Posted on 11/29/2019 4:07:22 AM PST by Kaslin
And also to remove the rule that if a recipient of social security that makes XXXX amount of money then they have to pay Federal taxes on it especially after their full retirement age. (that is how Congress apparently fixed social security the last time!)
I blame ignorance. It is the responsibility of the individual to provide for his or her own retirement. It is up to the parents to TEACH children the virtues of becoming self reliant rather than dependent (and therefore RULED) by the provider (iow the government).
Saving a measly 10% of ones gross beginning with first job will almost guarantee a retirement nest egg of a million dollars or more NOT counting SS.
Those of sound mind and body who do not take the necessary steps to self reliance deserve what they get...which is to say nothing.
We know stocks have been screaming all year, and our retirement accounts have been doing great.
At what point does one start to move money into safer bonds and away from stocks (stocks can't go up forever)?
I've been moving small amounts over to safer bonds for a couple of months - are you guys staying aggressive or playing safe?
I blame the Fed. Their only mandate is stable prices. 2% inflation, if you believe BLS is not stable when it reduces a families savings by 50% over 20 years.
You are right about individuals and self reliance. .gov prefers dependency until we are fed to the Morlocks.
Better talk to a financial advisor. Don’t guess.
Psalm 73 wrote: “QUESTION for middle-class Freepers who own a 401K: At what point does one start to move money into safer bonds and away from stocks (stocks can’t go up forever)?”
That depends. As one respected financial adviser once said: “when you’ve won the game, quit playing.” But, you’re touching upon a more fundamental issue: planning for retirement has two phases. During the first, you’re accumulating assets. That takes a plan. During the second, you’re de-accummulating. You need a plan for that too.
There’s loads of advice on the web concerning both phases and optimal investment mixes for both.
When do you wake up at night thinking about impact of selling at the same time everyone else has the same idea.
This is nothing more or less than a government run annuity. BTW, those who have accumulated $500,000 in investments, really don’t need a special government run annuity. The existence of such a plan won’t solve the problem of people failing to plan and invest for their retirement.
What I found through most of my life was that saving for retirement was next to impossible with the constant rises in housing, transportation and insurance costs eating up any pay raises I could accrue.
I was fortunate though to have two long-term employments that paid pensions plus a Social Security dividend based on the last job I had (which, in my case, paid much higher than any other job before then).
But this still left me at well below what I would need to live independently so I moved this year to some place where my “fixed income” could go further. In my case, that was Panama but there are numerous places in Asia and Latin America where you can live cheaply as long as you accept that you will need to learn a new language and adapt to a different culture.
The nice thing about Panama (as well as Ecuador and Belize) is that the currency is tied to the U.S. dollar so your greenbacks are accepted everywhere (preferred in some places) and you don’t have to convert it to the local funny money. It is, however, a dicey economic situation as long as there is a chance of a tinpot dictator taking over - but then America had Obama for eight years so how much safer is it to stay in America?
I can retire in relative comfort for between $1500-$2000 per month depending on how frugal I want to be. There’s an English-speaking Bible-believing church here (two, actually) and I can straddle between gringo life and Panama life as I learn more and more about my new homeland. My pensionado passport is nearly ready and I get many discounts for being a retiree here.
They can be all over the map, too.
This wasn't a "financial advice query", just a Freeper discussion post for those of us who are in the same "zone" (lots of middle-class technical, fiscal conservative Freepers).
“the treasury should let every American citizen (not foreign investors or corporations) buy a perpetual bond with a yield of 5%”
Who is going to pay this 5%?
L
Oh, and, "I'll make sure your child gets a quality education."
THANK YOU.
EXCELLENT!
“It is the responsibility of the individual to provide for his or her own retirement.”
The ant and the grasshopper
https://alltimeshortstories.com/the-ant-and-the-grasshopper/
AaaaaMEN!
Prior to Trump’s election, I moved all of my retirement savings into a C Fund, Common Stock index, in a TSP.
Oh my, what a few years has done to my funds. I actually can retire and expect a fairly nice lifestyle over the next 10+ years.
The “orange man bad” people can go pound sand. Get out of government securities totally and get on board with President Trump.
I do not believe your post was meant for me. I never suggested a gov’t bond with a 5% yield.
It wasn’t meant for anyone in particular. Just a question other people seemed to miss.
That 5% would come from somewhere. Since it’s a federal bond one must assume that means taxpayers.
And 5% is a pretty generous yield on a federal bond, isn’t it? I don’t own any so I don’t know.
Enjoy your day.
L
A 5% yield is extremely high today. The yield on our 30 yr bond is currently 2.19%.
And yes the money to pay the interest would come out of the pocket of the taxpayer.
What happened to the one-time tax exemption on the sale of your home/primary residence?
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