Retirement Targets
- Thread starter yowza
- Start date
I saved enough so I can drink good beer. And good wine and whiskey.
Our target is 100% income replacement even though it wouldn't need to be, but we will see. So far on track. A lot depends on the next 10 years or so as to when we pull the eject lever. What economy and markets do, and hopefully don't run into the age discrimination deal if needing to change employers. I know they say age discrimination is illegal, but its there for sure. Younger folks are cheaper even if maybe they are more likely to jump ship.
Hey I'm there too. I usually will start out with one of those and then switch to the cheap stuff(old habits are hard to break.).
For 401K? Just dump as much as you can in it, and choose a good low cost index fund like VTSAX and let it go. And then convert it to vanguard when you move to the next job.
Ya that's what I've done at my last 2 places, just wasn't sure if anyone had any hidden gems
Keep in mind that "prudential" doesn't necessarily mean anything. Your employer has some decisions on what Prudential offers you. With that said, most offer a low cost S&P500 index fund. With 25-30 years until retirement, you don't need to be cute.
Just an FYI. Maybe someone else on here has a personal point of reference for cost.
"According to a LifePlans, Inc. survey, the average annual long-term care insurance premium is $2,727. That provides a benefit of $161 per day for nursing home care for a set number of years (four is most common)."
"According to a LifePlans, Inc. survey, the average annual long-term care insurance premium is $2,727. That provides a benefit of $161 per day for nursing home care for a set number of years (four is most common)."
Well, these guys have some of the best insurance policies at lower cost, including long term care. You do have to be a member to get a policy though.
http://www.kofc.org/en/insurance/long-term-care.html
I'm here for any and all spreadsheet geekery. Maybe a Dropbox or Google Drive link? Or links to where you found those Social Security breakeven spreadsheets.
Is this rhetorical? Most of us on this board are basically "in the know" because we actually attended Iowa State and got a great education. We didn't go to Kirkwood and buy our fanbase shirts at Walmart and hang out in taverns. That's why we are pretty successful in life.
Really so you are saying that by attending ISU that makes you "in the know" and therefore you are insured a great education and well paying job because of it.
There are many great academic intuitions in this country, not just ISU. I do not consider myself "less" of an ISU fan just because I received my BA from a D3 school and not ISU. My kids do not cheer louder or attend more games at ISU than I do, just because they attended school in Ames and graduated from there.
The point I was trying to make that you linked was college educated people save more for retirement than non college educated because they generally have a larger salary base and can save more of it. That idea would apply whether you graduated from ISU, another school, work in the trades or own a business.
I guess I am just a Tavern CLONE, even though I rarely go into a tavern anymore. I tend to drink at home with my wife from my kegerator saving me money for my FB season tickets and cruises.
Having been a loan officer, I can say your savings and salary theory doesn’t hold water. It is more generational than educational. Younger folks seem to save better than the older generations.
Haha, no it was a joke. Calm down. Higher learning is higher learning. I never put down that equation whether it's trade school or college. Bettering oneself is great no matter who, even for the individuals who go to Kirkwood and follow the hawks. I'm just going to give them a little more crap.
I'm thankful because my dad was keen on teaching me more about finances than what HS ever taught me. Got involved with cattle, thus lowering my need for loans later on.
And yes, that is much cheaper nowadays. Crazy how cheap college bars are/were to make any money nowadays.
Younger people are forced to save for retirement because pensions from your employer for the most part have gone away. Education, police and working for the state or city in some capacity are some of few jobs left that actually have a pension plan. Most businesses and factories have switched over to a 401K type of retirement system. So younger people are forced by the system to become educated about their retirement, while the pension plan allowed you to make those donations and forget about them. Both systems have their pluses and minuses.
I never understood that philosophy one bit at all. A pension individual will work roughly 32 years. From 23-55 years of age approximately. Figuring that the median life expectancy is about 80. That says you will spend roughly 25 years in retirement; nearly as long as you are employed. Now, I don't know very many people that don't know what they make for a wage or salary and/or try to figure where they will be 1,5,10 years from now for a wage.
So why not understand the situation. The decline of pensions and SS has actually been the main driver of having more informed investors and will be what cleans up the SS situation, since less will be as dependent on it as a large source of their retirement income. Had this direction been pushed back in the 40s (FDR actually wanted individual private accounts when he originally pushed the SS idea), I believe many of the pains would not be an issue.
