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(Marketwatch)   Remember the rule about needing 75% of your current salary during retirement? Well ... about that   (marketwatch.com) divider line 107
    More: Unlikely  
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8063 clicks; posted to Business » on 19 Sep 2011 at 3:04 PM (3 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2011-09-20 11:05:19 AM  

tdyak: 401k: RMD - Required Minimum Distribution. The IRS calculates how long you're going to live, and you HAVE to take out money so that the account is empty by their calculations. This is why 401k's are BS.


Just because you're required to disburse the money doesn't mean you're required to spend the money. You can roll that money into other investments. Up til then, you still get decades of tax-deferred capital gains.
 
2011-09-20 11:05:37 AM  

hailin: What's the 4% rule?


The 4% rule says that when you retire, you should plan to withdraw 4% of your retirement savings each year for your annual living expenses (it doesn't refer to how much you should be saving).

This is obviously just a guideline for planning purposes, and should make your retirement funds last 25 years. (It does assume that you will be drawing down on the principal over time, and that your post-retirement rate of return will at least keep up with inflation).

The way it works is in your first year of retirement, you take out 4% of your total portfolio. The next year, you take out that same amount, plus inflation. So if you start out with $1 million, the first year you withdraw 4%, or $40,000. If inflation is 3%, the second year you would withdraw $40,000 + 3% ($1200) = $41,200. Every subsequent year, you take out the previous year's amount, adjusted for inflation.

The 4% rule only covers how much you withdraw from your savings/investments. Any other income (Social Security, savings, or other income) would be in addition to that amount.
 
2011-09-20 11:24:36 AM  
Hey, whadda ya know. Another news article from the financial services industry that is designed to scare you into funneling more of your hard earned cash into their products.

My advice to young people remains the same: save as much as you can and diversify the hell out of your nest egg. Live a frugal lifestyle now so you'll have maximum savings and the skills to get through not only retirement but the other shiat that's going to happen to you between now and then. Stop reading articles that purport to know what you're going to need 30 or 40 years down the road and spend the time to figure it out for yourself on a regular basis.

/no charge
 
2011-09-20 12:15:28 PM  
If they drop SS before I retire, I'll just get a room at the White House. I just know they will be kind enough to take me in, after all the taxes I have paid.
 
2011-09-20 01:29:30 PM  

JimmyCarter'sSecondTerm: I'm 24...

Social security isn't going to be there for my "retirement"....

/posted from a bar
//chain smoking cigs
///probably beneficial to my offspring in the long run..


Are you a farking retard?

In how in the world will SS not be there for your retirement? Tell me how. Will people stop paying into the system? Will the government refuse to collect the payroll taxes that everyone pays????? Will people just stop working?

The very worst case scenario is that SS will lower the payment it makes to people. In the worst doomsday case SS will pay out 75% of what it has currently promised. But! realize that SS tax isnt collected on income over 100k... so if we just eliminate that limit... SS will be fully funded until forever.
 
2011-09-21 07:14:13 AM  

whatsupchuck: Hey, whadda ya know. Another news article from the financial services industry that is designed to scare you into funneling more of your hard earned cash into their products.

My advice to young people remains the same: save as much as you can and diversify the hell out of your nest egg. Live a frugal lifestyle now so you'll have maximum savings and the skills to get through not only retirement but the other shiat that's going to happen to you between now and then. Stop reading articles that purport to know what you're going to need 30 or 40 years down the road and spend the time to figure it out for yourself on a regular basis.

/no charge


Totally agree with this, and would just add - start saving as early in your life as possible.

Its the decisions I made early in life that are making the difference today, now that I'm in my early 50's.

/Can retire now, but my employer doesn't want me to...yet
//Should I feel guilty?
 
2011-09-21 03:07:56 PM  

wombatsrus: whatsupchuck: Hey, whadda ya know. Another news article from the financial services industry that is designed to scare you into funneling more of your hard earned cash into their products.

My advice to young people remains the same: save as much as you can and diversify the hell out of your nest egg. Live a frugal lifestyle now so you'll have maximum savings and the skills to get through not only retirement but the other shiat that's going to happen to you between now and then. Stop reading articles that purport to know what you're going to need 30 or 40 years down the road and spend the time to figure it out for yourself on a regular basis.

/no charge

Totally agree with this, and would just add - start saving as early in your life as possible.

Its the decisions I made early in life that are making the difference today, now that I'm in my early 50's.

/Can retire now, but my employer doesn't want me to...yet
//Should I feel guilty?


Well, if your employer doesn't want you to retire, but yout think you should for the good of the all, train up somebody else to do your job, then you can retire.
 
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