Key insights
- A personal anecdote highlights the challenges of balancing early family commitments with retirement savings, particularly in high cost of living areas. The author expresses concern about potentially needing to work longer due to delayed investment focus, reflecting broader anxieties about retirement preparedness among middle-aged individuals. This sentiment could contribute to decreased consumer confidence and potentially impact spending, but the direct market influence is limited.
I recently turned 46 and grateful for a high paying job. However I have a wife and kids, and of course bills!
I didn’t make much, < $100K for the first 10yrs of my career. 23-33. Ouch! However, I was a saver and anything I could save it went towards an engagement ring, wedding, and down payment on my home. This being 20yrs ago. I had about $80K saved up. Which was a lot to a 26yr old living at home. Sadly none of that got invested. At the time, I was only able to save maybe 10% of my income at the time which was probably 35% of the max 401k contribution allowance.
After reading stories on Reddit, I must say I’m envious of the young folks for holding off on big commitments. I wouldn’t change my decisions if I could go back, but I now see it’s very hard to have it all. There are some people in their late 20s, early 30s that already have $500K+ saved for retirement. When they mention their wage and how much they’re investing I think I could’ve easily done that had my choices been different when younger. Money isn’t everything but having a sum like the above in your late 20s could set you up for an early retirement, maybe mid/late 40s. That’s tremendous. Now, I’m paying the price…probably like some of you here. I didn’t make bad decisions but they just weren’t aligned to maximize financial growth and net worth.
Once I approached my mid-30s and started earning more, I changed to this strategy and got focused but lost the crucial first 10yrs, which means everything. I can’t get it out of my mind that the ship has sailed, done, gone. Sucks. I really hate knowing that I’ll probably work another 16yrs or so. Do I have a decently size retirement account now? By the standards of many yes, but, I also live in a HCOL area and given my current wage, I don’t want to go backwards in lifestyle in retirement. So I’m saving and investing like a maniac where it really sucks because although my comp is high, after I’m done contributing to my investment accounts for the week, I feel very average. Which is a shitty feeling when you’re a high earner. If only I would’ve done things a bit different AND earn what I’m earning now, that would be the life. THAT is the difference between working class and upper/approaching wealthy class.
I just don’t know how to get out of this funk. It’s very demotivating as all I think about is how much more I need to invest to get to X sooner than 16yrs from now. I’m already spending future raises. A shitty way to live and poor outlook. I think I need to seek therapy and talk to someone. My apologies, just wanted to rant.
Obviously, I am grateful though as this issue pales in comparison to what some of you are going through financially. I just wanted to vent…certainly can’t do it at work or at home. lol. Thanks for reading. Unsure if any could relate here.