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czygvtwkr
Guest
This is a very interesting read regarding retirement, social security etc.
The Biggest Retirement Myth Ever Told
The Biggest Retirement Myth Ever Told
Interesting that the author, who writes for an investment based website, doesn't understand the impact of additional life expectancy of retirees.
He states that the life expectancy of a 65 yr is only 5 more years now than it was in 1950.
How does he not see the significance of that. If you need your savings to generate $20,000 per year of income...that means you need another $100,000 saved (assuming no interest, no inflation and no taxation).
If you want the $20,000 to be generated from interest and you can get 4%, then you need an additional $500,000 of savings!
(the numbers obviously only get larger if you want more than an additional $20,000 per year)
But the author insinuates those 5 years are almost irrelevant? What a moron.
frogman123
New Member
Retirement used to be the 3-legged stool: Social Security, pension, and savings. Pensions are all but non-existent, SS is dwindlign away, and not we are left with just a 401k which is only as successful as the markets.
dontknowwhy
New Member
I feel so bad for you & your condition...retardation with a compulsion to pretend to be intelligent...
I bet it would be so much easier if you could just go full retard, wouldn't it?
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czygvtwkr
Guest
First off he is primarly discussing the idea that everybody use to have a pension, using facts that was debunked. Secondly, with facts, he has shown that social security benefits have significantly increased over time. Neither social security or pensions go away because you live longer.
And if you only take 4% out of your retirement account a year, using historical averages, it will not deplete the money at all.
My problem with that is, 4% of my retirement count isn't quite enough to buy a 12-pack of beer....and judging from that article, there are a ton of people in the same boat.
Even if you have a couple million banked, 4% of that is not exactly an extravagant annual spend.
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czygvtwkr
Guest
My problem with that is, 4% of my retirement count isn't quite enough to buy a 12-pack of beer....and judging from that article, there are a ton of people in the same boat.
Even if you have a couple million banked, 4% of that is not exactly an extravagant annual spend.
You are correct, but is the point where most experts agree that if you only take out that much a year then you will never run out of money.
My problem with that is, 4% of my retirement count isn't quite enough to buy a 12-pack of beer....and judging from that article, there are a ton of people in the same boat.
Even if you have a couple million banked, 4% of that is not exactly an extravagant annual spend.
This is coming from a 26 year old, so take it with a grain of salt (read: ignore it), but by the time you're retired, shouldn't you have paid off your debt? House, cars, etc. You don't need the same amount of money coming in....
GWguy
*
That would be ideal, but couples have waited longer to get married, have kids, college expenses, replacement cars, 2nd mortgages to pay for it, and it carries over into retirement now.
And that's not a great premise anyway. I have paid off all my debts, no mortgage, no car, no loans. But even still working, I am hardly making any headway on savings. Living is expensive, especially here, and I'm not a big spender. It will be worse after retiring and taking an income cut.
Some folks might have stayed in one home long enough, or always traded even on equity when they moved, to own them outright when they retire, but its not the norm. And why would you think that anyone would retire with their vehicles paid off, never needing to buy another after that?
Beyond that, I don't know about you, but after retirement is when I plan to get really busy doing the stuff I couldn't get to before then. I'm betting that is true for most retirees.
Lurk
Happy Creepy Ass Cracka
Of course, the expense of staying alive (medical, surgical, self-defense, etc.) will increase with age becoming one of the larger expenses of a life-time.
desertrat
0_0
My problem with that is, 4% of my retirement count isn't quite enough to buy a 12-pack of beer....and judging from that article, there are a ton of people in the same boat.
Even if you have a couple million banked, 4% of that is not exactly an extravagant annual spend.
Looks like I'll be taking %7. That SS and a very small pension from a co. I worked for ages enough might get me by.
philibusters
Active Member
The author does not say its irrelevant, he says there is some truth to the worry that people are living longer "There is some truth to this, but probably less than many assume." The author was making the point that retirement has always been a big worry and is not a new concern. He focused on the facts that supported his argument and downplayed the others, but he did acknowledge that was a factor moving forward, though in a neutral assessmnet I think more focus would be on that point.
philibusters
Active Member
One thing the author I don't think was mentioned in that article is that Americans are now taking more debt into retirement. It may be that the majority of Americans never had incomes in retirement close to their working income, but they also went into retirement relatively debt free. I keep reading articles that people are going into retirement with more debt.