Poll: how much have you saved?

Your savings

  • 10-100,000

    Votes: 14 28.0%

  • 100-200K

    Votes: 5 10.0%

  • 200-300K

    Votes: 4 8.0%

  • 300-400K

    Votes: 4 8.0%

  • 400-500K

    Votes: 4 8.0%

  • More than 500,000

    Votes: 19 38.0%
  • Total voters
    50

Tero

Philosopher
Tero
Joined
Oct 16, 2010
Messages
6,080
Location
North American prairie
How much have you saved?
Other than homes and cars, how much is in your savings, IRA accounts and other investments? If you own a second house or a golf course etc, add that.

I'm going to use dollars, but for this, we can use dollar=euro roughly.
 
Unless they are collectable or antique etc ... Automobiles are a liability.

You are overly optimistic ... having no thought whatsoever, that many people do not have the option to save money.
 
I have a hard time with this because I don't have much cash as compared to my net assets. We try to keep one year of expenses in savings and then everything else is invested in either real estate or stocks. So, my savings are pretty low as compared to my investments, and I don't really consider my investments as savings. They are working assets, for the most part, and I expect them to produce in the form of growth, dividends, or rents. These assets are not liquid and I have no intention of ever selling them. In fact, selling them would completely gut my retirement plans.

Savings implies a more passive account, like our cash savings account. So, I answered by the balance shown on my savings account, although I could see the rationale for trying to total up the value of my investments instead. It is just that their total value matters less to me than their production. A bit like a farmer's land, I suppose.
 
Yeggster said:
Unless they are collectable or antique etc ... Automobiles are a liability.

You are overly optimistic ... having no thought whatsoever, that many people do not have the option to save money.
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Depends on where you are. And what you earned. In the US, the safety net is weak. Socail security and Medicare as long as it lasts. So people DO save if they can. My European friends save for luxury things in retirement. That winter condo in Spain etc. Their lives are safe at home, though not luxurious, past the age of 60. You may be unemployed for some time rather than retired, depends on country.
 
Yeggster said:
Unless they are collectable or antique etc ... Automobiles are a liability.

You are overly optimistic ... having no thought whatsoever, that many people do not have the option to save money.
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Agreed. I saw something recently that 1/3 of Americans could not get access to $2000 if they need to in an emergency. That is frightening, but I remember that feeling when we started out. Likely I could have gotten the money, but it would have involved cashing in some chips with family and friends.

The one year in expenses rule we have tried to live by over the last two decades has certainly hampered our ability to live la vida, but it has lead to a very secure life even in the face of tough times or tough circumstances. Looking at a house purchase and thinking that an extra $500 in payments means I also have to have an extra $6000 in savings keeps you from overspending on things. It also makes paying off cars and limiting other monthly expenses more attractive. I'm not against debt, but it is too easy to let debt overrun your financial life if you are not careful.
 
Dr. Keith said:
Agreed. I saw something recently that 1/3 of Americans could not get access to $2000 if they need to in an emergency. That is frightening, but I remember that feeling when we started out. Likely I could have gotten the money, but it would have involved cashing in some chips with family and friends.

The one year in expenses rule we have tried to live by over the last two decades has certainly hampered our ability to live la vida, but it has lead to a very secure life even in the face of tough times or tough circumstances. Looking at a house purchase and thinking that an extra $500 in payments means I also have to have an extra $6000 in savings keeps you from overspending on things. It also makes paying off cars and limiting other monthly expenses more attractive. I'm not against debt, but it is too easy to let debt overrun your financial life if you are not careful.
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Debt, in order to make an investment, can make sense. That investment could be a house, a car to allow you to get to work or indeed an investment in a good business idea. Debt to fund ongoing expense IMO is not. I have friends and acquaintances who have borrowed money to go on holiday, pay for Christmas or buy some frippery they didn't need and no longer use.

I'm also a cheapskate who keeps cars til they become uneconomic to run (the newest of our 4 cars is 9 years old), buys own-label goods wherever possible, only buys new clothes when the old ones wear out and so on. As we've got older we've started to loosen the purse strings, we're just about to go on a (for us) expensive 2 week holiday in South Africa, but we still make sure that we keep saving for our retirement.

The "pain" of not having a new car every few years is more than offset by the comfort of knowing that my current car is paid for and, if necessary, we could fund its replacement out of our current account.
 
Dr. Keith said:
Agreed. I saw something recently that 1/3 of Americans could not get access to $2000 if they need to in an emergency. That is frightening, but I remember that feeling when we started out. Likely I could have gotten the money, but it would have involved cashing in some chips with family and friends.

The one year in expenses rule we have tried to live by over the last two decades has certainly hampered our ability to live la vida, but it has lead to a very secure life even in the face of tough times or tough circumstances. Looking at a house purchase and thinking that an extra $500 in payments means I also have to have an extra $6000 in savings keeps you from overspending on things. It also makes paying off cars and limiting other monthly expenses more attractive. I'm not against debt, but it is too easy to let debt overrun your financial life if you are not careful.
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Up until 8 years ago I could raise $50,000 over night on my credit line.

A serious of tragic events, medical problems, poor economy, and miss management of the little bit of remaining funds, has left me with almost nothing .,.

The first time since I was 14 I don't even own a vehicle now ... managing to keep my house so far ... but manly because it's cheaper by one third, compared to rent in my area.
 
Tero said:
How much have you saved?
Other than homes and cars, how much is in your savings, IRA accounts and other investments? If you own a second house or a golf course etc, add that.

I'm going to use dollars, but for this, we can use dollar=euro roughly.
Click to expand...

Why don't home count as saving ? It is a wealth. By your count, I have less than zero saved because i am repaying part of my home, and will be finished in 7 years. But it is still an asset.
 
Yeggster said:
Up until 8 years ago I could raise $50,000 over night on my credit line.
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I remember when my banker suggested that I apply for a home equity line of credit just in case I "needed it in the future". Apparently he was unaware that his bank would retract that line of credit if I ever actually needed it. So long as you don't need money, banks will always be there to lend it to you.
 
Aepervius said:
Why don't home count as saving ? It is a wealth. By your count, I have less than zero saved because i am repaying part of my home, and will be finished in 7 years. But it is still an asset.
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I don't count meh one as an asset because if I sold it I would have to find somewhere else to live. I also don't count the mortgage as a giant hole in my savings since I would have a similar payment if I rented.

By the time I sell the house I will have enough equity to buy or build my next house. But there will always be monthly payments, even if just taxes and insurance.
 
Dr. Keith said:
I remember when my banker suggested that I apply for a home equity line of credit just in case I "needed it in the future". Apparently he was unaware that his bank would retract that line of credit if I ever actually needed it. So long as you don't need money, banks will always be there to lend it to you.
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Mine was a financial decision to save money ... It saved me $300 a month AND I was paying down the balance faster.

Now it's still working as I am paying interest only and that makes the "mortgage payment) very low.
 
Last edited:
Only real "savings" I have is in my 401(k). If I add current equity in the house I rent out, but don't count the house I live in or the land I own, I'm at the $500K threshold.

Still, if I had to raise as little as $500 quickly I'd be hard pressed to do it until payday (tomorrow!).
 
We each entered retirement with about 20 years' worth of savings. We paid cash for our retirement house and car, live on Social Security and pensions (pensions include health insurance), and use our "retirement money" for big-ticket items such as home repair. We live within our means, take a major vacation every couple of years, and are reasonably comfortable.

This signature is intended to irritate people.
 
Dr. Keith said:
I remember when my banker suggested that I apply for a home equity line of credit just in case I "needed it in the future". Apparently he was unaware that his bank would retract that line of credit if I ever actually needed it. So long as you don't need money, banks will always be there to lend it to you.
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LOL That reminds me of a saying about banks: They will let you have an umbrella when the sun is shining but take it off you when it starts to rain.
 
Aepervius, you can certainly sell your home at some point and survive on that money. But the point was to seehow much we think we need. This money is just earning a profit for most of us and then can be used when you have no salaried income. On whatever. For necesessities, insurance etc. Those who did not save up work past 65. You can even earn 15 000 while collecting soc sec.
 
I made such a crappy salary that I was unable to save much money. A little but not much. My parents seeing this and me being their only child pitched in and my monthly checks to 25.00 pension fund supplied by my parents and the bank are as follows. $1200.00 social security, 425.00 pension that I earned, 725.00 out of a retirement account purchased for me by my father. Mother gave me her life savings of $200,000 and $90,000 in her checking account after she passed away. The house I am living in would sell for $150,000.

I owe my parents a lot. Without them I would have ended my days in a cardboard box on the street and thats if I was lucky.
 
Take on the restoration of a wreck of an old house by yourself, and take 2 or 3 years off work to do it, then come back to me and talk about savings, OK?
 
Tero said:
How much have you saved?
Other than homes and cars, how much is in your savings, IRA accounts and other investments? If you own a second house or a golf course etc, add that.

I'm going to use dollars, but for this, we can use dollar=euro roughly.
Click to expand...

I own my home outright with no encumberances. Where does that go? Savings?
 
Certainly the home is savings, but I did not want to make this too complicated. You need to own or rent a home, that is clear. The same house is worth 100 000 to 500 000 depending on location.
 
Tero said:
Certainly the home is savings, but I did not want to make this too complicated. You need to own or rent a home, that is clear. The same house is worth 100 000 to 500 000 depending on location.
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Indeed. See, some years ago I was indebted to the tune of almost a million. I worked my way out of that in short order to the point where I owe nobody nothing. It wasn't easy, but it is possible to accomplish, for anyone in such straits. There is always hope, but there must also be drive to do something about it.

Therein lies the rub. Is my current scenario savings or assets? One could cast it either way.
 
We just sold a house and have yet to buy, but in the long term we have just nothing whatsoever.
 
Joecool said:
Wouldn't you count that as a part of your net worth? Not sure about savings as the asset is not liquid.
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Sure, but it isn't my poll. I don't get to set the standard of measure, I am simply trying to find out what measure fits where in terms of the metric in use.
 
In raw, liquid assets I have roughly 10 grand I could access either immediately or in a very short time (2-3 business days). I have another 40,000 or so in equity in my house which is accessible even without selling the house, but much harder to access and would take some significant time.

But I also have a very rare thing these days, an actual honest to God pension, a small but not insignificant amount (It would royally suck and we'd be just scraping by, by me and the wife could survive on it in a pinch) that's going to be dropped into my bank account until the day I die which probably worth a lot more then any reasonable amount I could ever save up.
 
JoeBentley said:
But I also have a very rare thing these days, an actual honest to God pension, a small but not insignificant amount (It would royally suck and we'd be just scraping by, by me and the wife could survive on it in a pinch) that's going to be dropped into my bank account until the day I die which probably worth a lot more then any reasonable amount I could ever save up.
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My wife is going to have one of those when we retire. Except that GOP politicians in our state are trying to convert the pension into a 401K type plan. This is the first time I have seen my wife get quite passionate about politics.
 
I've been very, very lucky over the years. A small amount of savings have converted into a large amount of portfolio and primary dwelling assets.

My wife is just starting to grasp the importance of financial planning. Despite having a shared asset in the house, we otherwise do our own FP, and the scales are finally falling from her eyes about financial planners. ie: that they're mostly incompetent, but some are shady too.

The main breaking point for her was that we're reviewing our parents' investments (we have POA for our respective parents) and it's clear that the managed portfolios have vastly underperformed the unmanaged ones.

My poor dad... during this 2009 - present runup, his investments and yield have actually shrunk, but in some sort of sad Stockholm Syndrome, he continues to praise is financial advisor as a genius. Something-something-taxes. Getting rid of that parasite is on the agenda for 2017, even though it will precipitate an argument with my dad.

There's a website by a fellow Canuck that I have encouraged my wife to read: [Mr. Money Mustache — Early Retirement through Badassity]. Early retirement (50-55) has always been my goal, and I wish this site had existed 30 years ago when I was younger so I didn't have to learn the hard way.

My wife is somewhat avoidant, so unable to answer direct questions about her financial planning ("when do you want to retire?") which makes it difficult for me to contribute suggestions for her. I have a feeling we'll be living on my savings even though her earnings are twice mine at the moment.
 
It is reassuring to me that many of the ISF members do have reasonable levels of savings. Many surveys indicate that the majority of people in the USA have little or no savings, or literally owe more than than own. When asked, many people in the USA would have trouble obtaining just a few thousand dollars for an emergency without borrowing it from someone. This is a frightening idea to me, but I certainly know in person of many people in this situation. Some are just careless or stupid with money, but there are many jobs that simply do not pay enough for an average family to be able to save enough money for future needs. For example the average household income in California in 2013 was $60,000 a year- given the cost of housing, etc. in this state it is not easy to set aside much of that for retirement. And although some people lucky enough to buy a home think of it as part of their savings, one has to live somewhere! So the potential value of one's home is not going to mean very much in retirement unless one plans to sell it and move somewhere a lot cheaper (or into a tent in the woods). Or take out a reverse mortgage I guess.
 
Giordano said:
So the potential value of one's home is not going to mean very much in retirement unless one plans to sell it and move somewhere a lot cheaper (or into a tent in the woods). Or take out a reverse mortgage I guess.
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To some extent, I feel the same way about an investment portfolio... there's an interesting story in the media right now about Steve Bannon's retired dad selling off his AT&T shares in a panic in 2009ish because the market cap dropped.

My thinking about this is that, ok, yes, the market cap dropped, but the dividend actually went up that year. If the point of the exercise is to use the investments to generate income, it doesn't matter what the share can be sold for today if it's still providing you with $4 a year.

AT&T is currently yielding 4.70%, which is pretty typical for an old utility.
 
Giordano said:
And although some people lucky enough to buy a home think of it as part of their savings, one has to live somewhere!
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I own my home free and clear and I haven't had to pay rent for quite a few years. It would probably cost $500+ a week to rent the place I live in right now so that is a significant boost to my income.

There are those who say that the stock market gives a better return than a house but you would never be able to borrow a comparable amount to invest in the stock market.
 
Tero said:
How much have you saved?
Other than homes and cars, how much is in your savings, IRA accounts and other investments? If you own a second house or a golf course etc, add that.

I'm going to use dollars, but for this, we can use dollar=euro roughly.
Click to expand...

Absolute numbers in this context are somewhat meaningless. I'm below 10k (but well above my peers), but I have to work for another 30 years at least.

McHrozni
 
Thanks to Australia's superannuation system, now just over $500k. I will spend a bit of this before retiring, and it won't hurt me as I will receive a higher rate of pension. In fact I'm in a better position than someone with over $1m, believe it or not.
 
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