Posted on 04/25/2015 8:04:12 AM PDT by TurboZamboni
doesn’t matter how much is there. You won’t get a dime of it. It’s a 401K. It’s not your money. It will go to some deadbeat (or politician) before you get to spend any of it.
“You’ll need a couple of million in 30 years when a loaf of bread to 20-30 dollars.”
That’s sounds like hyperbole. Until I remember as a kid going into Dairy Queen with a dollar and getting a burger, fries and a small drink.
I was finally able to return to work after 7 months unemployed after a lay off. Now have only $1,800 in retirement after having to drain my retirement to pay bills.
This economy sucks.
So the government can swipe it and replace it with an EBT card?
When 401 started I told my troops that they all just took a huge pay cut. Matching was 4% it got better a lot better in some places. Anyone taking full advantage of the thrift plan and other contributions at a large company and investing at moderate risk could become extremely well off. Some middle managers approaching 8 figures with paid off homes and second homes. With match up to 8%, bonuses invested for rainy day money, retirement accumulation and supplemental retirement accumulation plan contributions some one working for a big corp can easily salt away the equivalent of 35% of gross pay at 6 to 8% ror for years. All it really takes is to save 15% but 25% is much better. You had to save, participate and survive. Dad used to say big companies pay big money if you can stand them.
People are not educated nor prepared to manage their own retirement even with guidance. I fear most messed it up. There is just so much to know. Financial advisors also have done a number on people. A bad one can screw you up to the point you cant recover. The 401is open season for financial hucksters. 1.5% management fees are really 25% of your rate of return!!!!!
If I had known 25 years ago what I think I know now I believe Iwould be nearly double what we have saved for retirement. The medical deal is one you just cant get outside government nor is inflation protection nor the near guaratee for life. A school teacher retiring at 52 isnow probably much much better off than alot of engineers retiring at 60! Certainly better off than anyone self employed at 65 or more.
Problem is risk when you stop work and live too long. Annuity schemes are much more mature and better in europe. Not here. Not enough buyers and fed laws too restrictive.
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