Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

What's a lot of savings to have for 40 year old

2

Comments

  • Moderators, Category Moderators, Arts Moderators, Business & Finance Moderators, Entertainment Moderators, Society & Culture Moderators Posts: 18,341 CMod ✭✭✭✭Nody


    Ush1 wrote: »
    It all depends on the stock of course.

    If you invest in a startup that goes pop, moneys gone, no matter how long you wait around.

    Didn't it happen to all the investors in Eddie Hobbs property investment group?
    Which is why the general recommendation is not to invest in stocks but broad, cheap (because many charge well beyond 0.5% what can be bought at 0.1 - 0.2%), index funds instead. That requires the least financial knowledge (compared to any other product outside the savings account), takes the least amount of time for a person to deal with (allocate the monthly savings to the funds; once a year do a rebalance of the funds) and will for the wast majority of people be the best option for long term (5+ years) savings.

    But to not derail the thread further I'll leave it at that; an more in depth discussion on cons and pros is probably best left in the Investment forum to avoid completly derailing the OPs question.


  • Registered Users, Registered Users 2 Posts: 5,245 ✭✭✭myshirt


    No such thing as a hearse with a tow bar, so I have no savings, I make it my business to ensure I spend it all. My dying wish is that the last cheque I write bounces.


  • Registered Users, Registered Users 2 Posts: 594 ✭✭✭The_Pretender


    Ush1 wrote: »
    It all depends on the stock of course.

    If you invest in a startup that goes pop, moneys gone, no matter how long you wait around.

    Didn't it happen to all the investors in Eddie Hobbs property investment group?

    The point is to diversify you investments. If you've invested in the 3 or 4 different ETFs you could own shares in 1500+ different companies. If all of the companies I've invested in go bust I won't be worried about losing my savings, I'll be worried about making it to the bomb shelter in time or dying of radiation poisoning :D


    Also, if you're looking to play around with individual companies, follow the advice of Peter Lynch and Warren Buffet - invest in what you know. I have to laugh at the people who, as soon as they come into some money decide to go out and buy an 'investment property' even though they have no knowledge of the housing market, being a landlord, the liabilities that come with it etc. If you're looking to invest in individual companies, invest in companies you can understand. Don't understand the banking system? Why would you put in AIB, BOI or any of the others. Doesn't make sense. Don't know how to read financial statements? How can you tell if the Company you invested in is doing well then...


  • Registered Users, Registered Users 2 Posts: 11,476 ✭✭✭✭Ush1


    The point is to diversify you investments. If you've invested in the 3 or 4 different ETFs you could own shares in 1500+ different companies. If all of the companies I've invested in go bust I won't be worried about losing my savings, I'll be worried about making it to the bomb shelter in time or dying of radiation poisoning :D


    Also, if you're looking to play around with individual companies, follow the advice of Peter Lynch and Warren Buffet - invest in what you know. I have to laugh at the people who, as soon as they come into some money decide to go out and buy an 'investment property' even though they have no knowledge of the housing market, being a landlord, the liabilities that come with it etc. If you're looking to invest in individual companies, invest in companies you can understand. Don't understand the banking system? Why would you put in AIB, BOI or any of the others. Doesn't make sense. Don't know how to read financial statements? How can you tell if the Company you invested in is doing well then...

    That's exactly my point. Most people aren't bothered doing that kind of work with investing their money, hence why so many will throw it into a bank savings account with a poor ROI.


  • Registered Users, Registered Users 2 Posts: 68,317 ✭✭✭✭seamus


    Do you mean "what is a lot" as in, "how much is too much?" or "how much do people normally have?".

    The answer to the second question is that "nobody really knows". Last year Irish life released a survey which suggested that half of adults had a savings account, with an average of €32k each in it: http://www.independent.ie/business/personal-finance/latest-news/half-of-irish-adults-have-32k-stashed-away-in-savings-34619062.html

    However, two years before that another investment company (standard life) released a survey which suggest that three-quarters of adults had a savings account with an average of €20k. each.

    So, either half a million savings accounts were closed in the space of two years and the money all given to someone else.

    Or, more likely, these surveys were flawed and did something silly like counting the number of savings accounts and assigning one per adult.

    Averages are also a very bad metric with money. If you have 100 people - 99 have €1,000 in the account and one person has €5m, then the "average person" in that group has €51,000 on deposit. Which in fact is 51 times larger than the typical reality.

    I would imagine the majority of people, if they even have savings, have less than €5k available to them inside of 30 days.


  • Posts: 17,378 ✭✭✭✭ [Deleted User]


    myshirt wrote: »
    No such thing as a hearse with a tow bar, so I have no savings, I make it my business to ensure I spend it all. My dying wish is that the last cheque I write bounces.

    Not to be all serious and stuff but deciding not have an emergency fund through the decades before you realistically end up in a hearse is far too great a risk.

    This time last year, my girlfriend and I's only worries were where to go on summer holidays. Now, we're both in a bad way healthwise and we're still only in our twenties.


  • Closed Accounts Posts: 32,688 ✭✭✭✭ytpe2r5bxkn0c1


    At 40 I had a mortgage and a growing family but kept saving and paying to a pension fund. By 45 I had approx. 111,000 in savings excl. pension. Mortgage was cleared by 47 and savings grew as a result. Retired at 53. I still save but don't do without in any way.


  • Registered Users, Registered Users 2 Posts: 6,854 ✭✭✭zuutroy


    Is it the case that the best thing to do with any money you having going spare is to pay it off the mortgage?


  • Banned (with Prison Access) Posts: 272 ✭✭Stars and Stripes


    Not been in debt is savings for a lot/most people over 40. I can honestly say I don't owe a cent to the banks or anyone else at this stage of my life, though I do know what it is like when you do. Due to a serious family issue a number of years ago I was maxed €10,000 up on a credit card, using the card to make repayments on interest etc. But family comes first regardless. Paid off the credit card and tore it up, switched banks (left AIB) and use a debit card since.


  • Advertisement
  • Registered Users, Registered Users 2 Posts: 4,028 ✭✭✭H3llR4iser


    Permabear wrote: »
    This post had been deleted.

    Out of curiosity, what would you consider a minimum amount at which it makes sense to look for investment, rather than keep the money in an account?


  • Registered Users, Registered Users 2 Posts: 1,315 ✭✭✭Viscount Aggro


    Age 45. I always keep about 20k in savings account which I can access within a week.
    I can also access high 6 figures within a few days, without selling property.


  • Closed Accounts Posts: 6,820 ✭✭✭smelly sock


    Well this thread has just turned into a pissing contest.


  • Closed Accounts Posts: 1,324 ✭✭✭RGDATA!


    AlanG wrote: »
    4-6 months take home pay would be a minimum. A lot of savings would depend on what you are saving for and if you have a mortgage or not.

    a minimum for whom? good for you if you have it btw.


  • Registered Users, Registered Users 2 Posts: 4,394 ✭✭✭Pac1Man


    Well this thread has just turned into a pissing contest.

    I can piss at a strong 70 degree angle for about 3 meters. I have access to this at any time.


  • Registered Users Posts: 10,633 ✭✭✭✭Widdershins


    Eleventy something somethings. At the very least.


  • Advertisement
  • Closed Accounts Posts: 4,042 ✭✭✭zl1whqvjs75cdy


    Pac1Man wrote: »
    I can piss at a strong 70 degree angle for about 3 meters. I have access to this at any time.

    If you can't piss at a 6 figure angle you're clearly a total pleb.


  • Registered Users, Registered Users 2 Posts: 7,498 ✭✭✭BrokenArrows


    I had about 6 months salary of savings but thats soon to disappear into the deposit for my house.

    So i guess it will probably take me 2 years to save up another 6 months salary.
    Always aiming to have 6 months salary in case i lose my job and now that im buying a house i cant really afford to be missing mortgage payments etc.

    I also put a decent amount into my pension. Im planning on being a pension millionaire and happily retiring at 55. Lets hope that works out!


  • Registered Users, Registered Users 2 Posts: 4,346 ✭✭✭King George VI


    "savings"

    What?


  • Closed Accounts Posts: 39,022 ✭✭✭✭Permabear


    This post has been deleted.


  • Registered Users, Registered Users 2 Posts: 81,220 ✭✭✭✭biko


    osarusan wrote: »
    I have 9 cigarettes in a box.
    For a rainy day.
    "Toss me a cigarette, I think there's one in my raincoat"
    "We smoked the last one an hour ago"
    So I looked at the scenery, she read her magazine
    And the moon rose over an open field


  • Advertisement
  • Registered Users, Registered Users 2 Posts: 43,028 ✭✭✭✭SEPT 23 1989


    Shrouds have no pockets


  • Registered Users, Registered Users 2 Posts: 8,549 ✭✭✭cml387


    biko wrote: »
    "Toss me a cigarette, I think there's one in my raincoat"
    "We smoked the last one an hour ago"
    So I looked at the scenery, she read her magazine
    And the moon rose over an open field

    "In this life
    One thing counts
    In the bank
    Large amounts"

    It falls apart a bit after that but the initial sentiment is sound.


  • Closed Accounts Posts: 39,022 ✭✭✭✭Permabear


    This post has been deleted.


  • Registered Users Posts: 2,626 ✭✭✭Glenster


    Shrouds have no pockets

    True, but alive people do.

    And most people at 40 would hope to live at least a little bit longer.


  • Registered Users, Registered Users 2 Posts: 1,315 ✭✭✭Viscount Aggro


    That's the oldest excuse out there.
    A lot of people seem to be banking on the old age pension. Its likely to be less in real terms, and they keep raising the age to access it, catches less people I guess. State pension on it's own is fine - if you want to exist on hot water and cream crackers.


  • Registered Users, Registered Users 2 Posts: 4,394 ✭✭✭Pac1Man


    Permabear wrote: »
    This post had been deleted.

    Not even that, I would be so stressed out if I had nothing tucked away.

    I'm 'paying' for that security and peace of mind.


  • Closed Accounts Posts: 32,688 ✭✭✭✭ytpe2r5bxkn0c1


    Shrouds have no pockets

    No but what about in the meantime? If you can live comfortably and save then do so. Savings lead to a much easier life later on. I know, I've done it.

    This crap about not taking it with you is the extreme. Nobody is saying save at the expensive of your livings standards now or to save with no intentions of spending it at some stage.


  • Registered Users Posts: 2,626 ✭✭✭Glenster


    That's the oldest excuse out there.
    A lot of people seem to be banking on the old age pension. Its likely to be less in real terms, and they keep raising the age to access it, catches less people I guess. State pension on it's own is fine - if you want to exist on hot water and cream crackers.

    The old age pension is too generous as it is.

    There are 17 year olds working 35 hours a week of backbreaking labour who get less than a 66 year old sitting on his arse.


  • Registered Users, Registered Users 2 Posts: 16,037 ✭✭✭✭Spanish Eyes


    There are no answers to this, depends on circumstances.

    However, a cushion of say six months mortgage/bills etc. in case of redundancy/illness, together with say 10-20k for enjoyment and major house stuff would be ideal.

    If people have more than that, that's great. But a rainy day fund is the first thing to have IMV. Always.


  • Registered Users Posts: 2,108 ✭✭✭Electric Sheep


    RGDATA! wrote: »
    a minimum for whom? good for you if you have it btw.
    A minimum as a cushion against loss of job, illness, other unexpected disasters. It's called an emergency fund.


  • Advertisement
  • Closed Accounts Posts: 39,022 ✭✭✭✭Permabear


    This post has been deleted.


  • Posts: 24,714 [Deleted User]


    Glenster wrote: »
    The old age pension is too generous as it is.

    There are 17 year olds working 35 hours a week of backbreaking labour who get less than a 66 year old sitting on his arse.

    The 66 year old has spent their entire lives paying tax. The 17 year old has a long long way to go to contribute an ounce of what the 66 year old did.


  • Registered Users Posts: 2,108 ✭✭✭Electric Sheep


    Glenster wrote: »
    The old age pension is too generous as it is.

    There are 17 year olds working 35 hours a week of backbreaking labour who get less than a 66 year old sitting on his arse.
    Anyone who is working only 35 hours a week is not breaking their back.


  • Registered Users Posts: 2,626 ✭✭✭Glenster


    Anyone who is working only 35 hours a week is not breaking their back.

    9-5 five days a week carrying heavy things around.

    Its pretty tough.


  • Registered Users Posts: 2,626 ✭✭✭Glenster


    The 66 year old has spent their entire lives paying tax. The 17 year old has a long long way to go to contribute an ounce of what the 66 year old did.

    No he hasn't, he's a paedophile who has always been on the dole.

    Mod: banned


  • Registered Users Posts: 2,108 ✭✭✭Electric Sheep


    Glenster wrote: »
    9-5 five days a week carrying heavy things around.

    Its pretty tough.

    Should have stayed in school.


  • Registered Users, Registered Users 2 Posts: 4,028 ✭✭✭H3llR4iser


    Permabear wrote: »
    This post had been deleted.

    I see...what I mean was "at which point it can be tangibly convenient", as opposed to the "too little gain that's not even worth bothering with it". You know what I'm talking about :)
    Permabear wrote: »
    This post had been deleted.

    Mmm...to be frank, I can understand both views - it's the third option (more to it in a while) that I just can't.

    If someone has kids, like you, I definitely see the concept of "covering all bases", without getting it too far of course. It's a no brainer.

    For someone like myself, single, no kids, 36 years old...not really planning on having a family at any point (although you can never say), it's a bit of a less obvious choice - personally I like to have a bit of a "cushion" should anything go wrong at some point, but I won't go out of my way to "save money". If one month I can't put anything aside, no big deal. I earn decently NOW (after a decade of barely making ends meet, shall I add) and can enjoy it while I'm healthy and youngish, without overdoing it.

    The attitude I can't understand is that of people actively hampering their living in order to save stashes of money indefinitely; There are a lot like that - then they die in "poverty", only for relatives to discover they had like 500 grands in the bank...


  • Registered Users, Registered Users 2 Posts: 1,315 ✭✭✭Viscount Aggro


    I recommend reading "Your Money or Your Life". It's a classic of personal finance.
    If you were to work out what you really earn per hour, take away what it costs you to attend the workplace, transport, clothing, lunch etc. The figure would surprise a lot of people - not in a good way.


  • Registered Users, Registered Users 2 Posts: 3,774 ✭✭✭Scotty #


    bmwguy wrote: »
    Everyone should be putting money away towards retirement though a 40 year old today will not get a state pension until 68 which is too old in my opinion to have to work full time. 60 and I'll retire.
    Watching a program about retirment one night on RTE there a year or two ago they said that retiring was the worst thing you can do for your life expectance with the average life span of a retiree in Ireland, regardless of what age they retire, being just 2.5 years.


  • Advertisement
  • Closed Accounts Posts: 32,688 ✭✭✭✭ytpe2r5bxkn0c1


    Scotty # wrote: »
    Watching a program about retirment one night on RTE there a year or two ago they said that retiring was the worst thing you can do for your life expectance with the average life span of a retiree in Ireland, regardless of what age they retire, being just 2.5 years.

    And I saw a programme some years ago that said people retiring at 55 instead of 65 lived an average of ten years longer that the retiree at 65. Hence ten more years of retirement. When those retiring due to ill health were excluded, of course.

    Also, the stats are skewed in your example by the fact that non retired people who die before 65 are excluded..


  • Registered Users, Registered Users 2 Posts: 12,844 ✭✭✭✭bear1


    I'm 29 going on 30, 70k left on the mortgage, wife is 32 and we've one daughter.
    Up till the end of a last year we had around 6k in savings and around the same left in our bank account after paying all the bills.
    We then had some serious issues which reduced our average account balance to about 3k after paying all the bills and by tomorrow our savings will have dipped below the 2k mark after having major car, house repairs.
    Is it a lot? Not a chance and it worries me a lot.
    But I'm planning to get our normal account back to around 5k this month which will help us build on that and restart putting the odd 300e into the savings.
    Savings are fantastic when something unexpected happens but my god is it depressing when you need to build them back up.
    If I had 20k saved by the time I'm 40 I'd be happy.


  • Registered Users, Registered Users 2 Posts: 5,834 ✭✭✭The J Stands for Jay


    Ush1 wrote: »
    It all depends on the stock of course.

    If you invest in a startup that goes pop, moneys gone, no matter how long you wait around.

    Didn't it happen to all the investors in Eddie Hobbs property investment group?

    Anyone who lost money in the investment obviously didn't read the prospectus. I remember reading it and thinking there's no way anyone else be taken in by that


  • Registered Users, Registered Users 2 Posts: 14,714 ✭✭✭✭Earthhorse


    Pac1Man wrote: »
    I can piss at a strong 70 degree angle for about 3 meters. I have access to this at any time.

    You should consider putting this into some form of long term storage; perhaps clean urine samples for high performance athletes.


  • Registered Users, Registered Users 2 Posts: 14,714 ✭✭✭✭Earthhorse


    Now, I'm no expert on finances, and I know you work in that field but surely it's better in a savings account earning nothing than taking bad advice and putting it in a pension and potentially lose it all as many people have or in bad investments.

    I'm sure you could advise better but when lots of people have been caught out surely you can understand why people would leave it as is.

    Bad investments or bad pensions?

    Pension contributions (to a certain limit) are tax free. So you have made a 25% or so gain right away there. Anyone approaching retirement age should be putting their pensions into more and more liquid assets (e.g. cash) to ensure they are mitigating the risks of a downturn in the market.

    Having said all that I have been guilty in the past of not investing my money when I probably should have. The most important thing is to have your income exceed your outgoings by a fair amount. That's the best way to save but you can have your money working for you at the same time if you want to.


  • Registered Users, Registered Users 2 Posts: 4,394 ✭✭✭Pac1Man


    Earthhorse wrote: »
    You should consider putting this into some form of long term storage; perhaps clean urine samples for high performance athletes.

    Golden Shower Enterprises?



    I'm imature. I'm sorry.


  • Advertisement
  • Registered Users, Subscribers, Registered Users 2 Posts: 13,615 ✭✭✭✭antodeco


    Own my own house. Doubling size of it at the moment, so have my first mortgage. Want this cleared within 6 years. Plan on retiring in 10. I'm not 40 yet. I've 2 kidneys sure


  • Closed Accounts Posts: 6,820 ✭✭✭smelly sock


    antodeco wrote: »
    Own my own house. Doubling size of it at the moment, so have my first mortgage. Want this cleared within 6 years. Plan on retiring in 10. I'm not 40 yet. I've 2 kidneys sure


    How much is your mortgage.


  • Closed Accounts Posts: 6,820 ✭✭✭smelly sock


    bear1 wrote: »
    I'm 29 going on 30, 70k left on the mortgage, wife is 32 and we've one daughter.
    Up till the end of a last year we had around 6k in savings and around the same left in our bank account after paying all the bills.
    We then had some serious issues which reduced our average account balance to about 3k after paying all the bills and by tomorrow our savings will have dipped below the 2k mark after having major car, house repairs.
    Is it a lot? Not a chance and it worries me a lot.
    But I'm planning to get our normal account back to around 5k this month which will help us build on that and restart putting the odd 300e into the savings.
    Savings are fantastic when something unexpected happens but my god is it depressing when you need to build them back up.
    If I had 20k saved by the time I'm 40 I'd be happy.

    Bs.


  • Registered Users, Registered Users 2 Posts: 5,064 ✭✭✭10000maniacs


    €10. I'm currently boycotting any company that sells stuff I can't afford.


  • Closed Accounts Posts: 39,022 ✭✭✭✭Permabear


    This post has been deleted.


  • Advertisement
Advertisement