"That's as good as money, sir. Those are I.O.U.'s. "
Posted on 01/08/2012 9:57:57 AM PST by Silentgypsy
high earners need to save extremely high percentages of their income -- as much as 77 percent for the 45-year-old just starting to save for retirement at age 62 -- to produce that 80 percent.
The concept underlying Munnell's paper, and a lot of other retirement planning advice, is that you can figure out how much you need to save once you have a number for that 80 percent replacement rate.
But there's reason to believe that oft-quoted 80 percent figure is wildly on the high side. That, in turn, makes the retirement calculations based upon it also wildly off. And that means if you're trying to save enough money to produce that 80 percent figure, you may be putting away too much, or skimping unnecessarily on the early years of retirement.
(Excerpt) Read more at finance.yahoo.com ...
Ping.
Yes, if you have money to put into retirement your taxes are too low.
Government should be doing all of that stuff so EVERYONE can eat, drink, be merry, and vote appropriately.
Stop worrying about it, socialism has safety nets for such things.
You see where this is going, right?
"That's as good as money, sir. Those are I.O.U.'s. "
I’d normally LOL that image for it’s absurdity, but that absolutely captures the thought process of libs and the political elite in D.C.
Yes, I do, and that’s why I had to call them on it. Thanks!
Been semi-retired (wife completely retired) for almost 3 years now. We are getting by on about 65% of our former household income rather easily. And that includes paying for our own health insurance now. And taking a European vacation each year, just like we have for 12 of the last 15 years.
Of course, we’ve been in training for 25 years at living below our means.
Now, the above being said, you can’t save too much. Saving more just means more freedom and fun later.
Delayed gratification is the most powerful tool available for achieving financial independence.
If I hadn’t begun retirement planning at the age of 36 after husband 1.0 decided to rake me over the coals, I would have been in really bad financial shape when I had to retire 3 years sooner than planned. As it is, I’m grateful that the Creator let me last so long in the workplace.
“...we’ve been in training for 25 years at living below our means.”
Thrift now translates to peace of mind later.
Well, you don’t have to save that much because you have also social security to help out:)
You’ve got a point.
Inflation is a hidden tax, that bleeds off savings and makes long term projections and comparisons difficult or impossible. The collapse of the financial system has me scratching my head - are these people delusional? Have they not been paying attention, or perhaps they think the alligator will eat them last.
Without knowing the FUTURE inflation rate or FUTURE government policies, retirement planning is really just a wild a** guess anyway.
Best to learn to live a little below you means, save as much as you can, learn to invest and management your money and plan on working longer (at least part time). That’s about the best you can do.
This was while paying hefty alimony, which reduced my tax liability, I was broke when the divorce was final. I have come to the conclusion that when it comes to women it is better to rent them, Thanks Steve Swerka,
Can one accumulate food stamps like cell phone rollover minutes? I suppose I could live slightly under my means-—and eat every third day.
“...the financial system has me scratching my head....” When derivatives appeared on the scene (first became aware of them in the ‘90’s because of a Fortune article), I realized that there’s a lot more to the subject beneath the surface. The rating agencies’ misbehavior, the subprime mortgage debacle, the failing of our watchdog agencies to ensure accurate financial reports, have all contributed to my confusion.
Lol! Good for you! I bet your ex is still broke. I was never so delighted as when I heard that mine remarried so I no longer had to be concerned about his reappearing and attaching himself to my jugular. Re: the poor lady he married? Caveat emptor and whew!
It doesn’t matter anyway.This Government of ours will eaither tax the hell out of it,Increase inflation so high that a pention cannot keep up or destroy the stock market values like they have already.
With this government there is No such thing as retirement planning.You just can’t plan on the destructive things their doing.
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