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Old 01-09-2016, 02:04 PM
 
72,224 posts, read 72,173,749 times
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Quote:
Originally Posted by freemkt View Post
How might a minimum wage worker plan appropriately?
Easy ,don't be a minimum wage worker.

Next question.
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Old 01-09-2016, 02:14 PM
 
548 posts, read 641,850 times
Reputation: 567
A fundamental problem with the original article is that it relies on AVERAGES, not medians. It is true that 401k balances are quite healthy for near-retirement people in upper income brackets, especially since people aged 55-65 have experienced a booming stock market for most of their working life. Even with the crashes factored in, the last 35 years have been very, very good, though especially the 1980s and 1990s.

So _total_ 401k balances for the whole population may look good, but that hides the fact the majority late-working age adults have bupkis saved up. Sure, more people have some kind of account than those who used to get pensions, but a lot of those are 401k or IRAs with a few thousand dollars in them, which is basically equal to zero compared to paying for retirement.

The article's number that shows current retirees are doing well on income is also misleading. Yes, they are, but the big problem isn't here yet -- it's with future retiree cohorts. Combine the pathetic savings of the majority (not the high end) of those approaching retirement, and the fact that the generation appraochign retirement has much less generous private and public pensions. A 75 year old retiree from GM or IBM is doing pretty well; the 45 year old currently working for GM is will be receiving far less from the company when they are 75. Even a lot of states/cities have made their cushy pensions a lot less cushy for younger workers.


Quote:
Originally Posted by GreenGene View Post
The thread title is the title of an article in today's Washington Post. It says, among other things:

And,

The article also suggested (backed by data from the Organization for Economic Cooperation and Development) that when government retirement programs like Social Security offer more generous benefits, people tend to do less -- in addition to those government retirement programs -- to prepare financially for retirement.
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Old 01-09-2016, 02:17 PM
 
Location: Wasilla, AK
7,356 posts, read 4,214,294 times
Reputation: 16101
Quote:
Originally Posted by freemkt View Post
How might a minimum wage worker plan appropriately?

For the vast majority of people, the minimum wage is an entry level job wage. I worked a minimum wage job in high school and college. But college was the last time I worked for minimum wage. If you're working a minimum wage job at retirement age, then you are an underachiever who has done nothing to enhance your earning potential. So how do you plan appropriately? Get some employable skills, whether through college or trade schools. And then work your way up from there. And live within your means. And save and plan for the future. These are very basic concepts, but they are the difference between a comfortable retirement or struggling to exist.
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Old 01-09-2016, 02:20 PM
 
33,046 posts, read 22,154,191 times
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Quote:
Originally Posted by mathjak107 View Post
Easy ,don't be a minimum wage worker.

Next question.

I considered that and decided what little I had was better than hunger and homelessness.
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Old 01-09-2016, 02:25 PM
 
33,046 posts, read 22,154,191 times
Reputation: 8970
Quote:
Originally Posted by AlaskaErik View Post
For the vast majority of people, the minimum wage is an entry level job wage. I worked a minimum wage job in high school and college. But college was the last time I worked for minimum wage. If you're working a minimum wage job at retirement age, then you are an underachiever who has done nothing to enhance your earning potential. So how do you plan appropriately? Get some employable skills, whether through college or trade schools. And then work your way up from there. And live within your means. And save and plan for the future. These are very basic concepts, but they are the difference between a comfortable retirement or struggling to exist.

That requires money - there's the rub.
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Old 01-09-2016, 02:37 PM
 
Location: Central NY
4,712 posts, read 3,278,488 times
Reputation: 12108
Question: Can a closed mind learn anything new?
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Old 01-09-2016, 02:44 PM
 
Location: Wasilla, AK
7,356 posts, read 4,214,294 times
Reputation: 16101
Quote:
Originally Posted by freemkt View Post
That requires money - there's the rub.

I used the GI Bill, worked minimum wage jobs and took out a couple of small student loans that were paid off early. I suppose one can come up with any number of excuses, but there are a lot of people who manage to get an education with fewer resources than I had. As Henry Ford once said..."If you think you can do a thing or think you can't do a thing, you're right."
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Old 01-09-2016, 02:52 PM
 
1,842 posts, read 1,487,629 times
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Quote:
Originally Posted by GeoffD View Post
Quote:
Originally Posted by IDtheftV View Post
... there is talk of hugely increasing SocSec benefits ...
Do the math. It ain't possible.
Why are you quoting me and then saying " Do the math " ?

It makes it look like I support that sort of stuff.
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Old 01-09-2016, 03:00 PM
 
1,842 posts, read 1,487,629 times
Reputation: 1313
Quote:
Originally Posted by GeoffD View Post
Quote:
Originally Posted by bpollen View Post
Nonsense. First, Social Security is solvent currently,
Actually, Social Security is now cash flow negative. "Solvent" is bookkeeping nonsense ....
Cash flow negative is insolvent, not solvent. The system is based on cash-basis funding.

To make matters worse, people are always pointing to a "Trust Fund" that will pay out benefits that will make everything OK. There is no Trust Fund. It's a big fiction to make the hard choices that were necessary easy to put off.
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Old 01-09-2016, 03:01 PM
 
72,224 posts, read 72,173,749 times
Reputation: 49727
Quote:
Originally Posted by NYgal2NC View Post
Question: Can a closed mind learn anything new?
not if it is the closed mind of our resident pauper
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