Posted on 11/28/2006 10:10:49 AM PST by seacapn
GAINESVILLE - From all appearances, America's baby boomers are a nation of procrastinators wearing rose-tinted glasses.
They think just because they worked all their lives - many starting as early as 16 - they deserve a retirement with the same income as at the peaks of their careers.
Oh sure, there will be some health benefits they'll have to pay for, and heaven knows what gasoline will cost in 10 years. But they'll still be in their homes, drive two cars and take cruises whenever they like.
But recent surveys show that probably isn't going to happen.
The 16th annual Retirement Confidence Survey conducted by the Employee Benefit Research Institute found that a large majority of Americans expect to enjoy a comfortable retirement, but many have not taken the actions needed to turn their aspirations into reality and face the prospect of having to work far longer than they expect.
Their expectations are termed "Swiss cheese" - full of holes.
Twenty-four percent of respondents said they are "very confident" they will have enough money to live comfortably in retirement, and another 44 percent said they are "somewhat confident."
But 22 percent of the respondents aren't setting aside anything for retirement. Another 40 percent have saved up less than $50,000.
(Excerpt) Read more at theledger.com ...
We're so used to a strong stock market now that you refer to yesterday's "bust" - and the Dow still closed over 12,000!
The way you are "retiring" is exactly what we have in mind, and we're working toward that goal.
We're about where you are. Hope to retire in 1-2 years. Try to identify what we can do without in retirement that we need as workers, e.g., work clothes, transportation, etc. Move to a less expensive place than southern Kalifornia (please, God, get us out of here ASAP!). And won't it be nice to get to that place of "no hair color"?! I do believe that a majority of the boomers are not prepared, though, and we fully expect to be supporting them during our retirement via taxes and entitlement programs - and that bugs the hell out of me. They'll want to maintain their current standard of living but won't be able to pay for it.
You can guarantee that our socialist government will look at the "haves" like you that provided for themselves, decry you as having stolen it from the poor, and then take it from you and give it to others, all in the name of fairness. Kind of like the parable of the ant and the grasshopper, only the grasshopper has a gun to take the ant's food.
I know a guy from Sweden who had that very thing happen to him. Government took $60,000 from a retirement fund that he had accumulated, for the reasons I mention above. He moved to the US shortly after that.
"there is a camera crew at your door will you say "they should have been better prepared" or will you say "go ahead, raid my retirement fund"
I'd rather be in a position to say "all my money is in steel bar inventory, they can certainly take a ton or so if they need it"
What happens to the market when all those boomers start drawing down their equities en masse for 20 years straight?
?? It took the DOW twenty-five (25) years just to break even after the '29 crash. I'm sure we agree on far more than we disagree, but not too sure about the "any ten year period" thing..
Yes... and now we see in Europe doctors euthanizing every one with worse than a cut finger. The Terri Schiavo decision spelt the death knell of a lot of my fellow Boomers.......
Instant gratification children eyeing the cash pile held by their parents. The grip of the old and weak is tenuous; children as jackals snapping at their aging parents mortality. Some great movies will be made of this.
Here is a fun fact for you:
If you hit 72 years and do not need the 401-K money, it does not matter. The Feds will tax you at 50% of their imputed required annual withdrawal.
Neat eh?
Sure, why not? It just takes time. What is finally permitted, becomes *mandatory* at some point? It's a theory, but it fits perhaps.
Some people at my company do that. They are valuable people because they know the projects and programs that are hard to train people for. +/- 3 days a week or a few weeks steady in spurts. Same pay without any managing responsibility. Work on a specific project without going to daily meetings or getting paged every 10 minutes.
It's like a hobby because you only do the fun parts of your job like you did when you first got into the field. Check it out!
"If you have your own business with some physical assets and inventory, that can be a mattress to stuff."
Agreed. We started our own business two years ago. If all goes well, we'll be able to sell it in 10 years and retire in our mid-50's.
We also have other investments and retirement savings, but between the business, the sale of our house in the future, and the fact that we're already used to living at the poverty level, we'll be fine.
Of course, either one of us could be hit by a bus tomorrow, so you just plan for the worst and hope for the best. :)
The consultant thing -- hubby is exploring that even as we speak. Retire. Come back the next day and get a bigger paycheck.
There is a limit to how much you can earn before taxes become a hassle with SS, though. I don't know you or your situation. There is also a $10,000 limit that you can be "gifted" before taxes are owed.
Gather all your legal and financial questions together and ask the right people about loopholes you can exploit like a rich liberal would:) They seem to get by.
Commas are your friend. :)
Thanks, my husband says the same thing! (it is true)
I think we have overprepared and are shocked that we don't want to retire yet. Some mornings on weekends I love sleeping in till 7 rather than up at 5 and maybe I would like that. But we planned for a luxury retirement maintaining our standard of living. Lately I don't want all that luxury,,just the time to hang around, look at the garden, take walks, read and listen to music.
Odd isn't it? We probably need a lot less than we think and the boomers probably will too.
I have thought for a long time that the retirement experts are cautious to a fault. Like they want you to take out 3 percent of your portfolio a year to last forever. At sixty five, if you put every cent in a 4 % bond or savings, your money would last in even withdrawals 25 years. That is enough for anyone I do believe. Besides I remember watching my parents live on so little,,they just lost the taste for travel and expensive hobbies and pasttimes.
So my guess is maybe we save too much. I think nobody agrees with me. The thought of running out of money terrifies people so. But usually we have a big cushion built into our lifestyles.
I believe that it's already been floated by "progressive think tanks" for a "one time" (yeah, right) 15% tax on all "tax deferred" savings. That way, you get to pay a 15% tax on your savings, BEFORE paying taxes on your savings as regular income when you begin to withdraw it...
Mark
People keep telling me I should have had kids. Your post reinforces that I'm glad I didn't. ;)
Here's something to consider: a new skill-set.
I have an accounting degree, but seldom used it as my career advanced. When I decided to "semi-retire" in my 50's I brushed up my skills and took on bookkeeping clients. The income is enough to pay the basic bills each month: mortgage, car, health insurance. For travel and other extras I tap retirement savings despite the 10% penalty (adequate savings was part of my plan).
My point is that there are part-time work opportunities other than Walmart greeter. Identify a skill that will be useful and get yourself qualified. Even if you don't use it, it's nice to know it's there.
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