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Old 03-07-2018, 07:04 AM
 
1,232 posts, read 446,617 times
Reputation: 3825

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Quote:
Originally Posted by Perryinva View Post
Agree with much of what you said, mainly, that if you are able to amass $1M in savings, chances are much higher you will have a high SS as well. So a $25k SS + a $40k SWR, is a decent $65k income for life, with the home equity and the $1M still earning. Not a hard retirement at all, really compared to how the article makes it sound.
.....
I too was dead broke at age 37, (but employed, & well educated with good salary potential) because my minimum desired standard was equal to what I was earning, coupled with an expensive divorce. But in 23 years, thanks to increasing salaries, better investing, and some lucky sweat equity home sales, I am at a point that far exceeded where I thought I would be at 60, when I was 37. I assumed I would work until 67, but now can retire at 62. It is possible, but there are never any guarantees.

But your annuity claim is WAY off. Current annuities only pay about a 5.2% of invested amount, with a 1% cola at age 62, male. That’s only about a 30% increase, not even close to the 200-300% you mention. Most people that saved and earned from investing that nest egg would rather hang on to their money , even conservatively invested and meet or beat the annuity.

.....
Congrats on recovering your financial equilibrium at 37, and much of what you posted is indeed correct. I myself funded a delay in SS benefits out of 401k money as one can obtain a 'return' on the withdrawal of %6.2 from 62 to FRA and 8% per annum from FRA - 70 yo. Of course total 'return' is irrelevant, as Mathjak has so often pointed out, as you are CYA in case you LIVE, cause when you die...well, game over.

I should have clarified that my annuity claim is based on purchasing a no-cola at 70 yo and beyond, when the 'draw', ie, principal and interest, exceeds the 4% safe withdrawal rate, which some can argue is not so safe. I personally receive ~8.2% from an annuity thru my former employer that far exceeded my expectations or any amount derived from an online calculator.

As I am sure you realize, AGE and SEX at commencement is critical to the withdrawal amounts, so your mileage will most definitely vary. Whether you choose to leave an inheritance or not is a personal choice for some; for others, less well-off, it may not be.
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Old 03-07-2018, 08:25 AM
 
6,373 posts, read 4,791,708 times
Reputation: 13142
Quote:
Originally Posted by TuborgP View Post
/////
Yes I check the standings to see how my team is doing. Hoping they are doing better than other teams and hoping they win their division and ultimately the league championship.

Just like when playing sports stats are important and stats provide a comparison for those who are interested in. Especially competitive sorts.

Yes in the game of retirement I want more than others and have percentage goals and it is important to have my standing reinforced.

If we were playing one on one B-Ball wouldn't you want to beat me?
.........
This is one of the saddest or perhaps sickest posts I think I have seen on this forum.


Retirement is not some sort of contest where we gloat about doing better than others. It is not even some sort of competition or game.


Instead, I would like to believe most of us are here to learn and hopefully help others. I would like to see all people have a successful retirement instead of trying to feel good that somehow I did better.
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Old 03-07-2018, 08:48 AM
Status: "Loving our retirement" (set 6 days ago)
 
Location: Asheville NC
1,634 posts, read 1,327,537 times
Reputation: 4352
Default This is why many

Quote:
Originally Posted by Serious Conversation View Post
I definitely think HGTV wants the "contestants" to be overly dramatic, but it's TV. Who knows - they may very well be coached to be dramatic.

With that said, who wants to pay top dollar for something that looks awful or very dated? I live in northeast TN and property prices are generally fairly low, but it's not uncommon at all to see a $300,000 house with a kitchen straight out of the 80s/90s. It's functional, but dated and probably not what people want by today's standards.

Moving is stressful. You want to be able to come in and relax a bit. Most people don't want to move in then have some sort of major problem that's going to require significant repair before you can get back to a normal lifestyle.
People do not end up with a good retirement. They try to have a perfectly updated home and spend too much. They donít use elbow grease to get sweat equity. They donít move to where the jobs and possible suitable mates exist. They want the ď todays lifestyleĒ now and cannot understand that delayed gratification brings big rewards. They buy big TVs to play games and have the most updated phones. Most people who now have the $150,000 plus retirements did not live in updated homes in their thirties. Nor did they stay in Marriott and above hotels.

HGTV is used to sell products.
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Old 03-07-2018, 08:54 AM
 
Location: Lakewood OH
21,698 posts, read 23,748,789 times
Reputation: 35465
Quote:
Why? Because it only makes the less-fortunate, the less talented, the more self-indulgent and undisciplined, feel bad. With luck maybe it wakes up a few just in time to get their house in order.
But I doubt it.
ďLess talented.Ē I wonder if that would include my HUD building neighbor who used to be a soloist with the Cleveland Symphony who is retired now due to several strokes which took not only his health but any amount of retirement funds he may have had. In his eighties his performances are no longer of professional quality but he gives concerts for those of us who live here along with his retired violinist and opera singer friends.

Or maybe it would include our professional actor who has appeared in both in the very prestigious Cleveland theaters and in other parts of the country. But most actors donít earn much money and what they do earn is spent on travel to jobs which can be few and far between. But he is in our senior citizens players group and is happy performing for us.

We also have some pretty fine artists living here. And a damn good poet in our writerís group.

Intelligence and talent donít always come from money. I used to get angry and bemoan the loss of my fortune because I think I equated it with the loss of control over my life. But I am proud of the way I have adjusted and I look at the way at others in similar situations have adjusted as well. I have more respect for them than those possessed with a big portfolio of stocks or whatever.

People can be happy and content in many different ways. It doesnít always take what money can buy. Itís fine to feel secure because you have money but never forget fate doesnít care how smart, talented or clever you are. You can lose it all in a heartbeat. If that happens, there will be those still in your former position of being well-off who will look down on you because you are no longer one of them. They will include you in that 42% category with all the rest as the untalented, self indulgent people who didnít plan for their future.

Thatís why articles like these are meaningless without proof that each and every one of the 42% or whatever number isnít meeting some financial goal because they totally squandered their money in the past.
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Old 03-07-2018, 08:56 AM
 
Location: Boise
610 posts, read 585,881 times
Reputation: 1337
IT even scarier than that. Recent studies at the Boston College center for retirement show that if everyone took social security at age 62, 80 percent would run out of money before they run out of life. It doesn't get much better if they wait until full retirement age.


I recently read an article that disturbed me greatly. Widow having to go back into the work force at age 76 as a Costco food demonstrator. www.theatlantic.com/business/archive/2018/02/pensions-safety-net-california/553970


We in the financial world have to do a better job of educating people about what they could be facing if they don't prepare. Its heartbreaking to tell someone they need to sell their home and move in with the Kids.
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Old 03-07-2018, 08:58 AM
 
Location: Philadelphia/South Jersey area
2,907 posts, read 1,423,002 times
Reputation: 10201
Quote:
Originally Posted by jrkliny View Post
This is one of the saddest or perhaps sickest posts I think I have seen on this forum.


Retirement is not some sort of contest where we gloat about doing better than others. It is not even some sort of competition or game.


Instead, I would like to believe most of us are here to learn and hopefully help others. I would like to see all people have a successful retirement instead of trying to feel good that somehow I did better.
I found the post more juvenile than anything. LOL, at 58 the last thing I want to be doing is "comparing" myself to others and STILL playing the "keep up with the jones" even if it is masqueraded with a sports metaphor.

That is really one of the great t hings about getting older, I know longer have to measure my sucess against others.

It's also why I take these articles with a very small grain of salt, the rarely offer anything of value other than to get folks to click on it and by know I know them by rote. sound bite is the same "there is a retirement crisis" most Americans have nothing saved.
And then we get a bunch of folks who will chime in about how it's because no one has learned to save and we all want iphones and mcmansion.
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Old 03-07-2018, 09:05 AM
 
11,249 posts, read 8,625,277 times
Reputation: 28361
Quote:
Originally Posted by mortgageboss View Post
IT even scarier than that. Recent studies at the Boston College center for retirement show that if everyone took social security at age 62, 80 percent would run out of money before they run out of life. It doesn't get much better if they wait until full retirement age.


I recently read an article that disturbed me greatly. Widow having to go back into the work force at age 76 as a Costco food demonstrator. www.theatlantic.com/business/archive/2018/02/pensions-safety-net-california/553970


We in the financial world have to do a better job of educating people about what they could be facing if they don't prepare. Its heartbreaking to tell someone they need to sell their home and move in with the Kids.
Don't people already know and are choosing to be willfully ignorant?
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Old 03-07-2018, 09:25 AM
 
Location: Tucson/Nogales
17,472 posts, read 21,341,077 times
Reputation: 24352
Quote:
Originally Posted by brightdoglover View Post
People will do what they have to do (as we all would).
Broke isn't dead broke. I assume most people will have Soc. Sec. If I was "broke," I'd move to a mobile home in a 55+ park wherever I had to go to have a roof over my head.
And go even more broke paying the outlandish lot rents! Some of these thieves running some of these 55+ mobile communities in Las Vegas are charging up to $600-$700 lot rent. Small wonder they're all but giving these homes away, where seniors walked away from them!
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Old 03-07-2018, 09:27 AM
 
Location: Tennessee
23,841 posts, read 17,744,737 times
Reputation: 27890
Quote:
Originally Posted by funisart View Post
People do not end up with a good retirement. They try to have a perfectly updated home and spend too much. They don’t use elbow grease to get sweat equity. They don’t move to where the jobs and possible suitable mates exist. They want the “ todays lifestyle” now and cannot understand that delayed gratification brings big rewards. They buy big TVs to play games and have the most updated phones. Most people who now have the $150,000 plus retirements did not live in updated homes in their thirties. Nor did they stay in Marriott and above hotels.

HGTV is used to sell products.
If someone is able to get a $150,000 retirement income based on a standard ~4% annual withdrawal rate, you had to have a big income to get there, or some other investment. A couple making median household income cannot "cut" the fat out of their budget to get to that point. There isn't enough income to stash away/invest to get there in the first place.

Quote:
Originally Posted by Minervah View Post
“Less talented.” I wonder if that would include my HUD building neighbor who used to be a soloist with the Cleveland Symphony who is retired now due to several strokes which took not only his health but any amount of retirement funds he may have had. In his eighties his performances are no longer of professional quality but he gives concerts for those of us who live here along with his retired violinist and opera singer friends.

Or maybe it would include our professional actor who has appeared in both in the very prestigious Cleveland theaters and in other parts of the country. But most actors don’t earn much money and what they do earn is spent on travel to jobs which can be few and far between. But he is in our senior citizens players group and is happy performing for us.

We also have some pretty fine artists living here. And a damn good poet in our writer’s group.

Intelligence and talent don’t always come from money. I used to get angry and bemoan the loss of my fortune because I think I equated it with the loss of control over my life. But I am proud of the way I have adjusted and I look at the way at others in similar situations have adjusted as well. I have more respect for them than those possessed with a big portfolio of stocks or whatever.

People can be happy and content in many different ways. It doesn’t always take what money can buy. It’s fine to feel secure because you have money but never forget fate doesn’t care how smart, talented or clever you are. You can lose it all in a heartbeat. If that happens, there will be those still in your former position of being well-off who will look down on you because you are no longer one of them. They will include you in that 42% category with all the rest as the untalented, self indulgent people who didn’t plan for their future.

That’s why articles like these are meaningless without proof that each and every one of the 42% or whatever number isn’t meeting some financial goal because they totally squandered their money in the past.
I think it's often easy to forget that a significant, chronic health problem would doom most retirement plans. A former coworker of mine is in his late 30s, and was diagnosed with lupus about ten years ago. It has gradually gotten worse, and now he's on permanent dialysis and awaiting a kidney transplant, and has been unable to work for at least year. His finances are probably nuked.
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Old 03-07-2018, 09:30 AM
Status: "Loving our retirement" (set 6 days ago)
 
Location: Asheville NC
1,634 posts, read 1,327,537 times
Reputation: 4352
Default You can

Quote:
Originally Posted by Serious Conversation View Post
If someone is able to get a $150,000 retirement income based on a standard ~4% annual withdrawal rate, you had to have a big income to get there, or some other investment. A couple making median household income cannot "cut" the fat out of their budget to get to that point. There isn't enough income to stash away/invest in the first place.

With good Realestate investment. Ask Mathjac. If you believe you can’t— you never will. Also move to where you won’t only make a median household income. Live below your means. 58% have done something right.

Last edited by funisart; 03-07-2018 at 09:36 AM.. Reason: Add
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