Posted on 05/31/2020 7:10:02 AM PDT by where's_the_Outrage?
By and large, Americans of all ages believe they are building healthy nest eggs that will support them through a long retirement.
In fact, 60% of all workers say they are piling up savings adequate to last through their golden years, according to the 20th annual Transamerica Retirement Survey of Workers.
But the actual numbers suggest something different.
The median-sized nest egg for baby boomers is a relatively paltry $144,000, according to the Transamerica Center for Retirement Studies. The median is defined as approximately the midpoint of the range in a given category.
(Excerpt) Read more at msn.com ...
Make it a two-prong plan...save your money and invest some of it to keep the Left from controlling (and robbing) you.
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They will quickly turn America into a horror show.
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Agree with all your points.
The riots are a glimpse of what we’re in for.
I also think that we are in for an economic horror show. National debt is $25 trillion. Unfunded liabilities are $148 trillion. The Fed’s balance sheet is currently $7 trillion. And we are facing looming pension solvency problems and a wave of approaching bankruptcies. It would be hard to paint a more dire picture.
We are running out of other people’s money.
Like you I first learned how to save as an E3/E4 living on a meager income. An invaluable lesson as it were.
Someone said the difference in these new generations is that they don’t learn anything. That is what I see. They are not taught problem solving, just rote memorization of the correct answer. They have no real background in assembling, understanding and interpreting facts. They don’t even try.
They blame anyone else but themselves for whatever troubles they have. Excuses for themselves roll off of their tongues like warm butter.
1. How many people actually retire in the same home they occupied before they retired?
2. If you can borrow money at a low interest rate and deduct the interest on your taxes, and you can invest for the long term and get a higher return on the investments than you’re paying in interest, why wouldn’t you do that?
3. See #2. If you do this wisely, you can get to the point where your investment pool is big enough to both pay off your mortgage entirely AND pay cash for TWO homes in retirement.
4. A home is one of the least liquid assets you can ever own. Why tie up hundreds of thousands of dollars in an asset that generates no income and may take months to sell?
5. A home is an asset with absolutely zero diversification. That itself places an enormous risk on the owner.
Chris Kissell needs to get real. Break the numbers down by race.
We're all sick of this crap - let's get real - breakdown the numbers. Tell the truth.
When a racial numbers breakdown helps 'the black community' we get the breakdown. When it doesn't we get crap studies like this. Tell the truth Chris Kissell... dump the liberal bullshit.
Your comments about the vulnerability of our retirement savings accounts to political whims are SPOT ON!
Its something I am very concerned about and trying to factor into my asset management strategies in retirement.
Ignore the political landscape at your own peril.
The problem is most people won’t save and will find excuses not to.
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Well said.
I've asked the question, what happens when the majority of that 401(k) and IRA money is invested in treasury bonds and corporate stock? Seizing the 401(k) and IRA will mean seizing/nationalizing private investment in corporations. Liquidating those funds to "spread the wealth around" will mean stealing the capital that corporations rely on to survive and grow.
Is there another way for the politicians to get their hands on these savings plans and spend the money without draining the lifeblood of the corporations? Will the government force the corporations to buy back their stocks at 10 cents on the dollar, or will they ban private ownership and only allow a few selected investment companies to own the stocks? Will selling the stocks back to the corporations essentially kill the NYSE and NASDAQ if they no longer allow individuals to buy and sell stocks?
Actually, it seems that Congress moved a step in the other direction when they pushed back the age of Required Minimum Distributions to 72, meaning people have one more year to hold onto their IRA before being forced to convert tax-deferred savings to after-tax savings, and pay the deferred income taxes. This means Congress has to wait one more year for retirees to pay income taxes on these savings.
-PJ
What type of work allows that? Sounds good for you, God provides!
Vermont Lt wrote: “If you don’t have any debt, it is a lot easier to live beneath your means. I understand that lots of “kids” have a ton of debt. But the problem, as I see it, is that they keep the debt growing instead of shrinking it.”
I’m reminded of a caller who explained why he left his fiance. He had been scrimping to pay off his debt while his bride to be wanted to take a vacation. Her solution was to borrow the money. (My ex always had that solution too.)
Good assessment.
2. Because I was in the mortgage banking business for years and don't want a loan on my own home anymore. Same advice my investment guy gave us. Something else I don't have to worry about.
3. Same advice my failed and dead investment guy gave us too. Didn't work out as planned. BTW, my wife and I own a lake house ten miles away, a beach house in South Carolina, and a rental home our daughter lives in, all free and clear. So we own FOUR homes, not just the farm.
4. I don't care about selling my home. This is where we retired to. This is our end game. Our daughter wants to take over the farm when we're gone. Not everyone is into buying a selling homes as investments.
5. I look at our house as our HOME, not an investment asset. We are in our 70s and don't need to diversify any further.
We are happily retired for ten years now with money in the bank and no debts, no thanks to advice from those who think they know better.
There is more than one way to skin a cat as they say.
You're right on this... The real question is can we stop this from happening?
You’re right on this... The real question is can we stop this from happening?
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Its doubtful given the profound demographic and cultural changes this country has experienced in recent decades. Ironically, the only thing that might save us is some kind of severe national hardship or fear that causes people to reassess their value set and what’s really important.
Thanks.
Last night’s horror might be the “severe national hardship” that brings about the change. The mood in the country has changed toward ‘the black community’ and their endless excuse for black criminal psychopaths.
I suppose it could happen in any number of ways. My money is on a “one time” wealth tax that gets repeated every couple of years. Or maybe a higher rate on IRA withdrawals.
As far as the RMD is concerned, I would not break out the champagne just yet. You might be deferring withdrawals until the tax rate is much higher.
I am 64. I have a pension that maxes out at 65, so I will start drawing that next year. I was planning to start drawing SS at my full retirement age of 66 and 4 months. But if the Dems get in I might delay that and start spending the IRA before they get their hands on it. I guess I will have to keep my ear to the ground and try to get a sense of what they might try.
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