Help on Retirement Question

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TPJCatholic

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I am a 48 year-old married man with five kids (with a new nearly 9 month old son). My wife and I do not exactly have what investors would call a portfolio…in fact, my wife has a 401k with her company and that is all we put away for our retirement. The truth is, we just have no other funds to put into retirement. Yet, it seems many people place pressure on those of us who have little funds going into retirement. Is it morally wrong to not be aggresively saving and investing for retirement?

As faithful Catholics we feel that we are doing what we can with what we have and we leave our future in the Lord’s hands. Is that wrong?
 
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TPJCatholic:
I am a 48 year-old married man with five kids (with a new nearly 9 month old son). My wife and I do not exactly have what investors would call a portfolio…in fact, my wife has a 401k with her company and that is all we put away for our retirement. The truth is, we just have no other funds to put into retirement. Yet, it seems many people place pressure on those of us who have little funds going into retirement. Is it morally wrong to not be aggresively saving and investing for retirement?

As faithful Catholics we feel that we are doing what we can with what we have and we leave our future in the Lord’s hands. Is that wrong?
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I don’t think it is necessarily a matter of right and wrong. We all do what we are able. I am fortunate to have a pension to look forward to, but I still get nervous about retirement–although it is far off for me. I think the key, however, is that we are called to be wise stewards of what God gives us. Remember the Bible passage which describes a parable in which the servants are entrusted with different amounts of money? The one is the most rewarded, upon the return of his master, was the one who invested the money and made the most in return on the investment. To me, I usually think of this more in terms of using our gifts, but I think we are called to also use wisdom about our money, to be good stewards. Don’t feel guilty, though, if your present circumstances fail to give you much room to save beyond living expenses.
 
TPJCatholic,

I think every persons situation is quite different. I’m your age and think quite a bit about retirement these days. Not that I am planning on retiring anytime soon I’m just thinking ahead and trying to plan.

“Retirement” holds different meanings to different people. When I say retirement, I think I mean terminating my present career. I am an Engineer and quite frankly do not wish to be doing this much beyond another 5-10 years. However I do hope to work much beyond 10 years in some fashion. Just less job related stress, less hours and much less commuting time. Alongh with this probably comes much less income.

In order to make this happen I need to save aggressively over thenext 5 - 10 years I figure. I have a 401k and some stock but I am far from wealthy.

It’s funny, you ask if it is morally wrong NOT to be aggressively saving for retiremnet and I question if it is morally wrong TO aggressively save for retirement. I hope that my attempts of attain financial security is not viewed as uncharitable or selfish. My needs are modest, they always have been. I’m not looking to be driving around in a BMW when I am 70 years old. I’m just hoping to be able to be self sufficient and comfortable.

I think it is certainly not morally wrong to not be aggressive about a retirement plan. Although I hope your career situation is one that can carry you forward into a fairly comfortable old age.

–Mike
 
I am a former financial planner, and I can tell you to begin saving for retirement as soon as possible. With as many kids as you have, and having to pay for their colleges, weddings, etc., as well as the care of your new arrival, it becomes a necessity. Additionally, one of the greatest elements in the performance of any portfolio is time, and the interest and gains that are compounded over time. Even a little bit put toward proper portfolio construction is better than none. If you have little means, I would strongly suggest visiting no-load mutual fund company websites such as Vanguard and Fidelity. Thet are excellent resources and have tools to help you out. Good luck.
 
gmmartin,

Thank you…we do not have any additional resources at this time…and college tuition is something that our kids are going to have to help carry. I realize that time is a critical element.

I am a stay-at-home dad…my wife makes a fairly good salary, yet with five kids it is still a rough road at times. I could return to work, yet that would require placing two of our kids in daycare, which is no small cost and which also means they will be raised by someone else. This situation will not change anytime soon because my youngest son is 8 months old. We try to trust in the fact that the Lord gave us our newest child (and he is an incredible blessing, as all of of children), which means the Lord wanted us to have these kids for a reason that fits into His plans.

So, you can see we are not in an easy situation to start saving more for retirement. We are literally in a “trusting that God will provide” situation. Yet, there are times when I have a fair amount of guilt about not providing for my family (I suppose that is a male thing).
 
Jesus taught ‘almsgiving’ NOT ‘tithing’. Do not get the two mixed up. Tithing was “nailed to the cross with Jesus” as my former Baptist preacher often spewed out so we no longer have a manditory God tax. If everyone stopped almsgiving at mass would there still be a Catholic Church?:hmmm:

Give what makes you happy. You have to justify it, not anyone else. You need to invest in retirement for you and your family. Without a retirement, how can you almsgive cash later? If you can’t give now because your baby - a gift from God:love: - needs milk, then perhaps your child will grow up to be a preist or almsgive more because you invested in him? Think outside the box. You have a lifetime to almsgive. You can also give the greatest gift of all and it may not coast you a penny, you can give of your time. Volunteer for Catholic Charities, to garden around a statue at the church, to go into your own garden and just pray a rosary every day. Time is the most valuable gift you have and it costs nothing but your free time.

A monk in a cloister has no money and no income, does he not almsgive? Of course he does! He does it in prayer for us.

JMJ
 
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Mijoy2:
I am an Engineer and quite frankly do not wish to be doing this much beyond another 5-10 years. However I do hope to work much beyond 10 years in some fashion.
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They desperately need math/science teachers all around the country, lots of hiring incentives, etc. It requires patience, forbearance, yada yada, but it’s extremely rewarding in terms of the impact it has on lives (this is my 18 year of teaching, I’m probably going to have to do it til I’m dead…speaking of retirement).
 
Hi TPJ,

We easily persuade ourselves that we are saving the absolute maximum that we can.

I have been retired 12 years now and I can tell you that if if had not been for the fact that I was offered to buy stock from my company, which was later bought from me at a huge profit, I would be hard pressed at 72 to make ends meet.

Think of your children, not only now, but 20 years from now. How would you feel if they had to sacrifice to support you in your old age? Governments are going to be doing less and less and we have to rely on ourselves. (Especially in the US, where health insurance is such a huge concern.)

Everyone can save at least 10% of their take-home pay. Make sure you do it as a minimum.

Verbum
 
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