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Old 01-09-2017, 05:41 PM
 
31,679 posts, read 40,959,250 times
Reputation: 14424

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Quote:
Originally Posted by NewbieHere View Post
Thank you for your link. It reminds me why it's a good idea to transfer money from 401k to IRA. IRA can be stretchable.
Inheriting a 401(k) vs. an IRA | Finance - Zacks

Quote:
For beneficiaries other than a surviving spouse, rolling over assets into your own IRA isn't allowed. What you often can do, though, is to create an inherited IRA. This retirement account has to remain separate from your own retirement assets, and the distribution rules for the inherited account are different from what governs your own IRAs and 401(k) accounts. Done correctly, though, the inherited IRA option can help you maximize the value of tax deferral from the 401(k) you inherit.
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Old 01-09-2017, 06:06 PM
 
Location: SoCal
20,160 posts, read 12,706,609 times
Reputation: 16993
Quote:
Originally Posted by TuborgP View Post
Yes inherited IRA can be stretched. Thanks for the link, I thought I did research before I retired that only spouse can inherit 401K and if for some reason, the surviving spouse also dies immediately, i.e. before he/she has a chance to transfer to IRA then the 401k must be distributed and can't be stretched.
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Old 01-09-2017, 07:07 PM
 
2,242 posts, read 2,995,895 times
Reputation: 4072
Quote:
Originally Posted by jrkliny View Post
Not the way I see it. Not what the number show us. There are more and more people with bigger houses, bigger and fancier SUVs, boats, cellphones, ipads, digital cameras, 40" TV screens, and on and on and on.


The only people who seem to be losing are those at the bottom of the middle class. They lost out to automation, foreign manufacturing, the loss of agricultural jobs, consolidation in retailing, and competition from illegal aliens. In fact I think the situation is even worse. Those without skills and without higher education have moved from the bottom of the middle class to the lower class.


I expect the trends to continue. My millennial daughter just crossed the 6 figure income mark and that does not include the income from the fiancé, soon to be husband.
I agree on the houses, SUV's, and boats. I don't agree on the consumer electronics. It's not like these items are going to be a budget breaker. Folks across all but the lowest income levels, can afford and acquire these items. This isn't 1960, when one had to finance a color TV. All the newfangled stuff is cheap when you consider they have capabilities that weren't even possible a couple of decades ago.
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Old 01-09-2017, 07:30 PM
 
20,955 posts, read 8,624,395 times
Reputation: 14050
Quote:
Originally Posted by reneeh63 View Post
Good for your son...but it is a bit of hyperbole to say that as long as they avoid $150 dinners, first class flights, and fine jewelry they'll be fine! I guess I've been cutting back waaaaaay too far considering I rarely have $50 dinners, have never flown first (or even business class) and when I had my MOTHER'S fine jewelry appraised found out I'd only get $10k for it so I may as well keep it.
Well, a couple short tales....

My dad - still alive - said his dad told him to pick up a penny if he sees it in the urinal. Granted, that was long ago.

BUT, fast forward to today. My wife and I are quite well off. That is, we could do or buy anything we want short of a private jet or 50+ foot yacht (new) with crew. We have three children which we put through college, grad school and one through law school. We helped them with their first homes, etc.

Although we owned our own (small) business, my SS statement shows perhaps an average salary of 100K or so for my top 10 earning years (1990-2000) - with perhaps a couple outliers where we made 25 to 50% more for one year. That's not big money - and we lived in the Philly area, not a low cost place.

So, how did we retire at 50 (actually, sold the physical business at 45)?

I'll tell you how. It's that ten year old car out in the driveway. A $50 dinner? Nope. For us, 1/2 that price is a date night out. If we've had a single drink at a bar every year - that would be a lot. Clothes? Jewelry? Big Flat Screen TVs when they were expensive? No, No, No, No.

And you know what? We don't feel like we missed anything.

I have a friend back in NJ who used to be my employee - made 30K at the time. He was single and lived like a KING. Even had a brand new pickup truck with all the bells and whistles. Talked to him recently and he has a family and is still living like a King. He used to look at our other employees - often deeply in debt for their weddings. china and vacation clubs and keeping up with the joneses - and shake his head.

Anyway, back to the subject - it really is spending patterns that tell the tale. Many people are broke for life - starting with student loans, car payoffs, etc. and then continuing through weddings, vacations, kids, medical situations, etc.

Maybe they shouldn't have went to college...or at least not borrowed money for it without a solid plan?

In any case, the so-called American Dream is - in some ways - a nightmare of debt and materialism and consumerism that does little to satisfy the soul. Nothing wrong with "stuff" but the very idea that each generation should have "more" seems dangerous to me. Ideally, each generation going forward should require LESS in resources, energy and hard labor due to technology and efficiency. The game is over..the whole world cannot live in the American Way - and either can we in the long run.
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Old 01-09-2017, 07:36 PM
 
20,955 posts, read 8,624,395 times
Reputation: 14050
Quote:
Originally Posted by BayAreaHillbilly View Post
We don't have big screen TV and have no kids. Granted we live in a high COL area, but, we grew up in high COL areas, so that should not be a factor. BTW - at this point you may be thinking we are in our 30s, based on this description. Wrong. We are 50+/-.

Yep, 50 is the new 30* and that is not a good thing.

* 50 is the new 30 ... in terms of attainment of life milestones.
Believe it or not, the choice of living in that "high COL" area probably tells a lot of tale.

It doesn't matter that you were raised there - it is a finite amount of land in a certain climate and in proximity to certain things and therefore everything is different.

My Daughter lives in the "ghetto" in the bay area in a 600K house that would cost $60K (no kidding) in Pittsburgh. She has friends bringing home 130K who cannot make it.

So it does matter - and it's a decision you made and you continue to make.
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Old 01-09-2017, 07:56 PM
 
Location: SF Bay & Diamond Head
1,776 posts, read 1,865,162 times
Reputation: 1981
Quote:
Originally Posted by BLS2753 View Post
I agree on the houses, SUV's, and boats. I don't agree on the consumer electronics. It's not like these items are going to be a budget breaker. Folks across all but the lowest income levels, can afford and acquire these items. This isn't 1960, when one had to finance a color TV. All the newfangled stuff is cheap when you consider they have capabilities that weren't even possible a couple of decades ago.
You don't think that 99.9% of all cell phones are being bought on a payment plan?
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Old 01-09-2017, 10:16 PM
 
13,389 posts, read 6,407,379 times
Reputation: 10022
Quote:
Originally Posted by craigiri View Post
Well, a couple short tales....

My dad - still alive - said his dad told him to pick up a penny if he sees it in the urinal. Granted, that was long ago.

BUT, fast forward to today. My wife and I are quite well off. That is, we could do or buy anything we want short of a private jet or 50+ foot yacht (new) with crew. We have three children which we put through college, grad school and one through law school. We helped them with their first homes, etc.

Although we owned our own (small) business, my SS statement shows perhaps an average salary of 100K or so for my top 10 earning years (1990-2000) - with perhaps a couple outliers where we made 25 to 50% more for one year. That's not big money - and we lived in the Philly area, not a low cost place.

So, how did we retire at 50 (actually, sold the physical business at 45)?

I'll tell you how. It's that ten year old car out in the driveway. A $50 dinner? Nope. For us, 1/2 that price is a date night out. If we've had a single drink at a bar every year - that would be a lot. Clothes? Jewelry? Big Flat Screen TVs when they were expensive? No, No, No, No.

And you know what? We don't feel like we missed anything.

I have a friend back in NJ who used to be my employee - made 30K at the time. He was single and lived like a KING. Even had a brand new pickup truck with all the bells and whistles. Talked to him recently and he has a family and is still living like a King. He used to look at our other employees - often deeply in debt for their weddings. china and vacation clubs and keeping up with the joneses - and shake his head.

Anyway, back to the subject - it really is spending patterns that tell the tale. Many people are broke for life - starting with student loans, car payoffs, etc. and then continuing through weddings, vacations, kids, medical situations, etc.

Maybe they shouldn't have went to college...or at least not borrowed money for it without a solid plan?

In any case, the so-called American Dream is - in some ways - a nightmare of debt and materialism and consumerism that does little to satisfy the soul. Nothing wrong with "stuff" but the very idea that each generation should have "more" seems dangerous to me. Ideally, each generation going forward should require LESS in resources, energy and hard labor due to technology and efficiency. The game is over..the whole world cannot live in the American Way - and either can we in the long run.
I agree wholeheartedly. The key to financial success is living below your means imo. And even believing that as I always have, I cannot tell you how much "stuff" we threw away or donated when we retired and relocated. Thousands of dollars worth.

I now have an aversion to stuff lol. Truthfully, if people give me stuff, it ticks me off.
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Old 01-10-2017, 01:47 AM
 
Location: A safe distance from San Francisco
12,350 posts, read 9,670,160 times
Reputation: 13891
Quote:
Originally Posted by NewbieHere View Post
The homeless because I handed him a $20 bill every year and he still asked for more.
But what do you mean by know? I don't know the bank accounts of my acquaintances. But I can guess roughly how much they make and some told me how much they have. I don't hire anybody so I don't even know anyone else. My next door neighbors are both doctors, these are the people I actually talk to and know roughly what they pay for things, so I assume they have money. I have no housekeeper, no gardener. You can call it bubble. I don't see it as bubble. If you can't take it then tough luck.
And you know those millions people as in their bank accounts? Give me a break.
Fascinating.......

The more time spent in the retirement forum, the clearer it becomes that there needs to be two wholly separate retirement forums. One for the real world where most of us live....and one for those on Elysium.
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Old 01-10-2017, 09:59 AM
 
Location: SoCal
20,160 posts, read 12,706,609 times
Reputation: 16993
Quote:
Originally Posted by CrownVic95 View Post
Fascinating.......

The more time spent in the retirement forum, the clearer it becomes that there needs to be two wholly separate retirement forums. One for the real world where most of us live....and one for those on Elysium.
It's clearer for me that you should reset your attitude. The retirement forum has all kinds of people, and not just kind or the kind that you like to be here. There is no need to take a jab at those who are not the same as you. Stop being so bitter and learn something from everybody as I do. This is the Internet my ear, anybody can post, get used to it.
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Old 01-10-2017, 10:59 AM
 
21,382 posts, read 7,898,380 times
Reputation: 18149
Quote:
Originally Posted by NewbieHere View Post
You must live in area with less job opportunities. I'm in an area with low unemployment rate for years until 2008-2009. But I practically know nobody with balance less than what's report. Even my ex- secretary, who I spent time helping her with her finance, she has a house paid off, she has pension that she could net $30-$40k per year, she has something from her teacher's day, I don't know exactly how much. She also has about $125k. She is the poorest I know and I often pay for her lunch when I take her out to eat. And she has never been married.
How does a secretary afford to own a house debt-free and then amass $125K in savings? And then have a pension on top of that?

That is not poor. Not even CLOSE to being poor. Not even in the same continent as poor.

I'm beginning to wonder about these posters.... and what they are posting. Hmm ...
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