Another Retirement Warning for Boomers

[veracious]

    "One of the most challenging aspects of retiring today is fully comprehending how long

this period of your life could be.   The implications are profound and scary".

 http://www.foxbusiness.com/personal-finance/2011/03/07/retirement-warning-boomers/?cmpid=partner_aol

IMO:   The hardest aspect of retirement is predicting the effects of inflation.

While I was working, the effects of inflation wasn't an issue because I simply received a raise in salary at some point.

But in retirement there aren't any scheduled income raises unless you plan for them.

[vanillabean]

There was this USA Today snapshot showing that people are now more concerned about running out of money in retirement than about death itself.

There is a simple solution. Have everyone pay more into something like social security, so that everyone is guaranteed a decent monthly pension for the rest of their lives.

If you die earlier than most, you won't live to regret the money you won't be spending. If you die later than most, you use the money that the others didn't get to use.

[vanillabean]

Ouch.

Survey: More workers have a gloomy retirement outlook
http://www.usatoday.com/money/perfi/retirement/2011-03-15-1Aretireconfidence15_ST_N.htm

"56% said that their savings and investments, excluding their home value, totals less than $25,000."

$20,000 won't take you far into retirement
http://www.usatoday.com/money/perfi/columnist/krantz/2009-03-27-small-retirement_N.htm

[veracious]

                  How to Stash $1 Million+ in Savings

http://kiplinger.com/magazine/archives/how-to-stash-1-million-in-savings.html

              If you have the wherewithall .

[veracious]

                              "The 401k Turns 30 Years Old"

             The defined-contribution plan revolutionized retirement for U.S. workers.

              After three decades and the Great Recession,  key fixes are needed.

                  http://www.businessweek.com/investor/content/mar2010/pi20100312_874138.htm

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Are we better off scraping these plans?

[vanillabean]

Here's more:

42% guessing how much money they’ll need in retirement

http://www.washingtonpost.com/business/economy/42percent-guessing-how-much-money-theyll-need-in-reti...

[veracious]

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@Anonymous-own-fico wrote:

Here's more:

42% guessing how much money they’ll need in retirement

http://www.washingtonpost.com/business/economy/42percent-guessing-how-much-money-theyll-need-in-retirement/2011/03/15/ABPDQ5g_story.html

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Well.......I dunno

    But ,    according to  Wall St. Inc.  this makes me very happy. 

http://www.huffingtonpost.com/2011/03/12/household-wealth_n_834516.html

Yet,   at the same time I saw this........http://www.squidoo.com/401kgoodorbad 

[vanillabean]

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@Anonymous-own-fico wrote:

There is a simple solution. Have everyone pay more into something like social security, so that everyone is guaranteed a decent monthly pension for the rest of their lives.

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How about "a universal 401(k) that would be layered on top of Social Security. Every American would get one, and for low-income Americans, the government would provide a 2-to-1 match for the first $2,000 every year, while moderate-income Americans would get a 1-to-1 match to the same amount. This would give families a strong incentive to start saving for retirement early and aggressively, all but ensuring that they approach old age with a substantial cushion."

The pro-Social Security case for Social Security reform
http://www.washingtonpost.com/business/economy/the-pro-social-security-case-for-social-security-reform/2011/03/28/AF0PqhpB_story.html

"The 401(k) savings vehicle is ridiculously robust and important to our retirement security."

Higher Tax Rates Loom for 401(k) Savers
http://finance.yahoo.com/focus-retirement/article/112433/higher-tax-rates-loom-for-401k-savers

While we're at it, why not make FICO a government agency?

[92235]

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@Anonymous-own-fico wrote:

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@Anonymous-own-fico wrote:

There is a simple solution. Have everyone pay more into something like social security, so that everyone is guaranteed a decent monthly pension for the rest of their lives.

---

How about "a universal 401(k) that would be layered on top of Social Security. Every American would get one, and for low-income Americans, the government would provide a 2-to-1 match for the first $2,000 every year, while moderate-income Americans would get a 1-to-1 match to the same amount. This would give families a strong incentive to start saving for retirement early and aggressively, all but ensuring that they approach old age with a substantial cushion."

The pro-Social Security case for Social Security reform
http://www.washingtonpost.com/business/economy/the-pro-social-security-case-for-social-security-reform/2011/03/28/AF0PqhpB_story.html

"The 401(k) savings vehicle is ridiculously robust and important to our retirement security."

Higher Tax Rates Loom for 401(k) Savers
http://finance.yahoo.com/focus-retirement/article/112433/higher-tax-rates-loom-for-401k-savers

While we're at it, why not make FICO a government agency?

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That sounds super expensive. There is no way we would be able to match contributions. We already have a failing Social Security program because the government felt they needed to "borrow" money from it. They already screwed it up once, what makes you think they would be able to do it correctly again? I think we should leave this up to the individual to contribute to. If a company decides they need to match contributions to get a higher quality employee, then they can match.

[Uborrow-Upay]

Quick Q&A here.

Question:  What do you call a plan which relies on receiving money from new investors in order to pay off the old investors?

Anyone?  Anyone?  Bueller??

Answer:  A Ponzi Scheme.