Retiring Boomers Find 401(k) Plans Fall Short .
- Thread starter xrac
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- 10,323
Not that many. Out of the last 10 prospects I have spoken to (all have been over 55), only maybe one or two of them could afford to live on half of what they make now. New homes, new cars, kids going to college, remodels, travel, dining out, golf, rising medical costs; all of these are nagging reasons that many retirees do not fit the traditional "retire at 65 with no debt, no more commitments to children, no need for insurance, predictable inflation, and living a "slower" lifestyle than before".
For those who are actually close to being able to afford to retire, its very few that tell me that they would be comfortable living on only 50% of what they make now.
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- #4
Anyone who thinks a retiree can live on a 50% pay cut understands little about medical costs. On 50% pay cut they can exisit maybe????????? Have you dealt with seniors terrified by every extra dollar they have to spend. I have and I have seen the panic in their faces.
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- 14,809
Here is the cr*p I was spoon fed:
Put away, say $3,000 a year starting at age 30 at 12% and by the time I'm 65 I'll have 1.5 million.
....now, back onto planet Earth...
$3,000 a year starting at age 30 at 6% and by the time you're 65 it's $354,000. However, it's lost half it it's value over 35 years so it's worth $177,000.
At even 3% that generates $5,300 annually. And this is the reality seniors are seeing.
So what do people ACTUALLY have to put into the system to realize the bold faced lies told by the financial industry?
Put in $20,000 a year for 35 years at 6% for 2.3 million worth 1.1 million X 2% = $22,000 a year.
Put away, say $3,000 a year starting at age 30 at 12% and by the time I'm 65 I'll have 1.5 million.
....now, back onto planet Earth...
$3,000 a year starting at age 30 at 6% and by the time you're 65 it's $354,000. However, it's lost half it it's value over 35 years so it's worth $177,000.
At even 3% that generates $5,300 annually. And this is the reality seniors are seeing.
So what do people ACTUALLY have to put into the system to realize the bold faced lies told by the financial industry?
Put in $20,000 a year for 35 years at 6% for 2.3 million worth 1.1 million X 2% = $22,000 a year.
- 10,323
I blame the "financial media" more than anything.
Yes, there are some very reckless advisors out there promising pie in the sky returns, and a lot more "stock jocks" who claim to be informed advisors who put seniors into some very risky situations.
But its the "media advisors" (on tv, newspapers, magazines, etc) that have really helped to sell this theory imo.
"lets listen to Suze because she is rich, so she must know what to do even though she is not a financial advisor"
And of course a lot of those media outlets that were pushing that crap were owned by conglomerates that had their hand in the securities pie.... can you say "conflict of interest"??
- 15,041
People need to look at their parent's and grandparent's generations. Many of them got pensions, and they still saved. Now people won't contribute to their 401ks in meaningful manner, nor save outside of them.
Wells there's that, too.
But I want my 5,000 sqft colonial in the nice neighborhood with two brand new cars, a TV in every room, the latest iphone with an unlimited everything plan (I talk a lot) and the cable package with every channel known to man plus HD and DVR and whatever else ya got. Plus I want a boat, which I guess I'll have to pay to dock. Some 4-wheelers, and I've always had a thing for Porche's, and there's a sweet Boxer I found in the classifieds. And you know what...I've always wanted a house down on Cape Cod.
- 15,041
That's it? What about the timeshare in Maui and the annual trip to Disney World for the kids? A couple of weekends in Lost Wages is always fun too. Why are you saving for retirement, you really think you'll live to see 60? Anyway, just start saving at 55, it'll be ok.
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