Three-legged stool in retirement (55, pensions, weather, social security)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Is it still possible for most of us to retire under the 3 legged stool with the current economy? I guess most people define a three legged stool as pension, social security, and 401K. Is it a four legged stool if we include cash savings? Anyway, how many of you were retiring with 3 or 4 legged stool? I think most of us might only have 2 legged stool nowaday, left alone 3's or 4's. I'm still hoping to retire with a three legged stool, but who knows. I heard that Social Security might even be reduced or cut if you earn certain amount of income in the future. I hope that it won't happen, but then again, who knows!!!
Is it still possible for most of us to retire under the 3 legged stool with the current economy? I guess most people define a three legged stool as pension, social security, and 401K. Is it a four legged stool if we include cash savings? Anyway, how many of you were retiring with 3 or 4 legged stool? I think most of us might only have 2 legged stool nowaday, left alone 3's or 4's. I'm still hoping to retire with a three legged stool, but who knows. I heard that Social Security might even be reduced or cut if you earn certain amount of income in the future. I hope that it won't happen, but then again, who knows!!!
IMD
Solid Three/Four legged stool here. Consider ourselves blessed. Lots of folks with three if they wanted to save.
Is it still possible for most of us to retire under the 3 legged stool with the current economy? I guess most people define a three legged stool as pension, social security, and 401K. Is it a four legged stool if we include cash savings? Anyway, how many of you were retiring with 3 or 4 legged stool? I think most of us might only have 2 legged stool nowaday, left alone 3's or 4's. I'm still hoping to retire with a three legged stool, but who knows. I heard that Social Security might even be reduced or cut if you earn certain amount of income in the future. I hope that it won't happen, but then again, who knows!!!
IMD
Your other posts indicate that you are very seriously looking at retirement in about 10-12 years and have a plan which includes all 4-legs of your 'stool.' -- Good luck -- If you stick with your plan, you will probably be just fine.
However, many people are already standing ON their 'retirement stool' by spending money from their 401K and savings to weather the current downturn. Further, except for government jobs, pensions are almost a thing of the past; while employers are cutting back on 401K matching; and the age for full Social Security keeps creeping up.
We retired over 2-years ago and are pretty well set-up with pension, ss, savings and 401K (which we are investing and not spending). But, I think things are going to be very tough for our kids, who will likely still have kids in college ... as they head into retirement.
Therefore, we are taking steps now to help pay for our grandkid's college (long term annuities) -- and also to have something left to leave our kids for their retirement, after we are gone. In a sense, this is only what we have been doing for the last 20-years, while planning for our own 4-legged stool retirement.
A lot of people are 'hoping' they are able to comfortably retire. That's not enough! ... It takes planning, time and money management and the self-discipline to carry-through with the plan.
It's not only how many legs the stool has, it's the size of each leg. Some people have close to the maximum Soc. Sec. and some have very minimal Soc. Sec., for example. There's quite a difference. My monthly Soc. Sec. retirement benefit is $135. (No, that is not a typo.) But I am in great shape with my two-legged stool (I don't even count the Soc. Sec. as a leg) because the two legs are very strong. I always knew my Soc. Sec. would be minimal and just planned things that way. I am delighted to have any Soc. Sec. at all because it qualifies me for Medicare.
I've been on a two-legged stool since retirement and it is just fine. No Social Security for me because I was Civil Service. So the TSP (a government 401K, sorta') and my retirement check are big hunks of love.
As one poster wrote: It depends on how big the legs are.
Yeah, I've been on a one-legged stool (guess it looks like a pogo stick) since I retired in March of 2008. CSRS federal retiree - no Social Security, and money in Thrift Savings that I'm not planning to tap until required to, at age 70 1/2.
It's been no problem - it's a decent retirement, despite having no COLA this year or next. But it is comforting to know that I have TSP funds I can access if I need to.
It used to be that savings was an important part of retirement, since pensions can be legally dissolved and Social Security is a tax scam instead of an investment. But our government's overspending and borrowing has caused the Fed to keep interest rates near zero forever, and to undermine the dollar (thus eroding its purchasing power).
There are still no investments that provide a decent return; the vast majority actually lose principal.
And all the money we put into our houses continues to dissolve.
I have no idea how anyone retires nowadays, except of course for the lottery winners with pensions.
Private pensions are almost non existent nowadays as employers do away with everything but the 401k. My company gave me an option of a monthly check or a lump sum. Took the lump sum to guard against my former employer eliminating the pension check down the road.
Is it possible that if we wait until age 70 1/2 to withdraw $ from 401k or IRA or Thrift Savings we might end up in a higher tax bracket? I thought that after age 70 1/2 Minimum Distribution Requirements will kick in and Average Life Expectancy will be used to determine how much $$$ you have to withdraw from your account. Is it better to take it out regularly and put it somewhere before age 70 1/2 even you don't need the money?
Any thoughts on this?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I hope that it won't happen, but then again, who knows!!!
Today's retirement stool ... well, who knows?
