[Not_liking_FL]

Originally Posted by annerk

Do you really think it's all pensions? Between pensions, social security, IRA's, and personal savings/investments, that's not such a difficult number for an average white collar worker along the Northeast corridor to bring in.

A husband and wife who both had decent jobs and will get the max in SS benefits this year will get over $63K.

If they fully funded their IRA's over the years and draw 1/30th of it each year, that's another $24K a year give or take.

Let's say they worked for a corporation that gave them a pension benefit, that might be another $48K a year.

They bought their modest house on Long Island for $13K in 1974, and sold it for $800K in 2014. They bought a retirement home in Port St. Lucie for $250K and invested the rest. $550K a year would conservatively pay out $45K.

Add in their 401K's that they deposited 10% of their pre-tax income into for 35 years which are now worth $4M and they have changed over to very conservative funds that are earning 4% annually, that's $160K. Total annual income without trying is $340K.

That's all before standard savings or non-retirement investment accounts.

There are tens of millions of baby-boomers who are recently or just about to retire who will have this financial scenario, many of whom are moving to Florida and Nevada for warm weather and no state income taxes.

The good news is that they will create jobs as they will need to get their cars serviced, need medical services, need household cleaning, maintenance, and repair services, get their hair and nails done, buy groceries, clothing, and other items in stores, go out to eat, and need professional services such as CPA and attorney. Additionally they will more than likely spend time volunteering in the community.

Of course I don't think it's all pensions. I believe your statement of "tens of millions of baby-boomers scenario is way off base. That would put a lot more folks in the 1% category to be considered the 1%. Going by the numbers in the article I would think it's more baby-boomers living on fixed incomes.

[Trigger-f]

Originally Posted by Spring Hillian

There is more poverty in SC, NC and GA.

National poverty rate 15.4

North Carolina 17.5

South Carolina 18.1

Georgia 18.2

Florida 16.3

hehe

[macrodome2]

Originally Posted by annerk

They bought their modest house on Long Island for $13K in 1974, and sold it for $800K in 2014.

Nobody bought a house in LI for $13K and sold it for $800K. My husband and I did buy our first house on LI in 1978 for $56K (you wouldn't want to live in a $13K neighborhood in the mid- 70's). I just looked up what houses were selling for in that same neighborhood and it was under $500K.

[Not_liking_FL]

It seems Florida has dropped some over the past year. From the article I posted at the beginning of the thread Florida was, I believe, the 4th highest.

Florida Ranks 8th-worst for Income Inequality | WJCT NEWS

[annerk]

Originally Posted by Not_liking_FL

Of course I don't think it's all pensions. I believe your statement of "tens of millions of baby-boomers scenario is way off base. That would put a lot more folks in the 1% category to be considered the 1%. Going by the numbers in the article I would think it's more baby-boomers living on fixed incomes.

Tens of millions are about to retire and will find themselves in that scenario. In many cases they have less income working than they will retired. My husband and I will be there in 10-12 years, as much of our "wealth" is currently tied up in 401k's, IRA's, and our home--not to mention that as we get closer to retirement we will be saving more and more towards it and putting less and less into upgrades to our home and other discretionary spending.

[Not_liking_FL]

Originally Posted by annerk

Tens of millions are about to retire and will find themselves in that scenario. In many cases they have less income working than they will retired. My husband and I will be there in 10-12 years, as much of our "wealth" is currently tied up in 401k's, IRA's, and our home--not to mention that as we get closer to retirement we will be saving more and more towards it and putting less and less into upgrades to our home and other discretionary spending.

That is the case for many, but having retirement income > $378k or even $250k is just not realistic for tens of millions of people. Research has shown that many boomers have not saved for retirement. IIRC, it was like 40%.

[annerk]

Originally Posted by Not_liking_FL

That is the case for many, but having retirement income > $378k or even $250k is just not realistic for tens of millions of people. Research has shown that many boomers have not saved for retirement. IIRC, it was like 40%.

Around 55 million Baby Boomers are set to retire in the next 15 years. If only 20% of them meet my scenario, that's tens of millions.

We aren't planning on SS or the Pension plan to be there for us in our retirement, so we are saving with the goal of living in the same manner then as we do now based only on liquid investments. Most of our friends are doing the same.

[Not_liking_FL]

Originally Posted by annerk

Around 55 million Baby Boomers are set to retire in the next 15 years. If only 20% of them meet my scenario, that's tens of millions.

We aren't planning on SS or the Pension plan to be there for us in our retirement, so we are saving with the goal of living in the same manner then as we do now based only on liquid investments. Most of our friends are doing the same.

I'm thinking it will be more like 1%.

[Roscoe Conkling]

Originally Posted by macrodome2

Really?

I'm sure the fact that the cost of an education has skyrocketed, graduates today will be paying back loans for most of their adult lives, the middle class wage has stagnated, large corporations have moved middle class jobs off shore, and the minimum wage is worth less than it was when it was first put in place- that all had nothing to do with things today. The poor are just getting "lazier"? When I was young, you use to be able to at least get up to bat. Some of those "lazy" people can't even get into the ball field.

BTW, I am one of those entrepreneurs, and made plenty though hard work, risk taking, and good choices, but I do not agree that "greed is good".

The poor are getting lazier because of all the incentives not to work.
And greed is good because without the taxes the wealthy pay the poor would be even poorer.

[mrviking]

I am quite sure that I have ever woke up with the thought "D$%N those evil rich".." Why do they have so much more money then me". Not sure if I have ever met a 1%. I am pretty sure what they do does not effect how I am running my life. People need to get real and work on there own life and not be concerned what others do and have. Perhaps we can hear personal stories of how the evil rich personally effected someone's life.