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I have been putting money into 401k for about 6 years now. I'm in my late 20's. I realize that SS will not be here for me and I deal with it.
I look around and see a lot of people my age and they are not preparing for retirement (in a means of some type of 401k etc. )
So I think to myself. How do these people plan on retiring? They are not doing white collar jobs so most of them are doing manual labor jobs that would be impossible to do at 70 years old. Keep in mind people are living longer these days. In 40 years who knows what the life expectancy will be. Probably at least 80.
So what do they do when they are too old to work?
This country is going to have a huge awaking when SS runs out because so many people are unprepared and it's only going to get worse.
Now, my biggest fear?
What happens when the majority of people in this country can not live without government assistance?
Will they pass laws that tax your 401k withdrawals even more? When the majority of the country needs government help they are going to be able to pass legislation through easier because they will control who is in office. So what's keeping some politician from pushing agenda through that will tax all the hardworking people even more. The hardworking people who decided to save more money when they were younger instead of blowing it on stupid stuff.
The reason I posted this because there is a person I work with who doesn't put anything into 401k. They make good money but blow the money on alcohol, partying, toys, cars etc. I took that one person and realized they are one of the millions in this country that do this. It just upsets me that so many people in this country try and do the right thing and we'll probably get screwed even more when it's time for all the hard work to pay off.
I know 401k is already taxed and I've accepted that but I think it's only like 20%. How many heads word turn if they bumped it up to 40% because the country needed more money to help feed and shelter the millions that did not prepare like you. Wouldn't this outrage you? It could be the difference in you needing government assistance later on in your life considering we'll be living so much longer.
You're 20, don't obsess over retiring. My retirement plans were wiped out three times but I still managed to retire at 53 and haven't worked a day since. Get a nice house and family, educate your kids. You are far too young to be worried about Social Security.
You're 20, don't obsess over retiring. My retirement plans were wiped out three times but I still managed to retire at 53 and haven't worked a day since. Get a nice house and family, educate your kids. You are far too young to be worried about Social Security.
I'm closer to 30, not 20. Still young on the broad range of things but I don't think I'm too young to worry about these things. I mean, it does not keep me up at night but it does worry me to an extent. Mostly when I see examples of people who will be feeding off the system at an old age who were unprepared.
We were once discussing retirement with our financial advisor, a very conservative guy. Even he agreed that social security will always be around in some form.
I agree with Boompa. Don't make financial decisions right now based upon what is going to happen in 30-35 years. We had some financial people come to the office recently to discuss our 401Ks, also conservative guys. They gave some financial advice for people in the 30s, 40s, 50s, etc. They didn't even mention the 20s. That is not the decade to do retirement planning. That is the decade to get started in a career, buy a house, get married, maybe start a family, etc.
I have been putting money into 401k for about 6 years now. I'm in my late 20's. I realize that SS will not be here for me and I deal with it.
I look around and see a lot of people my age and they are not preparing for retirement (in a means of some type of 401k etc. )
So I think to myself. How do these people plan on retiring? They are not doing white collar jobs so most of them are doing manual labor jobs that would be impossible to do at 70 years old. Keep in mind people are living longer these days. In 40 years who knows what the life expectancy will be. Probably at least 80.
So what do they do when they are too old to work?
This country is going to have a huge awaking when SS runs out because so many people are unprepared and it's only going to get worse.
Now, my biggest fear?
What happens when the majority of people in this country can not live without government assistance?
Will they pass laws that tax your 401k withdrawals even more? When the majority of the country needs government help they are going to be able to pass legislation through easier because they will control who is in office. So what's keeping some politician from pushing agenda through that will tax all the hardworking people even more. The hardworking people who decided to save more money when they were younger instead of blowing it on stupid stuff.
The reason I posted this because there is a person I work with who doesn't put anything into 401k. They make good money but blow the money on alcohol, partying, toys, cars etc. I took that one person and realized they are one of the millions in this country that do this. It just upsets me that so many people in this country try and do the right thing and we'll probably get screwed even more when it's time for all the hard work to pay off.
I know 401k is already taxed and I've accepted that but I think it's only like 20%. How many heads word turn if they bumped it up to 40% because the country needed more money to help feed and shelter the millions that did not prepare like you. Wouldn't this outrage you? It could be the difference in you needing government assistance later on in your life considering we'll be living so much longer.
You are wise. the people around you that you see are those people who are still plugged into the Matrix. they actually believe the Government is their shelter. it is not. the Government used to be 'for the people, by the people and of the people', it is no longer that way.
I'm closer to 30, not 20. Still young on the broad range of things but I don't think I'm too young to worry about these things. I mean, it does not keep me up at night but it does worry me to an extent. Mostly when I see examples of people who will be feeding off the system at an old age who were unprepared.
Keep doing what your're doing, put as much as you can afford into a 401k at a young age. Compounding will make what you put in now grow dramatically over your working career. One thought also would be to put after-tax money into a Roth IRA as well, that way, benefits are not taxed when you collect (assuming the laws are not changed). I have not done so and need to start.
My concern is also similar to yours. Many people have planned for retirement and put savings away...but many have not. When those that have saved responsibly retire and enjoy the fruits of their decisions and savings they may well be demonized and penalized. It's happening already, if you have an income your SS benefit is taxed. Given the class envy that's being propogated by so many in this country, one can expect this to get worse. I would suggest offshore investments, but our government is going after that as well.
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I know 401k is already taxed and I've accepted that but I think it's only like 20%.
Money put into your 401k is pre-tax. You will pay income tax on it when you retire. It used to be advisable to do this, the assumption is that you would make less when you are retired than during your working career and therefor pay tax at a lower rate. However, I'm not so sure that's a good idea any more, my personal opinion is that tax rates will rise dramatically over the next few decades. With a Roth IRA you pay taxes up-front but what you withdraw at retirement time is tax free. It might be a better bet these days.
It just upsets me that so many people in this country try and do the right thing and we'll probably get screwed even more when it's time for all the hard work to pay off.
I know 401k is already taxed and I've accepted that but I think it's only like 20%. How many heads word turn if they bumped it up to 40% because the country needed more money to help feed and shelter the millions that did not prepare like you. Wouldn't this outrage you? It could be the difference in you needing government assistance later on in your life considering we'll be living so much longer.
Welcome to Middle Class America. You left out young folks on Welfare, having children they can not afford.
That upsets me more, than someone who actually has
a job, and at least pays something into the system.
Your definitely on the right track.
Just remember: Stop and Smell the Roses once in a while
I think the Govt will eventually go after the 401Ks with increased taxes, so who knows what its future may be? I wish they would allow you to put more in a Roth IRA per year, and who knows when the Govt decides to rewrite the rules and start double taxing you on that.? It's all a crap shoot. Just try to prepare as best as you can.
I would like to add, 30-35 years ago, 401Ks were unheard of. There may be another retirement form by the time the OP gets old enough to really have to think about retirement. BTW, if you have your kids late, like we did, you'll be working a long time, anyway.
Will they pass laws that tax your 401k withdrawals even more? When the majority of the country needs government help they are going to be able to pass legislation through easier because they will control who is in office. So what's keeping some politician from pushing agenda through that will tax all the hardworking people even more. The hardworking people who decided to save more money when they were younger instead of blowing it on stupid stuff. .
Sadly, your are probably right on track with your train of thought. Likely they will attempt to pass legislation to seize and redistribute 401k wealth. It will be propagandized as simply "unfair" that so many fat cats like you saved up for retirement by stealing from the masses through the stock market, aided by the greedy Wall Street bankers.
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You left out young folks on Welfare, having children they can not afford.
