U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
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.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 01-07-2017, 11:04 AM
 
2,446 posts, read 2,081,021 times
Reputation: 5711

Advertisements

Quote:
Originally Posted by Coloradomom22 View Post
OP, I have been thinking a lot about this exact same topic after reading the Wall Street Journal article the other day that you referenced. The conventional wisdom of retirement savings (start early and with historic returns you too will retire a millionaire!) has changed due to years of very low interest rates. I also am astonished that no one is realizing the catastrophe that will come when these generations retire with no pensions, low or non-existent 401k's, and uncertainty with Medicare and Social Security. I love how Boomers and Silents will tear down the younger generations, saying things like "we worked hard and saved and didn't need Ipads and Cell Phones!" like those are relevant considering the exponential rise in cost of housing, education and healthcare that they never had. The poster who mentioned mailman and teacher retiring filthy rich was not far off. I know of retired couples who had those jobs and now collect massive defined benefit pensions FOR LIFE, pensions that have no risk like those of a 401k. Aunt and uncle were both teachers in Southern California. Back in the 1970's they bought a modest house for $65k. They recently retired and between the two of them collect $165k a year in pensions (this is listed on a public website) for life. They both have Medicare and a cadillac supplemental that gives them the best healthcare. Oh, and that $55k house is now $750k. There is no way a couple starting out now could replicate their life by getting a similar education and job and by just "working hard". Retirees now think they are well off because of their own efforts but they don't realize the benefits they had growing up and raising their families in the times they did.
Very good post. While no one can predict the future, I just can't see homes bought today doubling or tripling in value down the road.
Reply With Quote Quick reply to this message

 
Old 01-07-2017, 11:07 AM
 
Location: Loudon, TN
5,826 posts, read 4,868,767 times
Reputation: 19600
I don't know any teachers with salaries, let alone pensions, like that! My MIL was a teacher in California for 20 years and her pension is a little over a thousand a month!

These threads always seem to devolve into "pension wars", or generation wars. Sigh.....
Reply With Quote Quick reply to this message
 
Old 01-07-2017, 11:12 AM
 
Location: SoCal
13,396 posts, read 6,404,610 times
Reputation: 9975
Quote:
Originally Posted by SportyandMisty View Post
Not just guidance counselors and academics. Read Steve Jobs' commencement speech at Stanford. Text of Steve Jobs' Commencement address (2005)
And some college boards.
Reply With Quote Quick reply to this message
 
Old 01-07-2017, 11:14 AM
 
Location: Central IL
15,250 posts, read 8,581,033 times
Reputation: 35701
Quote:
Originally Posted by Coloradomom22 View Post
OP, I have been thinking a lot about this exact same topic after reading the Wall Street Journal article the other day that you referenced. The conventional wisdom of retirement savings (start early and with historic returns you too will retire a millionaire!) has changed due to years of very low interest rates. I also am astonished that no one is realizing the catastrophe that will come when these generations retire with no pensions, low or non-existent 401k's, and uncertainty with Medicare and Social Security. I love how Boomers and Silents will tear down the younger generations, saying things like "we worked hard and saved and didn't need Ipads and Cell Phones!" like those are relevant considering the exponential rise in cost of housing, education and healthcare that they never had. The poster who mentioned mailman and teacher retiring filthy rich was not far off. I know of retired couples who had those jobs and now collect massive defined benefit pensions FOR LIFE, pensions that have no risk like those of a 401k. Aunt and uncle were both teachers in Southern California. Back in the 1970's they bought a modest house for $65k. They recently retired and between the two of them collect $165k a year in pensions (this is listed on a public website) for life. They both have Medicare and a cadillac supplemental that gives them the best healthcare. Oh, and that $55k house is now $750k. There is no way a couple starting out now could replicate their life by getting a similar education and job and by just "working hard". Retirees now think they are well off because of their own efforts but they don't realize the benefits they had growing up and raising their families in the times they did.
Very low interest rates? That's a double-edged sword - it's bad if you're invested mostly in bonds (like OLDER people tend to be) - but if you're mostly in stocks/equities then....what? The markets have bounded back since 2008 with pretty good returns for all...unless you are heavy into bonds...like older people!

Low interest rates are great for people buying a house - instead of paying 10% on a loan you can pay 3%...that benefits younger people who are paying mostly interest in the early years and lets them pay down more principle if they have extra dollars.

Real estate goes up along with everything else due to inflation...salaries have lagged a bit...but you have to try living outside high COLA areas if you don't want to pay $750k for a 2 bedroom house.

Yes, the times have something to do with investment returns...however you do have to have something in the market to benefit - so even if it is $100 a month, put that out there.
Reply With Quote Quick reply to this message
 
Old 01-07-2017, 11:17 AM
 
Location: SoCal
13,396 posts, read 6,404,610 times
Reputation: 9975
In my neck of the woods, HCOL, 2 income teachers can still afford a $750k thanks to low interest rate.
Reply With Quote Quick reply to this message
 
Old 01-07-2017, 11:30 AM
 
6,355 posts, read 5,091,511 times
Reputation: 12920
Quote:
Originally Posted by Serious Conversation View Post
He may very well be right about teacher in prestigious New England communities, but government employment is often the most highly sought after and best employment in communities where the private sector is depressed.

Where I am, the minimum salary for any K-12 teacher wet behind the ears coming out of college in $41,000 annually. I have a good friend who was making $34k as a software developer with an MS in CS and three years experience in 2013. I was making $21k on the help desk with a bachelor's in economics and around six IT certifications at the time.

Even in poor areas like here in Tennessee, public sector jobs have minimum salary floors. Private sector jobs go as low as the market will bear.

I'm honestly surprised how short shrift this type of situation gets and the lack of understanding on this board, but given the fact that most people here are from prestigious areas and affluent, I guess I shouldn't be surprised at the general lack of understanding of the life that poor people like me in the middle of nowhere live.
I too live in a poor small town in the middle of nowhere - lol. Lots of poor people - so i'm not surprised about this.

Ran into one person whose main objective now is to get on disability. Another one that is carefully contemplating a 25 dollar excursion. Lots of people living on less than 1K a month. People always looking for food banks, free clothing, help with utilities. Had a record number of utility shutoffs this month in our town. And yes, the best jobs are government type - schools, city, other municipalities.
Reply With Quote Quick reply to this message
 
Old 01-07-2017, 12:04 PM
 
29,847 posts, read 34,929,245 times
Reputation: 11781
Quote:
Originally Posted by TheShadow View Post
I don't know any teachers with salaries, let alone pensions, like that! My MIL was a teacher in California for 20 years and her pension is a little over a thousand a month!

These threads always seem to devolve into "pension wars", or generation wars. Sigh.....
Yeah I thought this thread was about the crisis for the poor not the benefits of the affluent.
Reply With Quote Quick reply to this message
 
Old 01-07-2017, 12:10 PM
 
29,847 posts, read 34,929,245 times
Reputation: 11781
Quote:
Originally Posted by TheShadow View Post
I don't know any teachers with salaries, let alone pensions, like that! My MIL was a teacher in California for 20 years and her pension is a little over a thousand a month!

These threads always seem to devolve into "pension wars", or generation wars. Sigh.....
Remember California teachers don't kick into SS so their pensions tend to be on the higher side compared to other states. We are talking about a couple here so that 165k pension income comes out to about $82,500 per person. Since they retired years ago that is well before any recent reforms and may be a pension plan that no longer is available to newer workers and hasn't been for awhile. Comparing the pension plan of a 80 year old retiree with a new hire can be apples and bacon comparisons. I suspect you do know teachers in California making 83k each. So if they marry each other. Bada Bing $166k annual income.
Reply With Quote Quick reply to this message
 
Old 01-07-2017, 12:11 PM
 
Location: Los Angeles area
14,018 posts, read 17,775,806 times
Reputation: 32309
Quote:
Originally Posted by CrownVic95 View Post
The whole picture is often best illuminated by references that are more relative than literal. And the rapidly changing whole picture is at the core of his post.

This is not the first time we have strongly disagreed and won't be the last. I will leave it at that.
Fair enough.
Reply With Quote Quick reply to this message
 
Old 01-07-2017, 12:14 PM
 
6,355 posts, read 5,091,511 times
Reputation: 12920
Quote:
Originally Posted by TheShadow View Post
I don't know any teachers with salaries, let alone pensions, like that! My MIL was a teacher in California for 20 years and her pension is a little over a thousand a month!

These threads always seem to devolve into "pension wars", or generation wars. Sigh.....
Isn't' 20 years kind of short on the retirement scale for educators? My sister did over 40 in the system and my first ex just retired with over 35 years. Probably why she only gets a little over a thousand? Is this net after insurance and taxes?
Reply With Quote Quick reply to this message
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.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top