I think some of those mistakes are within the norm. We started with IDS paying the AUM fee, plus ridiculous loads and ER fees. Pulled the plug on that, and branched out into lower cost funds that included both passive and actively managed mutual funds (thankfully two well known funds from Vanguard). I even managed to buy shares of a Japan fund from another fund company near the top of that market. Ouch! Looking in the mirror with you Jonathan in terms of buying some individual stocks in the mid to late 90's that took off to amazing heights, then endured quite a plunge during the dot-com bust and 9/11 selloff. A few of them even went bust. Lessons learned after that round trip from the mid 90's to the bust led to choosing target date funds, and index funds in all of our retirement plans for the past 25 years. I'm sure there were more mistakes that I have moved to the back of my consciousness, but in spite of the price of tuition try to take the past mistakes in stride.
Agree that it is difficult to comprehend the "why" behind not having saved enough over a 40 year working career - or at least enough to easily be able to handle a $10K lump/emergency expense without destroying the entire retirement plan. The obvious answer would be failure to live below their means for the majority of those decades, student loan debt, auto loan debt, mortgage payments, non-stop CC debt all combined to tilt the balance out of favor to have anything remaining each month after servicing all of that debt while continuing to live above their means along the way. Too many tugs from society, peer pressure, and companies vying for the remaining discretionary income tipped the scales out of favor for far too many households. As mentioned, a little bit of luck along the way perhaps was missed as well. I can easily drive around the neighborhoods of my town and see sitting in the driveways and side yards plenty of the "why" via gadgets, toys, trucks, too many cars to fit in the driveway, campers, boats, motorcycles, multiple riding mowers, etc... not to mention what probably resides inside the homes, garages, and sheds that most likely are all filled with "stuff" purchased on credit. Fiscal discipline is a muscle that requires non-stop continued training for it to grow, develop, and work. Those that fit in the "why" category have never found that muscle.
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I think some of those mistakes are within the norm. We started with IDS paying the AUM fee, plus ridiculous loads and ER fees. Pulled the plug on that, and branched out into lower cost funds that included both passive and actively managed mutual funds (thankfully two well known funds from Vanguard). I even managed to buy shares of a Japan fund from another fund company near the top of that market. Ouch! Looking in the mirror with you Jonathan in terms of buying some individual stocks in the mid to late 90's that took off to amazing heights, then endured quite a plunge during the dot-com bust and 9/11 selloff. A few of them even went bust. Lessons learned after that round trip from the mid 90's to the bust led to choosing target date funds, and index funds in all of our retirement plans for the past 25 years. I'm sure there were more mistakes that I have moved to the back of my consciousness, but in spite of the price of tuition try to take the past mistakes in stride.
Post: My Mistakes
Link to comment from February 21, 2025
Agree that it is difficult to comprehend the "why" behind not having saved enough over a 40 year working career - or at least enough to easily be able to handle a $10K lump/emergency expense without destroying the entire retirement plan. The obvious answer would be failure to live below their means for the majority of those decades, student loan debt, auto loan debt, mortgage payments, non-stop CC debt all combined to tilt the balance out of favor to have anything remaining each month after servicing all of that debt while continuing to live above their means along the way. Too many tugs from society, peer pressure, and companies vying for the remaining discretionary income tipped the scales out of favor for far too many households. As mentioned, a little bit of luck along the way perhaps was missed as well. I can easily drive around the neighborhoods of my town and see sitting in the driveways and side yards plenty of the "why" via gadgets, toys, trucks, too many cars to fit in the driveway, campers, boats, motorcycles, multiple riding mowers, etc... not to mention what probably resides inside the homes, garages, and sheds that most likely are all filled with "stuff" purchased on credit. Fiscal discipline is a muscle that requires non-stop continued training for it to grow, develop, and work. Those that fit in the "why" category have never found that muscle.
Post: Can your retirement survive a financial shock? It seems many can’t. Have you thought about it? Rdq
Link to comment from September 9, 2024