Posted on 10/13/2015 12:44:27 PM PDT by 100American
The Insured Retirement Institute has concluded, baby boomers "face a dangerous combination of being under-saved and long-lived." The IRI found four in 10 baby boomers have nothing saved for retirement, and 37% of those who do have savings have less than $100,000 put away. This spells trouble for the average 65-year old male and female who have a 50% chance of living until at least 87 and 89, respectively. The IRI says someone who retires at the age of 65 today will need more than $1 million for retirement while someone who waits until age 70 to retire will need $720,00.
(Excerpt) Read more at myirionline.org ...
Great advice and sound investment...
Praying that we return to our Heritage and we do not face seizure by the Gov of our goods as they “know best” how to use them...
Probably the best advice of the day.
The interest on loans is very cheap. The interest paid on savings is crap. Take that 100,000 in your retirement account and buy real estate.
Thank you for your post. Hubby and I experienced something similar. As my hubby put it at the time; "My 401K is now a 201K. We had a plan for retirement, which he had put together, and we were faithfully putting money aside for our later years. When everything went ker-fluey, we lost a lot of our savings.
So, when the younger people at your workplace are complaining that they cannot move up at the company because all of the old farts are still around; well, the old guys/gals had to start over at a late age.
It is frustrating and demoralizing to end up being punished (essentially) after doing the right thing for years.
It’s the anti-cigarette and car safety folks that are to blame.
I have been in the real estate business for 35 years and completely agree with your advise. However, in my experience the vast majority of people won't follow your advise because they are not suited to it. Running your own business is a 24/7 endeavor, with no guarantees. It can be very stressful when things aren't going well.
FWIW, in the last 5 years I began investing outside the USA (Panama) to defer my risk.
I seem to remember a story about Groucho Marx. He lost everything in the Crash and was sitting in his dressing room, very depressed. His brother, Chico, came in and said something to the effect that there he sat, broke, and Chico was always broke. So, who had more fun? Apparently, Groucho sat for a moment, then got up and they did their show that night.
If she’s CSRS, you all ought to be in great shape. If she’s FERS, not so great, but should be workable.
Good advice. But rarely taken. Problem is, that folks think retirement age is way off in the future and isn't a problem until then. But old age comes quickly, making it difficult to pay off debt when you're weak and old. The smart young people, start preparing for old age when they're young. Stay away from debt, and work hard at reducing debt while you're younger and healthier. Thinking about it in your fifties is too late. And always live below your means, especially when you're past your twenties. It sucks getting old and weak; sucks even more if you have debt to repay.
My Sister's ex got hooked on skag over in Nam and I voted for Nixon, had a high draft number, but enlisted in the last months of the Vietnam era with no possibility of being sent there.
The drug counterculture existed over there among your buddies and not all of the 90% that didn't go over there were marching under a red banner in the streets, in spite of what Cronkite and Jennings told you back then. Your generalization is quite flawed at best.
but it has to be said....the older generation has robbed the bank for all the generations after them...
so many of them never contributed to SS or medicare....so many get so much assistance from the govt, which means the taxpayers...
when I read about a 95 yro who did 20 yrs in the military and has been collecting his pension for over 50 yrs, I know why there is nothing for me nor my grandchildren....same goes for SS....
people don't realize that when SS started it was a miniscule drop in the bucket that was collected...now, fully 16% right off the top of what should be your wages and benefits...
and we wonder why there is very little upward mobility nowadays...
Good catch. That's where stockbrokers make their money these days. Can't make it on stock trading or mutual funds, unless you've got a large clientele.
I live in a large metropolitan area and am 62 years old. It's amazing how many free restaurant suppers I've been invited to by "investment advisors." My husband and I have attended a few, curious as to what they're selling and how they're selling it. Typically they echo this paper - no one has enough saved, taxes and the scary stock market will destroy everything you do have, so invest in a variable annuity with us.
Predictably, this institute is also speaking out against the proposed regulations which would require financial advisors to have a fiduciary responsibility when recommending products to holders of 401(k) and IRA plans. Being a fiduciary would kill the variable annuity market, their bread & butter.
That's false. Plain and simple.
You dishonor yourself.
You and your grandchildren have much more than "nothing" exactly because of that veteran...that veteran gave up so much more than you or your grandchildren could even possibly imagine or would even consider doing and for you to hang this millstone around a veteran's neck is despicable.
Yes. Probably the best way to go is an S&P index fund. Buy and hold, with a mix of bonds depending on how soon you will need to access the money. Longer time line -— more stocks. Shorter time line -— more bonds.
Does that $1M include their SS?
You got my vote
this is going to sound awful and cold but its not....I would give anything to have my great parents alive today...
but it has to be said....the older generation has robbed the bank for all the generations after them...
I am not disagreeing with you but am saying there is more to the story....................
I’m glad you’re not waiting until 70 to retire. IF one waits until 70 to take SS but doesn’t work during that interim, it’s a gamble whether you get more SS over the rest of your life.
The calculations at 62, retirement age (65 right now I think, 67 for me), and 70 are such that you get the same total amount if you die at the average age for men and women averaged out. If you live longer, you’d get more by getting SS later; if you die earlier you’d get more by getting SS earlier.
But here’s the dirty secret: if you contribute during that interim and are in the group that works hard so earns a good living, you get screwed. My husband is 50 and wanted to ‘max out’ his SS before retiring. I doubted that paying in more would actually be a good thing, given our increasingly fascist government. So I did the calculations for his situation. If he works until 67, he’ll pay in over $152,000. (I counted his Medicare portion too, because he will get nothing more in Medicare benefits for paying in more since it is 100% socialized.) This $152k is only my hubby’s portion - add his employer’s and it’s over $300,000!
If he lives to the average male lifespan of 83 and starts collecting at 67, he’ll get $40,000 more than if he quits today and doesn’t pay in one more dime.
It is nothing more than a ponzi scheme depending on the hardworking dupes to keep supporting it.
So, hubby quit work and we are going Galt.
“So, I suggest to those of you who can’t wait to retire; give it a second, no, third thought before doing so (unless of course you are being forced-out). Stay active and stay healthy for doing so.”
That would depend upon the job one does and what they do during retirement. An active retirement would be healthier than a desk job.
We decided to quit paying the fascist beast. Quit work except for self-employment where we can keep our taxable income low. We’ve never been busier - living a self-sufficient lifestyle doesn’t leave much time for sitting around! (although I am doing just that, with a yorkie on my lap!)
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