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.
No, I'm not opposed to 401k's. They are great as far as they go and help the savvy have a more comfortable retirement. Got one myself. The point I am trying to make is that overall, the retirement system is broken because huge numbers are not saving at rates that will afford a decent retirement. The pension system afforded a fairly guaranteed amount by essentially taking the volunteer factor out of the equation. That is until the corporations reneged on the bargain they made with employees - a form of theft. SS does the same thing but really only ensures people won't starve to death in old age.
There are lots of reasons for why most 401k's are not big enuf to support retirements. They range from lots of people who are too irresponsible to save, don't understand the investment options, or don't make enuf money to have anything left over to save.
My mother was in that boat. She simply didn't have excess cash after feeding and housing us to put away money. She didn't waste it and she didn't spend foolishly. She seems to be happy to live on her SS with only occasional help from her kids for unexpected expenses. We continue to be amazed that she can live on so little, but she does have kid-subsidized housing that makes it possible and a fierce desire not to depend on anyone else.
Individual responsibility is good as far as it goes, but the ugly fact is that huge numbers do not have adequate resources to fund retirement. When they get old and can't work anymore, it will cause big social and economic problems that we all will be affected by, even if we individually made smart and responsible decisions for ourselves. I personally believe I will be fine because I have saved and have the resources to fund a comfortable and secure retirement. But I have to live in a society that can affect me. The current reliance on SS and individual savings is simply not working for the society as a whole.
I support freedom of choice....to make decisions for yourself outside the heavy hand of government and to live with those consequences. We already pay into social security....which is enough to just get by on.(as intended).
Just what exactly are you suggesting?
P.S. I know people that retired with pensions, soc. security and 401k's that are still broke because they spend every cent they get.....be careful who you hurt when fixing a problem that can't be solved.
What's too bad is, as I said in an earlier thread, many Boomers who want to continue working won't be considered as qualified job applicants if they are jettisoned by their companies. Our society can't continue to complain about the Boomers retiring early and sucking the money out of the system when they won't hire older workers.
I know a lot of folks who have been turned down for jobs in there mid 50's because " they wouldn't fit in" or whatever other excuse a company can come up with. I don't think they will have any better luck as they get older Of course there is one job out there for the older job seekers, one position that they are not to old for - they could always run for President
I'm on the leading edge of the boomers and I can tell you that much of the stuff I've read here are the same things that my parents predicted when they retired. The rich getting richer and the poor getting poorer isn't a new concept. People not saving enough for retirement also isn't new. I also don't think millions of boomers will "retire" in the traditional sense. Many will continue to work, many will volunteer, those that can spend money will spend it back into the economy. The cost of living will continue to rise (when my Dad retired, gas was less than $1.00 and he paid $33,000 for a house in the bay area). Some of us will go south, some will go where the cost of living is less, some will stay where they are, and some will move near their kids (is that ever a good thing since your kids move where the jobs are).
I'm sure things will change in the future...but I'm not so sure that it will be based soley on boomers retiring. But if we run out of water, things will change for everyone (just a side-bar note..forgive me).
I'm on the leading edge of the boomers and I can tell you that much of the stuff I've read here are the same things that my parents predicted when they retired. The rich getting richer and the poor getting poorer isn't a new concept. People not saving enough for retirement also isn't new. I also don't think millions of boomers will "retire" in the traditional sense. Many will continue to work, many will volunteer, those that can spend money will spend it back into the economy. The cost of living will continue to rise (when my Dad retired, gas was less than $1.00 and he paid $33,000 for a house in the bay area). Some of us will go south, some will go where the cost of living is less, some will stay where they are, and some will move near their kids (is that ever a good thing since your kids move where the jobs are).
I'm sure things will change in the future...but I'm not so sure that it will be based soley on boomers retiring. But if we run out of water, things will change for everyone (just a side-bar note..forgive me).
We are clearly moving into a time of uncertainty. There is no precedent. Longevity has increased life spans and that has seriously hurt the system of social security and pensions. To many people are living paycheck to paycheck and the recent run in housing prices has made it difficult for anyone who didn't buy ten years ago or more. Preparing for old age is beyond the means of many Americans. Others have failed to prepare. Others have never been financially independent. I read a great article the other day and it was saying that baby boomers will pass an incredible amount of wealth on to their children. These are the folks who have prepared for retirement and were the typical 2 child family. As we die we will give our children a considerable sum of money for them to invest. Those are the haves. The children of the current haves with good sense on their part could be golden in their old age. For others well that is our collective challenge for the collective public good.
We are being replaced by young illegal immigrants and children of illegal immigrants who are allegelly American citizens. The real question is "will there be Americans who were raised in an English language household available for work?"
Some "Boomers" are children of Americans of the 40s...children of parents who fought for America. Illegal immigrants do not fight for America but get the best of America and so will their children.
We are being replaced by young illegal immigrants and children of illegal immigrants who are allegelly American citizens. The real question is "will there be Americans who were raised in an English language household available for work?"
Some "Boomers" are children of Americans of the 40s...children of parents who fought for America. Illegal immigrants do not fight for America but get the best of America and so will their children.
Hispanic Americans are bearing more then their fair share of deaths in Iraq. If they are not Americans then they are doing a great job dying for America.
Here's a question (and forgive me if it's already been answered)--but as the boomers start cashing out their 401ks, is that going to start devaluing mutual funds, stocks, etc?
Here's a question (and forgive me if it's already been answered)--but as the boomers start cashing out their 401ks, is that going to start devaluing mutual funds, stocks, etc?
That's been discussed in the finance and investment threads.
I think the short answer is not really. That money doesn't just evaporate....it gets spent...stimulates the economy and someone else winds up putting it into their 401k etc. Additionally, boomers that lived within thier means and have a lot of stock etc. will just take the minimum disbursement and roll it right back into the stock market as post-tax dollars. (This is what my in-laws are doing.)
I've read some doom and gloom scenarios but they are generally ill-supported conspiracy theories being pushed by people trying to sell annuities, gold, land....you get the picture.
As a side note, there have been some good discussions about a boost in tax revenues from the boomers drawing on 401k's.
Haven't there been uncertainty of some sort in all generations? My folks faced WWI and recovery from the great depression. Home prices excalating isn't new. In the mid-70's housing prices had doubled in 18 months....and we were recipeints of that boom.
I think there have been huge economic changes in the past 25 years, but still in all change isn't new. Prices are higher, but so are incomes. Expections, however, are much higher. I think we expect more..more of everything. And many of us aren't prepared for the harsh reality that "more" and "everything" isn't going to happen. But retirement can still be a richly rewarding period of life if your not measuring wealth in $$.
Many of us may have to continue working in "retirement"...but hey, we redefined the workplace in our life, who is to say we can't redefine "retirement"?
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.
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.
Of course there is one job out there for the older job seekers, one position that they are not to old for - they could always run for President
Lots of uncertainty
