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Some of that 75% may be disabled, have huge medical bills or other uncontrollable issues that prevent them from saving.
But I don't understand why the average American can't be disciplined enough to live below his means and save for both
a rainy day and retirement.
.
From the article:
Just as a voluntary Social Security system would have been a disaster, a voluntary retirement account plan is a disaster.
Most folk do not have the discipline to live at, let alone below their means.
This is not a new phenomena According to AARP 25% of current seniors are lively on Social Security alone. In Florida, it's 1/3. Seniors are the greatest users of Section 8.
Just as a voluntary Social Security system would have been a disaster, a voluntary retirement account plan is a disaster.
Most folk do not have the discipline to live at, let alone below their means.
This is not a new phenomena According to AARP 25% of current seniors are lively on Social Security alone. In Florida, it's 1/3. Seniors are the greatest users of Section 8.
" According to AARP 25% of current seniors are lively on Social Security alone."
To be fare I have no respect for AARP.
Having said that, if 25% are, then 75% are NOT.
IRA's were created in 1974, I believe. There are very few who couldn't have saved something in all those years unless they retired before '74.
In retrospect, instead of the SS system if workers were forced to save even, plus the employee contribution, in U.S Savings Bonds they would be better off today then with SS.
since 90% of all companies offer some type of 401k, and anyone working more than 10 years would have more than 30k is savings (you really cant touch the 401k money until retirment time anyhow, with out paying an IRS penalty)
hmmm guy making 60k a year....contriutes 5% (plus gets company matching (((but we WON'T count that))))
that's 3k a year....10 years to have saved 30k (and its INVESTED so its GROWING all the time)
would have 30k in 5 years if they contribute 10% (even less with employer matching)
Less than half of 401(k) plans offer company match.
Many 401(k) accounts invested as per general recommendations regarding asset allocation by age lost value over certain periods during this past decade.
Less than half of 401(k) plans offer company match.
Many 401(k) accounts invested as per general recommendations regarding asset allocation by age lost value over certain periods during this past decade.
yes they may have lost a little
but they made it all back already plus
and if they were smart they would have increase their investment back when the dow dipped to 6k
I used to just send my standard 10% (with my company matching 5%)....money invested in 07...lost some...money invested back in 1995 when the dows was 3k...increased ALOT...08/09 when the bottom fell out UPPED the contribution to 15%...those shares bought at dow6k...have DOUBLED in less than 4 years as the dow is now back to 14k
my 401k..over 190k and growing...and I only make 60k...many of my peers make make a lot more than I (since I am a government worker)
for a title of a thread to say that 75% of all workers near retirement age(meaning have worked and saved for AT LEAST 20 years) have less than 30k saved...I call malarky
The median income in this nation is $26,324, which is $12.66 that's not much higher than minimum wage. 66% of all American workers earn less than $39,900.
In fact, 75% of all working adults 50-64 make less than $52,000 a year.
The vast majority of people don't make enough money to live, have children, pay for health care, buy a home, and save for retirement.
This is the problem with these 401k plans, they were set up for people with very high incomes. They were not designed for people making $35,000 a year.
Simply saying people should try harder ignores the fatal flaw in using 401k plans as the primary retirement vehicle.
It is a failure for the vast majority of workers.
IRA retirement accounts are worse than 401k plans for retirement.
This ^^^^
When so many people are unprepared for retirement, it's not the fault of individuals. It's a systemic problem. Not to mention that we are slowly emerging from the worst recession since the Great Depression.
since 90% of all companies offer some type of 401k, and anyone working more than 10 years would have more than 30k is savings (you really cant touch the 401k money until retirment time anyhow, with out paying an IRS penalty)
hmmm guy making 60k a year....contriutes 5% (plus gets company matching (((but we WON'T count that))))
that's 3k a year....10 years to have saved 30k (and its INVESTED so its GROWING all the time)
would have 30k in 5 years if they contribute 10% (even less with employer matching)
Quote:
Originally Posted by bUU
Less than half of 401(k) plans offer company match.
Many 401(k) accounts invested as per general recommendations regarding asset allocation by age lost value over certain periods during this past decade.
According to this, many companies are once again offering a match.
Over the years I have lost track of people I knew who who prematurely withdrew 401K monies and ate the penalty. Then there were the people who borrowed against their 401K for a down payment. Leaving a job for any reason means the 401K loan has to be repaid in full, chop-chop. Failure to repay creates a tax liability including penalty for the former employee. There are some very sad cases where people were laid off and the current market balance of the funds remaining within their 401K were not sufficient to pay the tax liability all the while, the value of their home was declining.
And then there were the folk in self directed IRAs who invested in real estate.
Bankruptcy does not eliminate obligations to the IRS.
Just as a voluntary Social Security system would have been a disaster, a voluntary retirement account plan is a disaster.
Most folk do not have the discipline to live at, let alone below their means.
This is not a new phenomena According to AARP 25% of current seniors are lively on Social Security alone. In Florida, it's 1/3. Seniors are the greatest users of Section 8.
If a person doesn't have the self-discipline to save for retirement, then they should work into old age and not retire. Why do we reward bad behavior at the expense of the people who are responsible enough to save for themselves?
We should make SS voluntary and if that means 1/3 of people still have to work when they are 75 years old, then that is their fault.
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