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.
At first blush, $2 million seems like a lofty goal that is unattainable, but starting your retirement savings in your 20s and taking advantage of compound interest early on makes that figure more realistic.
“Of course, the problem is that the $20,000 is not an easy number to come by,” said Morris. “The miraculous power of compounding only works if you have the ability to fund all of it along the way and the market returns hold up. The take away is that the number is probably pretty accurate.”
I don't know very many people who can save 20k a year until at least their mid to late 30's, not with student loans and crappy wages. But if we hadn't gotten rid of pensions people wouldn't be faced with a choice of living at home in mom's basement for most of their life so they can save for retirement.
The article wasn't clear (nor could it be) on who needed $2M, current retirees, Baby Boomers, Gen X, Gen Y, babies today, everyone? I do think $2M is a good target and what I shot for myself to feel comfortable about retiring but that amount depends on where you live and your lifestyle, other sources of income (pensions, rents, investments, etc.).
What I found was after setting the target goal, I found ways to get the income to reach the goal. Goal setting is magical.
Man oh man. They just keep moving the goal posts. Sheesh.
The REAL answer is: bring back pensions. Re-appropriate the dough that's been siphoned off by the surveillance state to feed the bureaucrats who make our lives insufferable. Re-appropriate what used to be entry level jobs for our young people, which have been shipped off overseas in lock synch with the rise of the bureaucrats feeding at the public trough.
Last edited by Poncho_NM; 02-25-2016 at 01:45 PM..
Reason: We don't need political statements in this forum...
Man oh man. They just keep moving the goal posts. Sheesh.
The REAL answer is: bring back pensions. Re-appropriate the dough that's been siphoned off by the surveillance state to feed the bureaucrats who make our lives insufferable. Re-appropriate what used to be entry level jobs for our young people, which have been shipped off overseas in lock synch with the rise of the bureaucrats feeding at the public trough.
I doubt pension plans will return. Companies find 401K's cheaper and throw more of the burden and risks onto the employee.
Last edited by Poncho_NM; 02-25-2016 at 01:45 PM..
If companies brought back old style pensions, you all do realize that your paycheck would drop enough to pay for that. And if your company went broke your pension would disappear and you would probably have nothing. Or if that pension was insured by the government, that all companies who went broke and had pension funds would be drawing money from that same program at the same time so your pension would be vastly reduced. There is no free ride.
Companies like the 401K since they don't have to babysit your savings during the ups and downs of the economy. Workers like 401Ks because they have control over their own retirement funds. The government likes 401Ks because it gives workers an incentive to save for their retirement, even though the govt will get less tax money from you over your lifetime when you have a 401K because your taxes are deferred and likely at a lower rate when you retire than when you are working.
If companies brought back old style pensions, you all do realize that your paycheck would drop enough to pay for that. And if your company went broke your pension would disappear and you would probably have nothing. Or if that pension was insured by the government, that all companies who went broke and had pension funds would be drawing money from that same program at the same time so your pension would be vastly reduced. There is no free ride.
Companies like the 401K since they don't have to babysit your savings during the ups and downs of the economy. Workers like 401Ks because they have control over their own retirement funds. The government likes 401Ks because it gives workers an incentive to save for their retirement, even though the govt will get less tax money from you over your lifetime when you have a 401K because your taxes are deferred and likely at a lower rate when you retire than when you are working.
I am not against 401K's. I have contributed consistently to mine over the years and also will get a small pension from the current company I work for.
The best thing companies can do is offer and good match to 401K contributions to encourage more savings. Many companies don't match much.
And then there are those of us somehow living on $890/month SSI.
The average SS payment is $1341. Which must seem rich to you. So with a bit of financial genius, they'll do all right.
In fact that's about what the average income (inflation adjusted )was during the roaring 20's.
Last edited by pvande55; 02-21-2016 at 06:41 AM..
Reason: Add line
The median income household income in the US is about $55k. Putting 36% of gross income into retirement savings when you make less than $60k just isn't happening.
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.
