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I have always said this "retirement" crisis was waay over exaggerated. now I do admit that my circle of trust is not that big but as I am approaching retirement I've seen basically that most retirees are living the life they had pre retirement.
the ones that are struggling are the ones that were struggling prior.
I do not know 1 person who retired and all of a sudden are in financial crisis. I think it's a bunch of crap that the financial industry is selling that you need millions of dollars to retire.
Well you don't know me. And it is not crap that you need "millions of dollars to retire". YOU DO need millions, in the form of savings, pension, and SS income. People can usually expect to live another 20 to 30 years after they retire these days. Let's go with 20. Let's assume you have 5 million dollars in the bank. That is a bit over $2k per month. That sounds GREAT to me now (it is actually more than I get), but is usually about a quarter or less of what most people capable of putting that much cash back are used to earning.
And, a lot of retirees have expensive retirement plans that include trips to Tuscany and month long cruises. A lot of said retirees end up having to cancel those plans or else end up running through all their savings, because 5 million dollars is a lot of money to get in one year, but it's a fraction of the income you were making while you were saving it up. Seriously. Even if you had that $5M in cash in the banks, that amounts to 24k per year, assuming you don't actually live longer than 20 years. That isn't even a beer budget That is a bread and water budget. Even if there is only one person in the household.
And as has been mentioned before, one medical crisis and you're wiped out. You seriously don't think you'll hit a single health speed bump after the age of 60? Or your spouse? More likely both.
Not necessarily. That's why you need to pay for good health insurance, before and after Medicare. My wife and I retired about 10 years ago. Three years ago I got hit with close to a $380,000 hospital bill. With Medicare and my supplementary insurance I paid $1,700 out of pocket. Continuing care is somewhere between $15K and $60K per year for me. I pay about $10K per year in deductibles, Medicare, supplemental insurance, prescriptions for myself and my wife. It's worth every penny.
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Originally Posted by Pyewackette
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And as has been mentioned before, one medical crisis and you're wiped out. You seriously don't think you'll hit a single health speed bump after the age of 60? Or your spouse? More likely both.
With 5m you could take out 24000 for 200 years. or. 200000 for the rest of your life at 4%. plus SS will kick in at 70 with another 40000 if you have a wife. You need a new finance adviser. Or find out what you wife is spending on the side.
Is this like those studies where 80% of people think they’re above average at driving?
Honestly, I wouldn’t trust the average person’s level of finance knowledge to create a budget for a year, let alone know whether they have enough assets allocated properly to fund 30 years of retirement.
Dunning Kruger at work. They think everything is fine because they don’t actually have the skill and knowledge to know their deficiencies.
Well you don't know me. And it is not crap that you need "millions of dollars to retire". YOU DO need millions, in the form of savings, pension, and SS income. People can usually expect to live another 20 to 30 years after they retire these days. Let's go with 20. Let's assume you have 5 million dollars in the bank. That is a bit over $2k per month. That sounds GREAT to me now (it is actually more than I get), but is usually about a quarter or less of what most people capable of putting that much cash back are used to earning.
And, a lot of retirees have expensive retirement plans that include trips to Tuscany and month long cruises. A lot of said retirees end up having to cancel those plans or else end up running through all their savings, because 5 million dollars is a lot of money to get in one year, but it's a fraction of the income you were making while you were saving it up. Seriously. Even if you had that $5M in cash in the banks, that amounts to 24k per year, assuming you don't actually live longer than 20 years. That isn't even a beer budget That is a bread and water budget. Even if there is only one person in the household.
And as has been mentioned before, one medical crisis and you're wiped out. You seriously don't think you'll hit a single health speed bump after the age of 60? Or your spouse? More likely both.
In what world does 5 million of cash only generate 24k in yearly income?
Even a CD would kick out many multiples of that.
Hell, with NO return what so ever...you could take principle of 250k every year for 20 years...
Anyways, if I had 5 million, I’d ladder it into 3 baskets of risk and move the higher returns down the chain into the lower risk baskets. Just because you’re retiring ...imo doesn’t mean you should go super conservative. Your time window is still 20 to 30 years as an investment horizon .
If this is the person I think it is.Look her up. They want to take all Ira and 401ks and use them as a annuity. When you die the Government takes the money.
Well you don't know me. And it is not crap that you need "millions of dollars to retire". YOU DO need millions, in the form of savings, pension, and SS income. People can usually expect to live another 20 to 30 years after they retire these days. Let's go with 20. Let's assume you have 5 million dollars in the bank. That is a bit over $2k per month. That sounds GREAT to me now (it is actually more than I get), but is usually about a quarter or less of what most people capable of putting that much cash back are used to earning.
And, a lot of retirees have expensive retirement plans that include trips to Tuscany and month long cruises. A lot of said retirees end up having to cancel those plans or else end up running through all their savings, because 5 million dollars is a lot of money to get in one year, but it's a fraction of the income you were making while you were saving it up. Seriously. Even if you had that $5M in cash in the banks, that amounts to 24k per year, assuming you don't actually live longer than 20 years. That isn't even a beer budget That is a bread and water budget. Even if there is only one person in the household.
And as has been mentioned before, one medical crisis and you're wiped out. You seriously don't think you'll hit a single health speed bump after the age of 60? Or your spouse? More likely both.
LOL!!!
You should probably learn something about RMDs.
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