover from it..
I would love to know what they were invested in and how they could start at ZERO dollars saved and get it to that much money in just 17 years on MEASLY Walmart salaries for their sales clerks and going through 2 major crashes?
Let's fire up my financial software.
If, between two people and 401K matching funds, you put away $1200 a month for 17 years at an 8% compounded growth rate, you end up with $525,885.03.
Nothing magical about that.
.
I think this couple must have rolled a, or several, previous 401ks in to their Walmart 401k from the previous decade(s) they worked or IRA's in to their 401k at Walmart or something like that...and you were just unaware of this....because there is NO WAY POSSIBLE that 2 Walmart Sales clerks could save that kind of money, even with good investments, in their 401k's on Walmart Sales clerk salaries, in just 17 years.
How do you know they were not investing (at least partially) in Wal Mart stock, which went from about $19 to about $84 during that time frame?
I think you're just looking to discredit the story. Choose not to believe it if you wish. Choose to believe that all Wal Mart employees are victims if you wish.
.
It could be as you said that the little they did have to invest, they invested it in Walmart Stock, I had not thought of that....
401K's are a wonder way to invest for retirement. Unfortunately many workers don't take full advantage of them. According to industry data, the average contribution percentage for workers saving in a 401(k) is around 6 percent. Workers contribute the least when they should be contributing the most, when they're young. Then they try to make up for it by contributing the most when they are approaching retirement and their money doesn't have time to grow. I know someone who was planning to retire in 2008. He started maxing out his contributions in 2005 which of course didn't work out that well.Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.
They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.
Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10
Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58
Total retirement portfolio: $584,743.77
After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.
So long Wal Mart, hello striped bass.
.
401(k)'s are a nice retirement tool ... but they are not the panacea the government would have you believe.
If you remember, your contribution to the 401(k) is pre-tax dollars. When you withdraw that money, you pay at your normal income tax rate. HOWEVER - the profit made on your investments is also taxed at the normal income tax rate.
The only thing that really makes 401(k)s a valuable asset is the 'employer contribution'. Every employee should contribute up to the amount that maximizes the employer contribution - AND NOT ONE CENT MORE!!!!! Instead, invest that extra money as you normally would - and pay capital gains tax instead. In the long run, you will make more money that way.
Despite all the government propaganda - 401(k)s, IRAs, etc. are not government inducements to invest in your retirement. They are a method to increase your tax liability - and their income. Always ask yourself - who is the one truly benefiting from this program? I know of no government-incentivized program that benefits you - only the tax collector.
Well, minimum wage was about $6 an hour 17 years ago, or maybe it was around $5 an hour 17 years ago....? I used $6.00 for my estimate. Walmart hires sales clerks at minimum wage and works their full time employees 35 to 38 hours a week, I used 36 hours.... That brings their gross salary of $928 a month for each of them, which federal, state, income taxes and social security and medicare taxes are then taken out, plus whatever they paid as their share for health care and dental.....How do you figure they were just making $900 gross? Where did I say that?How could they put away $1200 a month for 17 years if they were only making $900 gross, for each a month and at the time you could only put in 10% of your income in to 401k's with a Walmart match of only 50% of the 10%?Ravi doesn't like this example, prolly. Regular people being smart, putting money away, taking care of themselves 'n stuff.Magical thinking, prolly.Very hard to believe that these people couldhave that amount of money invested in their 401 k's on Walmart salaries for such a short time period....but TIMING is everything I would suppose?
17 years ago, they were just beginning with their 401k's in the stock market so when 9/11 came around and the stock market fell to new lows that were a shock to everyone with any kind of retirement investment and were nearing retirement, this couple was NOT affected, and they benefited from the rise in the stock market after it.... don't know how they made it through the 2008 CRASH and burn so well, with such a short time to recover from it..
I would love to know what they were invested in and how they could start at ZERO dollars saved and get it to that much money in just 17 years on MEASLY Walmart salaries for their sales clerks and going through 2 major crashes?
Let's fire up my financial software.
If, between two people and 401K matching funds, you put away $1200 a month for 17 years at an 8% compounded growth rate, you end up with $525,885.03.
Nothing magical about that.
.
I think this couple must have rolled a, or several, previous 401ks in to their Walmart 401k from the previous decade(s) they worked or IRA's in to their 401k at Walmart or something like that...and you were just unaware of this....because there is NO WAY POSSIBLE that 2 Walmart Sales clerks could save that kind of money, even with good investments, in their 401k's on Walmart Sales clerk salaries, in just 17 years.
How do you know they were not investing (at least partially) in Wal Mart stock, which went from about $19 to about $84 during that time frame?
I think you're just looking to discredit the story. Choose not to believe it if you wish. Choose to believe that all Wal Mart employees are victims if you wish.
.
It could be as you said that the little they did have to invest, they invested it in Walmart Stock, I had not thought of that....
Very hard to believe that these people couldhave that amount of money invested in their 401 k's on Walmart salaries for such a short time period....but TIMING is everything I would suppose?They both have full social security and we've set them up at a 5% annual withdrawal. Totals about $56,000 a year for the rest of their lives plus cost of living increases, with plenty of emergency funds.Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.
They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.
Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10
Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58
Total retirement portfolio: $584,743.77
After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.
So long Wal Mart, hello striped bass.
.
seems like a lot of money but at todays interest rates how do you live on it?
That's more than they've been making.
Portfolio invested conservatively to replenish withdrawals.
Easy as pie.
.
17 years ago, they were just beginning with their 401k's in the stock market so when 9/11 came around and the stock market fell to new lows that were a shock to everyone with any kind of retirement investment and were nearing retirement, this couple was NOT affected, and they benefited from the rise in the stock market after it.... don't know how they made it through the 2008 CRASH and burn so well, with such a short time to recover from it..
I would love to know what they were invested in and how they could start at ZERO dollars saved and get it to that much money in just 17 years on MEASLY Walmart salaries for their sales clerks and going through 2 major crashes?
401K's are a wonder way to invest for retirement. Unfortunately many workers don't take full advantage of them. According to industry data, the average contribution percentage for workers saving in a 401(k) is around 6 percent. Workers contribute the least when they should be contributing the most, when they're young. Then they try to make up for it by contributing the most when they are approaching retirement and their money doesn't have time to grow. I know someone who was planning to retire in 2008. He started maxing out his contributions in 2005 which of course didn't work out that well.Just initiated a 401K rollover for a very sweet couple, both aged 63. They both spent the last 17 or so years working at Wal Mart. Not in corporate, but in regular ol' stores. Stocking shelves, receiving, some management, you name it.
They said "we were just careful with our money, we never had to buy the newest stuff, we lived within our means and stayed humble with our money". That's their big secret.
Totals of their 401K's:
Husband: $287,729.57
Wife: $211,898.10
Separate Roth IRA's at Edward Jones:
Husband: $42,114.52
Wife: $43,001.58
Total retirement portfolio: $584,743.77
After our meeting today, they left for a week-long camping and fishing trip with friends, celebrating the start of their comfy retirement. Just bought a cool new red Honda four-wheel-type thing for the trip. They like driving through streams.
So long Wal Mart, hello striped bass.
.
401(k)'s are a nice retirement tool ... but they are not the panacea the government would have you believe.
If you remember, your contribution to the 401(k) is pre-tax dollars. When you withdraw that money, you pay at your normal income tax rate. HOWEVER - the profit made on your investments is also taxed at the normal income tax rate.
The only thing that really makes 401(k)s a valuable asset is the 'employer contribution'. Every employee should contribute up to the amount that maximizes the employer contribution - AND NOT ONE CENT MORE!!!!! Instead, invest that extra money as you normally would - and pay capital gains tax instead. In the long run, you will make more money that way.
Despite all the government propaganda - 401(k)s, IRAs, etc. are not government inducements to invest in your retirement. They are a method to increase your tax liability - and their income. Always ask yourself - who is the one truly benefiting from this program? I know of no government-incentivized program that benefits you - only the tax collector.
The fix is simple: Make personal retirement savings accounts mandatory (i.e. what Singapore does). And then make the withdrawals non-taxable upon reaching retirement age.
There are many stories of people that have forgone all luxuries of life and invested their meager earning building a large retirement nest age. IMHO, these people made a very bad investment.Well, minimum wage was about $6 an hour 17 years ago, or maybe it was around $5 an hour 17 years ago....? I used $6.00 for my estimate. Walmart hires sales clerks at minimum wage and works their full time employees 35 to 38 hours a week, I used 36 hours.... That brings their gross salary of $928 a month for each of them, which federal, state, income taxes and social security and medicare taxes are then taken out, plus whatever they paid as their share for health care and dental.....How do you figure they were just making $900 gross? Where did I say that?How could they put away $1200 a month for 17 years if they were only making $900 gross, for each a month and at the time you could only put in 10% of your income in to 401k's with a Walmart match of only 50% of the 10%?Ravi doesn't like this example, prolly. Regular people being smart, putting money away, taking care of themselves 'n stuff.Magical thinking, prolly.
Let's fire up my financial software.
If, between two people and 401K matching funds, you put away $1200 a month for 17 years at an 8% compounded growth rate, you end up with $525,885.03.
Nothing magical about that.
.
I think this couple must have rolled a, or several, previous 401ks in to their Walmart 401k from the previous decade(s) they worked or IRA's in to their 401k at Walmart or something like that...and you were just unaware of this....because there is NO WAY POSSIBLE that 2 Walmart Sales clerks could save that kind of money, even with good investments, in their 401k's on Walmart Sales clerk salaries, in just 17 years.
How do you know they were not investing (at least partially) in Wal Mart stock, which went from about $19 to about $84 during that time frame?
I think you're just looking to discredit the story. Choose not to believe it if you wish. Choose to believe that all Wal Mart employees are victims if you wish.
.
It could be as you said that the little they did have to invest, they invested it in Walmart Stock, I had not thought of that....
Walmart - Slow And Steady Wins The Race - Wal-Mart Stores Inc. NYSE WMT Seeking Alpha
Still seems impossible. They had to have had previous portfolios.
They're as happy as can be.There are many stories of people that have forgone all luxuries of life and invested their meager earning building a large retirement nest age. IMHO, these people made a very bad investment.Well, minimum wage was about $6 an hour 17 years ago, or maybe it was around $5 an hour 17 years ago....? I used $6.00 for my estimate. Walmart hires sales clerks at minimum wage and works their full time employees 35 to 38 hours a week, I used 36 hours.... That brings their gross salary of $928 a month for each of them, which federal, state, income taxes and social security and medicare taxes are then taken out, plus whatever they paid as their share for health care and dental.....How do you figure they were just making $900 gross? Where did I say that?How could they put away $1200 a month for 17 years if they were only making $900 gross, for each a month and at the time you could only put in 10% of your income in to 401k's with a Walmart match of only 50% of the 10%?Ravi doesn't like this example, prolly. Regular people being smart, putting money away, taking care of themselves 'n stuff.
Let's fire up my financial software.
If, between two people and 401K matching funds, you put away $1200 a month for 17 years at an 8% compounded growth rate, you end up with $525,885.03.
Nothing magical about that.
.
I think this couple must have rolled a, or several, previous 401ks in to their Walmart 401k from the previous decade(s) they worked or IRA's in to their 401k at Walmart or something like that...and you were just unaware of this....because there is NO WAY POSSIBLE that 2 Walmart Sales clerks could save that kind of money, even with good investments, in their 401k's on Walmart Sales clerk salaries, in just 17 years.
How do you know they were not investing (at least partially) in Wal Mart stock, which went from about $19 to about $84 during that time frame?
I think you're just looking to discredit the story. Choose not to believe it if you wish. Choose to believe that all Wal Mart employees are victims if you wish.
.
It could be as you said that the little they did have to invest, they invested it in Walmart Stock, I had not thought of that....
Walmart - Slow And Steady Wins The Race - Wal-Mart Stores Inc. NYSE WMT Seeking Alpha
Still seems impossible. They had to have had previous portfolios.
Money is made to be spent, not foolishly, but on the things that really matter in life. I fully understand the need to provide some funds for retirement but not to the exclusion of all life's joys. I know several people who saved ever penny they could lay their hands on for their golden years only to find that those years were really in their past.They're as happy as can be.There are many stories of people that have forgone all luxuries of life and invested their meager earning building a large retirement nest age. IMHO, these people made a very bad investment.Well, minimum wage was about $6 an hour 17 years ago, or maybe it was around $5 an hour 17 years ago....? I used $6.00 for my estimate. Walmart hires sales clerks at minimum wage and works their full time employees 35 to 38 hours a week, I used 36 hours.... That brings their gross salary of $928 a month for each of them, which federal, state, income taxes and social security and medicare taxes are then taken out, plus whatever they paid as their share for health care and dental.....How do you figure they were just making $900 gross? Where did I say that?How could they put away $1200 a month for 17 years if they were only making $900 gross, for each a month and at the time you could only put in 10% of your income in to 401k's with a Walmart match of only 50% of the 10%?
I think this couple must have rolled a, or several, previous 401ks in to their Walmart 401k from the previous decade(s) they worked or IRA's in to their 401k at Walmart or something like that...and you were just unaware of this....because there is NO WAY POSSIBLE that 2 Walmart Sales clerks could save that kind of money, even with good investments, in their 401k's on Walmart Sales clerk salaries, in just 17 years.
How do you know they were not investing (at least partially) in Wal Mart stock, which went from about $19 to about $84 during that time frame?
I think you're just looking to discredit the story. Choose not to believe it if you wish. Choose to believe that all Wal Mart employees are victims if you wish.
.
It could be as you said that the little they did have to invest, they invested it in Walmart Stock, I had not thought of that....
Walmart - Slow And Steady Wins The Race - Wal-Mart Stores Inc. NYSE WMT Seeking Alpha
Still seems impossible. They had to have had previous portfolios.
They've always loved the outdoors, camp & fish all the time, have a group of dear friends who share their love of the outdoors. Frankly, they're cute as hell.
"Luxuries" are often for unsatisfied people who are desperately chasing happiness.
I'd guess they're happier and more content with their simple, humble lifestyle than many who pay for "luxuries" to fill some hole.
Now, they get to enjoy.
.
Most young people at 20 are about as likely to plan for their retirement as they are their funeral. At 20 you see retirement money as a nest egg for emergencies. I watched my son in law go thru his retirement plans each time he changed jobs.If 401Ks had been available when I was 20 instead of not until I was past 40 I'd have enough cash now to buy the presidency!
Most young people at 20 are about as likely to plan for their retirement as they are their funeral. At 20 you see retirement money as a nest egg for emergencies. I watched my son in law go thru his retirement plans each time he changed jobs.If 401Ks had been available when I was 20 instead of not until I was past 40 I'd have enough cash now to buy the presidency!
Problem is they spent 17 years of their life working at Walmart.
Problem is they spent 17 years of their life working at Walmart. Imagine the thought of waking up and working in Walmart for 17 years of your life. Sorry, life is too short to have to go through that nightmare. Now imagine they both had a college education and made triple that lowly wage. We all know what large retailers think of even their best employees.... Imagine if they had made 4x that salary in a profession they loved. There are always two sides to every coin. Did they get paid vacation time every year? Did they have top of the line health insurance? Sorry, no thank you. No American dream in this story
Yep... but... they didn't... and could have made ALOT more doing something ALOT more tolerable and profitable. Imagine 2 weeks off per year paid. Pathetic. Imagine making no more than $15 an hour your whole life. Pathetic.. Working holidays and weekends. Pathetic. Miserable health insurance. Pathetic. Being treated like cattle. Pathetic. This could have been avoided with an education. Not to mention triple their retirement. In the end, this ain't no success story. But I do wish them the best.
Yep... but... they didn't... and could have made ALOT more doing something ALOT more tolerable and profitable. .
