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Old 01-06-2017, 07:15 PM
 
29,779 posts, read 34,867,277 times
Reputation: 11705

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Quote:
Originally Posted by GeoffD View Post
An annuity to provide a COLA-protected $40K per year for life starting at age 62 is a bit more than $1 million. How many people do you know who have $1 million in their 401(k) and IRA accounts? Not filthy rich but their retirement is easily in the 80th percentile.

A union public school teacher in the Northeast typically vests 2% per year in their pension. At age 60, they're retiring early at 70% pay and full health benefits with some COLA protection. Their pay is seniority-based. In my town, they're making about $70K so they're getting a $50K pension plus about $10K worth of health benefits until they hit Medicare age that none of the rest of us get. The cash value of that is about $1.5 million. I'd certainly love to have that deal.
Not really true. Try for yourself

https://dqydj.com/income-percentile-by-age-calculator/

At age 70 that 40k income is only about the 47th percentile and it takes about 90k to hit the 80th percentile at age 70

Try the calculator folks. I have been using similar for years. It is surprising to many how well many seniors are doing. I have been looking at this for years and there is a reason why the more affluent follow a 70-80% retirement income to working income guideline. They have the discretionary income and career choices to be able to accomplish it. Many others don't and they have a retirement income decrease while above a threshold it is easier to save or take jobs with benefits. Also staying married helps to keep working for you.

Also having a net worth of one million puts you in about the 85th percentile of net worth. Play with it at even higher levels yourself. It's interesting. Also not how it doesn't drop off that dramatically for income at the higher levels as folks age.
https://dqydj.com/net-worth-by-age-c...ge-calculator/
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Old 01-06-2017, 07:58 PM
 
12,299 posts, read 15,196,725 times
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Quote:
Originally Posted by jrkliny View Post
Tennessee is ranked 5th from the bottom for household income by State.
which makes TN a great place to retire.
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Old 01-06-2017, 08:04 PM
 
Location: Baltimore, MD
3,745 posts, read 4,217,509 times
Reputation: 6866
The younger generations should pressure President Elect Trump to follow through with his promise to consolidate federal and private student loans, cap repayment at 12.5% of the borrower's income, and forgive the remaining debt (if any) after making timely payments for 15 years. This certainly would help a lot of Millennials as well as the younger members of the X generation.

In addition, they should also insist that any proposal put forth to strengthen the Social Security and Medicare programs require some degree of sacrifice by all Americans.

The Millennials in particular have the numbers to effectuate change. They need to harness that power if they want their concerns successfully addressed.
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Old 01-06-2017, 08:09 PM
 
Location: Tennessee
23,579 posts, read 17,567,761 times
Reputation: 27661
Quote:
Originally Posted by lenora View Post
The younger generations should pressure President Elect Trump to follow through with his promise to consolidate federal and private student loans, cap repayment at 12.5% of the borrower's income, and forgive the remaining debt (if any) after making timely payments for 15 years. This certainly would help a lot of Millennials as well as the younger members of the X generation.

In addition, they should also insist that any proposal put forth to strengthen the Social Security and Medicare programs require some degree of sacrifice by all Americans.

The Millennials in particular have the numbers to effectuate change. They need to harness that power if they want their concerns successfully addressed.
Problems go way beyond student loans. It's a problem, but for early Millennials like myself, the recession retarded or even stopped careers. Kids graduating today into a healthy economy will fare much better.
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Old 01-06-2017, 08:18 PM
 
Location: Grove City, Ohio
10,133 posts, read 12,385,819 times
Reputation: 13971
Quote:
Originally Posted by Nightengale212 View Post
I don't know of too many people that frequent this retirement forum that have shared some info about their assets that are filthy rich, will retire filthy rich, or had parents that were filthy rich.

Being angered and envious towards another group of individuals is akin to you taking poison and waiting for them to die. You may want to consider dropping the anger because it will have no positive outcome for you, and instead invoke the expertise of those you so envy because they likely have a great wealth of knowledge and experience they could share with you in how they overcame their own financial challenges which may be prove to be very valuable to you towards having a brighter financial future.
I consider myself one of the filthy rich on this forum. Yes, yes I do.

Considering everything I am still pretty healthy for my age; my mind is still with me, I don't have any major health problems and approaching 70 I still have all my own teeth.

I can walk 1.1 miles in 19 minutes which I try to do at least once, and sometimes twice, daily. I can ride my Trek 310 and my family has a history of nearly everyone living to 85. At 62 I lost my grandma who lived to be 103 years old. How many 60 plus men still have a living grandma?

Much of this is genetics, I am lucky.

At 68 I am still working full time and for right now anyway I don't see any reason why I couldn't work well into my 70's or, even as one of my grandfathers did, work into my 80's. Why not if I feel like it?

I feel good. So far all I have is a little arthritis, barely noticeable, in my right pinkie finger but that is about it except for the back pain that I get an epidural every six months that clears up the problem.

I can't help but thinking how much of his billions would Steve Jobs given me for my health just before he died? Looking at it this way I am a billionaire because if Steve Jobs offered me all his billions to trade health I would have turned him down.

As far as retirement we don't have all that much money saved, I am willing to be most people here have more than we do, but that means nothing to me because what we will have is a guaranteed stream of money that will afford us to live comfortably, very comfortably really, when I do decide to retire wether it is next week or ten years from now.

Another thing that makes me wealthy is I have arrived at the point in life where if I don't want to work I wouldn't have to. I can retire comfortably tomorrow but I don't feel like it yet... I like living life on my terms.

People need to look more at what they have than what they don't.

And I have a wonderful wife who now I am going to go bug!
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Old 01-06-2017, 09:07 PM
 
6,443 posts, read 3,071,556 times
Reputation: 5868
Quote:
Originally Posted by nicet4 View Post
I consider myself one of the filthy rich on this forum. Yes, yes I do.

Considering everything I am still pretty healthy for my age; my mind is still with me, I don't have any major health problems and approaching 70 I still have all my own teeth.

I can walk 1.1 miles in 19 minutes which I try to do at least once, and sometimes twice, daily. I can ride my Trek 310 and my family has a history of nearly everyone living to 85. At 62 I lost my grandma who lived to be 103 years old. How many 60 plus men still have a living grandma?

Much of this is genetics, I am lucky.

At 68 I am still working full time and for right now anyway I don't see any reason why I couldn't work well into my 70's or, even as one of my grandfathers did, work into my 80's. Why not if I feel like it?

I feel good. So far all I have is a little arthritis, barely noticeable, in my right pinkie finger but that is about it except for the back pain that I get an epidural every six months that clears up the problem.

I can't help but thinking how much of his billions would Steve Jobs given me for my health just before he died? Looking at it this way I am a billionaire because if Steve Jobs offered me all his billions to trade health I would have turned him down.

As far as retirement we don't have all that much money saved, I am willing to be most people here have more than we do, but that means nothing to me because what we will have is a guaranteed stream of money that will afford us to live comfortably, very comfortably really, when I do decide to retire wether it is next week or ten years from now.

Another thing that makes me wealthy is I have arrived at the point in life where if I don't want to work I wouldn't have to. I can retire comfortably tomorrow but I don't feel like it yet... I like living life on my terms.

People need to look more at what they have than what they don't.

And I have a wonderful wife who now I am going to go bug!
Bug or hug lol? I hope you made a typo and its hug!!!!!!!!!!!
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Old 01-06-2017, 09:17 PM
 
26,090 posts, read 28,500,170 times
Reputation: 24802
Quote:
Originally Posted by in_newengland View Post
They get decent pensions but that is not filthy rich. The older boomers that I see who have money have inherited it from their Greatest Generation parents. Usually the person is an only child.
It depends on how you look at it. A pension that pays you $40,000 a year is equivalent to about $1,000,000 in a 401k. Maybe that's not filthy rich, but it's still pretty sweet. If you have retirement savings on top of that, that's pretty good. I'm on track for $1M in retirement savings and a pension that pays out at least 40K (conservative estimate) at 55 if I continue on the path I'm on. That means my income in retirement will be larger than when I was working. Of course, I admit to being a save-a-holic...but I'm at the mailman level salary and am on track to have an above average income by my mid 50s if I continue on my current path (provided the stock and bond markets get half decent returns).

Last edited by mysticaltyger; 01-06-2017 at 09:37 PM..
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Old 01-06-2017, 09:27 PM
 
Location: SoCal
13,227 posts, read 6,331,374 times
Reputation: 9844
Quote:
Originally Posted by lenora View Post
The younger generations should pressure President Elect Trump to follow through with his promise to consolidate federal and private student loans, cap repayment at 12.5% of the borrower's income, and forgive the remaining debt (if any) after making timely payments for 15 years. This certainly would help a lot of Millennials as well as the younger members of the X generation.

In addition, they should also insist that any proposal put forth to strengthen the Social Security and Medicare programs require some degree of sacrifice by all Americans.

The Millennials in particular have the numbers to effectuate change. They need to harness that power if they want their concerns successfully addressed.
They didn't vote for him.
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Old 01-06-2017, 09:28 PM
 
Location: Los Angeles area
14,018 posts, read 17,737,509 times
Reputation: 32304
Quote:
Originally Posted by GeoffD View Post
An annuity to provide a COLA-protected $40K per year for life starting at age 62 is a bit more than $1 million. How many people do you know who have $1 million in their 401(k) and IRA accounts? Not filthy rich but their retirement is easily in the 80th percentile.

A union public school teacher in the Northeast typically vests 2% per year in their pension. At age 60, they're retiring early at 70% pay and full health benefits with some COLA protection. Their pay is seniority-based. In my town, they're making about $70K so they're getting a $50K pension plus about $10K worth of health benefits until they hit Medicare age that none of the rest of us get. The cash value of that is about $1.5 million. I'd certainly love to have that deal.
As a public school teacher in California I paid 9% per year to support my eventual pension, and I had to put in 34 years and hold off until age 61.5 in order to get that $50K pension. It sounds like what you're citing as typical in the Northeast is more generous than what we have in California. New hires have a less generous deal as well. (Disclaimer: I am NOT complaining, as I am satisfied with my pension and am able to live on it in reasonable comfort.)

My point is that every time a specific case is cited, or in this case a regional average that we have no way to verify easily, that doesn't mean that teachers' pensions everywhere are generous to the same degree. As I posted earlier, one problem in these discussions is the hyperbolic language such as "filthy rich". You have couched your point in much more reasonable language, specifically disavowing "filthy rich", which I appreciate; I feel like with you one can have a rational discussion.

I would agree with you that teachers in the Northeast (provided your rough average is accurate, and I have no reason to think it isn't) have a pretty good deal. But even your "80th percentile" claim could be misleading if you mean the 80th percentile nationally, because the Northeast has a higher cost of living than the national average, which would make that retirement LESS than 80th percentile regionally.
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Old 01-06-2017, 09:29 PM
 
26,090 posts, read 28,500,170 times
Reputation: 24802
Quote:
Originally Posted by in_newengland View Post
The idea that two 30 year olds, with liberal arts degrees right now who have been working in retail and trying to pay off college debt, will ever be in that position, even not adjusted for inflation, is laughable.

Well, the news is that you are generalizing and stereotyping us. Most of us had to specialize in something, often something we weren't interested in, to get a job. And many of us went to cheap state colleges and worked our way though.

For example, when I told my dad I wanted to major in liberal arts, he said No. And that was final.

You can't usually get a real job if you major in liberal arts and I don't know who is telling anyone that they can. Another example: my ex had to give up his love of music (his dream of majoring in it and becoming a professional musician) to become a CPA in order to earn a living. He also gave up his dream of attending Williams College because his parents couldn't afford it. He lived at home, worked, and attended a local college.

I gave up my love of art to major in education "so that you can get a job." I purposely went to a state college because I had younger siblings who needed to go to college too.

I don't have kids but my nieces are going to college and living at home and they are studying some high tech stuff that I don't even understand. They'll do fine but they are NOT studying liberal arts. They both are serious about being able to support themselves.

You major in something that is marketable. Very often you don't even need to go to college because there is already a surplus of college educated people. The young people can research and find out what jobs to train for.

It probably won't be a dream job. Most of us never worked at a dream job. But most of us didn't have to work ten hours a day in a sweat shop either, like our grandparents or great grandparents may have. We had it better but we did not have it great.

Life is full of surprises but those who do the research and put some thought into it can probably figure out what to do. A lot of us floundered, fell down, got back up again and kept on trying. Yes, there should definitely be safety nets for those who, through no fault of their own, fall upon hard times or simply do not have the ability to earn a living. But I think most young people just have to figure out how to earn money, get a job, and start out at the bottom and work their way up. And be patient--how many of us started out at the top?
The only thing I'd quibble with is that it is MUCH, MUCH harder to "work your way through school" these days. Heck, I'm a lot younger than you and the tuition even at state schools has absolutely skyrocketed since I graduated over 20 years ago. Student loans are a serious issue. Of course, that's all the more reason to skip any major that isn't marketable. Few have the luxury of majoring in liberal arts these days.
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