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Old 04-20-2014, 05:19 PM
 
897 posts, read 1,520,109 times
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I am not a believer in conspiracies. I think Lee Harvey Oswald killed Kennedy, case closed. However every time there is an article on retirement savings or SS like:

"You must have 8 times your pay in retirement savings"

" Only take 4% per year in withdrawals"

"Delay SS until 70.5"

The board lights up with "financial institutions want you to have more money so they make more money" and the "government hopes you die before 70.5".

Is this just good advice or do you believe there is an alterative motive to all these articles?
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Old 04-20-2014, 05:28 PM
 
29,764 posts, read 34,848,700 times
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My thought is that over preparedness is better than being unprepared. Do you want to over or under shoot.
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Old 04-20-2014, 05:52 PM
 
Location: Great State of Texas
86,093 posts, read 72,460,873 times
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In some sense I think the government would want the biggest generation to put off taking SS seeing how the government spent that money.

Me..I think I'm going to take SS early and hold off on my 401K until 70.
I've always marched to a different drum anyway so why stop now
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Old 04-20-2014, 06:15 PM
 
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On the other hand, if the Social Security folks did not provide an explanation of how your benefits are determined and how to maximize your benefits (which for most people is to delay taking Social Security as long as possible), there would be other conspiracy theorists ranting about how "the government" was trying to cheat them out of money by not explaining how to maximize their SS benefits and becoming all indignant because they weren't told to wait until 70 so they could get the biggest benefit. The same goes for retirement savings. If there was no one urging people to max their 401k and other retirement savings, there would be those who would see a conspiracy to withhold information and "keep people down."
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Old 04-20-2014, 06:16 PM
 
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there is a whole lot more information and parameters that have to be met that goes with those statements before they are right or wrong.
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Old 04-20-2014, 06:21 PM
 
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You need what you need and you need for what you want. Otherrwsie you'll end up taking welfare basically. Its not just retirees either.
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Old 04-20-2014, 07:18 PM
 
Location: Los Angeles area
14,018 posts, read 17,723,738 times
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When I was a boy (and that was a LONG time ago), my father told me to be skeptical of any claim advanced by the person who had something for sale. So yes, investment companies are going to be funding studies designed to "prove" that we all need huge amounts to retire. I wouldn't exactly call it a "conspiracy" but it is the normal skewing of a discussion by those who have something to gain from skewing it.
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Old 04-20-2014, 07:53 PM
 
26,075 posts, read 28,473,598 times
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Quote:
Originally Posted by caco54 View Post
I am not a believer in conspiracies. I think Lee Harvey Oswald killed Kennedy, case closed. However every time there is an article on retirement savings or SS like:

"You must have 8 times your pay in retirement savings"

" Only take 4% per year in withdrawals"

"Delay SS until 70.5"

The board lights up with "financial institutions want you to have more money so they make more money" and the "government hopes you die before 70.5".

Is this just good advice or do you believe there is an alterative motive to all these articles?
I believe there was a lot more to the Kennedy assassination than we're told. Plenty of videos on youtube that go over that ground.

Now, back to the topic...I do think the general advice on saving (a lot) more money is appropriate. If anything, the general advice is isn't hard core enough.

My favorite blog on the subject:


www.mrmoneymustache.com
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Old 04-20-2014, 07:56 PM
 
26,075 posts, read 28,473,598 times
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Quote:
Originally Posted by Chaofan View Post
On the other hand, if the Social Security folks did not provide an explanation of how your benefits are determined and how to maximize your benefits (which for most people is to delay taking Social Security as long as possible), there would be other conspiracy theorists ranting about how "the government" was trying to cheat them out of money by not explaining how to maximize their SS benefits and becoming all indignant because they weren't told to wait until 70 so they could get the biggest benefit. The same goes for retirement savings. If there was no one urging people to max their 401k and other retirement savings, there would be those who would see a conspiracy to withhold information and "keep people down."
Exactly.
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Old 04-21-2014, 05:47 AM
 
Location: Central Massachusetts
4,800 posts, read 4,842,106 times
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Quote:
Originally Posted by caco54 View Post
I am not a believer in conspiracies. I think Lee Harvey Oswald killed Kennedy, case closed. However every time there is an article on retirement savings or SS like:

"You must have 8 times your pay in retirement savings"

" Only take 4% per year in withdrawals"

"Delay SS until 70.5"

The board lights up with "financial institutions want you to have more money so they make more money" and the "government hopes you die before 70.5".

Is this just good advice or do you believe there is an alterative motive to all these articles?
4% is an interesting number but it might be a good rule of thumb. 8 times your pay is not much. Are we talking 8 times your annual salary? A person making 30k a year would only need to save 240k? Yikes! What kind of retirement would that provide?

SS delayed until 70 is good provided you file and suspend at Full Retirement Age (FRA). Getting it early will mean lower payments in the future when inflation could be eating away at your lifestyle.

What many forget is that the retirement savings they accrued over the years is for their retirement to enjoy. When people get to that time frame they look at it as something they can pass on to their heirs instead of enjoying all the hard work. Let the kids enjoy it. Yikes! I want to leave something for my daughter but I will be damned if I let her have it all after I skrimped and saved for what little I have.
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