Retirement....hehe

typhoonpilot said:
I'm not sure if that comment was tongue in cheek or not.

If it wasn't then you, my friend, have believed the lies that have been sold to you wholesale from the super elite who stole our pensions.

Read the book Retirement Heist by Ellen Schultz. It details how the super elite, by using smoke and mirrors and politicians in their back pocket, have stolen our pensions and basically destroyed much of middle class America.

We work until age 65 and beyond so that the super elite can buy $50 million dollar mansions; $10 million yachts; enjoy a life of leisure travelling the world in their private jets; etc. We're basically serfs. Higher end serfs if you're lucky enough, but serfs nonetheless.

The only way to break out of it is to go into business for yourself and be successful. Since most business start ups fail, that's a pretty big gamble to take. So we keep working as serfs helping the rich get richer. Luckily most of us enjoy what we do and we have a reasonable life compared to many, but it still needs to be recognized for what it is.


Typhoonpilot
Click to expand...
So because I feel I can carve a retirement for myself without a pension I'm naive?
 
I find it sad that people still think someone else should be responsible for planning their future. What are you, a child who's parents need to guard their piggy bank?
 
Honestly, I don't know how my generation is expected to know how to retire. Yea sure the one semester of Econ was put in my high school days so I'd learn something. Yea we got taught about stocks but weren't given tools to actually get into that market. I always looked at it as something that people with a lot of money could do. I am very thankful I have a dad who learned how to manage his money and create a retirement for himself. He has passed down the knowledge and now I am, at 22, saving money for the future. But those who don't have that dad to teach them I'm not sure where they find out. A lot of self discipline to figure it out. I think it would be beneficial to make economics a required class in high school and college. We take pointless classes in both, might as well put something worth while in there.
 
Just pay what you can into a tax shelter plan (hopefully employer sponsored) that makes sense to you. I was lucky enough to enter public employment at age 21 and vested at age 41. Too young to actually retire and change careers, so I still report to the station for my shifts.

My parents were children in the 1930's and saved lots of $$ from owning a business from the 1950's - 80's. They traveled around the globe while still working and set up retirement plans, including two for employees. The stock market was good to them & after they spent all they wanted; both passed, leaving my children with a comfortable annuity. The retirement $$ will only come through your decision to enroll in a plan and have some regular amount contributed every paycheck.....If you're laid off, by all means draw those dollars to get by, but if your working...pay yourself forward.

http://www.nationwide.com/investment-tools.jsp
 
smack300 said:
Honestly, I don't know how my generation is expected to know how to retire. Yea sure the one semester of Econ was put in my high school days so I'd learn something. Yea we got taught about stocks but weren't given tools to actually get into that market. I always looked at it as something that people with a lot of money could do. I am very thankful I have a dad who learned how to manage his money and create a retirement for himself. He has passed down the knowledge and now I am, at 22, saving money for the future. But those who don't have that dad to teach them I'm not sure where they find out. A lot of self discipline to figure it out. I think it would be beneficial to make economics a required class in high school and college. We take pointless classes in both, might as well put something worth while in there.
Click to expand...
While classes are a great way to become knowledgable about financial matters they are by no means a guarantee that a person will understand what is required to save money. There is no magical secret to "making enough" to retire at a reasonable age. The idea of expectations has already been discussed on this thread and expectations play the largest role in most peoples financial failure (my opinion). I see a lot of young people who see what their parents have and expect to have the same things right out of college. They see the house, cars and many belongings their parents have worked hard for for several years and feel that they must be entitled to such things without putting in the time and effort. I don't want to paint everyone with the same brush, but I'm sure many of you have recognized this mentality in others or even yourself.
The key is to be realistic with your expectations. Set realistic goals but be cautious not to underachieve just to be sure that your goals will be met. Don't buy that big new tv just because everyone else has one. Don't get a new car when the one you have is paid off and runs just fine even though it may not be cool anymore. When it comes down to it no one really cares what you have.
I'll get off my soap box now.
 
pnwchief22 said:
Just pay what you can into a tax shelter plan (hopefully employer sponsored) that makes sense to you. I was lucky enough to enter public employment at age 21 and vested at age 41.
Click to expand...

Employer-sponsored plans are not perfect, or necessarily ideal. I'm sure many can chime in on how much they have lost from the employer-sponsored retirement systems they were planning on having.

401(k)'s seem great, but if you are a low income earner, you are probably better off maxing out a Roth-IRA first, unless the 401(k) has a match. If your are in the 15% bracket now, paying 15% off the top for the Roth IRA is a better deal. When it comes time to retire, you'll keep every dime that comes out of the Roth IRA. The 401k distributions will be taxed like paycheck. As someone that is planning on a comfortable retirement, it is safe to say you will be enjoying a much higher tax rate.

Let's say $50,000/year is enough to retire comfortably now. Adjusted for inflation, you'll need $274,000/year to retire 40 years from now. As the rules are now, you would take distributions of that amount from the Roth, and pay no tax. With the 401k, it will be treated like a paycheck, and you'll be paying taxes on it. So you'll need the 274,000 plus enough to cover the tax bill. Assuming your effective tax rate is about 22%, you need $347,000/year from the 401(k). Because of the tax liability, you'll need much more in the 401k. You won't pay SS/FICA on the withdrawals, but still.

Given historical returns, you'll need to save $10,000/year now to have $274,000 40 years from now. Inflation and taxes are ultimately what will dictate how much you need, and of course, you have no control over that.

And the rules will most certainly change. I would expect a surtax on well-funded tax-exempt retirement accounts. There's already been one before, there probably will be again.
 
Derg said:
I watched "The Queen of Versailles" on Netflix.

I heavily, HEAVILY suggest it as you'll get to see what true wealth thinks of the common person.
Click to expand...
I wouldn't say it was eye opening as I've seen that to a certain extent flying corporate but I'd definitely recommend that documentary to everyone.
 
You must log in or register to reply here.
Back
Top