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Old 04-02-2015, 01:28 PM
 
12,825 posts, read 20,132,535 times
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Quote:
Originally Posted by BellaDL View Post
The stats don't lie! The retirement crisis may not feel real to people who have already retired or very close to retirement. All the trends (income growth, widening gap income inequality with the least # of people owns the most, reduction/disappearing of private pension plan, retirement saving, 401K participation rate) all point out a not rosy or even very bleak future for future retirees.

Median Household Income Analysis by Age Bracket

Median Household Income Analysis by Age Bracket
Exactly. It is generational. The current retirees (the remaining GIs, the Silents, the older Boomers) are in pretty good shape.

Boomers will successively get worse and worse through each Boomer retirement year.

X will be hard cases.

Jury is still out on Millies. They may pull off a 4th quarter miracle, but if current secular macro trends prevail, probably nearly as bad off as X.
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Old 04-02-2015, 03:38 PM
 
Location: SoCal desert
8,093 posts, read 13,227,512 times
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Quote:
Originally Posted by BellaDL View Post
IMO, everybody looks at the world with different color glasses based on their own experience.
In this instance, I think it has to do with the age of the poster in question.

I remember talking at work about the "old days", I was complaining that all the good jobs were in the "Mens Column" of the want ads. Half of the office (ages mid 30's) looked at me like I was crazy - they had never realized that jobs had been separated by gender in the past.

Since we worked at a college - I suggested they take the Women's History night course
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Old 04-02-2015, 05:11 PM
 
2,294 posts, read 1,559,623 times
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Quote:
Originally Posted by SOON2BNSURPRISE View Post
Here is the deal and few practice this, save for retirement. Due to the power of compounding interest if you were to start when you were 20 years old and put just $2,000 a year into a 403B or 401K and do that for just 6 years and stop doing that, then work until you are 65 you will have over 1 million in your retirement account. Chances are you may have figured out that you need a bit more than that to retire. My plan is the $5million mark for my wife and I. We are doing everything we can to get to that point. No we did not start with a retirement account when we were age 20. So a lot of catching up has been happening over the years.
Heresy! To suggest people sacrifice a little and save 2,000 a year! What about those Starbucks drinks?????
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Old 04-02-2015, 05:49 PM
 
8,822 posts, read 5,123,147 times
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Quote:
Originally Posted by SOON2BNSURPRISE View Post
Here is the deal and few practice this, save for retirement. Due to the power of compounding interest if you were to start when you were 20 years old and put just $2,000 a year into a 403B or 401K and do that for just 6 years and stop doing that, then work until you are 65 you will have over 1 million in your retirement account. Chances are you may have figured out that you need a bit more than that to retire. My plan is the $5million mark for my wife and I. We are doing everything we can to get to that point. No we did not start with a retirement account when we were age 20. So a lot of catching up has been happening over the years.
You'd have to realize 11% CAGR. How will you do that?
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Old 04-02-2015, 06:21 PM
 
Location: USA
7,778 posts, read 10,136,173 times
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Too many live and breathe negativity. It's unfortunate. During the brief time I taught school, that's how it was from the majority of students. I told them they would grow up lopsided. The chip on their shoulder would become a log.

There may be more of a reason now, but back then, no, so whether it's warranted or not, the negativity is present.
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Old 04-02-2015, 07:29 PM
 
30,070 posts, read 47,312,423 times
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My sister retired at 62-- never married-- graduate degree w teaching certification in early 70s but didn't go into education. Some random jobs then became Catholic and joined order as novice. Served quite a few years in various locations and left in her 30s because she realized she could not be happy being bossed around by what she felt was a very vindictive Mother Superior at her last position. Took other jobs and finally started teaching at Catholic girls school. Would have been excellent admin but no certification for that although she was asst principal xcept for pay/title. Very stressful bcuz she lived outside town on farm/ranch and had livestock to care for. Early hours, longer commute back/forth, then more outside work.
I don't know how she lasted as long as she did. No pension w/school so she quit end of year she turned 62... Took early SS and Cobra ins--expensive. Tried Obama care (with bad advice from agent) for year or two--starts Medicare in May.

She managed to save enough money to buy a few very inexpensive rent houses and most of her renters qualify for sec 8 so payments are pretty regular. She can do most repairs herself and SS does not count rental income same as working salary from what she says so she wasn't penalized starting SS early--but will always have reduced amount.

I worry about her and her health -- but she is happy with her life for the most part I think.
I always thought she would have benefitted if she joined the military after college. She was smart, hard worker but never tried it. She also is much more able to appreciate the free things in life --beautiful sunset, seeing hummingbirds at the feeder, her baby lambs--more than I can.
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Old 04-02-2015, 07:50 PM
 
30,070 posts, read 47,312,423 times
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I wonder how many people (younger or older) pulled their stocks/bonds out on 08-09 and were too afraid to go back into the market's until the upside passed them by...
I know my sister in law who was late 70s, recently divorced then, was drawing SS and living off her IRA/savings....she rode the dropping curve almost to the nadir and got too scared and sold---at a loss needless to say. Went back into the market but after probably halfway or more upward. So she is still trying to recover and has no "new" income to invest.

Her oldest son was millionaire+-- he could have given her 14k tax-free to her or offered to pay some of her expenses--and she wouldn't have cashed out--she would have waited and been made whole but he didn't do that.

We stayed invested bcuz we had cash on sidelines and my husband's job was very secure. He had extra income that year from sale of property--should have put it all in sound dividend paying stock fund and would have certainly seen big profit in our taxable account. But we hedged and kept it in cash.
i wonder how many people did like my SIL and bailed, selling low and then either were forced to buy high to get back in or basically are in CDs, losing money in the sense there is no up side to their situation except no dividends/interest to pay tax on.
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Old 04-02-2015, 09:12 PM
 
29,772 posts, read 34,856,103 times
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Quote:
Originally Posted by MadManofBethesda View Post
That's not even close to being true unless you're married. Even married couples hit that threshold before grossing $100k if they only take the standard deduction.

For single people, the 25% tax bracket in 2015 begins at just $37,450 of taxable income. For married couples it begins at $74,900. So unless a married couple has $25,100 in deductions and personal exemptions, they're going to hit the 25% bracket with a gross income in the low $90k's.



Not necessarily. If your retirement income comes from pensions and social security, hitting the 25% marginal tax bracket is not optional at all.
Multiple Bada Bings!
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Old 04-02-2015, 10:31 PM
 
2,294 posts, read 1,559,623 times
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Quote:
Originally Posted by loves2read View Post
I wonder how many people (younger or older) pulled their stocks/bonds out on 08-09 and were too afraid to go back into the market's until the upside passed them by...
I know my sister in law who was late 70s, recently divorced then, was drawing SS and living off her IRA/savings....she rode the dropping curve almost to the nadir and got too scared and sold---at a loss needless to say. Went back into the market but after probably halfway or more upward. So she is still trying to recover and has no "new" income to invest.

Her oldest son was millionaire+-- he could have given her 14k tax-free to her or offered to pay some of her expenses--and she wouldn't have cashed out--she would have waited and been made whole but he didn't do that.

We stayed invested bcuz we had cash on sidelines and my husband's job was very secure. He had extra income that year from sale of property--should have put it all in sound dividend paying stock fund and would have certainly seen big profit in our taxable account. But we hedged and kept it in cash.
i wonder how many people did like my SIL and bailed, selling low and then either were forced to buy high to get back in or basically are in CDs, losing money in the sense there is no up side to their situation except no dividends/interest to pay tax on.
Many did this. When all the sellers were done, the market bottomed.
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Old 04-02-2015, 11:09 PM
 
26,085 posts, read 28,484,501 times
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Quote:
Originally Posted by loveautumn View Post
However, there is a health care crisis, IMO, which will eat up a large chunk of money for a lot of people.
The health care crisis is real, but is largely fixable; and we don't need to, and shouldn't, wait around for the government to fix it.

Forks Over Knives | Official Website
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