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most of these surveys are flawed... there is one for savings rate i saw also that showed some rediculious number that was so low,...
they only count bank accounts no other investments. can you believe coming out with a report about how little we are saving and not count all savings vehicles....
all i know is even the kids today that are working have money going into 401k's and saving. thats something our generation never even had when we were young.
Then you are one oof the lucky ones, 401Ks are why most people have less than $10K. See what you have when retirement time commes, Just a way for employers to avoid ERISA
Quote:
Originally Posted by mathjak107
thats baloney....
Mathjak, you are wasting your time. Lest you forgot, you are arguing with someone who continues to also insist that doctors refusing to treat Medicare patients is only an unfounded rumor meant to scare seniors.
Even before the financial crisis, the average balance in 401(k)s for workers nearing retirement was just $78,000. After the market plunged, that average was reduced to about $56,000, according to Munnell's calculations. That's just not enough for a comfortable retirement, says Roger W. Ferguson Jr., president and chief executive officer of TIAA-CREF, the financial services company that offers retirement plans for employees in the academic, medical and nonprofit fields.
"Many families, at this stage, are short $250,000 from what they're going to need," Ferguson says
The above is from the link and offers a thought/perspective
the real problem is for most of america there just isnt enough money available from our paychecks to save to hit the serious numbers needed for living on in retirement.
it dosnt matter what vehicle is used to save or invest the amount of money that needs to be saved is huge .
we have to sustain life longer not working then we actually did working and we have to do it in away that lets us pull double the amount out every 20-25 years to buy the same things.
as even my wife and i learned very recently , its not about how big the pile of money is but what that money can generate to live on.
a million bucks in your thirties is alot of dough, you can buy a house, cars, trips etc, but that same million entering retirement is worth no more or less then your neighbor next door who has absoluetly no savings but has a cola adjusted 40,000 a year pension....... the game changes....
my wife was hesitant to retire early until we sold the last two nyc apartments. i showed her how selling the apartments and having all that cash really didnt do much to change our withdrawl rate because it wasnt about that nice lump sum but it was about what we could only earn with it. since we were already getting an income from the rent the additional we could get having that lump sum was paultry.
the real problem is for most of america there just isnt enough money available from our paychecks to save to hit the serious numbers needed for living on in retirement.
it dosnt matter what vehicle is used to save or invest the amount of money that needs to be saved is huge .
we have to sustain life longer not working then we actually did working and we have to do it in away that lets us pull double the amount out every 20-25 years to buy the same things.
as even my wife and i learned very recently , its not about how big the pile of money is but what that money can generate to live on.
a million bucks in your thirties is alot of dough, you can buy a house, cars, trips etc, but that same million entering retirement is worth no more or less then your neighbor next door who has absoluetly no savings but has a cola adjusted 40,000 a year pension....... the game changes....
my wife was hesitant to retire early until we sold the last two nyc apartments. i showed her how selling the apartments and having all that cash really didnt do much to change our withdrawl rate because it wasnt about that nice lump sum but it was about what we could only earn with it. since we were already getting an income from the rent the additional we could get having that lump sum was paultry.
Hmmmm depends on if the pension is still payable to the spouse on the death of the pensioner. The million in the bank will still be there. Also the million in the bank can be passed on in legacy money to heirs and the pension can't. They both may equate to 40K per year as income but one counts towards personal worth and the other really doesn't.
Also the million in the bank can be passed on in legacy money to heirs and the pension can't.
Not necessarily.
If the retiree starts withdrawing 4%/year ($40k) and then increases the $40k by 3%/yr. to offset inflation, he will eventually start eating into the one million principal (assuming standard return on a stock/bond mixed portfolio). This standard drawdown percentage is used to increase the probability that the one million will last at least 30 years. But rest assured, barring another extremely long-term bull market, the one million will eventually be whittled down. It will not be there to be passed on to heirs unless the retiree suffers a premature death.
the real problem is for most of america there just isnt enough money available from our paychecks to save to hit the serious numbers needed for living on in retirement.
it dosnt matter what vehicle is used to save or invest the amount of money that needs to be saved is huge .
we have to sustain life longer not working then we actually did working and we have to do it in away that lets us pull double the amount out every 20-25 years to buy the same things.
as even my wife and i learned very recently , its not about how big the pile of money is but what that money can generate to live on.
a million bucks in your thirties is alot of dough, you can buy a house, cars, trips etc, but that same million entering retirement is worth no more or less then your neighbor next door who has absoluetly no savings but has a cola adjusted 40,000 a year pension....... the game changes....
my wife was hesitant to retire early until we sold the last two nyc apartments. i showed her how selling the apartments and having all that cash really didnt do much to change our withdrawl rate because it wasnt about that nice lump sum but it was about what we could only earn with it. since we were already getting an income from the rent the additional we could get having that lump sum was paultry.
In regards to paragraph #3-------"we have to sustain life longer not working than we actually did working"--
Maybe your case is an exception, but it certainly is not the norm.
I, and many people like me, started working at age 18 and retired at 62 .
( 44 years working)
well i spent 34 years working, im 57 so its conceivable ill be not working longer then i did work. most pension type jobs only require 20 years of service making it really a good chance you will be retired longer then you worked.
its not true of everyone, but you get the point, you may have to be dependent on your nest egg for a very long time.
well i spent 34 years working, im 57 so its conceivable ill be not working longer then i did work. most pension type jobs only require 20 years of service making it really a good chance you will be retired longer then you worked.
its not true of everyone, but you get the point, you may have to be dependent on your nest egg for a very long time.
I don't believe this is true. Most defined benefit pensions require 30 years. Some have a reduced time as the employee gets into social security ages which figure into the reduced payout due to age. The 20 year pensions tend to be limited to high risk jobs like law enforcement where they want to encourage the middle aged to get out plus the higher risk of never collecting due to death on the job.
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