Twenty-Two Percent of Americans Would Rather Die Than Retire w/ No Savings!

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IndyColtsFan

IndyColtsFan

Lifer
Sep 22, 2007
33,655
687
126
DucatiMonster696 said:
Depending solely on social security to live off is a horrible idea. That said you definitely DO NOT want to retire in a state that taxes social security or any other pension you have when you retire.
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It might be a horrible idea to rely solely on SS, but he is right -- depending on where you live, you might be able to live off of just social security if your house is paid off. By the time I retire, my house would've been paid off for many years and I figure I can either keep it or, if I am not in great health, sell it and pay cash for a smaller home and invest the rest.

I used to think I would never retire so I didn't invest in my 401k as much as I should have in my younger days. Many years later, I still think it is rather likely that I'll never fully retire. However, I'm hoping once I hit my mid 50s, I can quit the full-time gig and do some part-time consulting.
 
J

JockoJohnson

Golden Member
May 20, 2009
1,417
60
91
IndyColtsFan said:
Yeah, and not to mention that most of us have a 401K and what happens if the market crashes a decade or so before retirement? You may not be able to make it back before you retire.
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Hopefully a decade before retirement, one would not be fully vested in risky stocks and have it diversified enough to sustain a crash.
 
E

Exterous

Super Moderator
Jun 20, 2006
20,469
3,588
126
IndyColtsFan said:
That might be, but you could still lose a huge chunk of change regardless.
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I think too many people get the idea that retirement is a set date. Since it depends on factors outside your control there will likely be at least a couple of year swing either way. Even with the Great Recession a properly balanced portfolio only would have needed about 4 years to recover assuming continued contributions
 
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Mai72

Mai72

Lifer
Sep 12, 2012
11,562
1,741
126
Isn't a 401k tied into the stock market? I was reading about the disadvantages that come with a 401k and there seem to be many that most people don't know about. I asked my brother if he watches his 401k and he said "no." He works for the post office so they match what he puts in. The point I'm making is most people don't know what the hell they are doing and that's scary.

I'm reading "Start Late, Finish Rich" by David Bach. I've only started but he seems to have some pretty solid ideas to start saving even if you are in your 50s. It's going to take a lot of work, but it's a lot better than not doing anything.

Researchers have found that most people misjudge how much they actually need to retire. If you expect to retire at 62 you're going to need income that's going to last another 20 years. People are living much longer now. That's a good thing, but it can get very costly. Hospital visits increase. You might need expensive treatments, etc..

Finally, when I was in Thailand I met quite a few retires from America and Europe. They go there to live because it's a lot cheaper, and the hospitals in Bangkok are very good. Who knows what SE Asia will be like in 20-30 years, but it might be a solution for many older retires. The dollar will get you a lot more. That's if it doesn't collapse by then.
 
U

unokitty

Diamond Member
Jan 5, 2012
3,346
1
0
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Mai72 said:
...
Finally, when I was in Thailand I met quite a few retires from America and Europe. They go there to live because it's a lot cheaper, and the hospitals in Bangkok are very good. Who knows what SE Asia will be like in 20-30 years, but it might be a solution for many older retires. The dollar will get you a lot more. That's if it doesn't collapse by then.
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Chiang Mai Things to do.

Chiang Mai, you could do a lot worse...

Uno
 
E

Exterous

Super Moderator
Jun 20, 2006
20,469
3,588
126
Mai72 said:
Isn't a 401k tied into the stock market?
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There can be foreign market options, bonds, money market, TIPS, even annuities in a 401k now. It depends on the plan but I believe 401ks are required to have bond fund and a stable value fund, maybe even a money market (or it might be '2 of the 3 following options' type of thing)
 
J

Jhhnn

IN MEMORIAM
Nov 11, 1999
62,365
14,681
136
pcgeek11 said:
Sounds about right.

I already draw one pension. I am almost done with my second career and it also has a Company paid pension. Add that to my SS Income, Savings, 401K and investments...

I should be in good shape and will not have to commit suicide. Whew!
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Heh. Your pension is being paid by younger people who contribute to the fund. It's exactly the kind of Ebil Soshulism Zaap raves about. If you think your own contributions earn enough to provide it for the rest of your life, you're as delusional as he is.

One of the prominent features of trickle down Reaganomics is the pension plan- it's the work 'til you die plan for most Americans, brought to you by the Freedom-loving financial elite & their delusional followers.
 
hal2kilo

hal2kilo

Lifer
Feb 24, 2009
24,137
10,825
136
IndyColtsFan said:
That might be, but you could still lose a huge chunk of change regardless.
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It really sucks right now. I recently turned 60, I have a huge chunk of money in my 401k but I 'll be damned if anyone has a clue as to what's a safe place to park your money in these days.
 
J

Jhhnn

IN MEMORIAM
Nov 11, 1999
62,365
14,681
136
Mai72

Mai72

Lifer
Sep 12, 2012
11,562
1,741
126
Jhhnn said:
But life in Thailand is so carefree!
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For those who have the money.

The problem is people get there and go crazy. Booze and girls are big issues. They end up depleting their cash reserves in 6 months and then they're stuck with nowhere to turn.

You can live a nice life if you watch your spending. You can have fun, but if you're bringing bar girls home and drinking alcohol on a daily basis, you are probably going to have money issues.
 
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Nebor

Nebor

Lifer
Jun 24, 2003
29,582
12
76
Mai72 said:
For those who have the money.

The problem is people get there and go crazy. Booze and girls are big issues. They end up depleting their cash reserves in 6 months and then they're stuck with nowhere to turn.

You can live a nice life if you watch your spending. You can have fun, but if you're bringing bar girls home and drinking alcohol on a daily basis, you are probably going to have money issues.
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I know several single Army officers that retired to Thailand. A $4,000 a month pension goes a long way there.
 
Mai72

Mai72

Lifer
Sep 12, 2012
11,562
1,741
126
Nebor said:
I know several single Army officers that retired to Thailand. A $4,000 a month pension goes a long way there.
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You can live like a king on $4k a month. It all depends on where you live. Bangkok is expensive, but if you go to a typical village you could live easily on $2k a month. The average salary for a Thai worker is $12k baht ($370 USD) a month. Do the math.

The one downside to living in Thailand is you can't own property as a foreigner. The other downside is if you disrespect the king you will find yourself in jail for 5-10 years.

America it is not.

*Vietnam, Cambodia, and Laos have become favorites for retires as well.
 
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Zaap

Zaap

Diamond Member
Jun 12, 2008
7,162
424
126
IndyColtsFan said:
Yeah, and not to mention that most of us have a 401K and what happens if the market crashes a decade or so before retirement? You may not be able to make it back before you retire.
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If a person is really an investor and not a play-trader, market "crashes" are almost like a free money ATM machine.

My Dad for example, jokes that he made more money after the "crash" of 2009 (while in retirement of course, which he has been for years) than he ever did in any single stretch of years prior- except maybe for a very select few market "crashes" before then.

But then again, he and people like him are investors- not play-traders. Play-traders should just keep their money out of the market really. Complaining you lost everything in a "crash" which for others who actually know what they are doing is a major boom-time, is just being stupid really. People that know what they are doing don't risk any catastrophic amount of their assets to any single event, can spot most "crashes" coming while everyone else is piddling around and ignoring the avalanche of warning advice coming from other people who also know what-the-fuck they are doing... and then make out like bandits picking up deals for cheap while all the play-traders are whining and selling.
 
Ken g6

Ken g6

Programming Moderator, Elite Member
Moderator
Dec 11, 1999
16,330
4,005
75
I'd say this depends a lot on whether Social Security is there when I retire. If they'd remove the cap on the Social Security tax, there'd be no problem. As it is...I'm glad I'm saving. ():)
 
K

Knowing

Golden Member
Mar 18, 2014
1,522
13
46
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Are we allowed to save? I thought we were supposed to buy everything on credit to keep the money moving like good Keynesians, ignoring of course that trillions are locked up in banks not moving because the banks are being paid not to lend it.
 
M

Mursilis

Diamond Member
Mar 11, 2001
7,756
11
81
Hayabusa Rider said:
It's grand how everyone here assumes life just let's you save and then you can have your golden years. Reality doesn't work like that.
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My reality does. It's one of the reasons my car (truck, really) is 17 years old - I'm trying to avoid wasting too much money on consumer crap. I hear friends whine all the time that they don't have extra money to put into savings, but they apparently do have extra money for the latest/greatest phone, tattoos, travel, etc. I've got a relative who constantly complaints he just can't afford to put money into his company 401K, but bought a Corvette and a vacation home at the beach! He's spending his retirement funds now, apparently.
 
J

Jhhnn

IN MEMORIAM
Nov 11, 1999
62,365
14,681
136
Exterous said:
I think too many people get the idea that retirement is a set date. Since it depends on factors outside your control there will likely be at least a couple of year swing either way. Even with the Great Recession a properly balanced portfolio only would have needed about 4 years to recover assuming continued contributions
Click to expand...

And if you're already retired & depend on your investments for income, it eats away at your principal at a higher rate, reducing your potential to earn.

Truth is that the great recession has been a lot harder on middle America than most people realize, particularly Conservatives. Part of the reason that the labor participation rate is so low is that older people have been forced into early retirement or disability to maintain any cashflow at all. Lots of serious downsizing of lifestyle accompanies that.
 
pcgeek11

pcgeek11

Lifer
Jun 12, 2005
21,595
4,666
136
Jhhnn said:
Heh. Your pension is being paid by younger people who contribute to the fund. It's exactly the kind of Ebil Soshulism Zaap raves about. If you think your own contributions earn enough to provide it for the rest of your life, you're as delusional as he is.

One of the prominent features of trickle down Reaganomics is the pension plan- it's the work 'til you die plan for most Americans, brought to you by the Freedom-loving financial elite & their delusional followers.
Click to expand...

And how in the hell would you know?

Right, you don't. You just like to make shit up.

As I stated earlier:

I have one Retirement ( military ) already.
Working at a company that has a fully paid company plan.
401K Savings
Regular savings and investments.
 
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