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Old 02-22-2016, 05:09 PM
 
Location: The New England part of Ohio
18,678 posts, read 23,263,761 times
Reputation: 48876

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Quote:
Originally Posted by Suburban_Guy View Post
I started a bit late, catching up now. Hopefully social security will still be there if I make it that far.

You'll Need $2 Million Before You Can Think of Retirement - TheStreet
Why do people delight in posting "scare posts" such as this? Most people will not retire with 2 million in the bank. And they will be just fine.

As long as people (politicians) do not raid SS, (as Reagan did in the 80s) it will be there when we need it. It isn't an "entitlement" - it's our money.

 
Old 02-22-2016, 05:22 PM
 
Location: SoCal
13,252 posts, read 6,345,210 times
Reputation: 9865
Reagan actually help saved SS, in 1983, SS was on the verge of not being able to mail out SS checks. Just google it.
I don't know anybody recently thought of abolishing SS. Not after 2009 crash. It's silly talk.

But if your house is paid off, SS is enough to live on. I know because I've actually retired for almost 3 months now. No income, only social security. Our checking account is not depleting, it stays constant.

Last edited by NewbieHere; 02-22-2016 at 06:21 PM..
 
Old 02-22-2016, 05:40 PM
 
6,625 posts, read 3,754,399 times
Reputation: 13703
Quote:
Originally Posted by luv4horses View Post
Really, I don't see what everyone is getting so excited about. If the generation who is retiring in 2016 was recommended to have $1,000,000 in savings for their retirements, and if inflation continues at a steady historical rate for the next 30 yrs, then a person starting a 30-yr career today would need to save $2,161,642.34 by the time they retire in 2046 to have the same value of their money.

Put another way, the cumulative inflation rate since a 2016 retiree started his career in 1986 was 116%.

Check out the result here: Inflation Calculator | Find US Dollar's Value from 1913-2016


This also reminds us that as we continue in our retirement, everything will slowly become more expensive simply due to inflation. All things being equal, if I was living on $40,000 a year 10 years ago, I may need $47,000 a year today to accomplish the same thing.
When you retire, you don't just have a chunk of money you draw on, and that's it.

You invest it in something safe, and it grows with the economy at the rate of inflation, at least. You don't save ahead of time for an inflation rate 30 years in the future. No one would be able to do that.

A person retiring in 2016 doesn't need $1M, depending on his/her circumstances, age, and where s/he lives. If a person has no debt, and lives in (or moves to) a lower cost of living area, and doesn't need or want a more lavish lifestyle, and is 62, that person does not need $1M (need to figure out life expectancy). Remember that hte retiree will be getting Social Security, too.

If that person gets $22k a year on SS, and gets $25,000 a year from investment ($500,000 X 5 percent), s/he'll be getting $47,000 a year before taxes. In some areas of the country, that would be enough (remember s/he owns his home free and clear, no other debt). If a person needs more, then s/he can start drawing on the $500,000 itself (remember that the $25,000 a year is the GAIN from the investment and does not use the $500,000 itself). If the investment is done properly, that 5% gain will grow with the economy. After 20 years, the retiree will still have the $500,000.

Of course, the more you have the better. But most people have no chance of saving that much, and manage to live decent lifestyles in their senior years.
 
Old 02-22-2016, 05:42 PM
 
Location: Jamestown, NY
7,841 posts, read 7,334,770 times
Reputation: 13779
Quote:
Originally Posted by matisse12 View Post
35.6 percent of all renter households consisting of low-income seniors with no children at home receive federal rental assistance.

https://www.huduser.gov/portal/perio...ighlight1.html

And that statistic is measuring just those with low enough incomes to qualify for assistance. There are millions more seniors who still live on smaller amounts of money in retirement, but not small enough monetary amounts to be involved in subsidized housing or they do not wish to apply. The great majority of seniors wish to age in place anyway (also stated in the cited article)

(GeoffD, I was discussing, and definitely not ranting. I do not 'rant'.)

mathjack107, NYC is not representative of the whole U.S. I understand your point though. By the way, I am very familiar with NYC having lived there, and visited afterwards about 50 times.
. Many low income seniors live in their paid-for homes ... or pay lot rent for their paid-for mobile homes ... or live in cheap apartments in less desirable neighborhoods. In many parts of the country, especially in small towns/cities and unfashionable metros, there are no waiting lists for subsidized apartments or the wait is only a few months.
 
Old 02-22-2016, 06:21 PM
 
1,734 posts, read 1,950,475 times
Reputation: 3901
Quote:
Originally Posted by yourown2feet View Post
Indeed! We could afford "better" than chain motels, but when we've gone and sprung for the higher-end places, we've been utterly turned off by the "$8.00 bottle of water in your room" philosophy of "if the staff smiles at you, it's going to be on the bill" in those places. Such places offer better views than the Hampton Inn, but no free breakfast, and we're only using the hotel to wash up and sleep anyway.
Ha! A kindred spirit! I am also a frugal traveler: personally, I favor Comfort Inn and would recommend them to try. Their free breakfasts, including waffles, yogurts, fruits, bottomless coffee and juice are (IMHO) to die for! Happy traveling!
 
Old 02-22-2016, 07:11 PM
 
Location: Near a river
16,042 posts, read 18,985,208 times
Reputation: 15649
Quote:
Originally Posted by matisse12 View Post
35.6 percent of all renter households consisting of low-income seniors with no children at home receive federal rental assistance.

https://www.huduser.gov/portal/perio...ighlight1.html

And that statistic is measuring just those with low enough incomes to qualify for assistance. There are millions more seniors who still live on smaller amounts of money in retirement, but not small enough monetary amounts to be involved in subsidized housing or they do not wish to apply. The great majority of seniors wish to age in place anyway (also stated in the cited article)

(GeoffD, I was discussing, and definitely not ranting. I do not 'rant'.)

mathjack107, NYC is not representative of the whole U.S. I understand your point though. By the way, I am very familiar with NYC having lived there, and visited afterwards about 50 times.
Yes, correct. There are many many seniors even older than boomers who live on practically nothing, a good deal of them who probably paid off their homes long ago and are eating the cheapest food possible and getting reimbursements for property taxes due to their income category. I don't know why your post could be disputed.
 
Old 02-22-2016, 08:01 PM
 
1,734 posts, read 1,950,475 times
Reputation: 3901
Quote:
Originally Posted by bpollen View Post
When you retire, you don't just have a chunk of money you draw on, and that's it.

You invest it in something safe, and it grows with the economy at the rate of inflation, at least. You don't save ahead of time for an inflation rate 30 years in the future. No one would be able to do that.

A person retiring in 2016 doesn't need $1M, depending on his/her circumstances, age, and where s/he lives. If a person has no debt, and lives in (or moves to) a lower cost of living area, and doesn't need or want a more lavish lifestyle, and is 62, that person does not need $1M (need to figure out life expectancy). Remember that hte retiree will be getting Social Security, too.

If that person gets $22k a year on SS, and gets $25,000 a year from investment ($500,000 X 5 percent), s/he'll be getting $47,000 a year before taxes. In some areas of the country, that would be enough (remember s/he owns his home free and clear, no other debt). If a person needs more, then s/he can start drawing on the $500,000 itself (remember that the $25,000 a year is the GAIN from the investment and does not use the $500,000 itself). If the investment is done properly, that 5% gain will grow with the economy. After 20 years, the retiree will still have the $500,000.

Of course, the more you have the better. But most people have no chance of saving that much, and manage to live decent lifestyles in their senior years.

bpollen, thank you for your encouraging words. However, the return on S&P over the past year has been MINUS 6%.


To keep principal intact, one would have needed to save and set aside $45K after withdrawing the aforementioned $25K. Or, just not withdraw and set aside the $20K. Not all that cheerful of a prospect, lol!


Grim. THIS circumstance - whatever else may transpire in 2016 - is going to keep me grimly hanging on, assuming my employer will stand for it. To increase those odds, I have casually let it drop that I gots monopoly knowledge and capability.


If they throw me out anyway, nothing I can do so no sense worrying. WFRs are done by the numbers...if you've got the ol' bulls' eye on your back insofar as the numbers go, nothing you can do.
I do, however, make sure that nobody knows everything I know about the ol' critical processes. Sins of omission. I make no apology, lol!
 
Old 02-22-2016, 08:47 PM
 
4,443 posts, read 2,618,160 times
Reputation: 10368
Quote:
Originally Posted by Tall Traveler View Post
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.
Yes.
In 1915, $100k seemed a good retirement goal, so for whom is the $2Million for?

Time will tell,and in 25 years it will be $3million needed for retirement.

The Q is can we save it, can it grow that well in all markets and will it be there when it is needed?

I KNOW we are behind the 8-ball.

 
Old 02-22-2016, 09:18 PM
 
Location: Sunshine Coast, QLD
3,330 posts, read 2,306,672 times
Reputation: 4732
Thankfully Oz has superannuation, which REALLY helps! Not to mention being able to make a decent wage as well as not worrying about losing your job due to at-will crap or so some CEO can buy a new mansion, so you wont have to dip into your nest egg. It's amazing how easy it is to save a good amount for retirement when you aren't being "restructured" out of a job every 5 years, as well as actually being able to make enough to save and invest. What a concept!! But hey at least in america, you can carry guns everywhere and help the 1% get even wealthier!!!
 
Old 02-22-2016, 09:50 PM
 
Location: Montgomery County, PA
14,676 posts, read 9,728,745 times
Reputation: 12236
Quote:
Originally Posted by charlygal View Post
I am generously estimating my needs at $30k a year for 25 years (about 750k).
That's what I thought too until I realized my property taxes alone are $550 a month, which will last in perpetuity. Even without a house or car payment we still would need $50k a year. I don't want to be pinching pennies in our golden years.
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