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You're right on all counts. Some would say the sky is falling on SS. Other level headed minds realize that SS has been "fixed" twice before to adjust for changing demographics and it can easily be fixed again if congress has the will. Of course this flies in the face of conservative republicans who want to dismantle the whole program. They've been trying to kill it since Roosevelt started it back in the 30s.
True, but most people in both parties want it there.
Remember, Clinton proposed allowing SS to invest in stocks to help save it. If a Republican proposes the same thing, the spin is that he/she wants to destroy SS.
Hence the problem of why no one will fix it. The other side will demonize any proposed solution.
True, but most people in both parties want it there.
Remember, Clinton proposed allowing SS to invest in stocks to help save it. If a Republican proposes the same thing, the spin is that he/she wants to destroy SS.
Hence the problem of why no one will fix it. The other side will demonize any proposed solution.
That's why the dirty word "Bipartisan" is so relevant to the discussion. Both times when it was fixed it was a bipartisan deal and no one complained. Unfortunately, bipartisanship is dead at the moment. Currently, what's good for the politician rules, rather than what's good for the people. Unfortunately.
Assuming and this is a big assumption.
Your house is paid off
Property taxes are relatively affordable.
You are in relative good health
In order to maintain a "middle class-upper middle class" lifestyle in retirement
You get around $20-25k/year from social security each year.
You probably need around 1.5 million-2 million in retirement account (in 2014 dollars) to live for 20 years in retirement (adjusting for inflation).
Americans gotta a long way to go.
5% perpetuity plus SS would be 125K on the high end or 95k using the low end of your ranges.
Considering the person would no longer be putting money into their 401k and with the items paid off as noted above I don't know about your definitions of how it would only be enough for 20 years of middle to upper middle class living?
I mean, sure if you are making 300k a year and used to spending at that level you would be in trouble but 100k is top 15% household incomes in the US and top 10% is around 120k.
For 100-125k a year not to be enough the person must be living someplace brutally expensive.
5% perpetuity plus SS would be 125K on the high end or 95k using the low end of your ranges.
Considering the person would no longer be putting money into their 401k and with the items paid off as noted above I don't know about your definitions of how it would only be enough for 20 years of middle to upper middle class living?
I mean, sure if you are making 300k a year and used to spending at that level you would be in trouble but 100k is top 15% household incomes in the US and top 10% is around 120k.
For 100-125k a year not to be enough the person must be living someplace brutally expensive.
Well if you live in Santa Clara Cty CA, Nassau Cty or Westchester NY, or Fairfax Cty VA 100-125K may not
be enough.
That's not the point here. The average balance is $165K, there is no claim saying whether or not that is enough by itself.
Even with Social Security and a paid for house, such a paltry sum of retirement savings would put most people in the realm of seeking a Mc Job to make ends meet.
The surging stock market helped boost average 401(k) balances to yet another record high in 2013. But many young and low-income workers are not doing such a great job of keeping that cash in their accounts.
The average 401(k) balance hit $89,300 at the end of the year, up 15.5% from $77,300 in 2012, according to an annual tally by Fidelity Investments. Most of the boost came from stock market gains as all three major stock indexes ended the year more than 20% higher
People on the verge of retirement, ages 55 to 64 years old, saw their nest eggs grow to an average balance of $165,200 from $143,300 in 2012, Fidelity said. Savers with both a 401(k) plan and Individual Retirement Account managed by Fidelity had larger nest eggs, with an average balance of $261,400, up from $225,600 in 2012.
Maybe so, but I've seen this happen many, many times before, people are doing great with they're 401(k's) then bam, the stock market crashes....they always do this....I hate wall street, and companies say, open a 401 k, but how many times in my life time, has the stock market crashed? I've seen it happen at least 4 - 5 times.
Maybe so, but I've seen this happen many, many times before, people are doing great with they're 401(k's) then bam, the stock market crashes....they always do this....I hate wall street, and companies say, open a 401 k, but how many times in my life time, has the stock market crashed? I've seen it happen at least 4 - 5 times.
What you've seen has most likely been people putting all their 401k into a few, or one stock which is a recipe for disaster that NO investment professional and none of the 401k investing software recommends.
The stock market has had decreases but you need to play the longhaul.
For example, you have 125k in the stock market 11 years ago...it took a dip to 98k the next year and then climbed up and then took at dip in 2008 and today is 256k.
That's close to a 7% rate of return and doesn't cherry pick a favorable starting point.
If you were to start with 98k 10 years ago, the return would be 10% annually.
In short, you've seen some dips in the stock market but anyone with a long-term, diversified 401k should ahve shrugged those off.
THat's not a market problem but an investor or single stock problem. If someone had all their 401k and lost 90% of it, that's not the fault of wall street.
It gets VERY hard to have a good retirement when you are investing in something only beating inflation by 1-2% annually.
Even with Social Security and a paid for house, such a paltry sum of retirement savings would put most people in the realm of seeking a Mc Job to make ends meet.
Depends. It's about $3000 a month (depending on SS), which is probably enough if your house is paid off and live, or want to live, in a low cost area. I probably means 'partial retirement' in most cases.
Maybe so, but I've seen this happen many, many times before, people are doing great with they're 401(k's) then bam, the stock market crashes....they always do this....I hate wall street, and companies say, open a 401 k, but how many times in my life time, has the stock market crashed? I've seen it happen at least 4 - 5 times.
It's really crashed only several times since the 1980s, and it has been quick to recover, so a well diversified portfolio will survive them with ease.
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