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Old 03-18-2016, 01:15 PM
 
29,779 posts, read 34,867,277 times
Reputation: 11705

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Quote:
Originally Posted by slyfox2 View Post
And you have that right, however misconceived it might be for me. Just kidding! If the foo sheets, then wear it!

You probably don't have one of those rare government pensions, do you? You probably weren't thinking about that when you were 24 years old.
Yes on the pension and yes on thinking about it in my early twenties. The three legged stool was a natural and coaching on how to readily available from older co workers
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Old 03-18-2016, 01:29 PM
 
Location: Mableton, GA USA (NW Atlanta suburb, 4 miles OTP)
11,319 posts, read 22,484,322 times
Reputation: 3886
Quote:
Originally Posted by Vision67 View Post
I've read lots of articles about how much people should save for retirement and about how few actually are successful reaching that goal. This article demonstrates how dependent retirees actually are on Social Security.
I *was* saving for retirement for the first 13 years of my career. A long layoff after 9/11 ended up killing all of my savings and over half of what I had saved in my IRA. I've been back to saving again for a while, but my guess is that episode ended up being a 15-year setback in terms of raw numbers. Still not back to where I was then.

Life happens. Sometimes the best made plans are shuffled off this mortal coil by reality. :-) But at least I'm trying to avoid the SS dependency.
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Old 03-18-2016, 01:32 PM
 
Location: Nebraska
363 posts, read 242,995 times
Reputation: 721
Quote:
Originally Posted by Hemlock140 View Post
Same here, that was part of the deal that I made with the government when I started paying into SS at age 14, in 1966, that someday I could collect on it in retirement. If we choose to stay in this home rather than downsize, my SS alone would cover the house payment and taxes. My wife's, and our two pensions
should cover most other expenses, making our 401K & 457 savings the safety net. There are, however, people managing on only SS income. My mother in law, for example, made it from age 64 to age 95 on only SS of about $700/month before she passed two years ago. We only had to help her financially when she first went into assisted living, until medicaid kicked in.

Worked everyday since I was in high school. Been paying into SS now for 36 years. I have a teaching job, and a part time job. I've always worked 2 jobs since college. We are "cheap". We live pay check to pay check, but...we are able to put our 2 kids through college, with some student loan help. I plan to work 10 more years or so, as well as my wife. We will have a pension, wife has 401k, and WE WILL GET OUT SS, we have paid into it, we will get it back. If not, I will have my pitchfork out and march on washington. NO Kidding.
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Old 03-18-2016, 01:44 PM
 
2,294 posts, read 1,560,729 times
Reputation: 2737
Quote:
Originally Posted by Larry Caldwell View Post
Yes, I know two families that have relocated to Costa Rica, but they are active, intelligent people who have adjusted easily to another language and culture. I know another family that tried, but six months later they were back in the US. They were overwhelmed by the challenges.
Well, as someone who has visited Costa Rica many times, there's no way I'd want to live there unless I had to . And I'd have to say I "doubt" it was an "easy" adjustment.
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Old 03-18-2016, 01:47 PM
 
2,294 posts, read 1,560,729 times
Reputation: 2737
Quote:
Originally Posted by slyfox2 View Post
I'm poor because I can't match the income of the 1%ers and famous name rich families that are friends that I know. NOOOOO....Martha Stewart is not a friend.
My post wasn't for you.
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Old 03-18-2016, 01:51 PM
 
Location: Moku Nui, Hawaii
9,674 posts, read 18,867,251 times
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Wasn't SS put in place as a forced retirement savings system? Seems to me it's gotten away from that concept. It would be some sort of robbery to take something from someone by force (you don't have the option to say 'no' to SS deductions from your paycheck) and then not give it back if you said you only took it as a loan?

Personally, I think saving for retirement is hogwash. Saving three to five year's worth of expenses, yes, saving millions, no. Forget about savings, go for cash flow. If you have enough cash flow going on, you don't need savings. Rental units, royalties, book sales, etc., etc.

When you pile everything into savings, you're not in charge of what sort of interest rate you're gonna get. Useta be, you'd get double digits for interest, now if you can get anything above one or two percent, you've signed your money into a contract for several years. There's much better ways to get your money working for you.

Also, when everything is saved as digital money (i.e. not hard cash like gold and silver) if/when the fiat money loses it's value so does your saved digital money. Money is an illusion, so far everyone seems to be going along with it, though.
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Old 03-18-2016, 02:08 PM
 
Location: North Beach, MD on the Chesapeake
33,889 posts, read 42,123,479 times
Reputation: 43295
Quote:
Originally Posted by HappyTexan View Post
Here's SSA's opinion regarding SS as part of your entire retirement plan:

https://www.ssa.gov/planners/retire/r&m6.html
Most financial advisors say you'll need about 70 percent of your pre-retirement earnings to comfortably maintain your pre-retirement standard of living. If you have average earnings, your Social Security retirement benefits will replace only about 40 percent. The percentage is lower for people in the upper income brackets and higher for people with low incomes. You'll need to supplement your benefits with a pension, savings or investments.
[quote=Burkmere;43401641]
Quote:
Originally Posted by TuborgP View Post
Most teachers pay into and receive benefits. A number of selective state employees don't participate but most do. EScort is in Calif and they don't.

Actually, many teachers don't pay into SS and so rightly so...don't receive benefits.

From a reputable publication :

"about 40 percent of teachers are not covered by Social Security because they teach in jurisdictions that have not elected to participate in Social Security"

I quoted these two for a reason. About 25 years ago Maryland restructured the State Pension System (which all state employees and teachers are required to participate in) for new hires using the 70% combined figure. Benefits for those employees were significantly lower than those who remained in the "old system" because "well, they'll get Social Security".


It was then restructured again about 6 years ago, lengthening the time needed for vesting from 5 years to 10 years. That was for teachers only, state employees remained at 5 years. The deduction was also raised by 2%. The increase received from teachers went to the General Fund and not the Pension System.
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Old 03-18-2016, 02:23 PM
 
29,779 posts, read 34,867,277 times
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[quote=North Beach Person;43403981]
Quote:
Originally Posted by Burkmere View Post


I quoted these two for a reason. About 25 years ago Maryland restructured the State Pension System (which all state employees and teachers are required to participate in) for new hires using the 70% combined figure. Benefits for those employees were significantly lower than those who remained in the "old system" because "well, they'll get Social Security".


It was then restructured again about 6 years ago, lengthening the time needed for vesting from 5 years to 10 years. That was for teachers only, state employees remained at 5 years. The deduction was also raised by 2%. The increase received from teachers went to the General Fund and not the Pension System.
Part of the trick with the change 25 years ago was what did you do with the money you got back and since you were no longer making a contribution did you spend that extra money or invest it in a 403B. Over the years that makes a big difference for those opting in the new system. The last change was nothing but a hit. Opting into the new system was a decision we have wondered about. We did well over the years with the equity increase from the house we used part of the money for and our continued investments. Anyone looking at our balance sheet would thing we were crazy to be upset about having done it.
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Old 03-18-2016, 02:35 PM
 
Location: Forests of Maine
30,682 posts, read 49,449,101 times
Reputation: 19134
Quote:
Originally Posted by slyfox2 View Post
... How about the maximum you can get when you start taking it at 62 years old
Quote:
Originally Posted by TuborgP View Post
For many it isn't about total lifetime benefits received but about a higher fixed income stream later in life

.... maximizing spousal benefits for the surviving spouse when you go from two benefits to one. That is our priority and many others we know. We also each selected spousal benefits for our pensions so the survivor had both.
If only we had a reliable crystal ball to tell us exactly what will happen in the future.
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Old 03-18-2016, 02:38 PM
 
29,779 posts, read 34,867,277 times
Reputation: 11705
Quote:
Originally Posted by Submariner View Post
If only we had a reliable crystal ball to tell us exactly what will happen in the future.
We don't so we plan and develop contingencies to give us the flexibility to be able to adapt to change which is guaranteed to happen. Your good point is the very reason we opted for future fixed income flexibility.
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