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Half Of Americans Can't Save For Retirement

Saturday, May 24, 2014 - 9:08 AM
Horse hockey. Its all about priorities. I believe most can save if they were to put this near the top of their list. I bet 99% have a cell phone that they could do without, but having a cell phone today is more important to them than having money put aside for retirement tomorrow.

http://finance.yahoo.com/news/half-americans-cannot-save-money-132512783.html
3
FARFAR106 posts since
Feb 26, 2013
Rep Points: 381
1. Saturday, May 24, 2014 - 9:37 AM
Knowing that they can't get decent interest on risk free savings like CDs does not encourage them to want  to reset their priorities, imo.  It's easier to save when you can actually see it grow like in the "olden" days.
3
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,011
2. Saturday, May 24, 2014 - 1:00 PM
Since the posted article is unavailable to me I can only comment on what I believe are some of the obstacles to saving for retirement are for many people today. By the way, owning a cell phone is merely anecdotal evidence and is not a major obstacle. My cell phone costs $20 every three months for basic talk and text features. Besides, land line phones are going the way of the dial-up internet connection.

Major obstacles to saving for retirement can include:

1. Excessive debt. This includes educational loans, home loans, auto loans, credit cards and hospital bills.
2. Stagnating wages and less working hours for the past three decades. Many corporations are resorting to temporary and part-time employees to increase profits.
3. Erosion of employee benefits for the past three decades including defined pension plans and health insurance. Funding company 401k plans is hard for employees when they don't have much left after necessities and deductions.
4. Increasing rents as more people are unable to qualify for home loans means more demand for rental housing which drives rents up higher than inflation.
5. Illness or accident in the family. Retirement savings are the first thing to get raided to deal with serious financial hardships resulting from unforeseen life events.
6. Uncertainty about how long social safety nets will be around such as Social Security, Medicare and Medicaid. If these programs have trouble surviving it would be almost impossible to save enough anyway to ever have a quality retirement. The alternative is work until one drops dead.
6
ShorebreakShorebreak2,622 posts since
Apr 6, 2010
Rep Points: 14,215
3. Saturday, May 24, 2014 - 2:42 PM
Shorebreak:  You lost me at "my cell phone costs $20 every three months for basic talk and text features".    Where did you find that prize?  I pay almost $40.00 month for 350 minutes of which we use only 35 a month and we never text or use any other features to save money.  I know there are emergency phones out there which we would do better with since we have no one to talk or text to but yours is even cheaper than the AAA emergency ones.  Is it asking too much for you to reveal this choice phone's name and place of contact?  Thanks!
3
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,011
4. Saturday, May 24, 2014 - 3:15 PM
Re: Paoli2 @ 3. Saturday, May 24, 2014 - 2:42 PM

Sure. I have a Virgin Mobile pay-as-you-go plan which has a set minimum amount of $20 every three months for minutes. Each call in or out runs 25¢ plus 18¢ per minute,15¢ per text and 25¢ per photo or video.  No mobile web access. I rarely use the phone when home and just bring a top-up card when I travel if I run low on minutes remaining. The remaining unused balance rolls over to the next three month period so I usually run a remaining balance greater than the $20. It works fine for me but wouldn't prove practical for most others. I should mention the plan is no longer available and Virgin Mobile has bugged me to switch to a more costly plan several times.
5
ShorebreakShorebreak2,622 posts since
Apr 6, 2010
Rep Points: 14,215
5. Saturday, May 24, 2014 - 3:46 PM
Boo Hoo!  What a tease.  Get me all happy and about to throw out my Mylanta with my crappy expensive cellphone which I rarely use and you tell me they are about to discontinue your plan.  Well I "almost" had a cheap plan.  Nothing lasts forever and I thank you for sharing anyway.
2
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,011
6. Sunday, May 25, 2014 - 11:07 AM
I've used tracfone for years. As long as you add time to the phone the minutes never expire. A one year card for $99.99 gives you 400 minutes. Most of the phones are now double or triple minutes which will give you 800 or 1200 minutes.  There are a variety of phones to suit most needs and can be very inexpensive. I have so many minutes that most times I buy a 60 minute card on their website , www.tracfone.com for $19.99 get 180 minutes on my triple minute phone and use the option to add another year time and the total cost is less than $80.
2
marcalmarcal7 posts since
Apr 3, 2011
Rep Points: 26
7. Sunday, May 25, 2014 - 11:51 AM
marcal:  I was interested in the Tracfone for the reasons you posted but something bothered me about it.  I think it was the "roaming" charges.  Can you use your minutes anyplace in the US?  Maybe the rules have changed since I first checked it out.  Thanks.
1
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,011
8. Sunday, May 25, 2014 - 10:30 PM
How about $2.50/mo for cell phone time? Check out No Contract Prepaid Plans | Cellular Prepaid Plans | Page Plus Cellular  pay-as-you-go-plans. Unused minutes carry over when you recharge every 4 months. This works great for me as I just use a cell phone for simple talk and text. If you talk more, you can buy more at a lesser per minute rate.
2
jamesstewartjamesstewart15 posts since
May 22, 2011
Rep Points: 72
9. Monday, May 26, 2014 - 9:45 AM
There are no roaming charges in the US with tracfone.  We've traveled across the US and service is good.
4
marcalmarcal7 posts since
Apr 3, 2011
Rep Points: 26
10. Monday, May 26, 2014 - 10:23 AM
Watch the sales. You can pick up a preloaded phone for $79, 1400 minutes with 12 months of  service with text, camera, internet, and triple minutes for life. After 12 months reload or get a new phone that is most likely updated. If you find a $20 coupon it goes from $6.59 a month to $4.92 a month. 
1
Ally6770Ally6770914 posts since
Jan 16, 2010
Rep Points: 2,658
11. Monday, May 26, 2014 - 10:42 AM
1400 minutes!  I won't live long enough to use up that many.  Maybe I could just use them to call everyone in the phone book just to say "Hi!"  I used it last week to get some medical info and the gal put me on "hold" for about 20 minutes.  Would you believe I was thrilled to finally have used up some of our minutes?  All that extra stuff with just confuse me.  I don't use the camera on ours because I think you have to pay extra to use it.  I know how I look anyway so I don't need more photos.  Thanks for all the info.
2
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,011
12. Monday, May 26, 2014 - 11:06 AM
Thought you wanted a cheaper way to go. You would rather pay  $480 a year ($40 a month) for 4200 minutes a year when you use only 420 minutes (35 minutes a month)  instead of $59 to $79 a year for 1400 minutes a year? 
1
Ally6770Ally6770914 posts since
Jan 16, 2010
Rep Points: 2,658
13. Monday, May 26, 2014 - 11:29 AM
I am the original "what if" person.  "What if" I actually do make a ton of friends who want to call or text me and I don't have the extra minutes available?  I know my way is wasteful and I am seriously thinking of just getting a cheap phone for emergency use like the Tracfone  or even the AAA emergency one for $10.00.  We don't travel any longer so I don't really have to worry abou roaming charges.   I have been "thinking" about doing this for the past 10 years and one day I just may surprise myself and do it.  
2
paoli2paoli21,372 posts since
Aug 10, 2011
Rep Points: 6,011
14. Monday, May 26, 2014 - 12:24 PM
These are tracfone minutes and if you need more minutes you can buy 1200 more for between $80 and $100 depending if you want 90 day or 1 years additional service. 
2
Ally6770Ally6770914 posts since
Jan 16, 2010
Rep Points: 2,658
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