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Living in retirement: Seven things I wish I could tell my 35-year-old self

82 点作者 kareemm超过 11 年前

27 条评论

ACow_Adonis超过 11 年前
Wow...some of those are...really bad. Lets go through them.<p>1. No real arguments against the general idea. Divorce is expensive. Duh. Of course, no one gets married thinking they&#x27;ll get divorce, so its pretty pointless advice. And once in a marriage, the real question is then the opportunity cost of staying in the marriage vs getting out. Sanity is worth a lot of money.<p>2. Children before 35? This never really got explained. Why? Its true that there&#x27;s a biological clock, especially for women, but its also true that those who have children later in life generally have better life outcomes. Obviously save money if you can...(and i&#x27;m not even starting on the &quot;why do you need to have children at all&quot; question?)<p>3. Stick with 1 job&#x2F;career. If you were from 1950, i&#x27;d probably give the same advice too. Now in 20XX, i&#x27;d say be skilled, be flexible, be mobile, don&#x27;t give up, beware of cementing yourself into a career&#x2F;job that might not exist in 5-10 years.<p>4. Defined benefit pensions. For us later generations, they are a thing of the past. If you do manage to land one, don&#x27;t assume it will actually be there for you when you retire. A financial&#x2F;political&#x2F;demographic crisis is a bitch. Defined pensions can&#x27;t pay money that isn&#x27;t there.<p>5. Find a financial adviser you can trust. This is just populist nonsense. Not because financial activities are not important, but because its not possible. If you have the knowledge to judge financial advisers, you don&#x27;t need one. If you don&#x27;t have that ability, you won&#x27;t be able to tell whether they&#x27;re any good until XX years down the track, upon which point you&#x27;ll probably judge them on your returns. And even then, there&#x27;s a good chance you&#x27;ll just make a judgement based on random chance&#x2F;survivorship bias.<p>6. Buy the best house you afford, in a neighborhood you adore. Stay there. --See translation: I&#x27;m a baby boomer living in a country that hasn&#x27;t had a housing crash.(...yet).<p>7. Develop long-standing interests that are not outrageously costly. Can&#x27;t argue with that.
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fennecfoxen超过 11 年前
Hahahahahhaa! So you think your defined-benefit pension is proof against losses, eh?<p>Well, it can protect you from a lot, that&#x27;s for sure. But as a rule, pension costs have been rising for decades, and were underfunded even before the economy and tax revenues tanked. In this narrow column I can only highlight a few small pieces of hilarity, like pension plans borrowing cash to invest in real estate to the tune of a $1B loss (Calpers - <a href="http://online.wsj.com/news/articles/SB122947172015212225" rel="nofollow">http:&#x2F;&#x2F;online.wsj.com&#x2F;news&#x2F;articles&#x2F;SB122947172015212225</a> - use a Google HTTP referer to read the full article). Or the plan where you <i>borrow from your pension plan TO PAY FOR YOUR PENSION PLAN</i> -- <a href="http://www.nytimes.com/2012/02/28/nyregion/to-pay-new-york-pension-fund-cities-borrow-from-it-first.html?_r=1&amp;adxnnl=1&amp;emc=eta1&amp;pagewanted=print&amp;adxnnlx=1391138226-e8u9VBaQ8WHHfVdFXfzUgA" rel="nofollow">http:&#x2F;&#x2F;www.nytimes.com&#x2F;2012&#x2F;02&#x2F;28&#x2F;nyregion&#x2F;to-pay-new-york-p...</a><p>So yeah, you&#x27;ve got a lot of clout, but you&#x27;d better hope that your city, state, or other relevant agency stays afloat or you&#x27;re at risk of getting dinged a lot like an ordinary hard-working unentitled American.<p>(At least with a 401(k) or IRA, you know what assets you have and actually <i>own them yourself</i> -- moreover, if you worked somewhere small enough, they might be more diversified than your municipality&#x27;s future tax revenue.)
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epicureanideal超过 11 年前
I think one of the problems with advice from people near retirement is that they think about life decisions that would have benefitted them at their current age. So for example, being 65, they wish their younger self had saved on going out to eat, buying nice clothes, etc. so that their current happiness would be higher than it is. What they don&#x27;t account for is that their younger self would&#x27;ve been less happy at that time. Perhaps their younger self would&#x27;ve burned out if not for &quot;wasting&quot; some money buying some happiness in the present.
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groby_b超过 11 年前
So, basically, live a really boring 30-40 years, so you can enjoy 20-30 years in declining health.<p>I&#x27;ll get right on that.
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refurb超过 11 年前
<i>Everyone I know has repeatedly lost loads of money in the stock market, but not one person I know has lost money buying real estate in large urban centres in Canada.</i><p>Based on what the real estate market looks like right now in Vancouver, Calgary and Toronto, he will soon know many people who have lost money in real estate.<p>Right now the Canadian real estate market is where the US market was in 2007.
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cecilpl超过 11 年前
This is awful advice.<p>1. Neither getting married nor getting divorced should be done for financial reasons. Get married because you love someone and want to spend the rest of your life with them, and get divorced because that is no longer true.<p>2. Children before 35 is good advice. Especially for women, but for men as well. You want to be able to enjoy life with your children, and not be too old to enjoy life with your grandchildren. And sure, be financially stable, but this is not a financial decision at heart.<p>3. Ugh. Or, you know, choose a few different careers and try them all out. And live within your means at all times.<p>4. Worst idea. Defined benefit pensions can be reduced or taken away.<p>5. Learn how to invest on your own (low-cost index funds even). This will be some of the most highly-paid work you will ever do in your entire life. A usual advisor&#x27;s fee of 1% annually will cost you hundreds of thousands of dollars over your lifetime. <a href="https://personal.vanguard.com/us/insights/investingtruths/investing-truth-about-cost" rel="nofollow">https:&#x2F;&#x2F;personal.vanguard.com&#x2F;us&#x2F;insights&#x2F;investingtruths&#x2F;in...</a><p>6. Or, you know, buy the smallest house you can be happy in near where you work. Real estate is a terrible investment that matches pace with inflation in the long run. The stock market returns 7% above inflation annually in the long run, and has never lost money over any 15-year period.<p>7. Yeah, that&#x27;s actually good advice.<p>The key to retiring early is to learn about hedonic adaptation, stop spending money on things that don&#x27;t make you happy, save a very large percentage of your income (Wife and I earn $100k, save 65%). If you save just half your salary, you can easily retire at 40.<p>If I&#x27;m lucky, when I retire, I&#x27;ll be having a real-time conversation with my 35-year-old self.
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nahname超过 11 年前
&gt;Everyone I know has repeatedly lost loads of money in the stock market, but not one person I know has lost money buying real estate in large urban centres in Canada.<p>Canadians are very optimistic on owning houses. Too bad the market needs to crash before anyone under 30 can afford anything decent.
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kamakazizuru超过 11 年前
I&#x27;m highly skeptical about how much of this will be relevant for us (20 somethings) - when we retire. So much has changed significantly since this guy was 35. Most public pension systems such as the ones here in Europe likely wont even have enough money in them to pay our pensions..<p>Also - the extreme risk averse attitude is quite a turn off. I&#x27;m not saying everyone should invest in Dogecoin and Tesla - but taking some high reward risks can&#x27;t be the worst idea..
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BryanB55超过 11 年前
Does anyone else find this advice really depressing? It sounds like such a boring mundane life. I&#x27;m sure there is some good advice here but I can&#x27;t help but feel a bit turned off by it.<p>I think it is important to have an emergency fund and some savings and to know how to spend within your means. However, I also think you can live a better life if instead of worrying so much about how to save money, you figure out how to make more money by creating value and figuring out how to sell it.<p>I believe a very smart person once said:<p>&quot;When you grow up you tend to get told the world is the way it is and your life is just to live your life inside the world. Try not to bash into the walls too much. Try to have a nice family life, have fun, save a little money. That&#x27;s a very limited life... &quot;
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durakot超过 11 年前
Something really sad about this, because it boils down to: do not take any risks.
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danbmil99超过 11 年前
Ask the union workers in Detroit about their defined benefit pension plans. Bad advice given that these plans can and do get renegotiated when the sponsor&#x27;s finances make them unsustainable.
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hippee-lee超过 11 年前
Question for all the folks who have negative reactions to the authors thoughts.<p>What&#x27;s your advice for a accumulating 2-3 million by the time you are ready to retire? That&#x27;s my number because I want to &#x27;retire&#x27; from regular, year round employment when I am 55. And I still want to be able to afford healthcare, a nice meal out and few weeks vacation somewhere fun. Your number may be different though cause individual taste vary. That number is roughly what my wife and I will need if we want to informally exit the workforce in out mid-fifties.<p>It seems like the point that is being missed is this: if you want a comfortable retirement you need a plan&#x2F;strategy and you need to reliably, consistently execute on it. The earlier you start to do this the better. The author offers an opinion for something that would have worked for them. Ymmv but if you think you will just wake up with the means to &#x27;retire&#x27; and move onto a different phase in your life when the world moves on and the ecosystem changes without planning, executing and routinely re-evaluations your progress, please re-consider.
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kamaal超过 11 年前
I&#x27;m in my late 20&#x27;s. And a good deal of advice in this post is pretty good.<p>&gt;&gt;Everyone I know has repeatedly lost loads of money in the stock market, but not one person I know has lost money buying real estate in large urban centres in Canada.<p>Actually if you look at it real estate is the best deal you can get. No one, not one single person who bought lots of real estate I know has ever repented buying it. Fortunes have been multiplied by 10, some times even 20 only because some one bought a great deal of real estate in the city outskirts and watch prices multiply in multiples of 10&#x27;s when the city grew. Same with rent. Rent is the best and safest form of passive income. Here in India, there are people who get obscene amounts of rents, then use the same rents to generate more of it.<p>In most Indian cities, real estate crashes rarely happen. Even if they do, they turn out to be local minima&#x27;s and within 2-3 years the rush for property accumulation starts again.<p>Next, comes Gold of course. Of the things that I learned from people who buy real estate is- Buying Gold is buying real estate in trickles. The trick is to keep a proper balance of gold investment. And a real estate loan which you can afford to pay and is not beyond your means. The reason you need the loan is the inflation here is close to 9%. While your property value will appreciate your loan will only lose its value due to inflation, plus when you have enough gold you can dispose it off to pay of the real estate loan and move to buy the next property.
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cl8ton超过 11 年前
I wish I had time to write about my experiences as I’m 10 years away from successfully retiring but I have to say, you 20+ year old readers really need to listen to what this guy is saying.<p>Don’t follow his advice to a tee but read in between the lines and understand the meaning.<p>At least do this, print his post out and re-read it when your approaching 40 as it will have a different meaning and when your 50 years old, you will think this guy was a prophet.
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grecy超过 11 年前
Such classic Ontario advice: Follow the prescribed path without question or deviation.<p>For anyone that doesn&#x27;t buy into it, I suggest you head West. People are genuinely shocked at the difference in attitude when they get here. Almost everyone refers to it as Onterrible, for very good reason.
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stretchwithme超过 11 年前
You can rely on real estate if you know the government will continue to subsidize its appreciation. But if you expect that it will eventually prove to be unsustainable and must be ended, the returns might not be so rosy.<p>And defined benefit pensions are only as secure as whatever is trapping those who must pay for it. If your company manages to free itself from the union or the taxpayers refuse to pay you, it could be painful.<p>Oh, yes, things never change, I know. Its never happened before in the history of mankind. But there&#x27;s always a first time.
Oculus超过 11 年前
Could the older members of the HN community pitch in and give a couple points of wisdom they acquired over the years (Would probably more useful than everyone just bashing the article)?
tobib超过 11 年前
I hope that I just didn&#x27;t get the irony. This sounds sad, unhealthy and very very boring.
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mromanuk超过 11 年前
I stopped reading in number 4. Those are advices to a self from the past. Even in that improbable case, is worthless to follow the plan. Applying the plan to someone today, with a different background, needs, etc. Nonsense.<p>&quot;Live with the same person, because divorce is expensive...&quot; I don&#x27;t want to live on this planet any more...
adamconroy超过 11 年前
The problem with the stock market isn&#x27;t that you might lose money, the problem is that share prices are largely driven by perception rather than substance. At the extremes it makes sense, in that a company that runs out of money is worthless and a company that makes 14bn profit a quarter is worth something. For the rest it is like popular culture &#x2F; fashion.<p>The other problem with stocks is that if everyone is saving for the future via retirement funds then the market is inherently going to be over inflated and further illogical.
thatthatis超过 11 年前
Longevity risk is the biggest time bomb i know of in current financial and societal practice. The state of the art is a 90% chance of not running out of money (and most people are saving well below even getting to there).<p>In 40 years we are going to wish we created better risk pools and things like blind tontines or individually purchasable defined benefit pensions.
erichate超过 11 年前
Get a government job... wtf
jonhinson超过 11 年前
So much cynicism in these comments. As a 27-year-old, I found myself nodding at almost everything stated by the author. Perhaps I don&#x27;t fall into the same category as most other HNers.<p>1. Stay married to the same person.<p>I married my wife right out of college (age 22) and we were and still are serious about the &quot;til death do us part&quot; bit. We realize that a strong marriage is something that takes hard work on a daily basis. Are there cases where this just isn&#x27;t the best route to take? Absolutely (e.g. abusive relationships, unfaithful relationships, etc).<p>2. If you’re going to have children do it before 35.<p>Our daughter is now 14 months old and we have a 529 set up for her. I&#x27;ll definitely be pushing for an in-state public school.<p>3. Choose a career you can imagine doing for 35 years and stick with it.<p>I love being a software engineer and I can&#x27;t imagine working at a different company than I do now. I&#x27;m constantly challenged and learning new things while being part of an amazing team.<p>4. Secure a job with a defined benefit pension, ideally one with a union that protects you from the wiles of a topsy-turvy job market.<p>This is where I diverge, albeit not necessarily by choice. I contribute to my 401k which my employer contributes a generous amount. I am not a member of a union.<p>5. Find a financial advisor you can trust.<p>This is one area where I&#x27;ve procrastinated. I&#x27;ve read a lot of personal finance books and blogs, so I&#x27;m not entirely ignorant, but I do need to find a competent professional to look after my finances.<p>6. Buy the best house you can afford.<p>I didn&#x27;t quite follow this advice, as we decided to buy a house below our means, but it is in a great area, brand new and plenty of space (2100 sqft). I don&#x27;t view buying a home as some sort of investment (i.e. I went in to it not expecting any significant return), but we bought towards the bottom of the market with an amazing interest rate. On top of that, we&#x27;re paying almost the same exact monthly payment as we did on our apartment that was 1200sqft while putting equity into something. It does help that we&#x27;re out in the burbs.<p>7. Years before you retire, develop long-standing interests that are not outrageously costly and that don’t depend on your job or your family.<p>I think this is great advice.<p>Many comments are saying this results in a really boring life during peak years, but I don&#x27;t see that. We eat out at great restaurants, have travelled internationally, are involved in our community, actively engage in hobbies individually and together, spends a large amount of time with friends and family, etc. I suppose it&#x27;s just a matter of different strokes...
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thewarrior超过 11 年前
This is EXACTLY how most people in India think. This is pretty much conventional wisdom here.
adamredwoods超过 11 年前
And the last one would be... 8. Have no regrets in life, so you don&#x27;t end up making a list of things you wish you did differently.
jlgaddis超过 11 年前
I&#x27;d like to go back to June 2011 and tell myself to hold onto that $10k worth of Bitcoin I bought at $7.
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31reasons超过 11 年前
um why is this on the front page ?