Retirement Targets

[SEIOWA CLONE]

Dang, we are bad people for even thinking it.

No it not you are a bad person, its the way we think today, and its destroying the country. The "Greed is good" mentality has gripped the country since the 80's, and we have forgotten about other Americans, and only worry about ourselves, many then
turn around and call themselves Christians.

When mega churches that pay NO taxes and corporations that had billions in sells turn around and apply and receive PPP loans, it says a lot about the current state of affairs in America.

 

[qwerty]

Dang, we are bad people for even thinking it.

Doesn't matter, either way it isn't happening. It is like daydreaming what you would do with a lottery win (which is fun). But don't even get me started on how stupid playing the lottery is.

 

[dmclone]

No it not you are a bad person, its the way we think today, and its destroying the country. The "Greed is good" mentality has gripped the country since the 80's, and we have forgotten about other Americans, and only worry about ourselves, many then
turn around and call themselves Christians.

When mega churches that pay NO taxes and corporations that had billions in sells turn around and apply and receive PPP loans, it says a lot about the current state of affairs in America.

Yeah, I long for the pre-80's. Not.

 

[DeereClone]

Why would you include Medicare Tax?

I was looking at it from the SE tax as a whole. Out of the insane amount of money you would have saved up by retaining the tax over your working career, you could afford to buy health insurance to cover needs in retirement.

Even if you took it out and dropped it to the SS tax alone at 12.4%, that would be $620/mo invested vs paid into the system....drops the amount to $2.1M vs the $2.6M in my earlier example.

 

[DeereClone]

People need to stop looking at SS as an investment tool, and remember its stated purpose, which was old age insurance. When I hear people talking about how much better off they would be if they could access that money and invest it, they are forgetting that SS also goes to children that have lost a parent, to those that are disabled, and other causes. Sometimes its not always about YOU.

Reading through these pages, people forget that the people posting on here, are NOT a snapshot of the average American. Most here are college educated, with higher earning potential and take-home pay much greater than the average person.

Young people today do a much better job of investing for retirement than those 60 and over it. Some of those people retired on pensions, therefore did not have to worry about retirement savings, others believed it when the govenment told them they would be taken care of in old age, and many are still working to get by.

These are sad, horrible situations that can be insured against.

 

[BCClone]

That's the truth, we are all gonna die. Some people are hoarders and too conservative with their funds for sure, but someone or something benefits from it in the end I guess if not them.

Whoa, when did this become true??? Are you certain?

 

[Stormin]

I was looking at it from the SE tax as a whole. Out of the insane amount of money you would have saved up by retaining the tax over your working career, you could afford to buy health insurance to cover needs in retirement.

Even if you took it out and dropped it to the SS tax alone at 12.4%, that would be $620/mo invested vs paid into the system....drops the amount to $2.1M vs the $2.6M in my earlier example.

Short term young people would gain. Long term they would lose. As would everyone else except the super wealthy as the costs of private health insurance would be astronomical. You probably would not even be able to get health insurance. Do you understand why Medicare was created in the first place? And you ignore that SS has a COLA in the formula and can never be outlived. Inflation does not really dilute the purchasing power of the SS benefit. Plus it has survivor benefits and disability benefits throughout your life. I am not relying on SS income at all. But consider it a guaranteed leg of a 3 legged stool which compliments my other investments and savings. The other 2 legs which hopefully result in my children getting a decent inheritance at our deaths. Giving them a boost for their retirements.

 

[ca4cy]

Expanding on the which age to take SS debate. With inflation at 3% and only a 4% return on investments the 62 vs 67 breakeven is age 90. With a more realistic 2.8% inflation and 6% return the breakeven age is over 100. These factor in the cost of using your money instead of SS money and the opportunity cost of spending down that money. It also assumes you quit earning when you retire and rely solely on SS and retirement funds. My actual plan is semi-retire at 62, earn up to max allowed by SS without penalty in part time work and minimize my investment draw down. I doubt if I make it to my 90s, let alone 100+ to justify the delay in SS.

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That's good info. Thanks for sharing.

I've got a while before it comes into question so who knows what SS will even look like at that point. I've never included it in any retirement planning but it seems likely that it will be there is some form or fashion for at least a few years.

Based on what I consider to be conservative returns on existing funds and future contributions, 63 seems to be the number for me where I can comfortably retire without touching principal, aside from required distributions. I could probably go earlier, but my wife is 4 years younger and I'll enjoy retirement more if she's along for the ride. She wants to try the snow bird thing (I really don't care either way) so we'll want to do that while we're "young" to see if it's for us. She's a teacher so I'm hoping she'll keep her license and pick up some substitute jobs for beer money for at least a few years. Even if she'd do that a day or two a week while the weather is decent it would help stretch things quite a bit. That may be what helps bridge the gap a little for what health care may cost us prior to 65. That's the only thing that really scares me. I've considered taking my SS when I retire and having her delay hers until full retirement age, but who knows? Like I said, a lot can change between now and then. I seriously doubt I'll wait until full retirement age to start getting MY money back that the government has so graciously pissed away.

I understand everyone is wired differently, but there will be no "I need something to keep me busy" for me. Once I'm done, I'M DONE! I'll have spent my entire career in an extremely stressful line of work that has already taken enough of a toll on me. Couple that with how many years the Cyclones have taken off my life and I'll be ready to just relax. I can be perfectly happy with reading, fishing or sitting on the river watching the world go by. I'd do it tomorrow if I could and not feel the least bit guilty about it.

 

[acody]

We retired a few years ago when I had saved less than a half million. I was 63. Since then we have traveled to Italy and some of the states. The lake where we live has almost too much activity. Still expect to run out of time before we run out of money. Have more money saved now than when I gave up the paycheck. Really don't see the wisdom of being the richest person in the cemetery. Advise most of you to take retirement just as soon as you can pencil it. Time is what is limited.

Wow! You've nailed it!
Investing to chase the biggest number possible is fun and satisfying but is not a prudent reasonable retirement strategy in my opinion. Investing to determine what you really need, to live very comfortable in retirement, should be your strategy.
Retire as early as possible.

 

[yowza]

Whoa, when did this become true??? Are you certain?

100% of all scientists surveyed agree.

 

[yowza]

That's good info. Thanks for sharing.

I've got a while before it comes into question so who knows what SS will even look like at that point. I've never included it in any retirement planning but it seems likely that it will be there is some form or fashion for at least a few years.

Based on what I consider to be conservative returns on existing funds and future contributions, 63 seems to be the number for me where I can comfortably retire without touching principal, aside from required distributions. I could probably go earlier, but my wife is 4 years younger and I'll enjoy retirement more if she's along for the ride. She wants to try the snow bird thing (I really don't care either way) so we'll want to do that while we're "young" to see if it's for us. She's a teacher so I'm hoping she'll keep her license and pick up some substitute jobs for beer money for at least a few years. Even if she'd do that a day or two a week while the weather is decent it would help stretch things quite a bit. That may be what helps bridge the gap a little for what health care may cost us prior to 65. That's the only thing that really scares me. I've considered taking my SS when I retire and having her delay hers until full retirement age, but who knows? Like I said, a lot can change between now and then. I seriously doubt I'll wait until full retirement age to start getting MY money back that the government has so graciously pissed away.

I understand everyone is wired differently, but there will be no "I need something to keep me busy" for me. Once I'm done, I'M DONE! I'll have spent my entire career in an extremely stressful line of work that has already taken enough of a toll on me. Couple that with how many years the Cyclones have taken off my life and I'll be ready to just relax. I can be perfectly happy with reading, fishing or sitting on the river watching the world go by. I'd do it tomorrow if I could and not feel the least bit guilty about it.

Wouldn't it be fun to try to take in all the away games for one season? Or maybe that adds to stress who knows.

 

[SEIOWA CLONE]

These are sad, horrible situations that can be insured against.

Maybe, but how many young people have enough insurance to pay to raise their children if they were killed or disabled?
We had a young guy here in town 5 years ago, worked for the city, wife and three small kids 5 and under. He got killed going home one night, how much money do you think it would cost to raise those kids without SS benefits?

My best friends middle daughter's husband took his own life about 7 years ago, they also had 3 kids, had some insurance, but it would not pay since he took his own life, like my friend told me, SS has been a god sent for his grandchildren and daughter.

SS is one of the best run government programs the country has every come up with, and instead of dismantling the program, we should be taking the cap off to strengthen it, while capping those benefits at the top end.

 

[ca4cy]

Wouldn't it be fun to try to take in all the away games for one season? Or maybe that adds to stress who knows.

I've always said that. I think it would be fun to take my kids (and most likely grandkids) to a holiday bball tournament in a Hawaii/Puerto Rico type place as well. I'd also like to get to as many MLB parks as possible.

I tend to be less stressed out when attending games than I am sitting in my basement.

 

[BCClone]

Maybe, but how many young people have enough insurance to pay to raise their children if they were killed or disabled?
We had a young guy here in town 5 years ago, worked for the city, wife and three small kids 5 and under. He got killed going home one night, how much money do you think it would cost to raise those kids without SS benefits?

My best friends middle daughter's husband took his own life about 7 years ago, they also had 3 kids, had some insurance, but it would not pay since he took his own life, like my friend told me, SS has been a god sent for his grandchildren and daughter.

SS is one of the best run government programs the country has every come up with, and instead of dismantling the program, we should be taking the cap off to strengthen it, while capping those benefits at the top end.

I understand the disability and survivor aspect. I also look at the situation of my dad and my oldest sister. My dad died after receiving one, just one, SS check at age 66. My sister passed at 64 and received none. If you would factor them as averaging 25,000/year jobs (over their 45 years of work), that is 279,000 that they paid in SS and between the two, they received a check for $600. They carried LI and investments to take care of the situations you presented. That is a lot of money to be able to pass on to their loved ones (especially if you consider even CD rates), instead of a check for $600.

Having been in a business that dealt with many people who had severe mental and physical disabilities, there are some poor games played in those situations. The "spend down" stuff needs to stop. I oversaw a vocational center that employed people with disabilities and those without. They were paid the same, worked the same hours. Those with mild disabilities would have to quarterly go spend a bunch of their income to avoid having more than a thousand dollars in their account. Several bought new TVs every quarter and either threw out the old ones or gave them to a buddy. Just a waste of money. It is note a well run program from many angles. So much could be improved, but won't due to politics.

 

[coolerifyoudid]

Out of curiosity, does anyone have an opinion of if/when to drop life insurance in your retirement planning? It wasn't anything I'd really considered until I really started weighing the possible inherited amount of my portfolio versus the payout of my life insurance policy.

 

[qwerty]

Out of curiosity, does anyone have an opinion of if/when to drop life insurance in your retirement planning? It wasn't anything I'd really considered until I really started weighing the possible inherited amount of my portfolio versus the payout of my life insurance policy.

I have no idea but I took out term life policies that expire at age 62 and 63. Figure I will be in retirement by then and if I go, wife will have access to the retirement funds free and clear. If I go before then, the insurance will carry her to that point.

 

[kirk89gt]

Out of curiosity, does anyone have an opinion of if/when to drop life insurance in your retirement planning? It wasn't anything I'd really considered until I really started weighing the possible inherited amount of my portfolio versus the payout of my life insurance policy.

I would say as soon as you could "self insure", (cover your present / future obligations and not financially cripple those you leave behind) drop the LI.

 

[BCClone]

Out of curiosity, does anyone have an opinion of if/when to drop life insurance in your retirement planning? It wasn't anything I'd really considered until I really started weighing the possible inherited amount of my portfolio versus the payout of my life insurance policy.

For me it will be 10 years from now approximately. That is when the last kid should graduate with their bachelors degree (I paid for mine so they an do their own Masters or Doctorate degree if they choose). House will be paid for. Wife will be at retirement. Businesses will be able to support her also.

I figure you hold it until you feel your loved ones can financially be alright without your income.

 

[coolerifyoudid]

I would say as soon as you could "self insure", (cover your present / future obligations and not financially cripple those you leave behind) drop the LI.

I have no idea but I took out term life policies that expire at age 62 and 63. Figure I will be in retirement by then and if I go, wife will have access to the retirement funds free and clear. If I go before then, the insurance will carry her to that point.

The idea of owning life insurance was so ingrained in my mind (especially with my daughter being in middle school yet), that I really overlooked the financial risk/reward aspect of it. I'm not looking at dropping it anytime soon, but I'm factoring it into my thinking finally.

 

[yowza]

When you reach the end of work life, what are you investment strategies? Way more conservative or what side of risk spectrum are you on at that point versus where you are now? Obviously depends on the balance when you first get there, but let's say you get to that age and you have your targeted amount. What is it invested in at that point, what's your mix?