Ben Stein on retirement planning

Ben's House (Ben Stein's website) ^ | November 28, 2004 | Ben Stein

[Tax-chick]

Thank you ... we're working very hard at it! I had the whole crowd out at the polls this year, both the primaries and the general election. My 4-year-old would hand voters the card for our County Commissioner candidate and say, "You should vote for Kevin because he's really nice!"

[Tax-chick]

The biggest obstacle to saving and investing today is that for most people greater than 50% of their income is paid in taxes.

Shout it from the housetops, brother!!!

[narby]

Since it's dumb to save while you still have credit card bills, .... Your assumption is false.

Assuming that credit card rates are higher than your return on investments, paying off your credit cards is the smartest investment you can make.

Tax credits for retirement accounts might make a bit of a difference, but not enough to matter.

If a keeping a credit card balance while investing your spare cash were a good idea, then the thing to do would be to buy up to your limit with a credit card and put the spare cash in investments. [/bad idea

[exnavychick]

Some people have decided that money is more important than people.

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Sick and sad, isn't it? Congrats on all your blessings!

[Area51]

I'm glad to know that I'm not totally crazy, lol. Some people have all but accused us of neglect for our stance on the subject.



36 posted on 12/17/2004 12:48:18 PM PST by exnavychick (Just my two cents, as usual.)
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Because of my employment My spouse and Children can go to Community College for free. Kids as long as they are dependants or up to 25. Spouse and I forever. Books and other materials at the Campus bookstore at cost.

That is what mine are given. There is absolutely no reason for a kid to go off to State U at 15 grand a year for basic Assoc. Degree level classwork when they can get it free at home.


But even for those that pay full price, 65 dollars a credit hour beats the hell out of 250-400. Unless Mommie and Daddy are made of cash.

Mine have been told either bust your ass and get scholarships if you want to go bigtime University the first two years or go to the Local CC cause mom and dad are saving for retirement so you don't have to house us. :)

[G.Mason]

When you get a moment check out the link below ...

http://www.finaid.org/otheraid/parentsrefuse.phtml

This is what they are telling our little darlings. ;)

[Area51]

My father retired at 57. He could have retired at 49 but my mother wouldn't let him.


37 posted on 12/17/2004 12:48:25 PM PST by Phantom Lord
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I am cashing in my working duds at 48. To hell with this rat race! :) T-minus 5

[Tax-chick]

Same to you! People like us should reproduce!

[Zippo44]

Marlboro is my retirement plan!

[litehaus]

Well,,,,,,,,,,I recall an old biblical injunction which said:

A wise man leaves something for his children's children

[eureka!]

bump

[Phantom Lord]

Your statement was that it was stupid to save while you still had credit card debt. Meaning you should save ZERO until you are debit free.

Unless you are paying in excess of 25% interest it is better to put funds into a 401(k) if you have it available with an employer match of some sort as it both increases your savings, and reduces your tax burden. And pay the debt down as fast as you can.

With this option not available you should still put some money into a savings/investment vehicle, even if just a small amount while attacking your debt.

The reason that you should do so is the law of compounding interest.

As someone pointed out above, $2,000 today is greater than $50,000 when you retire. And thats without adding a single penney to it over the years.

As with government, income isn't the problem, SPENDING is. People (like LetsRok) need to lose their desire for instant gratification and their now now now attitude that causes them to get into a situation where they are burdened with debt and unable to save.

[Fiddlstix]

Very Good Article.

[Phantom Lord]

Thanks. Don't have time right now but will check it out.

Regarding the NJ case you cited, I would suspect that part of the "law" if there was one that she filed under is that if a parent is claiming the child as a dependant there can be some obligation. The easy way around that would be to forgoe the tax deduction.

[exnavychick]

BWAHAHAHAHA!!!

Sounds like we're doing our part, anyway, LOL!

[Phantom Lord]

It was probably better that my father kept working. Lord knows what he would have gotten into if he had retired at 49.

He's only been retired 8 months and he already knocked 10 strokes off his golf score. Lucky for me he hasn't been retired for 10 years or he would be beating me!

[exnavychick]

Oh my good golly! That was downright frightening to read...gave me shivers. No wonder so many people grow into adulthood thinking people owe them something.

[exnavychick]

Wow...nice deal if you can get it! :) I have heard of similar plans before for university/college employees. Not a bad perk of the job!

[Phantom Lord]

Alma always treated us great.

For years Joe would come in early in the morning and make us breakfast before we went golfing and he would order beer he didnt normally carry that we liked to drink just for the week we were there.

They had my uncles picture on the wall behind the bar for many years.

My friend Zoom Zoom chats with Dee Dee by email from time to time.