A SUPER SAVER Looks At Soft Saving | A Better Way To Save & Invest?
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- เผยแพร่เมื่อ 8 ก.ค. 2024
- 00:00 Soft Saving
02:39 Reevaluate Retirement
03:33 The Power of An Income Stream
04:44 Word of Caution
06:02 Timing The Question...
06:53 Social Security
07:32 Health
08:51 Layoffs
09:14 Earlier Than Expected
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Disclaimer: Please note that this video is made for entertainment purposes only and not to be taken as financial advice. Always make sure to do your own research.
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Keeping you and your family in my thoughts Erin. Birth can be extremely traumatic. I hope you and baby are doing well. And that folks are taking good care of you. I will send warm thoughts to your Dad as well.
Thank you so much! 😊 baby and I are happy and healthy these days
For those of us who have subscribed to your channel for a significant amount of time, this was a difficult video to get through, due to learning more about the health issues within your family.
Time and health are very precious commodities regardless of one’s age.
We support you and are thinking about your family.
Thanks John!! Baby and I are doing great 😊 and I’m optimistic that my dad can find the care he needs
Erin I’m sorry to hear about the recent health scares and issues with your dad. Money stuff aside I pray that all is well with you and your family.
Sorry to hear about your dad's health. Same thing happened to my uncle just this week. Glad you were able to make it through your rough birth, hope all is well with you and baby.
Baby and I are doing great these days! 😊 thoughts and prays going out for your uncle!! 🙏
@@ErinTalksMoney Thanks Erin, he died last night, most of his brothers and sisters around him, his whole immediate family and a lot of my cousins. I didn't make it up in time, rough times. Happily, he was a responsible dude and all his affair are in order and his wife and kids are taken care of, kind of related to the point of the channel. We don't just do all this preparing for ourselves, but for those we leave behind.
How do you only have 48k subscribers? Such great content! You should have millions of subs!
Millions of subs follow stuff that pats them on the head. Erin is actually trying to help people help themselves. Not as many are up for that as opposed to a pat on the head.
Thank you for the kind words!! What makes me happy is that I seem to have a really wonderful subscriber base! They come back for most of the videos and seem to enjoy the content and provide useful feedback. I will happily take a smaller but more loyal audience any day of the week 😊
I have one kid in the work force and one about to enter. One will earn more, but not save enough. The other will likely earn less, but will save a higher percentage. I expect both of them to end up with many job changes over the decades, so I worry about their emergency funds and-especially to be able to cover medical insurance when between jobs.
Erin, you’ve created a firestorm of a video!! Get ready for debate, as I sit here today as a 52 year old male listening to you, I can’t help but think that you must have incredible insight to plan that way. Sadly, most of today’s youth don’t have that.
15% for Retirement is my sweet spot. It allows me to live a comfortable life today while still being secure for the future.
Me too, but we also have decent paying jobs and a great company match. Also have 1 teenager. So everybody is different
Nice!!!
And you are on point when you say it depends on what age of person you are asking about working in retirement. I’m 65 and after working for 50 years, I’m getting tired. I don’t mind owning the rentals but I don’t want an everyday job.
Erin I am so sorry about your dad. I lost my dad last March and I pray you don’t lose yours. I’m also thrilled you survived the birth of that boy and I know he is beautiful beyond words.
My mom says a similar thing - she always loved working - but now she’s in her early 70s - she is planning on retiring next month. And I asked her if she was going to miss it at all, and she said not really. I enjoyed what I did, but I’m ready to be done with it.
I’m sorry you lost your father. This past year, both my parents have had major health issues, and I’ve come to realize that watching your parents age is incredibly difficult. I hope you’re making sure to spend as much time as possible with your girls, and grandbabies.
Prayers for your family. May you all find peace, comfort and healing.
I’m a borderline super savor. But I’ve also known coworkers who died in their late 50’s/early 60’s and never got to enjoy a single day of retirement. So ya, I understand the argument of living NOW vs saving for a future that MAY or MAY NOT exist for you one day. It’s really a personal choice, regardless of what it’s called.
I think when things like that happen to someone close to you it has an impact on the way you perceive what do you want your life to look like.
This is an awesome video! You hit the nail on the head when you said that how a young worker feels today about working may not be how they feel about working as they approach retirement. As a Gen-Xer, I am actively planning my retirment and so very glad that I saved early even though as a 20-something I thought I would work forever. Thank-you for sharing examples from your own experience and family about how unpredictable life can be. Hoping for good health for you and your family.
They may boost it today but will Surely drain it tomorrow when they’re all on public aid.
@jeffstewart395 hence why I've switched to 100% Roth. "No" income in retirement = I'm just as broke as them on paper.
I wish I had actual tangible, practical advice like this in my teens & 20s. I heard too much vague and general tidbits. I pay it forward now to young pups.
To me it is about preparing for a rainy day. Those days do come. Being prepared for them financially helps mitigate a lot of stress.
💯💯💯
Prayers for your father! May God’s love comfort him and your family through this difficult time.
😮 I'm so sorry to hear about your Dad, I hope the issue will resolve quickly and also I'm sorry about your child birth complications, Thank God sounds like you and the baby are okay now. Congratulations on your first baby! at home you are very much liked and like a family member. Thank you for the hard work and excellent content, it would be amazing if you could present us the new baby in one of your videos 🥰
Baby and I are doing great now, and he will be making an appearance in a video in December 😊
Oh my gosh, you have a lot on your plate with your health and your families. Real life experiences are good examples. You never know what is going to happen.
LMAO !! I am not even half way into this video and I know this is going to go over with Erin like a TON OF BRICKS !!
No my ideal approach that’s for sure 😂
Last more i saved 75% of my salary, this month will be around 60%.
The majority of my savings (85%) are in "safe" investments with a rate of 3,8%, around 12% in stocks and the rest in cash.
In the last period i invest the earnings from the "safe" investments + monthly savings into the stock's market.
In the stocks market 60% are dedicated for dividends (yearly 7%) and the rest for growth.
I am not fan of soft saving, you never know what will happen in the future and if you will be able to work or how much you are going to earn or what kind of heavy expenses are waiting for you.
The reason that I can save more than 50% is that i managed, with a lot of effort, to pay the mortgage in 8 years and now I can relax and invest for a better future (financially at least).
Money market funds get about 4.5% now, with vanguard’s fetching even more. Also consider bonds, there’s some that offer 5 or even 6%
@@the-fantabulous-g , I live in a Eurozone country and the rates are lower in comparison with US dollar.
Our corresponding T-bill is rated at 3,9% for 26 weeks bill, tax free.
Believe or not nowadays Greece is borrowing money with less rate than US!
Current 10 years bond is 4,47% for US and 3,922% for Greece!!
Moreover, I wanna avoid messing up with investment in dollars because of exchange currency risk.
@@Kastoraki That's fascinating, thanks for sharing! Yeah it makes sense to minimize risk from exchange currencies. Godspeed my friend
On paper, it is easy to convince yourself you can save more later to catch up for lack of early savings. After all, you are likely to be earning much more later, right?
But saving early is a behavior decision as much as anything. Delayed savers never seem to make the attitude adjustment needed to recover.
I agree. 100%. Save hard now and when or if you want or need to change course later you will be in a much stronger position to do so. Because of life's uncertainty I say save until it hurts each payday. Being 53 and seeing that I can and will retire at 55 I look back and am truly humbled by the money we have saved. It took decades to grow and if we hadn't started hard in our 20's we'd never have amassed the money we now enjoy and the security of early retirement that it brings. Life is uncertain but I guarantee that when your older having money will make life easier to deal with than if you YOLO and are broke when life changes your plans unexpectedly. Congrats on the baby Erin and continued prayers for your father. -My Gen X 2 cents.
Prayers for you and your family to get through these troubling times of health issues.
I don't put $19,500 to 22,500 into a 401k or 403b because this is about half of my net income after taxes. However, I have been saving money and making investments as a public school teacher for about 10 years. I'm 55 now, but may work until 62 (75% Social Security), 67 (100% Social Security), or 70 (125% Social Security). But, this depends on my health. I currently have about $100,000-$150,000 in income and assets after I recently made a Will. In the end, most of this can't be removed immediately.
It’s about finding that middle ground, you don’t have to save the maximum amount. You just have to save something and enough to cover your bases. And Social Security plays a huge factor and all of that.
Besides Social Security, I have a state pension as a public school teacher, so this helps as well.
Great video. I am fortunate enough that I will have multiple income streams in retirement (Pension, Military, 401K, Roth, HSA, MM account and even SS) that I calculate I would only need to pull 4% from the 401K to live well. That is if i decided to take the pension and not roll that into a IRA or something. I feel sorry for soft savers and they will feel the stress when they are older... And I am sorry to hear about all of the health situations you have been through. I've experienced my share of those as well.
Having multiple streams of income is a great situation to be in! Sounds like you are gearing up for a great retirement. I hope you have many long and healthy years ahead of you!!
I think soft saving is not a better plan than making one's # 1 goal to save their first $100,000.00 thousand dollars. Reach $100,000.00 first because that will become a cushion for the curve balls that life will throw at you, just like you just experienced with having complications at child birth, your father ending up in the hospital and so on. That 1 hundred thousand will help ou get over the bumps of life, it is pre preparation for having children, buying a house, getting married, sickness. Another thing don't have a kid unless you have $100 thousand and are MARRIED first.
Not a bad approach.
That’s great advice!
I like that!
Perfect approach in my opinion 👍
I agree, it's important to have a financial moat if that's an option. Spending money is easy, anyone can do it even if they don't have money to spend? Saving in a word of consumers is hard and takes discipline. If you fall ill the last thing you want to worry about is money.
As a retired person in my late 60’s I can say I never heard of fire or soft savers when I was starting to invest. There was no one to say invest in your 20’s. I can say in my 30’s there was no extra money for investments beyond the match at work. You do what you can regularly and when finances improved we increased the investments to the max for our 401k. Luckily that worked out for us.
As I was listening to the video I was going "but Erin, you can't take it for granted you health will let you work later in life... But Erin....". Then you made those very points in your videos. I love how your videos are approachable and always right on. Congrats on the rug rat, and hope your dad comes out OK.
I can definitely see how a young 20-something would tend to think very differently about saving long term than someone in their 40s. Many of us Millennials who came out of the Great Recession pretty much wrote off retirement as little more than a pipe dream at that age. But most of my peers seem to have grown out of that way of thinking, and I'd expect the same for Gen Z. I personally am saving pretty aggressively, but I also don't expect to just stop working at 65 if health and well-being permits. My thing is I just want options, I hate being in positions where I have no choice but to do one thing.
This is called gaining wisdom with age. Absolutely you want the luxury of choices when you get older, and it might even be a necessity if no longer working isn't a choice (because of health or technology advances, etc). Cover your ass, duh.
One of the better videos you have put out. You have great vision of the future for being younger. The comments about getting to a later stage of life and not wanting to work like you did in your 20s was perfect. From experience, I could not get enough of work as a younger worker. As I near 60, I relish in being able to stop the daily grind and go fill my bucket with experiences. This change of perspective came after a health scare and as I crossed into my 50s. Thank goodness my wife and I planned for many decades to eventually leave the workforce.
Always be nice to your future self. Save more now, allow your future self increased security, more flexibility, and a nicer lifestyle. Future self will be grateful as hell.
You had the baby already?? Congrats!! I’m happy for you guys!
🙏
Congratulations on your child’s birth! 🎉 🙏🙏🙏 for your dad!
Thank you so much!!
good video and thoughts. Finding the right balance is quite difficult.
The problem with planning on working during your retirement years is that you have no control over it. Health issues primarily dictate and also job availability, etc. What will A.I. look like in the workplace 10, 20, 30 years from now as well. "Planning" on working during retirement and actually being "able" to are two different things.
I 100% agree with this
I think this new attitude arose from the Pandemic and the realization that you never know when your life might end and if you are constantly sacrificing for the distant future, you might end up dying before you get to enjoy life. I understand why the younger generation can think that way but they also have to realize that the current employees-market and work-from-home work life, might also change abruptly. Thinking you can "soft work" into you 60s is a crazy notion. In the decades to come, just like outsourcing and offshoring replaced a lot of jobs in my generation, automation and AI is going to replace a lot of jobs in the next generation. I think young folks have to realize that the world is constantly changing and they will become HAS-BEENs and Old-timers who are "draining the economy" if they don't have money saved away in 30 to 40yrs. (Getting laid off trying to find a new high-paying job in your 50s can be quite challenging.)
Great post
So true, the idea that you can re-enter the workforce at an advanced age is often harder than a lot of people imagine
@@ErinTalksMoney This is what my wife just said she worries about with her students. The lack of drive at the beginning of their careers indicates they won't be employable near the end, especially after time off...
I think I could financially retire but will keep working for health insurance. That is the real issue.
Very true!
If you're in the USA, you can easily get low cost insurance through ACA subsidies. My dad is retiring next year and will be on a gold plan (better than his workplace insurance) for less than $200/month for him and my mom. It's also cheaper than his insurance was through his employer. They just have to keep a taxable income of less than about $80,000/year to maintain the subsidy. Which is pretty easy since their home and cars are paid off. Plus they have Roth assets to draw from which don't affect taxable income in case they want to make a big purchase. You may want to consider contacting a CFP who could help you figure this out. Chances are you could probably get cheaper AND better insurance if you retired.
I've been waiting to hear when you were going to have your baby. I'm glad she's here and pray that you are both doing. I as sorry to hear about your father. I remember when my father had an infection in his fat cells that they couldn't clear out. He was in the hospital for a full year before he could come home. I think if anything is going to prevent me from retiring it would be health care.
Wishing everything goes well for you and your Family. You put out a great video every time.
Baby and I are both doing fantastic now - bit of a rough start, but we are good, and grateful, these days 😊 I am optimistic that my dad can get the care he needs.
But you are absolutely right, medical care is a huge component of all of this. And personally, I would not make the decision to retire, until I knew that my health care was taken care of.
Thanks for taking care of yourself. I love your presentations and find them helpful. Stay well !!!!!
Thank you!!
Sorry to hear about your Dad and your recent health concerns. Will be keeping you in my thoughts. Enjoy that bundle of joy! We have 2 under 2, and while its very difficult, every day is something new!
Oopsie, spell check, "reitrement". Happy Thanksgiving!
For sure, I was in between. I def enjoyed myself while working. I also saved good amounts. I also I was way more fortunate in income levels while working. It was also easier (and harder) because I was solo all but 5 years of my adult life.
So happy to hear you and little J made it through the birth. Hugs!
Happy thanksgiving Joe!!
Congratulations on your new baby I hope everything goes well for you and your family.
😊🙏
Just found your channel. Love your take on these topics. And…. Love that fiddle leaf fig!
Funny that I would come across this video today. Last night we were discussing how much to invest for retirement in 2024 and I made a comment that we could not match our 2023 (currently @ 65% of gross) without a lot of scraping. My wife asked if I wanted to try and I said no. The idea was not that it could or could not be done, but rather that that much of a push would leave us at odds with each other too often. While I am not looking to Soft Save, I'm also not looking to become a financial commissar.
Im an elder gen z (turned 25 yrs old last week). Personally, I moved home with my parents so I can save more and spend more than others. I max out my Roth and contribute 5% to a 401k (adds up to around 13% of my income). I also bought a 2020 tacoma for 37k and paid it off in 9 months. I also got laser eye surgery to get rid of my glasses and braces (4k each). 5k in tattoos, 3k in vet bills, and 3k in gifts for family. This is stuff that would've taken me a decade to do/pay for but I did it all in a year. Now I'm paying off some student loans and going to add a little more to the 401k this year now that the vehicle is out of the way. Going to save to buy either a house or semi truck this upcoming year.
First of all, happy belated birthday! 🥳 you definitely sound like you are full steam ahead with your finances. That’s awesome, congratulations!!
Love the videos! Keep it up 👍
I think the statistic @7:40 about involuntary retirement is the most significant variable. That ought to be a reality check for those who prefer immediate gratification of not saving. I'm personally planning to long as long as I can (for all of the reasons mentioned in the video), but I'm also saving/investing like crazy to cover my butt.
That’s the kind of thing that keeps me up at night, you just never know what’s going to happen. That’s why I saved so aggressively for so long. And while I still do save aggressively, I’ve definitely let up a little bit as I’ve gotten older. And I feel like I’ve gotten to the point where I give myself permission to spend.
There is a fine balance that can be accomplished by saving enough for your future and living life...discipline, living within your means and staying away from debt. Sending you well wishes to you and your family. ❤
Erin, so glad you are with us. Congratulations on your new bundle of joy. Praying for your dad.
Good luck for everyone's health in your family!
Consistency of income is more important than the amount. I’ve been investing & self-employed since the early 2000s, although my investment returns have been quite excellent; it still varies from year to year. So, for safety’s sake, I save a lot and spend less so I’m not caught up short if my income falls (like it did in a big way in 2009)
I'm still a part of the hustle culture. Its not about having a lot of money, its about being free. Until I reach FI I'm at the mercy of the paycheck.
I don't expect to retire. I just don't want to be forced to work.
Amen. As my co-worker puts it… “we are exchanging the value of our TIME for a paycheck”. I’d rather choose what I WANT to spend my time doing!
High quality content that helps people. Very well delivered. Thank you ! Blessings to your family. Thanks for sharing the health issues you faced and are facing. Many in your your audience will feel less alone - more hopeful in their own struggles.
So sorry to hear about the health issues :( I totally agree you. Having come from a poorer family, I'm all for a well funded retirement rather than hoping everything will work out when I get there. The place I work is pretty good and the staff get along reasonably well so I don't have a problem working a little extra here and there while I can.
Erin, #1.) thoughts and prayers for your Dad's recovery and strength for you and your family dealing with all the crises you've had to deal with recently. #2) Proverbs 21:20 "In the house of the wise are stores of choice food and oil, but a foolish man devours all he has." So, "soft saving" has been around a while. #3) As you point out, WANTING to work part time or whatever after retirement is much different than HAVING to work through retirement.
Blessings to you and your family. I appreciate your videos and share then with my later 20's daughters. Thank you!
Thank you!!
Thank you for focusing on how things can change unexpectedly and with age.
I have joked about a more extreme strategy of going into extreme debt while young, living it up not working traveling while young and full of energy, etc and then when hitting late 40s to settle and just work to pay off debt till you die. As a thought experiment, sounds interesting but I think ultimately a balance is best end in the end. Life is indeed and adventure and we all need the cycle of a goal and some pain to get to the goal in every phase of life.
Excellent commentary on investing, keep it simple!
The only savings I have are in my 403B account. I have maintained a 15% savings rate and stuck with an index fund. Always planned on working until 70 or 75 specifically because after 70 the amount of Social Security has the best payout after age 70. My wife and I plan on having our home paid off by the time I am 70. So no debt at that point.
Soft Saving, noun; the act of not saving enough for retirement with the expectation that one will still be willing and able to work into their 70s, 80s, and even 90s. See also: dumb
Synonyms: soft minded, self delusional.
Exactly what I was thinking, but you put it into words perfectly
I’m a borderline super savor. But I’ve also known coworkers who died in their late 50’s/early 60’s and never got to enjoy a single day of retirement. So ya, I understand the argument of living NOW vs saving for a future that you 100% do not know will be there one day. Regardless of what it’s called.
😂😂😂
This is a powerful video, soft savings to me is a lazy lifestyle, yes I did not do a lot of things in my 20s that my friends did but I made time for things I could not do in my 70's. Lots of backpacking, learning to climb, cross-country skiing. I stayed very busy with activities that fit my budget. At 65 I have no regrets, now my wife and I do things that we would not have done in our earlier days. 🙏 for your family Erin.
I think that’s the biggest key, finding activities that fit within your budget, and thank you 🙏
I think this is a bad idea. Most will never be able to catch up in savings. As their bodies break down and motivation (if any) will be dwindling down by then too. Soft also matches a lot of what I see entering the workplace.
I think I’d be too cautious about this. I’m retired with a part time position earning nearly the amount we need from our retirement plans. Since I know I won’t be willing to do this until I die, I make sure I keep my IRAs and 401s funded to provide for our future. If Social Security cuts come in 9 or 10 years, I’m good.
Instant gratification + no savings discipline + expecting perfect health and to work into 60's and 70's = financial disaster and dependence. For those out there that have children that ascribe to this crazy non financial planning who expect a wealth transfer from you, let them know you're leaving all of your leftover assets after you die to charity.
100% agree, i am a GenX (51 yo) and it looks like every new generation gets more delusional and entitled. I have been in IT for almost 25 years and I can bet you in a decade or so the majority of jobs will be automated. Good luck finding a "part-time" job in your 60's.
6:34 A large percentage of those "Work from Home" jobs involve computer skills that many in the older generations lack. I can't picture my parents trying to run a part time business making websites. I wish they could do something like that because they could use a few extra bucks. Medicare seems to consistently outpace SS amounts and while politicians tend to have their own COLA set in stone, they like to haggle over what the seniors really need.
congrats on the new bay
It's a fair point wanting to enjoy the present versus the FIRE movement idea of delaying all fun until retirement. However it's all good saying you want to work through retirement but what you really want is the option to work through retirement. Health isn't guaranteed and when you're 65+ and not in the best health, you'll wish you didn't take that holiday in your 20s and saved more for retirement.
Great video
Soft Saving sounds like the polar opposite to Coast Fi, it's probably better to Coast Fi and meet your goal early providing the opportunity to relax your savings rate in your 40s if you can afford it and want to.
I’m with you, I like the idea of saving aggressively, so I can relax a little bit as time goes on
First, glad you're okay after childbirth and hope your dad will be too. Second, the younger gen with their soft savings won't be regressing to the mean cause they're soft minded. Yes, this post will make me enemies, but it's true. Professor I know says her students that complain about money are the same ones that brag about Taylor Swift tickets and can tell you which Michelin star restaurants are best. Does it sound like these kids have the backbone to save even 20%? If the older gen that saved more is now hitting retirement age with regret, how do you think these younger ones will fare? I'm going to say not so good, unless they get a serious kick in the pants. The sooner the better.
Wow you look amazing after giving birth and stress with your dad! Congratulations on becoming a mom❤
I have the song, “how good is that” by old dominion on repeat - so when I get stressed, I pause and ask myself - how good is that and try to think about all the good things that are happening - and try to no focus on the bad….of course it took a bit to get to that point 😂 I think I cried for 3 weeks straight after birth. But I am doing great these days
But... but... Erin, saving and investing can be fun!
Great video as always. Sorry to hear about your father. Parayers to your family.
Much appreciated 😊
Like your videos. I'm active duty enlisted at 20years looking to go to 24 or 26 years. From 20yrs old to 35 I avoided any form of debt like the plague. from 35 to present (39) I have been squireling away about 50% of my income into TSP and brokerage acct.
I only found your videos after I had already established my plan but may have been super useful years ago. Keep doing what you do and I hope young people who could really benefit from them find them.
Thank you for your service! And your kind works! (My husband is also active duty enlisted - currently at 14 years. He’s planning on a minimum of 20 years…for the pension of course, may continue longer if he still enjoys it)
Long time viewer, part time commenter. You and your family are in my thoughts as you navigate all these health landmines.
Thank you for the quality content you produce
Thank you 🙏
Congrats on childbirth and wishing your dad a speedy recovery.
❤Great video!!!!! You're Amazing
Thank you so much!! 😊
thanks for the video
Thanks for watching! 😊
Soft saving just sounds choosing like the lifelong wagesl4ve route, which is what most people do already, just less intentionally.
As long as I don't have to pay for their poor decisions, that's fine with me.
When I was in my 20s and even part of my 30s, saving for retirement was the furthest thing from my mind. But I was having great times traveling! I don't regret any of that, but I do wish I had gotten serious about saving for retirement sooner. As it was, I was in my late 40s/early 50s before I woke up and realized I might not be willing or even able to work when I got older.
I'm retired now, and I'm doing fine because I did save. I wasn't consistent, and it wasn't 15% every year, but I'm so glad I saved what I could.
Save early. Save often.
Avoid consumer debt. If not investing 15 % minimum this is a missed opportunity to experience the wonders of compound interest. Just imagine a portion was invested in a SP 500 index fund from age 20 to 67 the amount it would have grown to.
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I am not taking Financial Advice from anybody in their late teens to early 20's. I also heard talk from somebody saying that 16 year olds in High School should be allowed to Vote.... they are allowed to get a Drivers License and drive. I don't even bother trying explain it.
If it does happen, I'm running for Office and promising no Homework on the weekends and Double Fudge Sundays for Dessert, All The Time! My advice to all the Z's is Make Hay while the Sun Shines. When you get older, you may not have the health or energy. Learn the value of Compound Interest. Remember, the Lazy Person knows not what it is like to appreciate rest.
Look, it goes without saying that nothing is guaranteed. But to not prepare yourself for the future is irresponsible. When you take out car insurance are you expecting a crash? Erin is absolutely correct is finding a happy medium. Experts have concluded that’s 15%
I think 15% is fantastic!
I think "soft savings" is just a euphemism for not saving for retirement - I wish i had done less "soft savings" now that I'm in my 50s and looking at a retirement that's OK, but could be better. And it's easy to say "I'll work until 70" when you're in your 30s or 40s. As you get nearer that time, retiring at 60-62 doesn't sound that bad, or at least slowing down to part time work for the 62-65 years. Soft savers will be greeters at Walmart in their 70s. Probably not a good plan.
Just note: A 30 year old who thinks they'd be happy working past 60 might not be as sure of that once they are 60...
It's easier to think you'll want to do that when you are younger...
(Just got to that part of your video... Exactly!!!)
It is very sad, that at the exact time, that savings will help the most, (as they will have the longest time for compounding), this Gen came up with this philosophy.) I guess its an aspect of believing social media, and thinking their gen has unique issues and problems. (BTW, while the pandemic, and other reasons that I won't go into, did create a small blip in inflation, I predict with the FED, and productivity gains inflation will still be under 3% in the long run.) If you are in your 20s and thinking about living this trend. Make a deal with yourself. Save 15% of your income for 10 years. And let it grow in an s&P 500 fund. If after that, you think it is foolhardy, just leave what you saved int that S&P 500 fund, and leave it to your 60. Then save what you want. You will be pleasantly surprised how your younger self helped your older.
I’m praying for your family/father
Of course the new generation is soft. I'm a dark souls saver 230% savings rate.
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If you are a life-long future-oriented saver, you have the option to cut back on investments and increase lifestyle whenever it makes sense in your situation. If you are a life-long soft saver, your financial options later in life are more limited.
7:25 Plan on it not being there - but expect that D.C. will have you pay in your full amount as if it will be.....
Hope everything works out for you.
"soft saving" just seems like a term Gen Z invented to not save. a way to bullshit oneself into giving in to spending more today.
Goes hand in hand with every other term they’ve created.
I’m a borderline super savor. But I’ve also known coworkers who died in their late 50’s/early 60’s and never got to enjoy a single day of retirement. So ya, I understand the argument of living NOW vs saving for a future that you 100% do not know will be there one day. Who cares what it’s called!
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"Soft Savings" == "Overspending"
Back in the day 10-15% was considered plenty to save for retirement, but assuming that we'd retire at 65.
I should have saved 25% for just the first 5 years of working, and I could have FIREd by now. The biggest thing is lifestyle inflation from overspending.
Hi Erin, great video. This is the first time I’ve ever heard of the term soft saving. I’m not surprised though. And I’m sure there will be new terms or phrases as we continue to go through life. Everyone’s financial situation is different. And those who plan accordingly for their own financial situation will hopefully do fine. Congratulations on your first baby! Is it a boy or girl? And I’m sorry to hear about your dad. Sending prayers to your whole family🙏
Hope you have a blessed day!
We had a boy 💙 he will make an appearance on the channel in December
Nice! I can’t wait to see him 😊 Hope you had a great Thanksgiving and have an awesome weekend!
You too! Happy Thanksgiving!!
My wife is about 8 months pregnant with our second. First birth was a bit chaotic/stressful than I'd like. Not excited about this upcoming one either. Sigh.
I am hoping all goes well for you and your wife for this next birth!! 🙏 they say no two births are alike, so hopefully this next one is incredibly easy for her!!
Excellent video!
Balancing your best life today while saving and investing for tomorrow can be a little tricky
I do believe social security will continue to be a safety net- replacing 30-40% of income in retirement
Current legislative solutions affect those born in 1978 - not affecting 1977 and before
I think 20% savings rate - including company contributions- is the sweet spot
20% sounds like a great rate
It feels like a nicer term for Gen z nihilism; a lot of people were kids during 2008 then grew up seeing few (tangible) improvements to their quality of life and as a result people just…don’t care anymore
(This is in addition to what you say, as I don’t think they’re at odds)
Wow, this video was so well done! You read my mind when you pointed out that the older the group, the less likely they were to say they wanted to work into retirement.
My mom is in her 70s - loved working the vast majority of her life - now she says, I’m just over it. I just want a slower pace of life. What was once fun may not be fun forever, and that’s ok!
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Also, something else younger people need to realize is that companies don’t want hire people in their 60s and above. People in their *50’s* have hard enough times trying to find work if they need a new job. I can’t see *any* company hiring someone in their 70s or 80s!
And I’m so sorry to hear about your dad. You all must be heartbroken!
The best rule is to take on zero debt except a house if necessary