 |
To be added or removed from the "The Wall Street Journal" Ping List, FReepmail GOP_Lady. |
Posted on 03/12/2010 2:18:46 PM PST by Pontiac
Is it too late to save your retirement?
For many, the answer is surely yes. News out this week shows that 29% of those who have already retired have saved nothing at all to support themselves, while only a third have saved at least $50,000.
To put this in context: A retirement account of $50,000 will provide a 65-year-old man with an annuity of just $4,000 a year.
Yet according to the latest annual retirement survey from the Employee Benefit Research Institute, a nonprofit think tank in Washington, two-thirds of those in retirement don't even have that much set aside.
It's true that many will still be okay. That's because they will have a good benefit pension, or a lot of equity in their home, or both. Neither is counted in the survey, and both can be very important.
But neither pensions nor home values are what they once were. And many won't even have them.
Overall, this is a pitiful state of affairs at the tail end of the biggest financial boom in history. Today's retirees lived through the incredible bull market that began in 1982. Bonds as well as shares skyrocketed. Most of them should be rolling in money.
Instead they were relying on ... what? Santa Claus?
The picture is no better for those still working, either—including millions of baby boomers nearing retirement. According to EBRI, just a third of workers have saved $50,000 or more, and nearly a third haven't saved a dime. The numbers got worse, not better, in the last year. Forty percent of workers aren't saving at the moment.
(Excerpt) Read more at online.wsj.com ...
I don’t want to throw rain on your parade, but trusting your retirement to paper accounts ala 401K should be reconsidered. There is going to be one hellashiush need for CASH, ready-CASH, in the coming years of year-two Obama (YTO) [an aside - have you heard progressives want to do away with BC, AD, etc...their goal is YOO, YTO etc....This unwaivering need for CASH will reach down into ‘paper’ accounts. You might also consider investing in steel, lead, copper, and maybe a little silver and gold.
RE: “But everyone has a big screen and cable.”
*************
It’s sad but true that so many with so little seem to have all the fun stuff, isn’t it?
We’re well prepared for retirement and JUST got BASIC cable for the TV last year after we ponied up the $ for a new flat screen - a whole 32 inches and it cost very little due to ‘points’ from credit card purchases. Are we ‘cheap?’ Let’s just say we’re fairly ‘thrifty.’
Good assumption, and one that gets "better" (more bleak) the younger you are. By the time I hit 70 in 1937, I strongly suspect Social Security will only be payable to those 75+ AND WHO ARE VERY POOR. So the irony is that by saving independently, I will have guaranteed that I cannot get back any of my SS contributions.
Always a tough call — but gold has performed so badly that I hesitate to invest in it.
But I do constantly keep an eye out.
And, of course, the first step is to not have debt. So, I am in pretty good shape there.
RE: “It would be interesting to know the breakdown between conservatives and liberals, voters and non-voters.
I cannot even imagine a conservative not planning for retirement, setting aside as much as possible for a raining day.”
****************
By and large it is the conservatives and independents I’ve known who have best prepared for the future. The lefties, not so much. In fact the kooks and nuts in my family are the ones who have no money and are always on the take in some form or other. I have NO sympathy.
Ditto that. I’ll convert to diamonds and gold, and they can try to come and get ‘em. Over my dead body will they confiscate my lifetime savings.
I also have two computers...
The good news, I suppose, is that I’ve saved more than $50k...
Unfortunately, one thing that probably contributed to this situation is the fraudulent notion, bought into by too many Americans, that one is “saving for retirement” by paying one’s FICA taxes.
That has created two problems. First, it has caused a lot of Americans to save less than they would have if no one else was purporting to take responsibility for their retirement. Second, it has given rise to the myth that the money they paid in FICA taxes is still “their money”, when that money is clearly gone. Maintaining the fantasy of the “Social Security Trust Fund” is crucial in perpetuating the Social Security Ponzi scheme.
I’ll still be writing Windows Mobile code when I’m 80.. I hope.
I am naive. I didn't think about folks that would take money out of their 401k until it was time for them to retire.
This has to be one of the best sites on the web.
Considering the widespread financial illiteracy among Americans today, I’m not surprised in the least.
YEP.
How much do you think some popular calibers of ammo will be worth in the future, especially when the government stops sales to the citizenry?
I’ll take all the .45 and .44 Magnum you have to sell...
I paid into my social security all my life, dadgumit, and I want my gov’mint check!
If you believe that an annuity of 50K will thrown off 4K a year (they don't tell you for how long) you're better off blowing your 50K on lotto tickets.
I put a portion of my money into a managed forex fund. It’s making about 4% per month so far on average. Gotta be careful though, not all funds are created equal. and there is a lot of HYPE.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.