Quote Originally Posted by Raiders22:
You are being sarcastic here it sounds? Do you think that is low? That is higher than every state's average. So, obviously very well in some states. If you live well on that and invest correctly, yes, of course, that can lead to very comfortable retirement.
I guess our definition of comfortable retirement is different.
How much could someone save making the median income, or even in this example 60k a year?
Making 60k a year means making 40-45k or maybe less if your cost of benefits are higher..but lets say 45k.
How much would you think is a REASONABLE ammt to save a year off 45k? Would you say 5% or 10% or 20%? I'd say anything more than 20% is very unrealistic unless you live in a very very low cost area..
So 20% is 8k a year..but I think the odds are HIGHLY against someone saving 8k a year unless they are single and living with their parents..or are lucky and own a home outright etc.
How much can be earned off saving 8k a year? What if someone is 35 yrs old and saves 8k a year (this is inclusive of a 401k and IRA as well) and works for 30 years..
That equates to a savings of 240k, maybe you get lucky and earn 6% a year off that so you are more close to 500k given ups and downs of the market.
So are you saying one can comfortably live off 500k plus a paltry SS ammt?
My inlaws retired from working in the government and I can tell you that NO WAY can they live off 20k a year pulling from your retirement plus SS and a 401k. The cost of retirement is going up up up..Medicare costs are up, secondary insurance costs going up all the time..co-pays and deductibles. I'd say if you dont have liquid assets of 1M plus you are going to severely struggle long term in retirement.
So how is this 40k a year going to turn into a large retirement for the majority of the population?
I think too many here are young and inexperienced to the reality of longer term life..the comments made here are indicative of your age.
One more thing on a side..my inlaws who are retired were down the line Repubs during their younger years..their working years when they used to b!tch about taxes and how welfare sucks and people leaching off the government.
They are on the AARP phone list so they get a zillion political calls. Last time we were having dinner the subject of political party came up and they both said they are now INDEPENDENT party voters..I reminded them of their down the line repub past (which my wife of course recalls) and I made the comment that they are not party of any party..they are part of the SENIOR political party...ex-Repubs who were moaning and groaning when younger but now that they need the government and social programs they have since changed their position because it suits their needs.
Most here have this same complex...