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(Amtrak)   Good news: Most retirees will live longer than they think. Bad news: Most retirees will live longer than they think   (blogs.smartmoney.com) divider line 87
    More: Interesting, life expectancy, Society of Actuaries, retirement  
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2718 clicks; posted to Main » on 31 Jul 2012 at 12:44 PM (2 years ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2012-07-31 02:05:03 PM  
My wife hates her job. Thank God we squirreled away enough into her 401 K, and they matched 6 percent. We are going to take the 20 year annuity (She gets it for life, but 20 years guaranteed). With that and Social Security, she will roll in about $200 a month less than what she was bringing home anyway.

I am a Realtor, and a photographer, and the income from the latter is taking over the former. Ill quit real estate when I get tired of it, and Ill die with a camera in my hand.
 
2012-07-31 02:05:39 PM  
Farking selfish old people....
They need to start dying to free up some jobs!
 
2012-07-31 02:10:45 PM  

some_beer_drinker: lucky bastard


www.deanfetzer.com
 
2012-07-31 02:10:50 PM  
Retirement. That's the thing the baby boomers are all doing right now, yes? So that means none of us will be able later.
 
2012-07-31 02:12:41 PM  

robodog: namatad: JackieRabbit: Also, discount most of the "financial advice" that retirement planners give you. They will tell you that you need at least 80% of the highest salary you have earned in your working career and that you should plan on having this income for at least 25 year after retirement. It is sound advice for someone who earns between $25K and $50K. But someone earning $120K, it makes no sense. Once the kids are gone and the mortgage us paid, there are no major monthly expenses. A retired couple can live quite comfortably on less that $50K per year. $100K is overkill unless one wants to leave quite a bit of cash to their kids.

this this and MORE THIS
once my house is paid for, my expenses drop like a ton of feathers. monthly assessment + property taxes might be 6-700 a month? biggest expense will be medicare gap insurance and drug copays?? LOL
probably time to look into supplemental medical insurance

Right now good gap insurance with nursing home benefits runs about $4k/month for two people, so unless you can live off of


No, it doesn't cost anywhere near that much. My wife's parents pay about $80 for their Medigap policy. All these policies do is cover the co-pays, so there's no reason for them to be terribly expensive. The best private commercial insurance policy doesn't even come near $4K/month.
 
2012-07-31 02:19:30 PM  
I have a solution that will surely fix this problem: WE NEED TO STOP TEACHING ALGEBRA IN HIGH SCHOOL. It is useless in real life.
 
2012-07-31 02:23:56 PM  

Smelly Pirate Hooker: And/or their former employer went bankrupt and stopped paying a pension.


That's my favorite thing about pensions. Why diversify when you can put all of your eggs in one basket? What could possibly go wrong?
 
2012-07-31 02:37:15 PM  
i3.kym-cdn.com
 
2012-07-31 02:37:54 PM  
You won't work until you drop unless you own your own business. Why would anyone pay a older worker when they can hire a younger worker?
There are 3 billion young people on the planet right now that would kill to have what you have.

Many of you will probably be replaced by AI and robots.
 
2012-07-31 02:40:39 PM  
If I run out of money and my kids won't help, then I'll just embezzle money until I get caught and then get free room and board at club fed.
 
2012-07-31 03:10:18 PM  

Stranded On The Planet Dumbass: You won't work until you drop unless you own your own business. Why would anyone pay a older worker when they can hire a younger worker?
There are 3 billion young people on the planet right now that would kill to have what you have.

Many of you will probably be replaced by AI and robots.


Well, let me explain it obvious young person. Not only do older people have a better work ethic, they are generally better educated and more knowledgeable. They are more productive and they have years of valuable experience, which gives them the wisdom to make sound judgements and decisions. They can be depended upon and require no direct supervision.

The biggest problem facing this country today is that young workers usually get stuck into dead-end jobs with little to no opportunity for advancement. Their careers do not develop in the way they once did. This is going to come back and bite us all in the ass one day. The boomers are getting old and the Gen X people behind them are getting pretty long in the tooth too. We aren't doing anywhere near preparing the young generation to take over. Career development requires an investment of both time and money on the part of the employer. The bottom line has become too important and short term goals trump long term strategic planning.
 
2012-07-31 03:18:04 PM  
Better news. My generation won't be able to retire, you just work until the day you die.

/$100
//a gallon of gas
 
2012-07-31 03:49:06 PM  
I'm 70 and retired eight months ago...it just seems like eighty years ago.

/I'm ok for money but "hobbies" aren't all that fulfilling...even with volunteering thrown in. Still better than working, though...
 
2012-07-31 03:53:18 PM  

verbaltoxin: Retirement. That's the thing the baby boomers are all doing right now, yes? So that means none of us will be able later.


With the rate the National Debt is going, it's not just you. It's your kids and grand kids too.
 
2012-07-31 03:54:36 PM  

JackieRabbit: Stranded On The Planet Dumbass: You won't work until you drop unless you own your own business. Why would anyone pay a older worker when they can hire a younger worker?
There are 3 billion young people on the planet right now that would kill to have what you have.

Many of you will probably be replaced by AI and robots.

Well, let me explain it obvious young person. Not only do older people have a better work ethic, they are generally better educated and more knowledgeable. They are more productive and they have years of valuable experience, which gives them the wisdom to make sound judgements and decisions. They can be depended upon and require no direct supervision.

The biggest problem facing this country today is that young workers usually get stuck into dead-end jobs with little to no opportunity for advancement. Their careers do not develop in the way they once did. This is going to come back and bite us all in the ass one day. The boomers are getting old and the Gen X people behind them are getting pretty long in the tooth too. We aren't doing anywhere near preparing the young generation to take over. Career development requires an investment of both time and money on the part of the employer. The bottom line has become too important and short term goals trump long term strategic planning.


I've noticed that too, it's like no one plans for the future anymore. You WILL GET OLD AND RETIRE, START PUTTING IT AWAY AT 16.

Fiance 101 really needs to be a required high school and college class in this country. I see way to many people start out there lives with screwed up credit and no savings.

I'm 26 and I'm lucky that my parents sat me down and talked to me about personal finance and I was lucky to take it as a class in school. Many of my friends parents never did or their parents were clueless as well.

Right now I have about 15k in a Roth IRA in an index fund designed for when I retire in 2050. No debt but my student loan of 15k which I plan to have payed off in about 2 years. I'm better than 90% of my fellows but I'm still worried I won't have enough when I retire.
 
2012-07-31 04:19:09 PM  

umad: I have a solution that will surely fix this problem: WE NEED TO STOP TEACHING ALGEBRA IN HIGH SCHOOL. It is useless in real life.


What the hell are you talking about? I had to solve for X just this morning.
Jeez. some people
 
2012-07-31 04:24:24 PM  

shortymac: ....designed for when I retire in 2050.


It's funny because you believe it.
 
2012-07-31 04:28:14 PM  

jjorsett: superdude72: Now seems like a good time to privatize Social Security.

I'd rather have a private account than one the government can loot at will, and I do. It's called a Roth IRA and SS could go under tomorrow and I'd be fine. And before you ask, no, I won't give up my SS when I'm entitled to it. I was forced into it when I'd have been much better off putting the payments into private investments, so I'm taking it, relative pittance that it will be.


Doesn't the inefficiency of a savings account piss you off, though? If you save up enough to money to last until you're 100 years old, the odds are you'll never use a lot of that money.

Social Security is a wonderfully efficient means of ensuring that everyone has a guaranteed minimum income in case of disability, old age, or the death of a breadwinner. It would cost all of us a lot more to save up enough money to hedge against all of these possibilities. The majority of us can't afford to do it at all.

And let's face it: If the government can loot Social Security at will, the banks can loot your investments just as easily when government fails to regulate them. As many people are learning.
 
2012-07-31 04:31:01 PM  

namatad: superdude72: Now seems like a good time to privatize Social Security.

I have continued to pretend that social security will be GONE by the time I retire. that I will get nothing.
Which makes any fraction that I might get a windfall.

/quick, check your socsec online!!!


It's nice that you can afford to do that. Most people who earn less than $100,000 a year have no choice but to make Social Security a major part of their retirement planning. If you earn less than that and you think you are saving enough to do without Social Security... well, read the previous posts about how Americans suck at math.
 
2012-07-31 05:35:35 PM  
you're lucky if fate deals you a massive coronary in your sleep before you age into a life of aches and pains. my family has been dealing with aging relatives that required move-in full time care for the last 20 years (several aunts, a grandma, now mom). mom's in her 80's, her health took a downturn and it has taken a terrible toll on her mentally and physically. from what i've seen for many people getting old is a painful humiliating experience best avoided.
 
2012-07-31 05:37:12 PM  

Nana's Vibrator: umad: I have a solution that will surely fix this problem: WE NEED TO STOP TEACHING ALGEBRA IN HIGH SCHOOL. It is useless in real life.

What the hell are you talking about? I had to solve for X just this morning.
Jeez. some people


No you didn't. Math has no use out of the classroom. There is no way it would help with real life problems like determining how long your savings will last after you retire.

Didn't you read the thread yesterday?
 
2012-07-31 05:37:58 PM  

superdude72: jjorsett: superdude72: Now seems like a good time to privatize Social Security.

I'd rather have a private account than one the government can loot at will, and I do. It's called a Roth IRA and SS could go under tomorrow and I'd be fine. And before you ask, no, I won't give up my SS when I'm entitled to it. I was forced into it when I'd have been much better off putting the payments into private investments, so I'm taking it, relative pittance that it will be.

Doesn't the inefficiency of a savings account piss you off, though? If you save up enough to money to last until you're 100 years old, the odds are you'll never use a lot of that money.

Social Security is a wonderfully efficient means of ensuring that everyone has a guaranteed minimum income in case of disability, old age, or the death of a breadwinner. It would cost all of us a lot more to save up enough money to hedge against all of these possibilities. The majority of us can't afford to do it at all.

And let's face it: If the government can loot Social Security at will, the banks can loot your investments just as easily when government fails to regulate them. As many people are learning.


It works because everyone is forced to pay into it, luckily the vast majority of us will not be disabled or orphaned/widowed however for the few that are this is a lifesaver. It also insures that when you are old you'll have enough to eat and pay basic living expenses, but that's it.

No one should assume that SS is a guarantee or their retirement plan. Let it be an added bonus.

I am worried about the boomers who plan on working til they die will just force their children into dead-end jobs, then making boomers work for longer to support said children and creating a vicious cycle.
 
2012-07-31 06:15:11 PM  

namatad: so what?
everyone has social security check and medicare. their living conditions and lifestyle might have to change because they didnt plan?? HAHAHAHHA who cares. dumb people get what dumb people deserve.

CSM
My house will be paid off by the end of this year. My other loan will be paid off by the end of this year.
So debt free. I have a good amount in my 401k and will be able to start saving even more come 2013.
I have 15-20 years before I retire. If that isnt long enough to prepare, then I am doing everything wrong.
/CSM


Hope you don't lose your job and aren't able to find another one. Hope the stock market doesn't crash and send your 401k plummeting just before you retire. And I hope your insurance is good because one serious illness (or a kid with cancer) would be enough to wipe out a huge chunk of your money.

/Not all poor people are that way because of bad decisions. It's the way to bet to be sure, but some people have plain ol' bad luck.
 
2012-07-31 06:51:45 PM  

WhippingBoy: What difference does it make? How many people do you know who have an actual, valid, retirement plan anyway?

/I want my big screen TV and yearly vacation *now*, I'm sure everything will work out in the future; besides, that's so far away!


*Raises Hand*
 
2012-07-31 06:57:41 PM  

jjorsett: superdude72: Now seems like a good time to privatize Social Security.

I'd rather have a private account than one the government can loot at will, and I do. It's called a Roth IRA and SS could go under tomorrow and I'd be fine. And before you ask, no, I won't give up my SS when I'm entitled to it. I was forced into it when I'd have been much better off putting the payments into private investments, so I'm taking it, relative pittance that it will be.


Have you done the math on what you would have had if you had been able to invest the SS that was taken out of your check in a stock market fund? Note: Average person gets back somewhat less than 300k total from SS.

By my calcs I would have about 3x that in the bank ..........
 
2012-07-31 07:00:27 PM  

yourmomlovestetris: Hope you don't lose your job and aren't able to find another one. Hope the stock market doesn't crash and send your 401k plummeting just before you retire. And I hope your insurance is good because one serious illness (or a kid with cancer) would be enough to wipe out a huge chunk of your money.

/Not all poor people are that way because of bad decisions. It's the way to bet to be sure, but some people have plain ol' bad luck.


same job for 18 years, I keep asking them to FIRE ME.
Could find a replacement in 3 phone calls. Could do consulting work from home without leaving the house. I have an open offer to quit and work for a friend's consulting firm.

stock crash would be bad, but would be bad for pretty much everyone. My job has been recession proof. (yes things change) Insurance through work is great, including long term and short term disability. so if I get and can no longer work, I am covered. I have more than enough books, movies, music, porn to entertain myself cheaply for life. I have family and friends to fall back on if everything else fails.

I WOULD have to give up my expensive squash habit (with expensive health club), but those are the breaks.

So yes, bad unexpected things could happen. or not. I am more likely to die in a fiery car crash.
Oh yes, I could sell my car and live off of that for a year.
 
2012-07-31 07:15:10 PM  

rogue_L_chick: I have been doing this job for 6 months now, but I am still amazed at the number of 50-65 y/o people that come in, wanting to liquidate their retirement - usually for something retarded like their daughter's wedding,


Any daughter that asks her parents to liquidate their retirement savings so she can have a big wedding is an ungrateful brat and deserves no happiness..
 
2012-07-31 07:25:55 PM  

Soymilk: rogue_L_chick: I have been doing this job for 6 months now, but I am still amazed at the number of 50-65 y/o people that come in, wanting to liquidate their retirement - usually for something retarded like their daughter's wedding,

Any daughter that asks her parents to liquidate their retirement savings so she can have a big wedding is an ungrateful brat and deserves no happiness..


disown her. perfect day. TADA!!
 
2012-07-31 09:00:47 PM  
In other news, most wage-slaves live much shorter lives than they think. Fark retiring when you're old, save money when you're young and work contracts with "retirements" in between. You can spend years busting your ass expecting a big retirement at 65 or 70 (more likely 75-80 these days) when one day you step out onto a crosswalk and get hit by a bus.
 
2012-07-31 09:47:40 PM  
I've been putting 10-12% in my 401k, but it used to only be 3-4% (I was young and needed every penny I could get). I'm 30 now and worried I won't have enough to retire since I'm only making about 40k/year anyways.

I figure I'll work until the Alzheimer's kicks in, then I'm not so sure what I'll do. Could always move to Canada to save on healthcare costs I suppose.
 
2012-07-31 09:59:33 PM  

not_an_indigo: I figure I'll work until the Alzheimer's kicks in, then I'm not so sure what I'll do. Could always move to Canada to save on healthcare costs I suppose.


HAHHAAHAH why would Canada let you immigrate??
 
2012-07-31 11:26:00 PM  
An American banker was at the pier of a small coastal Mexican village when a small boat with just one fisherman docked. Inside the small boat were several large yellow fin tuna.

The American complimented the Mexican fisherman on the quality of his fish and asked how long it took to catch them.

The Mexican replied, "Only a little while."

The American then asked, "Why didn't you stay out longer and catch more fish?"

The Mexican said, "With this I have more than enough to support my family's needs."

The American then asked, "But what do you do with the rest of your time?"

The Mexican fisherman said, "I sleep late, fish a little, play with my children, take siesta with my wife, Maria, stroll into the village each evening where I sip wine and play guitar with my amigos, I have a full and busy life."

The American scoffed, "I am a Harvard MBA and could help you. You should spend more time fishing; and with the proceeds, buy a bigger boat. With the proceeds from the bigger boat you could buy several boats. Eventually you would have a fleet of fishing boats. Instead of selling your catch to a middleman you would sell directly to the processor; eventually opening your own cannery. You would control the product, processing and distribution. You would need to leave this small coastal fishing village and move to Mexico City, then Los Angeles and eventually New York where you will run your ever-expanding enterprise."

The Mexican fisherman asked, "But, how long will this all take?"

To which the American replied, "15 to 20 years."

"But what then?" asked the Mexican.

The American laughed and said that's the best part. "When the time is right you would announce an IPO and sell your company stock to the public and become very rich. You would make millions."

"Millions?...Then what?"

The American said, "Then you would retire. Move to a small coastal fishing village where you would sleep late, fish a little, play with your kids, take siesta with your wife, stroll to the village in the evenings where you could sip wine and play your guitar with your amigos."
 
2012-07-31 11:30:07 PM  

namatad: not_an_indigo: I figure I'll work until the Alzheimer's kicks in, then I'm not so sure what I'll do. Could always move to Canada to save on healthcare costs I suppose.

HAHHAAHAH why would Canada let you immigrate??


Because I have dual citizenship. So it's not so much immigration as "welcome back!".
 
2012-08-01 12:25:06 AM  

Evil Twin Skippy: Retirement is something rich people do. The rest of us have kids. And our sincere hope is that at least one of us thinks fondly enough of us to spare a bedroom.

Assuming you meant "one of them", there lies the second problem.

Many of today's retirees...didn't have enough kids to play that numbers game.
 
2012-08-01 12:59:59 AM  

Void_Beavis: Pretty sad when you consider how much of your earnings are automatically confiscated for this horrible retirement program. Even the worst savings accounts with a local bank will earn 1% interest annually.


The automatic part is what makes it secretly an awesome plan. Right now 1/3 of people overall and 1/4 of Babyboomers have nada, zero, zip, nilch savings for retirement. It wouldn't surprise me if an additional 1/3 had savings too small to reasonably sustain them for their whole retirement. The idea of the typical person being a rational actor, unfortunately, has no basis in reality.
 
2012-08-01 08:16:26 AM  

LiberalEastCoastElitist: Void_Beavis: Pretty sad when you consider how much of your earnings are automatically confiscated for this horrible retirement program. Even the worst savings accounts with a local bank will earn 1% interest annually.

The automatic part is what makes it secretly an awesome plan. Right now 1/3 of people overall and 1/4 of Babyboomers have nada, zero, zip, nilch savings for retirement. It wouldn't surprise me if an additional 1/3 had savings too small to reasonably sustain them for their whole retirement. The idea of the typical person being a rational actor, unfortunately, has no basis in reality.


Rational in economic terms means they'll think about the choice, not that they will make the right or smart choice.
 
2012-08-01 11:08:23 AM  

superdude72: namatad: superdude72: Now seems like a good time to privatize Social Security.

I have continued to pretend that social security will be GONE by the time I retire. that I will get nothing.
Which makes any fraction that I might get a windfall.

/quick, check your socsec online!!!

It's nice that you can afford to do that. Most people who earn less than $100,000 a year have no choice but to make Social Security a major part of their retirement planning. If you earn less than that and you think you are saving enough to do without Social Security... well, read the previous posts about how Americans suck at math.


Counting the employer contribution, Social Security premiums take over 12% of one's pay. If you made $9 an hour, worked 40 years, and put the money in an index fund generating 6% return per year, you'd have $312,000 when you retired. At a 4% withdrawal rate, you'd get $1,040 a month and have money left over to leave your heirs. That's using conservative figures and a low wage rate. Most would do far better. Contrast that to SS, which has no real underlying assets in its trust fund, is effectively insolvent, and is subject to the whims and manipulation of Congress. As just one example of such, the index of inflation that SS uses, the CPI, is being gamed to make inflation look smaller than it is.
 
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