Posted on 09/22/2024 11:57:42 AM PDT by ChicagoConservative27
Interesting they have 401ks instead of 401ks plus IRAs. When I change jobs I rollover the money into my own account so I don’t have to deal with the company anymore.
Thanks. I forgot to comment on the abysmally low amount of savings, but that jumped out at me, too.
Good for you on savings! We are 73 and solidly in the “go-go” phase of retirement with “slow-go” not far away, so we are trying to pace our savings draw-down. We are starting to ease up a bit on our miserly ways to travel more while we can. We have one house with a mortgage and own a second house free and clear (except for the eternal taxes). If a crunch should come, we can unload the house with the mortgage. It’s in a very desirable area where most houses sell in less than ten days.
We still have about seven times the 65 average and we are still aggressively invested in equities which has paid off for us. But we watch savings carefully to make sure our draw-down is on track.
But I’m really worried about the possibility of the brain-dead commie winning in November, her tax plans and how that would shatter all of our savings, real estate, and equities. If she should get a tax on unrealized gains passed, we would be royally screwed. We’d have to sell our California home to pay the tax on it, but many others would be in the same boat. With lots of people unloading their real estate holdings at once, prices would crash. At least then our unrealized gain would go way down.
Maybe the savers are the suckers after all, if the government takes the money from the savers and gives it to the people who didn’t save.
With a safe withdrawal rate of 4%, that means $273k would yield about $11,000 per year. A small supplement to Social Security, but not enough to live well.
“Maybe the savers are the suckers after all, if the government takes the money from the savers and gives it to the people who didn’t save.”
A real possibility if the commies get elected in November. The government has been doing that, of course, since 1965, to the tune of $35 trillion and no stopping that is in sight. The reckoning is coming.
Whoa….there. That is so dependent on your current age and any other retirement income that a statement like that is just a bit “hyperbolic.”
Between 401(k), retirements, and SS my wife and I will more than replace our current income. Our house is pretty much paid for, and aside from a HELOC, we have no debt.
Retirement requirements are so individual that one person’s nest egg would seem low to another’s. And at 65, measuring things as if you are in a JR High boy’s shower is kind of a waste of time.
But yes, the median savings is abysmal.
Fortunately for me, I won’t have a problem because of my 401(k) is 5 1/2 times more than the average for a 65 year old guy. Additionally, I’ve been blessed to have made some money in the market over by lifetime in addition to owning a business. I’m glad I figured this out when I was in my 30s and did not wait till I was older. My advice to you youngsters out there is save, safe, safe, invest wisely.
Amen
I have done way, way better than what they’re showing. If I hadn’t, it would have been my fault.
This. I read that when you're in your 20's, every dollar invested is worth $88 when you retire.
I have a friend who lost their job & had to cash out his 401k to support his family when he was in his 30's. He's 70 now and still working. I'm 62 and doing ok financially but plan to work probably another 5-8 years.
Thankfully I’m outside the norm and I didn’t start saving till I was 45... It was at that point I figured I might live awhile. Went max contribution then went government for the pension as well. Retired 17 years later and doing fine.
I am quite safe - at the moment. SS more than pays my living expenses and I just had to take my first mandatory retirement funds distribution of $10,000.
Things could change quickly, though, if equities get crushed, if the fascists gain more power and start confiscating or if I have a major medical issue...knock on wood.
My wife will get ancy when the stock market performs poorly. You only lose if you panic and cash out. If you don’t sell, you still own the number of shares. If a person saw their favorite shoe on sale, they might pick up one or two extra pairs but when it comes to stock, they panic. Putting a consistent amount each paycheck guarantees dollar cost averaging where you’re buying stocks when they’re high and low.
You don’t need a million in your retirement to retire. You need to use logic, figure out how you want to live and what you need. Never take more than 4% out of your 401k or investments and you’ll do ok “if” you do other things right. Your house should be paid off which is huge.
It’s all about planning and if you depend solely on a 401k and SS then you planned poorly.
I asked a wealthy woman, whose path through life had tracked closely with my own, without me becoming wealthy, what was the secret of her wealth. Her two word answer was "compound interest".
That woman has a sister who is also well-to-do, but who, at age 65, is still on the corporate treadmill. My friend, on the other hand, spends only two hours working every week, and those two hours are spent managing her investments.
These days she lives off dividend income. She has told me that she loves stocks that pay a 9% dividend, and looks only for very conservative investments (e.g. garbage disposal companies and companies in other basic industries).
I had a couple of minor health issues this summer. The total bill was $120,000!! My out of pocket was under $500. I could not believe the inflated prices the hospitals, doctors and specialists charge and then what they settle for from insurance companies and finally what we pay under Medicare and our supplemental plan.
Without insurance, you would be wiped out in short order.
I have Medicare & supplemental. Hope that carries me through.
It should. We’ve been happy with our supplement from Regence (Blue Cross). But the three-tier deductible plan is confusing as hell.
I was going to say the same thing, probably less than 1% of the retired population has at least one million dollars in their 401K and those working will likely never have 1 million dollars in their 401K, you can have a nice retirement on far less than 1 million dollars.
Stay out debt, pay off your mortgage as soon as possible, and pay attention where you spend your money and you can live comfortably.
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.