What you need to set aside for retirement

[thooks]

KC8adu,


You have more of a correct answer than you might think.

Let's just say that when you watch COPS and wonder if EVERYBODY has a crack pipe on them, you would be surprised at just how many people wandering around out there do in fact have drugs or drug paraphenalia on them.

Yeah. Those that are out there driving on the same roads as you and I, and your kids.

 

[rjundi]

Does anyone know a good calculator to say in todays dollars what you'd like to live with/year when you retire? My wife/I put dutifully at least 12% of total income into our retirement.

We are 34 and collectively have $115,000 in retirement but not really sure if using this in itself will be much when I retire as inflation eats at investment gains.

 

[XS650]

quote:

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Originally posted by rjundi:
Does anyone know a good calculator to say in todays dollars what you'd like to live with/year when you retire? My wife/I put dutifully at least 12% of total income into our retirement.

We are 34 and collectively have $115,000 in retirement but not really sure if using this in itself will be much when I retire as inflation eats at investment gains.

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Short of having a crystal ball, you will be doing reasonably well to gain 4% over inflation with long term investments. If you assume your investments will give a return of 4% over inflation, that lets you think in terms of todays dollar and greatly simplifies your calculation. With all the unknown, that's as good a method as any.

You can do better sometimes by taking higher risks, but higher risks have a stronger potential of negative gains.

Some advisors also advise that you not take more than 4% out of a retirement account each year if you are planning on living along time. I think that's good advice.

So, in 20 years at 4% interest above inflation, your $115,000 will be worth $252,000 in todays dollars. Taking 4% per year out after you retire, will give you an income of $10,080 in todays dollars.

You need to have some intelligent investments with some risk to do that well over the long haul, CDs and Bonds won't do it. You need the stock market or other higher return investment. Just don't **** around chasing short term investments with your retirement money.

You shouldn't start drawing down your principle in retirement unless you know when you are going to die.

 

[Al]

quote:

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Originally posted by XS650:
You shouldn't start drawing down your principle in retirement unless you know when you are going to die.

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Your beneficiaries will love your strategy.

 

[XS650]

quote:

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Originally posted by Al:

quote:

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Originally posted by XS650:
You shouldn't start drawing down your principle in retirement unless you know when you are going to die.

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Your beneficiaries will love your strategy.

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I'm sure he will. He doesn't even know it's coming.

 

[H2GURU]

Well, if you think about it, since Big Business has shifted all the risk of dental & medical coverage and most (all for some) of retirement from themselves onto the working stiffs their profits s/b higher and that will help your 401(K)grow. We also need everyone of those spenders to keep buying so all those factories keep humming along as this also drives the stock market. Save as much as you can in tax-deferred vehicles and live BENEATH YOUR MEANS, it may be dull at times, but you and your worn out body will not want to toil much past 65 years of age. For a good calculator for retirement to see how you are doing go to: choose to save.org and click on the BALLPARK CALCULATOR.

 

[JHZR2]

And since politicians want privitized social security that invests in the market, we'll have more money chasing the same number of shares, creating artificial demand, and thus artificial inflation to pay for social security, the war, and all of our other problems... Problems solved!

or not...

JMH

 

[thooks]

Case in point, folks, upstairs.

Fella dumped his savings, some inheritance, to partially buy a 3/4 ton 4x4 Chevy to drive around town to go to college, while renting a place. But wait, he's 24, got GOOD credit and has already paid off some credit cards.


I take it a 6-7 year old 99-2000 2wd Silverado wouldn't have fit the bill, or a 2001 Honda Accord, either.

 

[oilyriser]

Maybe an exchange program with Mexico is a good idea. Admit one young Mexican, retire one American in a warm climate with low cost of living.

Canada is in worse shape demographically than the US. But the natural resources should help pay for our boomer's retirement needs. The problem will be a severe shortage of doctors and nurses.

 

[Racerjk]

I don't want to even think about retirement. I make great money for around here, but it's nothing compared to other places in the country!

 

[Al]

quote:

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Originally posted by oilyriser:
Admit one young Mexican, retire one American in a warm climate with low cost of living.

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Don't laugh that might be the nuclear option.

Living costs in Mexico are cheap. Retired people are gonna' go (and already are) to live large. Doctors (who are getting tired of being sued) are already settting up first rate medical facilities. Its a system the can and will work for many older Americans. Its called "follow the money". Who knows; in 25 years the U.S. may be the Banana Republic.

 

[The_Jeff]

Gary your cynicysm (sp?) I agree with.

I chose a traditional IRA over a Roth on the opinion that they'll pass an "excessive disbursement tax" on Roths by the time I retire. In other words they'll trick a bunch of people into using this newfangled thing then rip the carpet out from under them when it's time to cash out.

Good move or bad, I don't know, I'm just being contrarian.

I'm investing more in myself and my property than the stock market-- but keeping my toes in as a "hedge". IDK how much XOM's profits buoyed my index funds but find solace in even this meager return.

Agree with JHZR2 also.

 

[JHZR2]

IIRC, the Roth IRA needs to be 're-passed' every so many years by congress.

If its a money looser for the government, they can always not pass it.

IMO, there are too many people invested into it be able to be screwed up too much.

People with money in at this point would likely be grandfathered into some other tax struture...

Not that this would actually be the case, but then again, nobody will necessarily tax your Roth disbursements either... its all speculation.

JMH

 

[The One]

i think many folks would be astonished at how many folks to in fact sell dope on the side to make ends meet.... i would venture to say 7 out of 10 people are doing atleast marijuana, maybe 6 out of 10, the numbers reported are conservative at best. When one can easily make $400 profit a day selling marijuana who wants to work a job that pays nothing and requires a degree? not that it's right, but maybe there are a few folks financing their retirement that way... either way they will get 3 hots and a cot.

 

[Al]

quote:

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Originally posted by The One:
i would venture to say 7 out of 10 people are doing atleast marijuana,

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Wow..you should lay off of the stuff for a while..I don't thonk your numbers are very realistic. Non even for cali.

 

[JHZR2]

6 of 10? 7 of 10?

Wow, I must know a lof of very straight-laced people...

even in college I only knew two people that did it... and each didnt do it more than three or four times.

maybe Im too nieve, but I dont think so.

Maybe thats why HD sells "plant light" fluoroescent bulbs...

JMH

 

[Gary Allan]

I think it may be something like 6 out of 10 for a certain demographic.


Everyone else is filtered by the drug tests. You can't get any decent job without a drug test ..and once in the data base ..you're marked for life.

There are lots more booby traps out there now to catch the boobys.

Back when I was in my 20's ..the statistics suggested that 4 out of 5 dental personnel abused NOX. Now ...I doubt that even occurs rarely. Everyone partied when I was in my 20's. If you're my age ...you're either in the Clinton "I did but didn't inhale" (cough-cough) crowd ..or were sincerly limited in your circulation. Animal house wasn't a myth.

I know current CIA employees that grew the stuff during their CO status during the Vietnam War.

Funny how that works.

 

[Al]

quote:

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Originally posted by Gary Allan:
I think it may be something like 6 out of 10 for a certain demographic.

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Yea, like the population of all folks living in crack houses.

 

[thooks]

Yeah, you folks really got the answer. What'd you spend thinking up this 'Move to Mexico' solution? 48 seconds?

Yeah. That's the ticket. Leave your children and grandchildren here to rot with the overburden of illegals while you bath in sun and live it up down in the Retirement haven of the Western Hemisphere.

Don't mind all the HIV, TB, Hepatitis and other rampat diseases down there. Just cash out the 401k, pile up in the Suburban and move on down.


It's always all about you, aint it? BTW, your little idea has already been thought of, mainly on the Western Coast of Mexico. The folks selling their $1.8M 1200 sf bungalows in California have been moving down there and buying up property for 10 years. They got high-end grocery stores, Home Depot, Doctors, Lawyers, Accountants, Hair and Nail salons, you name it.


And the property value is skyrocketing.


Hope you have got in line.

 

[Al]

Wow..bitter aren't we.