Americans’ love affair with pickup trucks might be derailing their retirement plans

interesting article

https://www.marketwatch.com/story/a...eir-retirement-plans-2020-09-23?mod=home-page

snippet:

 

Not the first thing I wanted to read after I just put a deposit down on a 21 pro

party pooper

 

I'll just leave this here lol

I don't have a lot of room to talk as I have 2 vehicle payments, however I budget for investing before vehicle payments.

 

Well... I’m happy to say I buy junks and fix them.. I’ve never had a car payment! Lol.

 

prices of new trucks keep going up.

from autotrader

F150
2000 = $16k - $32k
2010 = $22k - $47k
2020 = $29k - $71k

Tacomas:
2000 = $12k - $25k
2010 = $15k - $27k
2020 = $26k - $47k

 

This article pretty much sums up what I’ve always thought. You shouldn’t be buying a $50k vehicle if you can’t max out your 401k contributions every year. That’s just my opinion though. I’m sure there are plenty of people out there who can get by without it, but I plan to retire comfortably and not reduce my quality of life when I do it

 

Balance is good.

Your fat retirement savings is awesome at retirement. Know how many people only live a few years after they retire and in poor health? Saving for retirement is what smart people do. Living your life is what smart people do. Finding the balance between those two things is key.

I find that I save at least per month what my payments are (usually more.) But saying if you put all your money into savings you'll have lots of cash in 40 years when your joints are worn out and you have 15 health problems and are destined for the old age home isn't that useful to me. Also, not having any money to pay for a GOOD old age home isn't what I want either.

Balance is good.

 

I came to the same conclusion. Mid 30's and a very active mountain biker and motorcycle rider. I figure sure I could just sock away money until I retire, possibly early, but I'm healthy and fit now and who knows what might happen in ten years. So I have some nice bikes, but still contribute to an employee matched 401k, index funds, a few stocks, and a Roth IRA. I've driven old Toyotas since I started driving (my Tacoma I've had for 19 years has 310k miles) but this year bought my first new vehicle ever as a 35th bday present to myself. Find some balance, but life's short.

 

Well they do have a responsibility to their shareholders......

/s

 

Yup, how many people scrimp and save with all the grand plans on what they want to do when they retire only to end up in a home with failing health (or worse, not even get that far). Also, what you want to do when you're old isn't what you want to do when you're young. Not too many octogenarians climbing Kilimanjaro... Gotta live life, too. Check those boxes. travel. live.

The "here's what you'd have if you lived like a dark-age hermit till you were nearly dead" types are trying to sell you mutual funds.

To be revoltingly cliche: Plan for tomorrow but live for today. This has been your gag-worthy moment for today. You're welcome. lol

 

I live in the now. I'd rather enjoy my money now driving a nice truck than drive a POS car. Yes I might have more money in the bank if I didn't buy my truck but life is too short to not enjoy life. I still put money in my 401k along with the company match so I didn't disregard some retirement funds. To each their own.

 

I think you nailed it. It's not the vehicle per se, it's the math and the mentality. Someone I know recently booked a 5 day disney world vacation next month, while leaving the kids at grandma's, and muttered, " We are in our 40s, we should start thinking about retirement. ". Good God man.. Ya think?

I agree with many here...it's a compromise of ideologies. It can work.

 

yikes! I wasn’t really in a financial position to max out retirement until I turned 30, but I started it as soon as I could. I’m definitely lucky to be in a situation where I can do that and all the other expenses that life brings along. Maybe it won’t always last forever, which is why I’m saving so hard now. It’s also a great feeling to see a Porsche or lambo drive by and know you could buy many of them if you really felt the need.

 

I saved for 10 yrs and paid cash for my 2019. I drove clunkers during that time. Don't agree with maxing out your 401K but you should never leave an employer match on the table.

 

You know what... Yes, you need to save, but just like everything in this world, moderation is EXTREMELY important IMO.

My dad had been saving for retirement all his life. He barely spent any money on himself. He planned to do the things he wanted to do when he retired. He died at 51 from a dissecting aortic aneurism. It's a condition that comes on fast and is hard to fix. He said to me "If I don't make it, take some time and resources and enjoy some of your life. Tomorrow might not come for me and it's not guaranteed for you." Yes, I save, but I still try to enjoy my life as much as possible.

 

Sorry to hear about your Dad.

That's the kind of story you need to keep in mind when you live your life. Now is as important as later. Now is guaranteed.

 

I'm able to enjoy my life while saving for retirement. I don't feel like I'm missing out because I don't have a new truck and all new electronics and clothes and whatnot every year. And my wife and I prefer camping to fancier, more expensive vacations.

 

I think it's a win your committed, I wouldn't hinge everything on a percentage, life happens.