Retirement savings ....Yikes !

[MossRoad]

... It's happening in Europe TODAY (March 19th, 2013). Any saving over $25,000 is being seized.....

Not correct at all.
This is the kind of thing that gets uninformed folks all riled up.
I saw your statement, looked it up at several different news sites and here's what I found...

It was the country of Cyprus, not all of Europe.

It was a proposed tax, not a siezure.

They were voting to tax any individual's bank savings over about $25,000.00 at about 10% to try and help pay off their country's debt.

It did not pass their vote.

Please, please, please.... don't post this kind of stuff without researching it. It makes Floyd R. Turbo, American, go off the deep end.

 

[dmccarty]

When Work Is Punished: The Tragedy Of America's Welfare State | Zero Hedge

The govt is rewarding dependence on the govt. If a person gets a raise that pushes them past certain points on that graph, their income drops ~$10k due to losing govt benefits. That right there is a major incentive to not work hard, to not try for that raise or promotion, etc. What makes anyone think that people subjected to that type of incentive system are going to look at "retirement" any differently?

Keith

Back in the 80's I knew a family where the father had a decent income, the mother stayed at home for the most part and they live WELL within their means. They had a rather small house for five people, comfortable but small. They ALWAYS drove old beater cars. When the kids got older and the mother had some time to work, they made danged sure she did not earn enough money to send them into a higher tax bracket. I remember listening to them talk through the numbers one day. They were going over their current tax rate, various taxes, and the expense of her working. If they were not careful, she would be working for next to nothing or paying to work.

When a tax system makes it RATIONAL to NOT work, the tax system is broke. One of the problems with Obama Care is the number of 29's are 49's that will be created. 29's are going to be people who will not be allowed to work more than 30 hours a week at one company so the company can avoid the extra Obama Car tax. 49's are gong to be the companies that will not hire more than 50 regular employees to avoid the tax.

Maybe this will be a good thing for the people who have not saved, they will need some money, so they can be 29ers or work as a contractor for 49ers.

Later,
Dan

 

[grsthegreat]

Not correct at all.
This is the kind of thing that gets uninformed folks all riled up.
I saw your statement, looked it up at several different news sites and here's what I found...

It was the country of Cyprus, not all of Europe.

It was a proposed tax, not a siezure.

They were voting to tax any individual's bank savings over about $25,000.00 at about 10% to try and help pay off their country's debt.

It did not pass their vote.

Please, please, please.... don't post this kind of stuff without researching it. It makes Floyd R. Turbo, American, go off the deep end.

yup...you more elegantly stated the same thing i stated earlier. Also Cyprus is a tax shelter zone for rich Russians that are hiding their money.

 

[dmccarty]

..
Savings accounts pay next to nothing, CDs the same way, current 401K is almost nothing more than a large savings account (since I've retired, most of the funds have been moved to 'safe' accounts)...

I don't know how people on fixed incomes, dependent on CDs and other secure/more secure but limited interest bearing instruments, are surviving. The Fed's keeping interest rates low has to be killing retired people but it is great for my ReFi.

Later,
Dan

 

[mjarrels]

Once had a guy who worked for me refuse any overtime. Would loose state benifits if he earned over a certain amount.

mark

 

[MossRoad]

So what do you guys think is the amount you should have in your 401K to retire now. Or next year.

If you are accustomed to living on, say, $40K per year you need to have investments bringing in $40K until you die.
So, if you retire at 65 and live to 100, you'll need 35 years of $40K.

There's two ways to do that.
One is to have a large chunk of investments that brings in $40k average in interest only. It runs forever and when you croak, you leave a large chunk to your heirs.

The other is to have a not as large chunk of investments that brings in considerably less interest income, but you take a chunk of the investment every year. In this method, you have to take a bigger chunk and get less interest each year, but you spend it down until it is gone, leaving a small or no chunk to your heirs. This is dangerous, because if you under-estimate the year of your death, you may be broke befor you croak!

 

[npalen]

Long Term Care insurance is part of the game also. A person in LTC can use up a nest egg rather quickly when you figure a couple hundred bucks per day plus meds. Then they take your home when the money runs out. Not such a good thing for a surviving partner or other dependents.

 

[texasjohn]

Not correct at all.
This is the kind of thing that gets uninformed folks all riled up.
I saw your statement, looked it up at several different news sites and here's what I found...

It was the country of Cyprus, not all of Europe.

It was a proposed tax, not a siezure.

They were voting to tax any individual's bank savings over about $25,000.00 at about 10% to try and help pay off their country's debt.

It did not pass their vote.

Please, please, please.... don't post this kind of stuff without researching it. It makes Floyd R. Turbo, American, go off the deep end.

Whoa, Moss, suggesting the use of FACTS in a discourse from hawking threads is a radical rite idea! :rotfl:

I mean, where would all the excess blood pressure go if one did that?

Me, I had to look up Floyd R. Turbo, American...Floyd R. Turbo - Wikipedia, the free encyclopedia ... brought back memories of a true comedian, thanks :number1:

 

[keegs]

Way back in the late 80s or early 90s, I knew of a grandparent couple who had most of their investments in the stock market. They were not rich people by any means but they had worked hard AND SAVED as much as they could. There was one of the market crashes and the lost a bunch of money. Course, eventually the market returned and the loss was only a paper loss not actual but they took it hard mentally for awhile especially since they were managing the money of a family member who was mentally ill.

You needs SOME investments in the market to keep up with inflation. How much is a matter of how much risk one can handle both money wise and mentally. One rule of thumb I have seen is to subtract you age from 100 and that is the amount of investments that should be in the stock market...
If you are 30, the 100-30 = 70 so 70% of your investments should be in the market. If you are 60 then 40% should be in the market. One can tweek that numbers as the see fit. Personally at age 30 I have everything in the market. Twas not much but it was every thing.

Social Security should not be a primary retirement plan. IT should be a Rah Ruh Net to catch people when things go bad. It only takes one serious accident or illness to bankrupt a family. If SS is around when I retire, my assumption is that it will be only be enough to pay the health care premiums. I hope it will be that much....

Later,
Dan

+1.....

SS, pensions, annuities define a reliable income stream. The delta between the sum of your reliable income stream and your income requirements is what you need your savings to generate.

Some folks in or near retirement take the position that if you've got more than enough to cover all your living costs, you can afford to take more risk in the market. Some folks take the position that if you have more than enough to cover your living costs at or near retirement then you don't have to risk investing in the markets.

 

[NorTracNY]

What I missed people commenting on is that people have a choice. I know in this country that A LOT of people don't want that. If someone wants to spend and not save, then I'm fine with that. It's their choice. There is no law that says you have to retire. I know many people that don't plan to retire. The government is already forcing us to do this and not do that! Enough!!!! Leave people alone. If you know someone that is down on their luck, then help them out if you wish. The people are what made this country great. The government programs and intervention is going to be the down fall.