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 ...
My 401K and other investments are down about $8000 since yesterday, I can understand why they're skittish about it.
Fortunately, I'll have over $1,000,000 in savings to help tide me over through my golden years, which begin in 430 days. And I'm hoping that will be enough.
SS and Medicare will not last forever, gang. And without those, a lot of people are just going to have to die poor.
Don't be one of them. Pay yourself first, right into your savings and investments, even before you pay your bills. You'll soon not even miss it. Pay off ALL your credit cards EVERY MONTH. And if you start when you're young, you'll retire a multimillionaire.
If all you do is wring your hands and pray for government programs, the lottery, or big inheritance, you'll be screwed.
This is a double dare problem. The boomers will demand rich government handouts for retirement as the younger workers will refuse to pay more taxes. Collision is unavoidable.
"That's why I've tried to keep everything out of "plans" that someone can manipulate."
>>>So, which savings vehicle do you prefer? Simmons, or Sealy PosturePedic?
Touche' BadaBing!
Collectible vehicles might work, some land purchases I think are hard to confiscate. I actually overpay my taxes to stay clear of the IRS, but you'd have to be stupid to not think we could see a day of forced wealth redistribution.
If you have your own business with some physical assets and inventory, that can be a mattress to stuff.
I expected to and wanted to, but God had other plans.
Just imagine the many subtle ways they'll think of to tax it. Now, when you withdraw after age 59 1/2 it is taxed as ordinary income. One day it will not be. It will be taxed as ordinary income and an additional surcharge. Count on it.
This article reminds me of why I never believed that Roth IRA's wouldn't be taxed.
For every one of the consciencious few, like you, there are a thousand idiots who think a vacation once a year is a right.
Democracy, especially in its gerrymandered representative variety that we have today, has always been two wolves and a sheep deciding what's for dinner.
I like you, can't salt it away fast enough, but I'm starting to think it ought to be moved off shore.
Another note, most boomers have untapped riches in their home values. What happens to those values when millions of boomers decide to down-size and use the equity for retirement? Seems like there will be a fatal imbalance in the housing sector at some point.
That is a serious concern. You are putting the money away tax free. It grows. No one knows at what rate it will be taxed at when you begin to take it out. The Roth IRA is much better. However, it is set up so you really can't put in large enough sums to make a difference. They will take as much as they can from those of us that work.
"My 401K and other investments are down about $8000 since yesterday"
And I have one stock that by itself lost $13,000 yesterday. We're not in the market on a day-by-day basis. :)
Well, we do take a vacation every year; usually it's a house at the beach, but this year we splurged and took a cruise in the Baltics. You can't save EVERY penny for the future at the expense of today, but I wouldn't dream of vacations like that if we carried any debt.
I think the best we can do is invest and save for our future and hope there will be enough of us "conscientious" ones to yowl if the wolves come to the door. Right now, I'll be happy if they just go ahead and fix the AMT. :)
We have a growing shortage of workers (allegedly the reason we need to keep importing people from the third world) while we have a growing number of retiring boomers, the vast majority of whom are physically able to work and, what's more, would benefit themselves AND society by continuing to do so.
If you travel to advanced as well as emerging economies in Asia, you see vast numbers of older people manning toll booths, working behind the counters in convenience stores and running the desks at hotels, just to name a few.
Among our ranks we have laid-off business people, who would make perfectly fine teachers, and prematurely retired pilots, who would be fine traffic cops and even lifeflight pilots.
The list could go on and on and on. While 50 and 60 something boomers might not make your greatest roofers and carpenters, the well-connected able-bodied snot-noses with politically protected public sector union jobs could make the transition with ease.
The first boomers to accept these options would get first pick of the jobs as well as incentive such as reduced tuition for their children or grandchildren in return for reduced or delayed collection of social security and other geezer benefits.
And before anyone get out their flamethrowers, let it be known that I am a boomer who would be among the first to volunteer for such a program.
Just as no one knows at what rate it the 401k be taxed at when you begin to take it out, I can see the govt. down the road say there is a 'crisis' with SS, and Roth IRA's are no longer tax free.
I recommend Dividend Reinvestment plans for everyone here. Start small if you have to, but keep putting $$ into them monthly and have the divs reinvested. I'll find the link.
http://content.sharebuilder.com/MgdCon/Jump/Web/welcome/newwelc/index.htm
http://www.dripcentral.com/
I think you and I have already talked about this. And you're right, Linda. I used to get freaked out by a bad day on the stock market, but now I just try to shrug it off. The good days almost always outweigh the bad days if you're patient.
If you're like me and actually keep an excel spreadsheet (all those pretty colors....), look at the last two or three years and you'll feel a lot better! :)
Carolyn
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