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Retiring Boomers Find 401(k) Plans Fall Short
The Wall Street Journal ^ | February 19th, 2011 | E.S. Browning

Posted on 02/20/2011 12:02:48 PM PST by andyk

The 401(k) generation is beginning to retire, and it isn't a pretty sight. The retirement savings plans that many baby boomers thought would see them through old age are falling short in many cases. The median household headed by a person aged 60 to 62 with a 401(k) account has less than one-quarter of what is needed in that account to maintain its standard of living in retirement, according to data compiled by the Federal Reserve and analyzed by the Center for Retirement Research at Boston College for The Wall Street Journal. Even counting Social Security and any pensions or other savings, most 401(k) participants appear to have insufficient savings. Data from other sources also show big gaps between savings and what people need, and the financial crisis has made things worse. This analysis uses estimates of 401(k) balances from the end of 2010 and of salaries from 2009. It assumes people need 85% of their working income after they retire in order to maintain their standard of living, a common yardstick.

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Government
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To: SeeSac

Over the last 20 years, the S&P 500 has yielded 4% above inflation. Any decent investor could get you an extra point.


161 posted on 02/23/2011 8:53:38 PM PST by Hoodat (Yet in all these things we are more than conquerors through Him who loved us. - (Rom 8:37))
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To: Hoodat
Over the last 20 years, the S&P 500 has yielded 4% above inflation. Any decent investor could get you an extra point.

Hindsight is 20/20. 2008 was down 37%. You are running a scam if you can guarentee 4% above inflation.

162 posted on 02/23/2011 9:28:13 PM PST by SeeSac
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To: Hoodat

S&P down 3% in three days. Glad I didn’t follow your advice ...


163 posted on 02/24/2011 9:35:05 AM PST by SeeSac
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To: SeeSac
Hindsight is 20/20. 2008 was down 37%

Only a complete idiot is going to judge the stock market as a tool for retirement upon a single year's performance. Retirement is a long-term process, not a short-term one. You asked for a return of 5% over a twenty year period. I gave you one that was a point off.

The only thing more idiotic than basing retirement projections over a single year performance would be to discourage retirement investment based on performance over the last three days. One would have to be a complete moron to do something that short-sighted.

I tell you what. If you want to give your money over to the government and trust them with your retirement, by all means go right ahead. And good luck with that one. But as for me, I just ain't that stupid. Do the math. Math never lies.

164 posted on 02/24/2011 8:54:15 PM PST by Hoodat (Yet in all these things we are more than conquerors through Him who loved us. - (Rom 8:37))
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To: Hoodat
You asked for a return of 5% over a twenty year period. I gave you one that was a point off.

No. You said you could provide one that would yield 5% per year over inflation. You failed to do that even in hindsight.

165 posted on 02/24/2011 9:00:21 PM PST by SeeSac
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To: SeeSac
Actually, you offered the false dilemma of guaranteed performance over the next 20 years. No one can do that. But the track record of the stock market trumps the government ponzi scheme every time. I also find it silly that you ask for a 5% return over 20 years when the government gives you nowhere near that amount.

(Oh look, the S&P 500 rose 1% over the last 30 minutes. At that rate of return, you will retire as a billionaire. Pretty silly analogy you offered, eh?)

166 posted on 02/24/2011 9:08:25 PM PST by Hoodat (Yet in all these things we are more than conquerors through Him who loved us. - (Rom 8:37))
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To: Hoodat
Actually, you offered the false dilemma of guaranteed performance over the next 20 years. No one can do that.

You have a poor memory. It was you that offered the false dilemma of guaranteed performance over the next 20 years. You want me to pull your post?

167 posted on 02/24/2011 9:29:34 PM PST by SeeSac
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To: SeeSac
You have a poor memory. It was you that offered the false dilemma of guaranteed performance over the next 20 years. You want me to pull your post?

Yes, pull my post. Show me where I guaranteed performance over the next 20 years. And when you realize you can't, post your apology instead.

168 posted on 02/24/2011 9:34:43 PM PST by Hoodat (Yet in all these things we are more than conquerors through Him who loved us. - (Rom 8:37))
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To: Hoodat
Yes, pull my post.

(yours in blue italics)

The 5% return is 5% above the rate of inflation.

Please tell me where I can get continuous investments each month for the next 20 years that will yield 5% above inflation. I have my 401K and IRA's in cash right now.

160 posted on Wednesday, February 23, 2011 7:31:39 PM by SeeSac [ Post Reply | Private Reply | To 159 | View Replies | Report Abuse] --------------------------------------------------------------------------------

To: SeeSac Over the last 20 years, the S&P 500 has yielded 4% above inflation. Any decent investor could get you an extra point.

169 posted on 02/24/2011 9:48:45 PM PST by SeeSac
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To: SeeSac

That’s lovely. Now again, can you show me where I guaranteed performance over the next 20 years?


170 posted on 02/26/2011 8:46:22 AM PST by Hoodat (Yet in all these things we are more than conquerors through Him who loved us. - (Rom 8:37))
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To: Hoodat
That’s lovely.

Thank you.

171 posted on 02/26/2011 10:50:04 AM PST by SeeSac
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To: SeeSac

Let’s see. You were unable to show where I guaranteed performance, yet you posted no apology either. Go figure. I think I will save my future discussions for those who actually operate with integrity. Have a nice life. I am done with you.


172 posted on 02/26/2011 11:47:07 PM PST by Hoodat (Yet in all these things we are more than conquerors through Him who loved us. - (Rom 8:37))
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To: Hoodat
I think I will save my future discussions for those who actually operate with integrity.

That eliminates any late night conversations you might have with yourself.

173 posted on 02/27/2011 7:52:26 AM PST by SeeSac
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