7 ways retirement is different now
More than ever, workers are having to take responsibility for planning and financing their golden years. Here’s what the not-yet-retired need to consider.
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It`s not wall street that have robbed people`s retirement.People spend too much.The
Dow is up 61% with Obama.People should read books on investing.The far right doesn`t
say the good things about the economy.
Share the wealth wallstreet.You are the ones that messed up and basicly ripped off your fellow americans. Shame on you, and god knows what you have done to these poor hard working people
As a case in point, the value of the US Dollar against the Philippine Peso has dropped roughly 20% over the last four years going from about 50 Pesos to the Dollar down to a bit over 40 to 1 now. The Philippines is one of those source countries that supply the US. As the Dollar continues to fall against the Peso, they will have no choice but to raise their prices which we will see at our local stores.
As long as we continue to spend money at the national government level that we don't have, this trend is only going to get worse. Unfortunately, it would appear that based on the results of our last election, the majority of voters don't care.
Given the new 'Senior' discrimination trend and the massive gap in our resume's, getting a job is virtually impossible since to retire we moved to a rural community where living expenses are far more affordable that our home in the city. Don't ever assume that your retirement is in the bag, and you can look down on those pitiful souls who did not save. If we had it to do all over again, we would have spent our money while we were both able to enjoy it, instead of giving it all away in funds and investments and getting stuck footing the bill to subsidize the rich and famous =(
old timer I suggest you learn your history. Baby bomers that paid social security all these years know that only 7 percent actually went for social security' the rest went to fund other programs. The money was never put in a fund to draw interest. S'S'is the only program that paid for iyself.
Pensions used to be the way Americans saved for retirements, by pledging allegiance to the companies they helped build. Those, coupled with social security, gave a respectible end of life to our seniors. Now that greed in corporations has taken guaranteed pensions away, unless we work for the House of Representatives, we have the 401k replacements, that bob and sway every time the Stock Market hiccups, and hasn't really been a good replacement for a pension fund.
Now, the GOP wants to attack our other lifeline, Social Security. I think we should vote them out!
My only problem is the marriage penalty built into the tax on Social Security benefits. Two single people living together can earn far more without paying any tax on their SS benefits.
They can EACH get $25,000 including half of their SS without paying one nickel on their SS benefits while a married couple will start paying at $32,000. In addition the jump to 85% comes at $34,000 for singles & only $44,000 for a married couple.
If my wife & I get a divorce & live together we can save a substantial amount of money in taxes & have the fun of living in sin.
Why should the government tax you for being married?
We can thank the merciless greedy bastards who can never make enough profits at the expense of society for our great new society of throwaway people.
If our old folks used their head & had their mortgage paid off when retirement time comes, they wouldn't be in a bind. Today many of them take out a second mortgage to put kids thru college or buy expensive toys.
Don't get me wrong, putting your kids thru college or buying luxury items is A OK, but don't hock up your home for it.
There's nothing more important in our lives that that home. It must always be the first bill you pay & when you pay it off your retirement years will be great.
EF Hutton :)
How much do you need in retirement? To answer this, you must answer:
1) What will the inflation rate be over my retirement (no one can answer, but likely much higher than now)
2) What will my health be like? (no one can answer, but some are healthier than others. If you are unhealthy, assume that $260K they indicate will be $1M with health care cost inflation)
3) What will the return on my savings be? (no one can answer, but likely not as good as in the 80s and 90s)
4) How many years will I live? (no one can answer)
5) What will the tax rate be on my 401K distribution? (no one knows what tax rates will be, but likely higher)
6) How much will SS and Medicare provide? (no one can answer, but likely less than now. And if you have managed to save a 401K, that money WILL be counted against you when they implement means testing)
So, if you are about to retire, I think $27.8M is about right.
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Get your emergency fund together now if you want to avoid stumbling over costly surprises in the future.
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