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How would an annuity screw anyone out of any money?
Unlike Social Security, with an annuity you name a beneficiary. So - if you die early, what you've saved goes to your beneficiary, rather than just going back to the state.
But of course, in order to name a beneficiary, you do actually have to think of someone other than yourself. Could be a problem for some people.
Whew, that's a relief. I have a beneficiary but with Social Security she won't get a dime. (pout)
This is very true. However, the information is readily available and generally free or low cost. (Public libraries, Half-Price Books, Google searches (from the free public library computers))
Basic information is readily available, but not the deep knowledge of what the information means with regards to how one should be investing, when to ride the wave, when to pull out, what exactly the history of a fund predicts, etc. That knowledge cannot be easily learned by googling.
I think people here are thinking of two different types of individual.
There are those who make a great income, assume the gravy train will never end, and make inadequate provision for their old age.
There are others who try all of their life, but through lack of ability or a rotten turn of luck end up with nothing.
One, we feel compassion for and our civilization should feel obligated to come to his assistance, but perhaps not so much the other guy.
Some people are ready and able to take advantage of any good situation that life presents them with. Some people are lucky.
Agreed to a point.
I had a martial arts instructor who had a saying.
Luck is a word losers use to describe why winners win. In other words Those less skilled or less prepared seek to justify their failures by blameing luck.
Most people I know that have 0 retirement have none for 1 reason. They never even tried to build a retirement. They had excuses as they sat in the bar complaining about not enough money.
They have excuses as they light up another smoke.
They have excuses as they buy 10 dollars worth of daily number tickets.
I personally know people who spend more in a month on lottery tickets than I have in my entire life.
Yes some fell on hard times. many felt that 10 dollars a week wouldnt do anything for them. Some flat out trusted in big brother. That was their greatest mistake.
Agreed to a point.
I had a martial arts instructor who had a saying.
Luck is a word losers use to describe why winners win. In other words Those less skilled or less prepared seek to justify their failures by blameing luck.
Most people I know that have 0 retirement have none for 1 reason. They never even tried to build a retirement. They had excuses as they sat in the bar complaining about not enough money.
They have excuses as they light up another smoke.
They have excuses as they buy 10 dollars worth of daily number tickets.
I personally know people who spend more in a month on lottery tickets than I have in my entire life.
Yes some fell on hard times. many felt that 10 dollars a week wouldnt do anything for them. Some flat out trusted in big brother. That was their greatest mistake.
The thing is, you can have it both ways. I'm a perfect example. I've spent plenty of time in bars complaining. But at the same time, I was socking away a little bit each month into my 403b, which I converted to an IRA.
Cut ahead 40 years.
Now I'm almost ready to retire, and I can afford to drink better beer in higher-class bars. And I still get to complain!
My employer offers a 401k but no match. The company the 401k is through offers plenty of advice and education, but I'm skeptical of how biased it might be. How to I find totally unbiased advice on how to invest a 401k? How do I know who to trust?
The stock market seems like an ok place to put your extra and fun money, but a risky place to put money you might need someday.
Get a subscription to Kiplingers and buy other financial magazines. You will find out different investment theories and the criteria necessary for a good investment. I pretty much invested in mutual funds. Part of that is that individual stocks can be volatile while mutual funds fluctuate more gradually. I know there are additional taxes and expenses, but I figure that is made up for by the fund manager's expertise. When you become really expert, maybe you can play with stocks.
Kiplingers had a great annual issue of mutual funds and their performance.
I had co workers who invested in individual stocks who got creamed. I guess I'm a bit more risk adverse and don't like to gamble that much.
I had co workers who also had advisors from big investment houses who got creamed.
I always thought if I lost money at least it would be from my own stupidity and that I need not pay someone to lose money for me.
Anyway, I bought these funds directly. At NO TIME did I have a financial advisor of any kind. I pretty much just read and trained myself and later there was one friend with whom I could discuss this.
Just go gradually and watch your investments and don't do anything that you cannot track regularly.
America is a low wage nation. The median income meaning 50% of all American workers make below this amount is $26,320 dollars a year.
When you get to $39,900 a year 66% of all American workers make below this amount.
Again, there is just no way that you can save for retirement on $26,300, $35,000, or even $50,000 a year.
Think about this you have to put away a pultry sum of money over decades then hope you can pay for college, pay for your children, buy a home without dipping into savings.
You'd have to hope that you don't experience a period of prolonged unemployment, divorce, major medical expenses, so you don't have to use that retirement money to survive.
Then for most the amount that we will need in our 401k's or IRA's is well over 1million dollars. Even $550,000 isn't enough to retire on for an extended period without social security and a pension.
$550,000 in a retirement account will get you about $22,000 a year of income before taxes. 1million in a retirement account nets you about $40,000 a year before taxes.
$550,000 in a retirement account will get you about $22,000 a year of income before taxes. 1million in a retirement account nets you about $40,000 a year before taxes.
I think we can expect better returns in the future since interest rates are at historic lows right now. I sure hope so. I just recently past 1 mil in lifetime earnings after 52 years of work.
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